February 7, 2007 - QUARTERLY FINANCIAL SUPPLEMENT - 8-K: Current report

Exhibit 99.1

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Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FOURTH 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.

February 7, 2007

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

CONTENTS


		Page
HIGHLIGHTS
Financial Highlights		1-2
Operations Highlights		3

FINANCIAL SERVICES BUSINESSES
Combined Statements of Operations		4
Combined Balance Sheets		5
Combining Statements of Operations by Division (Quarter)		6
Combining Statements of Operations by Division		7
Combining Balance Sheets by Division		8
Short-Term and Long-Term Debt		9

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

INVESTMENT DIVISION
Combined Statements of Operations		18
Combining Statements of Operations		19
Supplementary Revenue And Assets Under Management Information for Asset Management Segment		20
Supplementary Assets Under Management and Assets Under Administration Information for Asset Management Segment		21
Supplementary Information for Financial Advisory Segment		22
Retirement Sales Results and Account Values		23

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations		24
Combining Statements of Operations		25
International Insurance Segment—Supplementary Income Statement Information		26
Sales Results and Supplementary Information		27-28

INVESTMENT PORTFOLIO
Investment Portfolio Composition		29
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		30
Financial Services Businesses Investment Results		31
Financial Services Businesses Investment Results - Japanese Insurance Operations		32
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		33

RECLASSIFIED STATEMENTS OF OPERATIONS AND SUPPLEMENTAL INFORMATION		34-42

KEY DEFINITIONS AND FORMULAS		43-45

RATINGS AND INVESTOR INFORMATION		46

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

This Quarterly Financial Supplement reflects the company’s Individual Life and Annuities businesses, formerly reported as components of the Individual Life and Annuities segment, as discrete segments for GAAP segment reporting purposes for all periods presented herein.

In addition, revenues, expenses, assets and liabilities as reported herein reflect certain reclassifications to conform to current reporting practices.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date				% Change			2005		2006
2006		2005		% Change			4Q		1Q		2Q		3Q		4Q
						*Financial Services Businesses:*
						Pre-tax adjusted operating income (loss) by division:
1,359		1,227		11	%	Insurance Division	365		298		247		465		349
1,163		707		64	%	Investment Division	(4	)	240		316		252		355
1,566		1,416		11	%	International Insurance and Investments Division	377		382		358		428		398
86		202		-57	%	Corporate and other operations	76		26		37		15		8

4,174		3,552		18	%	Total pre-tax adjusted operating income	814		946		958		1,160		1,110
1,202		1,120		7	%	Income taxes, applicable to adjusted operating income	290		277		276		330		319

2,972		2,432		22	%	Financial Services Businesses after-tax adjusted operating income	524		669		682		830		791

90		561		-84	%	Realized investment gains (losses), net, and related charges and adjustments	(2	)	50		(311	)	221		130
35		(33	)	206	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	8		(114	)	(151	)	257		43
11		(44	)	125	%	Change in experience-rated contractholder liabilities due to asset value changes	(34	)	66		130		(168	)	(17	)
12		(16	)	175	%	Divested businesses	(11	)	13		(4	)	4		(1	)
(322	)	(214	)	-50	%	Equity in earnings of operating joint ventures	(66	)	(78	)	(67	)	(78	)	(99	)

(174	)	254		-169	%	Total pre-tax adjustments	(105	)	(63	)	(403	)	236		56
(73	)	(473	)	85	%	Income taxes, not applicable to adjusted operating income	60		(24	)	(116	)	32		35

(101	)	727		-114	%	Total adjustments, after income taxes	(165	)	(39	)	(287	)	204		21

2,871		3,159		-9	%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	359		630		395		1,034		812
208		142		46	%	Equity in earnings of operating joint ventures, net of taxes	47		51		45		50		62

3,079		3,301		-7	%	Income from continuing operations (after-tax) of Financial Services Businesses	406		681		440		1,084		874
65		(82	)	179	%	Income (loss) from discontinued operations, net of taxes	(29	)	(6	)	(16	)	68		19

3,144		3,219		-2	%	Net income of Financial Services Businesses	377		675		424		1,152		893

