November 1, 2006 - QUARTERLY FINANCIAL SUPPLEMENT FOR THE QUARTERLY PERIOD ENDED 9/30/06 - 8-K: Current report

Exhibit 99.1

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Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

THIRD 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.

November 1, 2006

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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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 And Assets Under Management Information for Asset Management Segment		21
Supplementary Assets Under Management and Assets Under Administration Information for Asset Management Segment		22
Supplementary Information for Financial Advisory Segment		23
Retirement Sales Results and Account Values		24

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

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

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2006 ACTUARIAL UPDATES		35

HISTORICAL SUPPLEMENTARY INFORMATION		36

KEY DEFINITIONS AND FORMULAS		37-39

RATINGS AND INVESTOR INFORMATION		40

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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This Quarterly Financial Supplement reflects the classification of results for the Company’s Canadian branch operations, formerly classified as “divested businesses”, as discontinued operations for all periods presented, as a result of the sale of this business in August, 2006.

In addition, the Asset Management segment’s supplemental revenue and assets under management and administration information has been modified to provide more meaningful presentation.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			% Change			2005				2006
2006	2005		% Change			3Q		4Q		1Q		2Q		3Q

					*Financial Services Businesses:*
					Pre-tax adjusted operating income by division:
1,010	862		17	%	Insurance Division	341		365		298		247		465
808	711		14	%	Investment Division	257		(4	)	240		316		252
1,168	1,039		12	%	International Insurance and Investments Division	383		377		382		358		428
78	126		-38	%	Corporate and other operations	50		76		26		37		15

3,064	2,738		12	%	Total pre-tax adjusted operating income	1,031		814		946		958		1,160
883	830		6	%	Income taxes, applicable to adjusted operating income	292		290		277		276		330

2,181	1,908		14	%	Financial Services Businesses after-tax adjusted operating income	739		524		669		682		830

					Items excluded from adjusted operating income:
(40)	563		-107	%	Realized investment gains (losses), net, and related charges and adjustments	79		(2	)	50		(311	)	221
(8)	(41	)	80	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(99	)	8		(114	)	(151	)	257
28	(10	)	380	%	Change in experience-rated contractholder liabilities due to asset value changes	47		(34	)	66		130		(168	)
13	(5	)	360	%	Divested businesses	(1	)	(11	)	13		(4	)	4

(7)	507		-101	%	Total items excluded from adjusted operating income, before income taxes	26		(39	)	15		(336	)	314
(31)	(480	)	94	%	Income taxes, not applicable to adjusted operating income	(572	)	79		3		(94	)	60

24	987		-98	%	Total items excluded from adjusted operating income, after income taxes	598		(118	)	12		(242	)	254

2,205	2,895		-24	%	Income from continuing operations (after-tax) of Financial Services Businesses	1,337		406		681		440		1,084
46	(53	)	187	%	Income (loss) from discontinued operations, net of taxes	(15	)	(29	)	(6	)	(16	)	68

2,251	2,842		-21	%	Net income of Financial Services Businesses	1,322		377		675		424		1,152

					Earnings per share of Common Stock (diluted):
4.48	3.76				Financial Services Businesses after-tax adjusted operating income	1.46		1.06		1.36		1.40		1.72
					Items excluded from adjusted operating income:
(0.08)	1.07				Realized investment gains (losses), net, and related charges and adjustments	0.15		—		0.10		(0.63	)	0.45
(0.02)	(0.08	)			Investment gains (losses) on trading account assets supporting insurance liabilities, net	(0.19	)	0.02		(0.23	)	(0.30	)	0.52
0.06	(0.02	)			Change in experience-rated contractholder liabilities due to asset value changes	0.09		(0.07	)	0.13		0.26		(0.34	)
0.03	(0.01	)			Divested businesses	—		(0.02	)	0.03		(0.01	)	0.01

(0.01)	0.96				Total items excluded from adjusted operating income, before income taxes	0.05		(0.07	)	0.03		(0.68	)	0.64
(0.06)	(0.92	)			Income taxes, not applicable to adjusted operating income	(1.11	)	0.16		—		(0.20	)	0.12

0.05	1.88				Total items excluded from adjusted operating income, after income taxes	1.16		(0.23	)	0.03		(0.48	)	0.52

4.53	5.64				Income from continuing operations (after-tax) of Financial Services Businesses	2.62		0.83		1.39		0.92		2.24
0.09	(0.10	)			Income (loss) from discontinued operations, net of taxes	(0.03	)	(0.05	)	(0.01	)	(0.03	)	0.14

4.62	5.54				Net income of Financial Services Businesses	2.59		0.78		1.38		0.89		2.38

497.8	524.5				Weighted average number of outstanding Common shares (diluted basis)	518.3		510.2		504.1		497.1		490.5
14.50%	12.99	%			Operating Return on Average Equity (based on adjusted operating income)	14.67	%	10.54	%	13.55	%	13.66	%	16.32	%
					*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
2,251	2,842				Net income of Financial Services Businesses (above)	1,322		377		675		424		1,152
140	334				Net income (loss) of Closed Block Business	42		(13	)	58		29		53

2,391	3,176				Consolidated net income	1,364		364		733		453		1,205

51	63				Direct equity adjustments for earnings per share calculations	19		19		19		16		16

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	5,572	9,447	9,685	9,723	9,418
		Long-term debt	7,053	6,520	7,284	7,520	7,464

		Attributed Equity:
		Including accumulated other comprehensive income	22,493	21,654	21,229	20,424	22,053
		Excluding unrealized gains and losses on investments	21,025	20,206	20,426	20,444	21,015
		Excluding accumulated other comprehensive income	21,083	20,546	20,717	20,604	21,232

		Total Capitalization:
		Including accumulated other comprehensive income	29,546	28,174	28,513	27,944	29,517
		Excluding unrealized gains and losses on investments	28,078	26,726	27,710	27,964	28,479
		Excluding accumulated other comprehensive income	28,136	27,066	28,001	28,124	28,696

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	43.79	42.70	42.43	41.41	45.31
		Excluding unrealized gains and losses on investments	40.94	39.85	40.83	41.45	43.18
		Excluding accumulated other comprehensive income	41.05	40.52	41.41	41.78	43.62
		Number of diluted shares at end of period	513.6	507.1	500.3	493.2	486.7

		*Common Stock Price Range (based on closing price):*
79.06	68.30	High	68.30	77.96	77.48	78.89	79.06
71.47	52.62	Low	63.09	63.27	73.19	74.43	71.47
76.25	67.56	Close	67.56	73.19	75.81	77.70	76.25

		*Common Stock market capitalization (1)*	34,118	36,412	37,288	37,651	36,394

(1)	As of end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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OPERATIONS HIGHLIGHTS


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

		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Institutional customers	129.8	134.7	138.7	138.5	147.9
		Retail customers	70.5	73.5	75.6	75.1	75.9
		General account	156.3	159.2	157.8	159.7	163.8

		Total Investment Management and Advisory Services	356.6	367.4	372.1	373.3	387.6

		Non-proprietary assets under management	48.0	48.1	51.3	49.6	51.0

		Total managed by Investment Division	404.6	415.5	423.4	422.9	438.6
		Managed by International Insurance and Investments Division	73.0	71.4	74.5	82.6	82.2
		Managed by Insurance Division	44.0	44.6	49.5	62.9	65.4

		Total assets under management	521.6	531.5	547.4	568.4	586.2
		Client assets under administration	96.9	92.5	100.0	101.6	105.8

		Total assets under management and administration	618.5	624.0	647.4	670.0	692.0

		Assets managed or administered for customers outside of the United States at end of period	108.8	100.4	105.3	114.0	115.5

		*Distribution Representatives (1):*
		Prudential Agents	3,212	2,946	2,850	2,844	2,814
		International Life Planners	5,626	5,627	5,712	5,726	5,802
		Gibraltar Life Advisors	5,349	5,436	5,716	5,684	6,036

47	40	*Prudential Agent productivity ($ thousands)*	43	61	45	52	46

(1)	As of end of period.