						Earnings per share of Common Stock (diluted):
6.15		4.83				Financial Services Businesses after-tax adjusted operating income	1.06		1.36		1.40		1.72		1.67
0.18		1.08				Realized investment gains (losses), net, and related charges and adjustments	—		0.10		(0.63	)	0.45		0.27
0.07		(0.06	)			Investment gains (losses) on trading account assets supporting insurance liabilities, net	0.02		(0.23	)	(0.30	)	0.52		0.09
0.02		(0.08	)			Change in experience-rated contractholder liabilities due to asset value changes	(0.07	)	0.13		0.26		(0.34	)	(0.04	)
0.02		(0.03	)			Divested businesses	(0.02	)	0.03		(0.01	)	0.01		—
(0.64	)	(0.42	)			Equity in earnings of operating joint ventures	(0.13	)	(0.15	)	(0.13	)	(0.16	)	(0.20	)

(0.35	)	0.49				Total pre-tax adjustments	(0.20	)	(0.12	)	(0.81	)	0.48		0.12
(0.15	)	(0.90	)			Income taxes, not applicable to adjusted operating income	0.12		(0.05	)	(0.24	)	0.06		0.07

(0.20	)	1.39				Total adjustments, after income taxes	(0.32	)	(0.07	)	(0.57	)	0.42		0.05

5.95		6.22				Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	0.74		1.29		0.83		2.14		1.72
0.42		0.27				Equity in earnings of operating joint ventures, net of taxes	0.09		0.10		0.09		0.10		0.13

6.37		6.49				Income from continuing operations (after-tax) of Financial Services Businesses	0.83		1.39		0.92		2.24		1.85
0.13		(0.15	)			Income (loss) from discontinued operations, net of taxes	(0.05	)	(0.01	)	(0.03	)	0.14		0.03

6.50		6.34				Net income of Financial Services Businesses	0.78		1.38		0.89		2.38		1.88

494.0		520.9				Weighted average number of outstanding Common shares (diluted basis)	510.2		504.1		497.1		490.5		482.8
14.55	%	12.32	%			Operating Return on Average Equity (based on adjusted operating income)	10.43	%	13.37	%	13.48	%	16.11	%	15.18	%
						*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
3,144		3,219				Net income of Financial Services Businesses (above)	377		675		424		1,152		893
284		321				Net income (loss) of Closed Block Business	(13	)	58		29		53		144

3,428		3,540				Consolidated net income	364		733		453		1,205		1,037

68		82				Direct equity adjustments for earnings per share calculations	19		19		16		16		17

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2005	2006
2006	2005		4Q	1Q	2Q	3Q	4Q
		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	9,447	9,685	9,723	9,418	10,798
		Long-term debt	6,520	7,284	7,520	7,464	9,673

		Attributed Equity:
		Including accumulated other comprehensive income	21,654	21,229	20,424	22,053	21,690
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	20,473	20,695	20,716	21,290	21,306
		Excluding total accumulated other comprehensive income	20,546	20,717	20,604	21,232	21,194

		Total Capitalization:
		Including accumulated other comprehensive income	28,174	28,513	27,944	29,517	31,363
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	26,993	27,979	28,236	28,754	30,979
		Excluding total accumulated other comprehensive income	27,066	28,001	28,124	28,696	30,867

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	42.70	42.43	41.41	45.31	45.18
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	40.37	41.37	42.00	43.74	44.38
		Excluding total accumulated other comprehensive income	40.52	41.41	41.78	43.62	44.15
		Number of diluted shares at end of period	507.1	500.3	493.2	486.7	480.1

		*Common Stock Price Range (based on closing price):*
86.84	77.96	High	77.96	77.48	78.89	79.06	86.84
71.47	52.62	Low	63.27	73.19	74.43	71.47	76.03
85.86	73.19	Close	73.19	75.81	77.70	76.25	85.86

		*Common Stock market capitalization (1)*	36,412	37,288	37,651	36,394	40,449

(1)	As of end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

OPERATIONS HIGHLIGHTS


Year-to-date			2005	2006
2006	2005		4Q	1Q	2Q	3Q	4Q
		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Institutional customers	134.7	138.7	138.5	147.9	156.8
		Retail customers	73.5	75.6	75.1	75.9	79.0
		General account	159.2	157.8	159.7	163.8	167.6

		Total Investment Management and Advisory Services	367.4	372.1	373.3	387.6	403.4
		Non-proprietary assets under management	48.1	51.3	49.6	51.0	54.2