(2)	At fair market value.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date			% Change			2005				2006
2006	2005		% Change			3Q		4Q		1Q		2Q		3Q

					Revenues (1):
7,694	7,678		0	%	Premiums	2,574		2,450		2,604		2,542		2,548
1,912	1,900		1	%	Policy charges and fee income	668		629		662		667		583
5,618	5,000		12	%	Net investment income	1,731		1,810		1,801		1,865		1,952
3,044	2,660		14	%	Asset management fees, commissions and other income	960		948		1,054		966		1,024

18,268	17,238		6	%	Total revenues	5,933		5,837		6,121		6,040		6,107

					Benefits and Expenses (1):

7,818	7,551		4	%	Insurance and annuity benefits	2,496		2,439		2,577		2,591		2,650
2,045	1,884		9	%	Interest credited to policyholders’ account balances	653		632		652		677		716
663	388		71	%	Interest expense	143		180		201		223		239
(1,492)	(1,362	)	-10	%	Deferral of acquisition costs	(444	)	(439	)	(501	)	(495	)	(496	)
431	738		-42	%	Amortization of acquisition costs	271		172		240		264		(73	)
5,739	5,301		8	%	General and administrative expenses	1,783		2,039		2,006		1,822		1,911

15,204	14,500		5	%	Total benefits and expenses	4,902		5,023		5,175		5,082		4,947

3,064	2,738		12	%	Adjusted operating income before income taxes	1,031		814		946		958		1,160

					Items excluded from adjusted operating income before income taxes:
(70)	667		-110	%	Realized investment gains (losses), net, and related adjustments	89		2		50		(334	)	214
30	(104	)	129	%	Related charges	(10	)	(4	)	—		23		7

(40)	563		-107	%	Total realized investment gains (losses), net, and related charges and adjustments	79		(2	)	50		(311	)	221

(8)	(41	)	80	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(99	)	8		(114	)	(151	)	257
28	(10	)	380	%	Change in experience-rated contractholder liabilities due to asset value changes	47		(34	)	66		130		(168	)
13	(5	)	360	%	Divested businesses	(1	)	(11	)	13		(4	)	4

(7)	507		-101	%	Total items excluded from adjusted operating income before income taxes	26		(39	)	15		(336	)	314

3,057	3,245		-6	%	Income from continuing operations before income taxes	1,057		775		961		622		1,474
852	350		143	%	Income tax expense (benefit)	(280	)	369		280		182		390

2,205	2,895		-24	%	Income from continuing operations	1,337		406		681		440		1,084

(1)

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	9/30/2005	12/31/2005	3/31/2006	6/30/2006		9/30/2006

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $99,424; $101,672; $102,220; $107,756; $105,750)	103,300	105,188	104,276	108,150		108,346
Fixed maturities, held to maturity, at amortized cost (fair value $3,049; $3,228; $3,397; $3,416; $3,400)	3,051	3,249	3,430	3,555		3,473
Trading account assets supporting insurance liabilities, at fair value	14,208	13,781	13,877	14,239		14,453
Other trading account assets, at fair value	1,409	1,443	2,358	4,561		1,933
Equity securities, available for sale, at fair value (cost $2,243; $2,206; $2,249; $2,415; $2,486)	2,584	2,627	2,724	2,801		2,893
Commercial loans	17,167	17,177	17,721	18,018		18,139
Policy loans	2,959	2,967	3,094	3,253		3,350
Securities purchased under agreements to resell	146	413	103	2,242		187
Other long-term investments	4,341	4,495	4,920	5,049		4,827
Short-term investments	2,160	2,565	2,404	2,768		2,705

Total investments	151,325	153,905	154,907	164,636		160,306
Cash and cash equivalents	6,124	5,493	5,915	6,521		7,361
Accrued investment income	1,402	1,358	1,400	1,433		1,466
Reinsurance recoverables	3,673	3,548	3,480	1,869		1,908
Deferred policy acquisition costs	8,131	8,357	8,776	9,239		9,540
Other assets	14,975	15,069	16,279	19,188		17,442
Separate account assets	155,400	157,561	170,134	166,735		175,363

Total assets	341,030	345,291	360,891	369,621		373,386

Liabilities:
Future policy benefits	52,936	51,926	52,838	55,520		55,423
Policyholders’ account balances	71,205	69,924	70,482	74,122		75,429
Reinsurance payables	3,210	3,069	2,994	1,351		1,405
Securities sold under agreements to repurchase	5,682	6,801	7,141	9,564		6,256
Cash collateral for loaned securities	2,995	3,425	3,139	3,834		3,797
Income taxes payable	2,084	2,136	2,500	1,969		2,827
Securities sold but not yet purchased	207	223	132	2,152		313
Short-term debt	5,572	9,447	9,685	9,723		9,418
Long-term debt	7,053	6,520	7,284	7,520		7,464
Other liabilities	12,193	12,605	13,333	16,707		13,638
Separate account liabilities	155,400	157,561	170,134	166,735		175,363

Total liabilities	318,537	323,637	339,662	349,197		351,333

Attributed Equity:
Accumulated other comprehensive income (loss)	1,410	1,108	512	(180	)	821
Other attributed equity	21,083	20,546	20,717	20,604		21,232

Total attributed equity	22,493	21,654	21,229	20,424		22,053

Total liabilities and attributed equity	341,030	345,291	360,891	369,621		373,386

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended September 30, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,548		1,027		84		1,438		(1	)
Policy charges and fee income	583		474		45		70		(6	)
Net investment income	1,952		466		932		376		178
Asset management fees, commissions and other income	1,024		238		620		172		(6	)

Total revenues	6,107		2,205		1,681		2,056		165

Benefits and Expenses (1):
Insurance and annuity benefits	2,650		1,225		297		1,112		16
Interest credited to policyholders’ account balances	716		196		475		66		(21	)
Interest expense	239		37		63		3		136
Deferral of acquisition costs	(496	)	(235	)	(25	)	(242	)	6
Amortization of acquisition costs	(73	)	(191	)	12		111		(5	)
General and administrative expenses	1,911		708		607		578		18

Total benefits and expenses	4,947		1,740		1,429		1,628		150

Adjusted operating income before income taxes	1,160		465		252		428		15


	Quarter Ended September 30, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,574		912		106		1,562		(6	)
Policy charges and fee income	668		559		46		67		(4	)
Net investment income	1,731		429		810		333		159
Asset management fees, commissions and other income	960		181		648		114		17

Total revenues	5,933		2,081		1,610		2,076		166

Benefits and Expenses (1):
Insurance and annuity benefits	2,496		938		296		1,250		12
Interest credited to policyholders’ account balances	653		180		431		54		(12	)
Interest expense	143		31		23		7		82
Deferral of acquisition costs	(444	)	(202	)	(13	)	(243	)	14
Amortization of acquisition costs	271		180		13		90		(12	)
General and administrative expenses	1,783		613		603		535		32

Total benefits and expenses	4,902		1,740		1,353		1,693		116

Adjusted operating income before income taxes	1,031		341		257		383		50

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Nine Months Ended September 30, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	7,694		3,014		206		4,488		(14	)
Policy charges and fee income	1,912		1,576		136		216		(16	)
Net investment income	5,618		1,328		2,706		1,049		535
Asset management fees, commissions and other income	3,044		579		2,013		482		(30	)

Total revenues	18,268		6,497		5,061		6,235		475

Benefits and Expenses (1):
Insurance and annuity benefits	7,818		3,439		801		3,539		39
Interest credited to policyholders’ account balances	2,045		557		1,356		184		(52	)
Interest expense	663		95		171		10		387
Deferral of acquisition costs	(1,492	)	(719	)	(69	)	(755	)	51
Amortization of acquisition costs	431		82		42		342		(35	)
General and administrative expenses	5,739		2,033		1,952		1,747		7

Total benefits and expenses	15,204		5,487		4,253		5,067		397

Adjusted operating income before income taxes	3,064		1,010		808		1,168		78


	Nine Months Ended September 30, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	7,678		2,785		250		4,660		(17	)
Policy charges and fee income	1,900		1,568		140		204		(12	)
Net investment income	5,000		1,283		2,345		953		419
Asset management fees, commissions and other income	2,660		481		1,856		321		2

Total revenues	17,238		6,117		4,591		6,138		392

Benefits and Expenses (1):
Insurance and annuity benefits	7,551		3,019		783		3,703		46
Interest credited to policyholders’ account balances	1,884		540		1,212		157		(25	)
Interest expense	388		81		70		19		218
Deferral of acquisition costs	(1,362	)	(601	)	(46	)	(761	)	46
Amortization of acquisition costs	738		433		41		301		(37	)
General and administrative expenses	5,301		1,783		1,820		1,680		18

Total benefits and expenses	14,500		5,255		3,880		5,099		266

Adjusted operating income before income taxes	2,738		862		711		1,039		126

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of September 30, 2006
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	160,306	33,000	64,822	51,050	11,434
Deferred policy acquisition costs	9,540	5,291	157	4,251	(159	)
Other assets	28,177	5,363	7,890	8,324	6,600
Separate account assets	175,363	88,218	88,299	128	(1,282	)

Total assets	373,386	131,872	161,168	63,753	16,593

Liabilities:
Future policy benefits	55,423	7,595	14,541	32,790	497
Policyholders’ account balances	75,429	20,877	40,851	15,328	(1,627	)
Debt	16,882	2,478	2,083	1,002	11,319
Other liabilities	28,236	6,261	9,243	8,490	4,242
Separate account liabilities	175,363	88,218	88,299	128	(1,282	)

Total liabilities	351,333	125,429	155,017	57,738	13,149

Attributed Equity:
Accumulated other comprehensive income (loss)	821	238	102	518	(37	)
Other attributed equity	21,232	6,205	6,049	5,497	3,481

Total attributed equity	22,053	6,443	6,151	6,015	3,444

Total liabilities and attributed equity	373,386	131,872	161,168	63,753	16,593


	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

Third Quarter 2006

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of September 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	255	4,119	4,374		353	3,846	4,199
Investment related	5,388	3,235	8,623		5,442	2,449	7,891
Securities business related	2,431	—	2,431		2,758	107	2,865
Specified other businesses	1,342	56	1,398		893	63	956
Limited recourse and non-recourse borrowing	2	54	56		1	55	56

Total debt - Financial Services Businesses	9,418	7,464	16,882		9,447	6,520	15,967

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

Closed Block Business
Investment related	1,347	—	1,347		1,667	—	1,667
Limited recourse and non-recourse borrowing	—	1,750	1,750		—	1,750	1,750

Total debt	1,347	1,750	3,097		1,667	1,750	3,417


	As of September 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	3,076	1,298	—	4,374	2,902	1,297	—	4,199
Investment related	4,960	3,663	—	8,623	4,173	3,718	—	7,891
Securities business related	909	1,399	123	2,431	1,117	1,173	575	2,865
Specified other businesses	55	1,257	86	1,398	116	692	148	956
Limited recourse and non-recourse borrowing	—	—	56	56	—	—	56	56

Total debt - Financial Services Businesses	9,000	7,617	265	16,882	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 September 30, 2006 and December 31, 2005.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year-to-date				% Change			2005				2006
2006		2005		% Change			3Q		4Q		1Q		2Q		3Q
						Revenues (1):
3,014		2,785		8	%	Premiums	912		943		982		1,005		1,027
1,576		1,568		1	%	Policy charges and fee income	559		530		543		559		474
1,328		1,283		4	%	Net investment income	429		428		421		441		466
579		481		20	%	Asset management fees, commissions and other income	181		161		175		166		238

6,497		6,117		6	%	Total revenues	2,081		2,062		2,121		2,171		2,205

						Benefits and Expenses (1):
3,439		3,019		14	%	Insurance and annuity benefits	938		994		1,070		1,144		1,225
557		540		3	%	Interest credited to policyholders’ account balances	180		175		180		181		196
95		81		17	%	Interest expense	31		30		30		28		37
(719	)	(601	)	-20	%	Deferral of acquisition costs	(202	)	(196	)	(256	)	(228	)	(235	)
82		433		-81	%	Amortization of acquisition costs	180		112		131		142		(191	)
2,033		1,783		14	%	General and administrative expenses	613		582		668		657		708

5,487		5,255		4	%	Total benefits and expenses	1,740		1,697		1,823		1,924		1,740

1,010		862		17	%	Adjusted operating income before income taxes	341		365		298		247		465

(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

Third Quarter 2006

LOGO

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Quarter Ended September 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	1,027		135		892		109		26
Policy charges and fee income	474		387		87		117		270
Net investment income	466		308		158		139		169
Asset management fees, commissions and other income	238		220		18		102		118

Total revenues	2,205		1,050		1,155		467		583

Benefits and Expenses (1):
Insurance and annuity benefits	1,225		366		859		300		66
Interest credited to policyholders’ account balances	196		144		52		51		93
Interest expense	37		35		2		20		15
Deferral of acquisition costs	(235	)	(222	)	(13	)	(91	)	(131	)
Amortization of acquisition costs	(191	)	(192	)	1		(220	)	28
General and administrative expenses (2)	708		544		164		224		320

Total benefits and expenses	1,740		675		1,065		284		391

Adjusted operating income before income taxes	465		375		90		183		192


	Quarter Ended September 30, 2005
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues (1):
Premiums	912		110		802		97		13
Policy charges and fee income	559		483		76		298		185
Net investment income	429		282		147		126		156
Asset management fees, commissions and other income	181		168		13		81		87

Total revenues	2,081		1,043		1,038		602		441

Benefits and Expenses (1):
Insurance and annuity benefits	938		149		789		133		16
Interest credited to policyholders’ account balances	180		130		50		43		87
Interest expense	31		27		4		18		9
Deferral of acquisition costs	(202	)	(187	)	(15	)	(79	)	(108	)
Amortization of acquisition costs	180		179		1		152		27
General and administrative expenses (2)	613		464		149		215		249

Total benefits and expenses	1,740		762		978		482		280

Adjusted operating income before income taxes	341		281		60		120		161

(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 $33 million for the quarter ended September 30, 2006 and $21 million for the quarter ended September 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

Third Quarter 2006

LOGO

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Nine Months Ended September 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	3,014		369		2,645		312		57
Policy charges and fee income	1,576		1,348		228		653		695
Net investment income	1,328		867		461		403		464
Asset management fees, commissions and other income	579		532		47		243		289

Total revenues	6,497		3,116		3,381		1,611		1,505

Benefits and Expenses (1):
Insurance and annuity benefits	3,439		826		2,613		660		166
Interest credited to policyholders’ account balances	557		408		149		149		259
Interest expense	95		90		5		55		35
Deferral of acquisition costs	(719	)	(637	)	(82	)	(254	)	(383	)
Amortization of acquisition costs	82		81		1		(55	)	136
General and administrative expenses (2)	2,033		1,504		529		644		860

Total benefits and expenses	5,487		2,272		3,215		1,199		1,073

Adjusted operating income before income taxes	1,010		844		166		412		432


	Nine Months Ended September 30, 2005
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues (1):
Premiums	2,785		332		2,453		282		50
Policy charges and fee income	1,568		1,349		219		818		531
Net investment income	1,283		837		446		370		467
Asset management fees, commissions and other income	481		449		32		212		237

Total revenues	6,117		2,967		3,150		1,682		1,285

Benefits and Expenses (1):
Insurance and annuity benefits	3,019		585		2,434		456		129
Interest credited to policyholders’ account balances	540		387		153		129		258
Interest expense	81		68		13		48		20
Deferral of acquisition costs	(601	)	(540	)	(61	)	(232	)	(308	)
Amortization of acquisition costs	433		430		3		294		136
General and administrative expenses (2)	1,783		1,319		464		631		688

Total benefits and expenses	5,255		2,249		3,006		1,326		923

Adjusted operating income before income taxes	862		718		144		356		362

(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 $59 million for the nine months ended September 30, 2006 and $37 million for the nine months ended September 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

Third Quarter 2006

LOGO

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

(in millions)


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

			SALES AND ACCOUNT VALUES:
			Variable Annuities:
50,778	47,418		Beginning total account value	47,402		49,484		50,778		53,181		68,807
6,952	5,142		Sales	1,930		1,964		2,129		2,500		2,323
(5,426)	(4,255	)	Surrenders and withdrawals	(1,397	)	(1,436	)	(1,585	)	(1,757	)	(2,084	)

1,526	887		Net sales	533		528		544		743		239
(654)	(520	)	Benefit payments	(179	)	(158	)	(185	)	(225	)	(244	)

872	367		Net flows	354		370		359		518		(5	)
3,240	2,193		Change in market value, interest credited, and other	1,904		1,106		2,228		(1,000	)	2,012
(647)	(494	)	Policy charges	(176	)	(182	)	(184	)	(204	)	(259	)
16,312	—		Acquisition	—		—		—		16,312		—

70,555	49,484		Ending total account value	49,484		50,778		53,181		68,807		70,555

			Fixed Annuities:
3,991	3,879		Beginning total account value	4,064		4,033		3,991		3,941		3,871
93	334		Sales	39		27		28		32		33
(236)	(165	)	Surrenders and withdrawals	(56	)	(66	)	(69	)	(92	)	(75	)

(143)	169		Net sales (redemptions)	(17	)	(39	)	(41	)	(60	)	(42	)
(126)	(119	)	Benefit payments	(35	)	(41	)	(43	)	(42	)	(41	)

(269)	50		Net flows	(52	)	(80	)	(84	)	(102	)	(83	)
95	108		Interest credited and other	22		39		35		33		27
(3)	(4	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)

3,814	4,033		Ending total account value	4,033		3,991		3,941		3,871		3,814

			SALES BY DISTRIBUTION CHANNEL:
			Variable and Fixed Annuities (1):
1,352	1,103		Insurance Agents	373		391		405		481		466
717	366		Wirehouses	149		176		194		266		257
4,976	4,007		Independent Financial Planners (2)	1,447		1,424		1,558		1,785		1,633

7,045	5,476		Total	1,969		1,991		2,157		2,532		2,356

			VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (3):
			Return of net deposits:
			Account value	27,646		28,290		29,988		32,897		34,288
			Net amount at risk	2,085		1,974		1,751		1,870		1,724
			Minimum return, anniversary contract value, or maximum contract value:
			Account value	16,528		17,022		17,755		30,594		30,942
			Net amount at risk	1,918		1,809		1,600		3,378		3,009

			Variable Annuity Account Values with Living Benefit Features (3):
			Guaranteed minimum accumulation benefits	6,823		7,162		7,738		9,231		9,667
			Guaranteed minimum withdrawal benefits	765		815		885		1,678		1,853
			Guaranteed minimum income benefits	2,941		3,052		3,203		7,047		7,113
			Guaranteed minimum withdrawal & income benefits	1,870		2,951		4,155		5,304		6,678

			Total	12,399		13,980		15,981		23,260		25,311

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

(3)	At end of period.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

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

(in millions)


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

			SALES:
			Excluding corporate-owned life insurance:
70	56		Variable life	19		27		21		24		25
117	158		Universal life	54		56		40		43		34
100	89		Term life	30		33		31		34		35

287	303		Total excluding corporate-owned life insurance	103		116		92		101		94
10	5		Corporate-owned life insurance	3		2		1		4		5

297	308		Total	106		118		93		105		99

			SALES BY DISTRIBUTION CHANNEL:
			Excluding corporate-owned life insurance:
127	162		Prudential Agents	48		50		45		45		37
160	141		Third party distribution	55		66		47		56		57
10	5		Corporate-owned life insurance	3		2		1		4		5

297	308		Total	106		118		93		105		99

			ACCOUNT VALUE ACTIVITY:
			*Policyholders’ Account Balances (1):*
5,694	5,284		Beginning balance	5,532		5,619		5,694		5,802		5,891
938	919		Premiums and deposits	287		289		307		332		299
(804)	(599	)	Surrenders and withdrawals	(212	)	(216	)	(242	)	(278	)	(284	)

134	320		Net sales	75		73		65		54		15
(105)	(87	)	Benefit payments	(29	)	(39	)	(37	)	(32	)	(36	)

29	233		Net flows	46		34		28		22		(21	)
292	109		Interest credited and other	42		45		83		60		149
180	139		Net transfers from separate account	50		49		55		66		59
(177)	(146	)	Policy charges	(51	)	(53	)	(58	)	(59	)	(60	)

6,018	5,619		Ending balance	5,619		5,694		5,802		5,891		6,018

			*Separate Account Liabilities:*
16,170	15,180		Beginning balance	15,207		15,808		16,170		16,682		16,313
931	949		Premiums and deposits	308		407		301		332		298
(548)	(504	)	Surrenders and withdrawals	(206	)	(149	)	(177	)	(198	)	(173	)

383	445		Net sales	102		258		124		134		125
(25)	(13	)	Benefit payments	(4	)	(5	)	(9	)	(9	)	(7	)

358	432		Net flows	98		253		115		125		118
999	939		Change in market value, interest credited and other	756		359		653		(228	)	574
(180)	(139	)	Net transfers to general account	(50	)	(49	)	(55	)	(66	)	(59	)
(600)	(604	)	Policy charges	(203	)	(201	)	(201	)	(200	)	(199	)

16,747	15,808		Ending balance	15,808		16,170		16,682		16,313		16,747

			FACE AMOUNT IN FORCE (2):
			Variable life	143,186		142,408		141,962		140,629		140,139
			Universal life	17,862		18,835		19,639		20,318		21,017
			Term life	190,913		201,139		210,589		221,072		231,971

			Total	351,961		362,382		372,190		382,019		393,127

(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

Third Quarter 2006

LOGO

INSURANCE DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date				2005				2006
2006	2005			3Q		4Q		1Q		2Q		3Q
			INDIVIDUAL ANNUITIES:
			Account Values in General Account (1):
9,231	9,613		Beginning balance	9,782		9,437		9,231		8,850		10,722
352	580		Premiums and deposits	87		69		74		96		182
(936)	(685	)	Surrenders and withdrawals	(202	)	(250	)	(273	)	(313	)	(350	)

(584)	(105	)	Net redemptions	(115	)	(181	)	(199	)	(217	)	(168	)
(287)	(231	)	Benefit payments	(67	)	(72	)	(94	)	(92	)	(101	)

(871)	(336	)	Net flows	(182	)	(253	)	(293	)	(309	)	(269	)
273	273		Interest credited and other	91		88		86		89		98
37	(107	)	Net transfers (to) from separate account	(252	)	(39	)	(173	)	539		(329	)
(2)	(6	)	Policy charges	(2	)	(2	)	(1	)	(1	)	—
1,554	—		Acquisition	—		—		—		1,554		—

10,222	9,437		Ending balance	9,437		9,231		8,850		10,722		10,222

			Account Values in Separate Account:
45,538	41,684		Beginning balance	41,684		44,080		45,538		48,272		61,956
6,692	4,896		Premiums and deposits	1,882		1,922		2,083		2,436		2,173
(4,726)	(3,736	)	Surrenders and withdrawals	(1,251	)	(1,252	)	(1,380	)	(1,537	)	(1,809	)

1,966	1,160		Net sales	631		670		703		899		364
(493)	(407	)	Benefit payments	(146	)	(127	)	(134	)	(175	)	(184	)

1,473	753		Net flows	485		543		569		724		180
3,063	2,028		Change in market value, interest credited and other	1,834		1,057		2,177		(1,056	)	1,942
(37)	107		Net transfers (to) from general account	252		39		173		(539	)	329
(648)	(492	)	Policy charges	(175	)	(181	)	(185	)	(203	)	(260	)
14,758	—		Acquisition	—		—		—		14,758		—

64,147	44,080		Ending balance	44,080		45,538		48,272		61,956		64,147

(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

Third Quarter 2006

LOGO

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


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

				INDIVIDUAL LIFE INSURANCE:
3,187		3,151		Beginning balance	3,162		3,158		3,187		3,253		3,277
254		232		Capitalization	79		82		80		83		91
55		(294	)	Amortization - operating results	(152	)	(75	)	(74	)	(91	)	220
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
12		69		Impact of unrealized (gains) or losses on AFS securities	69		22		60		32		(80	)

3,508		3,158		Ending balance	3,158		3,187		3,253		3,277		3,508

				INDIVIDUAL ANNUITIES:
1,256		907		Beginning balance	1,049		1,155		1,256		1,337		1,470
383		308		Capitalization	108		113		119		133		131
(136	)	(136	)	Amortization - operating results	(27	)	(37	)	(57	)	(51	)	(28	)
20		(3	)	Amortization - realized investment gains and losses	(4	)	2		—		8		12
9		79		Impact of unrealized (gains) or losses on AFS securities	29		23		19		43		(53	)

1,532		1,155		Ending balance	1,155		1,256		1,337		1,470		1,532

				GROUP INSURANCE:
170		111		Beginning balance	155		169		170		227		239
82		61		Capitalization	15		1		57		12		13
(1	)	(3	)	Amortization - operating results	(1	)	—		—		—		(1	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

251		169		Ending balance	169		170		227		239		251

				TOTAL INSURANCE DIVISION:
4,613		4,169		Beginning balance	4,366		4,482		4,613		4,817		4,986
719		601		Capitalization	202		196		256		228		235
(82	)	(433	)	Amortization - operating results	(180	)	(112	)	(131	)	(142	)	191
20		(3	)	Amortization - realized investment gains and losses	(4	)	2		—		8		12
21		148		Impact of unrealized (gains) or losses on AFS securities	98		45		79		75		(133	)

5,291		4,482		Ending balance	4,482		4,613		4,817		4,986		5,291

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


Year-to-date					2005				2006
2006		2005			3Q		4Q		1Q		2Q		3Q
				Individual Life Insurance:
				Policy Surrender Experience:
584		535		Cash value of surrenders	214		163		191		212		181
3.7	%	3.6	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	4.3	%	3.2	%	3.7	%	4.1	%	3.4	%
				Death benefits per $1,000 of in force (1):
3.23		2.97		Variable and universal life	2.95		3.04		2.87		3.59		3.22
1.41		1.25		Term life	1.27		0.89		1.09		1.64		1.92
2.80		2.64		Total, Individual Life Insurance	2.63		2.63		2.50		3.20		2.93

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

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


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

				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
329		336		Group life	32		34		206		25		98
121		137		Group disability (1)	15		17		74		18		29

450		473		Total	47		51		280		43		127

				Future Policy Benefits (2):
				Group life	1,803		2,004		1,967		1,980		1,953
				Group disability (1)	395		413		474		496		498

				Total	2,198		2,417		2,441		2,476		2,451

				Policyholders’ Account Balances (2):
				Group life	4,555		4,916		4,935		5,178		5,325
				Group disability (1)	90		98		95		101		108

				Total	4,645		5,014		5,030		5,279		5,433

				Separate Account Liabilities (2):
				Group life	15,983		15,811		21,156		20,035		22,202
				Group disability (1)	—		—		—		—		—

				Total	15,983		15,811		21,156		20,035		22,202

				Group Life Insurance:
2,508		2,045		Gross premiums, policy charges and fee income (3)	668		964		791		954		763
2,291		2,115		Earned premiums, policy charges and fee income	694		707		755		752		784
92.4	%	89.7	%	Benefits ratio	89.5	%	86.4	%	92.1	%	95.4	%	89.8	%
9.0	%	9.6	%	Administrative operating expense ratio	10.3	%	7.3	%	9.4	%	7.9	%	10.0	%
				Persistency ratio	95.6	%	95.2	%	96.5	%	95.9	%	95.1	%

				Group Disability Insurance (1):
612		591		Gross premiums, policy charges and fee income (3)	193		190		199		203		210
582		557		Earned premiums, policy charges and fee income	184		182		189		198		195
85.4	%	96.2	%	Benefits ratio	91.3	%	92.9	%	87.3	%	89.4	%	79.5	%
21.2	%	20.6	%	Administrative operating expense ratio	20.7	%	21.6	%	21.6	%	21.7	%	20.5	%
				Persistency ratio	87.1	%	85.4	%	94.2	%	92.2	%	90.8	%

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

(2)	As of end of period.

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

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date				% Change			2005				2006
2006		2005		% Change			3Q		4Q		1Q		2Q		3Q
						Revenues (1):
206		250		-18	%	Premiums	106		70		92		30		84
136		140		-3	%	Policy charges and fee income	46		48		48		43		45
2,706		2,345		15	%	Net investment income	810		820		853		921		932
2,013		1,856		8	%	Asset management fees, commissions and other income	648		645		741		652		620

5,061		4,591		10	%	Total revenues	1,610		1,583		1,734		1,646		1,681

						Benefits and Expenses (1):
801		783		2	%	Insurance and annuity benefits	296		266		269		235		297
1,356		1,212		12	%	Interest credited to policyholders’ account balances	431		421		429		452		475
171		70		144	%	Interest expense	23		45		46		62		63
(69	)	(46	)	-50	%	Deferral of acquisition costs	(13	)	(15	)	(22	)	(22	)	(25	)
42		41		2	%	Amortization of acquisition costs	13		13		13		17		12
1,952		1,820		7	%	General and administrative expenses	603		857		759		586		607

4,253		3,880		10	%	Total benefits and expenses	1,353		1,587		1,494		1,330		1,429

808		711		14	%	Adjusted operating income before income taxes	257		(4	)	240		316		252

(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

Third Quarter 2006

LOGO

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Nine Months Ended September 30, 2006								Quarter Ended September 30, 2006
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory	Retirement
Revenues (1):
Premiums	206		—		—		206		84		—		—	84
Policy charges and fee income	136		—		—		136		45		—		—	45
Net investment income	2,706		148		24		2,534		932		55		6	871
Asset management fees, commissions and other income	2,013		1,266		408		339		620		388		120	112

Total revenues	5,061		1,414		432		3,215		1,681		443		126	1,112

Benefits and Expenses (1):
Insurance and annuity benefits	801		—		—		801		297		—		—	297
Interest credited to policyholders’ account balances	1,356		—		—		1,356		475		—		—	475
Interest expense	171		25		—		146		63		10		—	53
Deferral of acquisition costs	(69	)	(14	)	—		(55	)	(25	)	(3	)	—	(22	)
Amortization of acquisition costs	42		21		—		21		12		6		—	6
General and administrative expenses	1,952		976		418		558		607		330		83	194

Total benefits and expenses	4,253		1,008		418		2,827		1,429		343		83	1,003

Adjusted operating income before income taxes	808		406		14		388		252		100		43	109


	Nine Months Ended September 30, 2005								Quarter Ended September 30, 2005
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory	Retirement
Revenues (1):
Premiums	250		—		—		250		106		—		—	106
Policy charges and fee income	140		—		—		140		46		—		—	46
Net investment income	2,345		75		7		2,263		810		33		3	774
Asset management fees, commissions and other income	1,856		1,185		322		349		648		408		119	121

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

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

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

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

(1)

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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INVESTMENT DIVISION - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION FOR ASSET MANAGEMENT SEGMENT


				Supplementary Revenue Information (in millions):

Year-to-date		% Change			2005		2006
2006	2005	% Change			3Q	4Q	1Q	2Q	3Q

				Analysis of revenues by type:
715	653	9	%	Asset management fees	228	233	234	237	244
334	257	30	%	Incentive, transaction, principal investing and capital markets revenues	99	88	144	111	79
365	350	4	%	Service, distribution and other revenues	114	115	124	121	120

1,414	1,260	12	%	Total Asset Management segment revenues	441	436	502	469	443

				Analysis of asset management fees by source:
311	262	19	%	Institutional customers	94	97	98	102	111
227	213	7	%	Retail customers	74	76	76	76	75
177	178	-1	%	General account	60	60	60	59	58

715	653	9	%	Total asset management fees	228	233	234	237	244


Supplementary Assets Under Management Information (in billions):

	September 30, 2006
	Equity	Fixed Income	Real Estate	Total
Institutional customers	51.9	74.4	21.6	147.9
Retail customers	54.3	20.3	1.3	75.9
General account	3.7	159.3	0.8	163.8

Total	109.9	254.0	23.7	387.6


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

Total	101.1	236.3	19.2	356.6

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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INVESTMENT DIVISION - SUPPLEMENTARY ASSETS UNDER MANAGEMENT AND ADMINISTRATION INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in billions)


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

				Institutional Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
101.3		84.8		Beginning assets under management	91.1		95.0		101.3		106.7		107.1
19.4		15.6		Additions (1)	7.1		7.3		7.3		5.3		6.8
(12.0	)	(9.4	)	Withdrawals	(5.1	)	(3.1	)	(4.0	)	(4.4	)	(3.6	)
5.8		4.3		Change in market value	2.2		2.0		1.9		(0.4	)	4.3
0.5		(0.3	)	Net money market flows	(0.3	)	0.1		0.2		(0.1	)	0.4

115.0		95.0		Ending assets under management	95.0		101.3		106.7		107.1		115.0
32.9		34.8		Affiliated institutional assets under management	34.8		33.4		32.0		31.4		32.9

147.9		129.8		Total assets managed for institutional customers at end of period	129.8		134.7		138.7		138.5		147.9

7.4		6.2		Net institutional additions other than money market	2.0		4.2		3.3		0.9		3.2

				Retail Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
38.7		33.2		Beginning assets under management	33.6		36.8		38.7		40.5		40.7
7.9		5.5		Additions	2.5		3.3		2.7		3.3		1.9
(7.9	)	(5.9	)	Withdrawals	(2.0	)	(2.3	)	(2.3	)	(3.0	)	(2.6	)
1.6		3.1		Change in market value	2.2		1.0		1.3		(1.0	)	1.3
1.0		—		Net money market flows	—		0.1		0.1		0.9		—
—		0.9		Other (2)	0.5		(0.2	)	—		—		—

41.3		36.8		Ending assets under management	36.8		38.7		40.5		40.7		41.3
34.6		33.7		Affiliated retail assets under management	33.7		34.8		35.1		34.4		34.6

75.9		70.5		Total assets managed for retail customers at end of period	70.5		73.5		75.6		75.1		75.9

—		(0.4	)	Net retail additions (withdrawals) other than money market	0.5		1.0		0.4		0.3		(0.7	)

				Wrap-fee Product Assets Under Administration:
53.6		39.7		Beginning total wrap-fee product assets	45.1		50.2		53.6		59.1		60.5
17.7		16.4		Additions (3)	5.3		5.3		6.9		6.1		4.7
(10.9	)	(7.8	)	Withdrawals	(2.5	)	(3.0	)	(4.1	)	(3.6	)	(3.2	)
3.5		1.9		Change in market value	2.3		1.1		2.7		(1.1	)	1.9

63.9		50.2		Ending total wrap-fee product assets	50.2		53.6		59.1		60.5		63.9

6.8		8.6		Net wrap-fee product additions	2.8		2.3		2.8		2.5		1.5

(1)

Additions include $1.8 billion for the nine months ended September 30, 2006, $0.4 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.

(2)	Represents transfers of retail assets from or to non-Prudential managers.

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)


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

				Information pertaining to Wachovia Securities Financial Holdings, LLC:
				Revenues:
226		182		Net investment income	65		70		72		76		78
1,356		1,403		Commissions	464		449		483		451		422
1,571		1,357		Fees	459		485		503		534		534
139		123		Other non-interest revenues	53		47		53		33		53

3,292		3,065		Total revenues	1,041		1,051		1,111		1,094		1,087
				Expenses:
2,753		2,637		Expenses before transition costs	881		892		933		926		894
—		65		Transition costs	—		—		—		—		—

2,753		2,702		Total expenses	881		892		933		926		894

539		363		Income before income taxes	160		159		178		168		193

205		138		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	61		60		68		63		74
(3	)	(7	)	Purchase accounting and related adjustments	(2	)	1		1		(3	)	(1	)

202		131		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	59		61		69		60		73

				Recurring revenue as a percentage of total non-interest revenue (1)	47.7	%	48.2	%	48.4	%	49.0	%	49.1	%
				Total client assets ($ in billions) (2)	683.1		683.6		688.7		704.3		729.9
				Distribution representatives (2):
				Series 7 Financial Advisors	7,941		8,028		7,926		7,973		7,972
				Series 6 Financial Representatives	2,493		2,458		2,454		2,541		2,477
				Customer debit balances ($ in billions) (2)	5.6		5.8		5.4		5.1		4.9
(26	)	(49	)	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	37		(206	)	(107	)	30		51

(1)	Calculated on a YTD annualized basis.

(2)	As of end of period.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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INVESTMENT DIVISION—RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


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

				RETIREMENT SALES AND ACCOUNT VALUES
				Full Service:
88,385		83,891		Beginning total account value	85,331		88,337		88,385		91,854		91,537
12,433		9,960		Deposits and sales	3,509		3,046		5,381		4,138		2,914
(12,155	)	(9,388	)	Withdrawals and benefits	(3,202	)	(4,530	)	(5,471	)	(3,412	)	(3,272	)
4,701		3,874		Change in market value, interest credited and interest income	2,699		1,532		3,559		(1,043	)	2,185

93,364		88,337		Ending total account value	88,337		88,385		91,854		91,537		93,364

278		572		Net additions (withdrawals)	307		(1,484	)	(90	)	726		(358	)

				Stable value account values included above	31,967		31,266		30,696		30,784		30,971
				Institutional Investment Products:

48,080		47,680		Beginning total account value	48,612		48,917		48,080		47,215		46,913
4,628		3,280		Additions	802		785		1,536		1,088		2,004
(4,592	)	(3,299	)	Withdrawals and benefits (1)	(896	)	(2,234	)	(2,452	)	(1,429	)	(711	)
1,600		1,757		Change in market value, interest credited and interest income	311		562		182		423		995
(248	)	(501	)	Other (2)	88		50		(131	)	(384	)	267

49,468		48,917		Ending total account value	48,917		48,080		47,215		46,913		49,468

36		(19	)	Net additions (withdrawals)	(94	)	(1,449	)	(916	)	(341	)	1,293

(1)

Withdrawals and benefits include $1.8 billion for the nine months ended September 30, 2006, $0.4 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 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date				% Change			2005				2006
2006		2005		% Change			3Q		4Q		1Q		2Q		3Q
						Revenues (1):
4,488		4,660		-4	%	Premiums	1,562		1,438		1,533		1,517		1,438
216		204		6	%	Policy charges and fee income	67		60		76		70		70
1,049		953		10	%	Net investment income	333		371		330		343		376
482		321		50	%	Asset management fees, commissions and other income	114		151		160		150		172


6,235		6,138		2	%	Total revenues	2,076		2,020		2,099		2,080		2,056


						Benefits and Expenses (1):
3,539		3,703		-4	%	Insurance and annuity benefits	1,250		1,162		1,224		1,203		1,112
184		157		17	%	Interest credited to policyholders’ account balances	54		50		57		61		66
10		19		-47	%	Interest expense	7		3		3		4		3
(755	)	(761	)	1	%	Deferral of acquisition costs	(243	)	(242	)	(256	)	(257	)	(242	)
342		301		14	%	Amortization of acquisition costs	90		89		116		115		111
1,747		1,680		4	%	General and administrative expenses	535		581		573		596		578


5,067		5,099		-1	%	Total benefits and expenses	1,693		1,643		1,717		1,722		1,628


1,168		1,039		12	%	Adjusted operating income before income taxes	383		377		382		358		428

(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 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Nine Months Ended September 30, 2006							Quarter Ended September 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	4,488		2,929		1,559		—	1,438		963		475		—
Policy charges and fee income	216		164		52		—	70		55		15		—
Net investment income	1,049		491		538		20	376		173		196		7
Asset management fees, commissions and other income	482		46		28		408	172		25		22		125

Total revenues	6,235		3,630		2,177		428	2,056		1,216		708		132

Benefits and Expenses (1):
Insurance and annuity benefits	3,539		2,245		1,294		—	1,112		732		380		—
Interest credited to policyholders’ account balances	184		81		103		—	66		27		39		—
Interest expense	10		9		—		1	3		3		—		—
Deferral of acquisition costs	(755	)	(537	)	(218	)	—	(242	)	(167	)	(75	)	—
Amortization of acquisition costs	342		269		73		—	111		85		26		—
General and administrative expenses	1,747		865		564		318	578		288		189		101

Total benefits and expenses	5,067		2,932		1,816		319	1,628		968		559		101

Adjusted operating income before income taxes	1,168		698		361		109	428		248		149		31


	Nine Months Ended September 30, 2005							Quarter Ended September 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	4,660		2,769		1,891		—	1,562		894		668		—
Policy charges and fee income	204		153		51		—	67		54		13		—
Net investment income	953		430		505		18	333		146		179		8
Asset management fees, commissions and other income	321		(18	)	1		338	114		(3	)	3		114

Total revenues	6,138		3,334		2,448		356	2,076		1,091		863		122

Benefits and Expenses (1):
Insurance and annuity benefits	3,703		2,129		1,574		—	1,250		673		577		—
Interest credited to policyholders’ account balances	157		79		78		—	54		25		29		—
Interest expense	19		17		(1	)	3	7		6		—		1
Deferral of acquisition costs	(761	)	(563	)	(198	)	—	(243	)	(178	)	(65	)	—
Amortization of acquisition costs	301		228		73		—	90		76		14		—
General and administrative expenses	1,680		865		531		284	535		272		167		96

Total benefits and expenses	5,099		2,755		2,057		287	1,693		874		722		97

Adjusted operating income before income taxes	1,039		579		391		69	383		217		141		25

(1)

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


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

				Japanese Yen Basis Results:
				Revenues (1):
¥	286,029	¥	258,639	Japanese insurance operations excluding Gibraltar Life	¥	85,595	¥	92,934	¥	98,534	¥	92,370	¥	95,125
	249,841		263,103	Gibraltar Life		95,340		84,366		84,650		84,387		80,804

	535,870		521,742	Total revenues, Japan, yen basis		180,935		177,300		183,184		176,757		175,929

				Benefits and Expenses (1):
	224,383		203,380	Japanese insurance operations excluding Gibraltar Life		64,755		71,278		77,842		74,339		72,202
	210,998		220,289	Gibraltar Life		79,787		71,963		72,640		73,067		65,292

	435,381		423,669	Total benefits and expenses, Japan, yen basis		144,542		143,241		150,482		147,406		137,494

				Adjusted operating income (2):
	61,646		55,259	Japanese insurance operations excluding Gibraltar Life		20,840		21,656		20,692		18,031		22,923
	38,843		42,814	Gibraltar Life		15,553		12,403		12,010		11,320		15,513

¥	100,489	¥	98,073	Total adjusted operating income, Japan, yen basis	¥	36,393	¥	34,059	¥	32,702	¥	29,351	¥	38,436

				U.S. Dollar adjusted operating income (3):
$	581	$	503	Japanese insurance operations excluding Gibraltar Life	$	190	$	197	$	196	$	172	$	213
	361		391	Gibraltar Life		141		111		110		102		149

	942		894	Total adjusted operating income, Japan, U.S. dollar basis		331		308		306		274		362
	117		76	All other countries		27		32		32		50		35

$	1,059	$	970	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	358	$	340	$	338	$	324	$	397

(1)

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

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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

		INTERNATIONAL INSURANCE OPERATING DATA:
		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
2,109	2,069	Japan, excluding Gibraltar Life	658	630	731	693	685
1,611	1,942	Gibraltar Life	681	564	562	559	490
984	853	All other countries	290	304	316	335	333

4,704	4,864	Total	1,629	1,498	1,609	1,587	1,508

		Annualized new business premiums:
365	467	Japan, excluding Gibraltar Life	117	109	138	113	114
279	249	Gibraltar Life (2)	82	74	73	115	91
210	198	All other countries	64	82	78	72	60

854	914	Total	263	265	289	300	265

		Annualized new business premiums by distribution channel:
575	665	Life Planners	181	191	216	185	174
240	249	Gibraltar Life Advisors (2)	82	74	73	96	71
39	—	Banks (3)	—	—	—	19	20

854	914	Total	263	265	289	300	265

		Constant exchange rate basis (4):

		Net premiums, policy charges and fee income:
2,224	2,026	Japan, excluding Gibraltar Life	664	670	778	721	725
1,698	1,891	Gibraltar Life	685	587	596	587	515
935	849	All other countries	292	308	304	315	316

4,857	4,766	Total	1,641	1,565	1,678	1,623	1,556

		Annualized new business premiums:
380	462	Japan, excluding Gibraltar Life	119	113	145	116	119
287	242	Gibraltar Life (2)	82	77	76	118	93
200	197	All other countries	63	84	74	69	57

867	901	Total	264	274	295	303	269

		Annualized new business premiums by distribution channel:
580	659	Life Planners	182	197	219	185	176
248	242	Gibraltar Life Advisors (2)	82	77	76	99	73
39	—	Banks (3)	—	—	—	19	20

867	901	Total	264	274	295	303	269

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

(2)	Amounts for the quarter ended June 30, 2006 have decreased $19 million from originally reported data, revising fixed annuity production of Life Advisors.

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

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

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2005				2006
	3Q		4Q		1Q		2Q		3Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	191		194		198		200		203
Gibraltar Life	180		179		179		178		178
All other countries	86		88		90		92		92

Total	457		461		467		470		473

Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	1,927		1,956		1,996		2,023		2,049
Gibraltar Life	3,938		3,915		3,890		3,871		3,872
All other countries (3):	1,054		1,088		1,127		1,150		1,169

Total (3):	6,919		6,959		7,013		7,044		7,090

International insurance policy persistency:
Excluding Gibraltar Life:
13 months	93.3	%	93.0	%	92.8	%	93.0	%	92.9	%
25 months	86.6	%	87.1	%	87.1	%	87.4	%	87.0	%
Gibraltar Life:
13 months	94.2	%	94.2	%	94.3	%	94.2	%	94.4	%
25 months	86.4	%	87.3	%	87.7	%	88.0	%	87.9	%
Number of Life Planners at end of period:
Japan	2,752		2,753		2,855		2,847		2,941
All other countries	2,874		2,874		2,857		2,879		2,861

Total life planners	5,626		5,627		5,712		5,726		5,802

Gibraltar Life Advisors	5,349		5,436		5,716		5,684		6,036

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

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

(3)	Reflects the exclusion of policies for the Philippines insurance operations, for all periods presented, as a result of the sale of the business in the third quarter of 2006.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 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	126,908	37,732	89,176	57.7	%	122,992	35,885	87,107	58.3	%
Public, held to maturity, at amortized cost	3,120	—	3,120	2.0	%	3,022	—	3,022	2.0	%
Private, available for sale, at fair value	30,073	11,999	18,074	11.7	%	30,980	13,361	17,619	11.8	%
Private, held to maturity, at amortized cost	353	—	353	0.2	%	227	—	227	0.1	%
Trading account assets supporting insurance liabilities, at fair value	14,453	—	14,453	9.4	%	13,781	—	13,781	9.2	%
Other trading account assets, at fair value	118	—	118	0.1	%	124	—	124	0.1	%
Equity securities, available for sale, at fair value	6,404	3,517	2,887	1.9	%	5,840	3,216	2,624	1.8	%
Commercial loans	24,120	7,243	16,877	10.9	%	23,045	7,264	15,781	10.6	%
Policy loans	8,757	5,407	3,350	2.2	%	8,370	5,403	2,967	2.0	%
Other long-term investments (1)	4,902	934	3,968	2.6	%	4,698	973	3,725	2.5	%
Short-term investments	3,961	1,773	2,188	1.3	%	3,850	1,394	2,456	1.6	%

Subtotal (2)	223,169	68,605	154,564	100.0	%	216,929	67,496	149,433	100.0	%

Invested assets of other entities and operations (3)	5,742	—	5,742			4,472	—	4,472

Total investments	228,911	68,605	160,306			221,401	67,496	153,905


Fixed Maturities by Credit Quality (2):


	September 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	71,930	1,754	383	73,301	79.5	%	68,042	2,256	298	70,000	77.7	%
2 Baa	13,678	602	139	14,141	15.3	%	15,407	746	138	16,015	17.8	%

Subtotal Investment Grade	85,608	2,356	522	87,442	94.8	%	83,449	3,002	436	86,015	95.5	%

3 Ba	2,845	94	41	2,898	3.1	%	2,711	124	43	2,792	3.1	%
4 B	1,716	78	35	1,759	1.9	%	1,109	71	20	1,160	1.3	%
5 C and lower	83	5	2	86	0.1	%	102	6	5	103	0.1	%
6 In or near default	37	7	2	42	0.1	%	28	10	1	37	0.0	%

Subtotal Below Investment Grade	4,681	184	80	4,785	5.2	%	3,950	211	69	4,092	4.5	%

Total	90,289	2,540	602	92,227	100.0	%	87,399	3,213	505	90,107	100.0	%

Private Fixed Maturities:

NAIC Rating (4) Rating Agency Equivalent

1 Aaa, Aa, A	5,702	231	42	5,891	32.0	%	5,596	269	27	5,838	32.7	%
2 Baa	9,799	401	81	10,119	54.9	%	9,437	522	63	9,896	55.5	%

Subtotal Investment Grade	15,501	632	123	16,010	86.9	%	15,033	791	90	15,734	88.2	%

3 Ba	1,243	55	11	1,287	7.0	%	1,105	44	7	1,142	6.4	%
4 B	643	22	11	654	3.5	%	507	33	5	535	3.0	%
5 C and lower	304	18	3	319	1.7	%	339	23	2	360	2.0	%
6 In or near default	148	6	1	153	0.9	%	70	8	2	76	0.4	%

Subtotal Below Investment Grade	2,338	101	26	2,413	13.1	%	2,021	108	16	2,113	11.8	%

Total	17,839	733	149	18,423	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 September 30, 2006 and December 31, 2005, respectively, 233 securities with amortized cost of $5,326 million (fair value $5,388 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 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2006			December 31, 2005
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	31,646	68.8	%	30,757	69.6	%
Public, held to maturity, at amortized cost	3,120	6.8	%	3,022	6.8	%
Private, available for sale, at fair value	2,946	6.4	%	2,659	6.0	%
Private, held to maturity, at amortized cost	353	0.8	%	227	0.5	%
Trading account assets supporting insurance liabilities, at fair value	1,071	2.3	%	1,022	2.3	%
Other trading account assets, at fair value	28	0.1	%	26	0.1	%
Equity securities, available for sale, at fair value	2,288	5.0	%	2,021	4.6	%
Commercial loans	2,598	5.6	%	2,278	5.2	%
Policy loans	1,005	2.2	%	943	2.1	%
Other long-term investments (1)	890	1.8	%	941	2.1	%
Short-term investments	69	0.2	%	326	0.7	%

Total	46,014	100.0	%	44,222	100.0	%


	September 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	57,530	53.0	%	56,350	53.7	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	15,128	13.9	%	14,960	14.2	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	13,382	12.3	%	12,759	12.1	%
Other trading account assets, at fair value	90	0.1	%	98	0.1	%
Equity securities, available for sale, at fair value	599	0.6	%	603	0.6	%
Commercial loans	14,279	13.2	%	13,503	12.8	%
Policy loans	2,345	2.2	%	2,024	1.9	%
Other long-term investments (1)	3,078	2.7	%	2,784	2.6	%
Short-term investments	2,119	2.0	%	2,130	2.0	%

Total	108,550	100.0	%	105,211	100.0	%

(1)

(2)

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended September 30
	2006						2005(4)
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1):
Fixed maturities	4.91	%	1,362		(5	)	4.63	%	1,180		45
Equity securities	4.32	%	26		11		4.57	%	25		40
Commercial loans	6.11	%	194		1		6.94	%	192		(8	)
Policy loans	4.95	%	41		—		4.96	%	37		—
Short-term investments and cash equivalents	4.68	%	91		(1	)	2.36	%	48		(6	)
Other investments	7.24	%	76		214		8.71	%	83		4

Gross investment income before investment expenses	5.08	%	1,790		220		4.90	%	1,565		75
Investment expenses	-0.27	%	(129	)	—		-0.22	%	(90	)	—

Subtotal	4.81	%	1,661		220		4.68	%	1,475		75

Investment results of other entities and operations (2)			296		19				259		58
Less, investment income relating to divested businesses			(5	)					(3	)

Total			1,952		239				1,731		133


	Nine Months Ended September 30
	2006						2005(4)
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1):
Fixed maturities	4.90	%	3,928		(318	)	4.63	%	3,470		87
Equity securities	3.70	%	64		119		4.15	%	67		54
Commercial loans	6.23	%	563		(2	)	7.27	%	589		111
Policy loans	4.93	%	115		—		4.86	%	105		—
Short-term investments and cash equivalents	4.60	%	241		—		2.33	%	135		2
Other investments	7.89	%	236		193		6.89	%	204		348

Gross investment income before investment expenses	5.09	%	5,147		(8	)	4.85	%	4,570		602
Investment expenses	-0.26	%	(353	)	—		-0.22	%	(264	)	—

Subtotal	4.83	%	4,794		(8	)	4.63	%	4,306		602

Investment results of other entities and operations (2)			835		72				705		111
Less, investment income relating to divested businesses			(11	)					(11	)

Total			5,618		64				5,000		713

(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 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2006						2005(2)
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	2.52	%	246		22		2.30	%	219		1
Equity securities	3.76	%	18		5		4.35	%	19		26
Commercial loans	3.99	%	25		4		4.12	%	28		5
Policy loans	3.58	%	9		—		3.49	%	9		—
Short-term investments and cash equivalents	4.17	%	6		(1	)	0.87	%	1		(1	)
Other investments	13.03	%	30		148		8.91	%	27		(38	)

Gross investment income before investment expenses	2.91	%	334		178		2.67	%	303		(7	)
Investment expenses	-0.15	%	(23	)	—		-0.18	%	(21	)	—

Total	2.76	%	311		178		2.49	%	282		(7	)


	Nine Months Ended September 30
	2006						2005(2)
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	2.52	%	706		4		2.26	%	636		(63	)
Equity securities	2.95	%	40		95		3.13	%	41		38
Commercial loans	3.66	%	66		15		4.10	%	90		120
Policy loans	3.57	%	26		—		3.40	%	25		—
Short-term investments and cash equivalents	3.89	%	13		(2	)	0.50	%	3		3
Other investments	13.00	%	86		51		8.72	%	82		72

Gross investment income before investment expenses	2.85	%	937		163		2.59	%	877		170
Investment expenses	-0.18	%	(67	)	—		-0.19	%	(64	)	—

Total	2.67	%	870		163		2.40	%	813		170

(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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2006						2005(3)
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (2)		Amount				Yield (2)		Amount
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	6.29	%	1,116		(27	)	6.06	%	961		44
Equity securities	6.45	%	8		6		7.89	%	6		14
Commercial loans	6.64	%	169		(3	)	7.87	%	164		(13	)
Policy loans	5.56	%	32		—		5.70	%	28		—
Short-term investments and cash equivalents	4.75	%	85		—		2.63	%	47		(5	)
Other investments	5.31	%	46		66		8.25	%	56		42

Gross investment income before investment expenses	6.19	%	1,456		42		6.18	%	1,262		82
Investment expenses	-0.33	%	(106	)	—		-0.34	%	(69	)	—

Total	5.86	%	1,350		42		5.84	%	1,193		82


	Nine Months Ended September 30
	2006						2005(3)
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (2)		Amount				Yield (2)		Amount
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	6.27	%	3,222		(322	)	6.13	%	2,834		150
Equity securities	6.39	%	24		24		10.07	%	26		16
Commercial loans	6.87	%	497		(17	)	8.44	%	499		(9	)
Policy loans	5.56	%	89		—		5.63	%	80		—
Short-term investments and cash equivalents	4.67	%	228		2		2.71	%	132		(1	)
Other investments	5.99	%	150		142		5.89	%	122		276

Gross investment income before investment expenses	6.23	%	4,210		(171	)	6.20	%	3,693		432
Investment expenses	-0.30	%	(286	)	—		-0.36	%	(200	)	—

Total	5.93	%	3,924		(171	)	5.84	%	3,493		432

(1)

(2)

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

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

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INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2006 ACTUARIAL UPDATES

(in millions)


	Third Quarter 2006 Impact on:
	Policy Charges and Fee Income (1)		Insurance and Annuity Benefits (2)	Amortization of Deferred Policy Acquisition Costs		Pre-Tax Adjusted Operating Income
Actuarial Item:
Annual review of assumptions for mortality, persistency, premium payment pattern, and other elements of expected gross profits	(62	)	34	(156	)	60

Refinement of reserving period for certain benefits on block of variable life insurance policies	(85	)	62	(133	)	(14	)

Total impact on third quarter 2006 results	(147	)	96	(289	)	46

Reported amount	117		300	(220	)

Amount excluding impact of items indicated above	264		204	69

(1)	Includes unearned revenue reserve, subject to amortization based on gross profits.

(2)	Includes terminal dividend reserve, accumulated over estimated contract period.

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

INVESTMENT DIVISION - HISTORICAL SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT AND ADMINISTRATION INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in billions)


Year ended December 31		2005								2006
2004		1Q		2Q		3Q		4Q		1Q		2Q
	Analysis of revenues by type (in millions):
832	Asset management fees	208		217		228		233		234		237
205	Incentive, transaction, principal investing and capital markets revenues	92		66		99		88		144		111
427	Service, distribution and other revenues	118		118		114		115		124		121

1,464	Total Asset Management segment revenues	418		401		441		436		502		469

	Analysis of asset management fees by source (in millions):
297	Institutional customers	78		90		94		97		98		102
322	Retail customers	71		68		74		76		76		76
213	General account	59		59		60		60		60		59

832	Total asset management fees	208		217		228		233		234		237

	Retail Assets Under Management (in billions):
	Assets gathered by Investment Management & Advisory Services sales force:
47.5	Beginning assets under management	33.2		32.8		33.6		36.8		38.7		40.5
4.5	Additions	1.4		1.6		2.5		3.3		2.7		3.3
(6.4)	Withdrawals	(1.9	)	(2.0	)	(2.0	)	(2.3	)	(2.3	)	(3.0	)
3.3	Change in market value	(0.8	)	1.7		2.2		1.0		1.3		(1.0	)
(15.7)	Net money market flows	0.1		(0.1	)	—		0.1		0.1		0.9
—	Other (1)	0.8		(0.4	)	0.5		(0.2	)	—		—

33.2	Ending assets under management	32.8		33.6		36.8		38.7		40.5		40.7
32.8	Affiliated retail assets under management	32.0		32.1		33.7		34.8		35.1		34.4

66.0	Total assets managed for retail customers at end of period	64.8		65.7		70.5		73.5		75.6		75.1

(1.9)	Net retail additions (withdrawals) other than money market	(0.5	)	(0.4	)	0.5		1.0		0.4		0.3

	Wrap-fee Product Assets Under Administration (in billions):
18.4	Beginning total wrap-fee product assets	39.7		41.6		45.1		50.2		53.6		59.1
11.7	Additions (2)	5.6		5.5		5.3		5.3		6.9		6.1
(7.3)	Withdrawals	(2.7	)	(2.6	)	(2.5	)	(3.0	)	(4.1	)	(3.6	)
3.0	Change in market value	(1.0	)	0.6		2.3		1.1		2.7		(1.1	)
13.9	Other (3)	—		—		—		—		—		—

39.7	Ending total wrap-fee product assets	41.6		45.1		50.2		53.6		59.1		60.5

4.4	Net wrap-fee product additions	2.9		2.9		2.8		2.3		2.8		2.5

(1)	Represents transfers of retail assets from or to non-Prudential managers.

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

(3)	As a result of agreements in connection with the formation of the retail securities brokerage joint venture with Wachovia, the Asset Management segment assumed administrative responsibilities for Wachovia Securities customer assets under wrap-fee and managed account programs.

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

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 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

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 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

KEY DEFINITIONS AND FORMULAS

22. International Life Planners:

Insurance agents in our insurance operations outside the United States, excluding Gibraltar Life Advisors. Excludes Life Planners associated with discontinued Philippine operations.

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 14.10% for the nine months ended September 30, 2006, 18.07% for the nine months ended September 30, 2005, 20.72% for the three months ended September 30, 2006, 24.18% for the three months ended September 30, 2005, 8.76% for the three months ended June 30, 2006, 13.06% for the three months ended March 31, 2006 and 7.70% for the three months ended December 31, 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 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2006

LOGO

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of November 1, 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 November 1, 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 40

Form: 8-K

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