		Total managed by Investment Division	415.5	423.4	422.9	438.6	457.6
		Managed by International Insurance and Investments Division	71.4	74.5	82.6	82.2	86.2
		Managed by Insurance Division	44.6	49.5	62.9	65.4	72.2

		Total assets under management	531.5	547.4	568.4	586.2	616.0
		Client assets under administration	92.5	100.0	101.6	105.8	112.9

		Total assets under management and administration	624.0	647.4	670.0	692.0	728.9

		Assets managed or administered for customers outside of the United States at end of period	100.4	105.3	114.0	115.5	123.8

		*Distribution Representatives (1):*
		Prudential Agents	2,946	2,850	2,844	2,814	2,562
		International Life Planners	5,627	5,712	5,726	5,802	5,828
		Gibraltar Life Advisors	5,436	5,716	5,684	6,036	5,944

53	46	*Prudential Agent productivity ($ thousands)*	61	45	52	46	74

(1)	As of end of period.

(2)	At fair market value.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date				% Change			2005		2006
2006		2005		% Change			4Q		1Q		2Q		3Q		4Q
						Revenues (1):
10,287		10,128		2	%	Premiums	2,450		2,604		2,542		2,548		2,593
2,649		2,529		5	%	Policy charges and fee income	629		662		667		583		737
7,660		6,863		12	%	Net investment income	1,822		1,812		1,875		1,962		2,011
4,250		3,608		18	%	Asset management fees, commissions and other income	948		1,054		966		1,024		1,206

24,846		23,128		7	%	Total revenues	5,849		6,132		6,050		6,117		6,547

						Benefits and Expenses (1):
10,423		9,990		4	%	Insurance and annuity benefits	2,439		2,577		2,591		2,650		2,605
2,790		2,516		11	%	Interest credited to policyholders’ account balances	632		652		677		716		745
949		615		54	%	Interest expense	192		212		233		249		255
(2,037	)	(1,801	)	-13	%	Deferral of acquisition costs	(439	)	(501	)	(495	)	(496	)	(545	)
670		910		-26	%	Amortization of acquisition costs	172		240		264		(73	)	239
7,877		7,346		7	%	General and administrative expenses	2,039		2,006		1,822		1,911		2,138

20,672		19,576		6	%	Total benefits and expenses	5,035		5,186		5,092		4,957		5,437

4,174		3,552		18	%	Adjusted operating income before income taxes	814		946		958		1,160		1,110

73		669		-89	%	Realized investment gains (losses), net, and related adjustments	2		50		(334	)	214		143
17		(108	)	116	%	Related charges	(4	)	—		23		7		(13	)

90		561		-84	%	Total realized investment gains (losses), net, and related charges and adjustments	(2	)	50		(311	)	221		130

35		(33	)	206	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	8		(114	)	(151	)	257		43
11		(44	)	125	%	Change in experience-rated contractholder liabilities due to asset value changes	(34	)	66		130		(168	)	(17	)
12		(16	)	175	%	Divested businesses	(11	)	13		(4	)	4		(1	)
(322	)	(214	)	-50	%	Equity in earnings of operating joint ventures	(66	)	(78	)	(67	)	(78	)	(99	)

(174	)	254		-169	%	Total pre-tax adjustments	(105	)	(63	)	(403	)	236		56

4,000		3,806		5	%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures	709		883		555		1,396		1,166
1,129		647		74	%	Income tax expense	350		253		160		362		354

2,871		3,159		-9	%	Income from continuing operations before equity in earnings of operating joint ventures	359		630		395		1,034		812

(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, and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses; change 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

Fourth Quarter 2006

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	12/31/2005	3/31/2006	6/30/2006		9/30/2006	12/31/2006
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $101,672; $102,220; $107,756; $105,750; $109,362)	105,188	104,276	108,150		108,346	112,043
Fixed maturities, held to maturity, at amortized cost (fair value $3,228; $3,397; $3,416; $3,400; $3,441)	3,249	3,430	3,555		3,473	3,469
Trading account assets supporting insurance liabilities, at fair value	13,781	13,877	14,239		14,453	14,262
Other trading account assets, at fair value	1,443	2,358	4,561		1,933	2,209
Equity securities, available for sale, at fair value (cost $3,431; $3,489; $3,672; $3,761; $3,825)	3,856	3,975	4,050		4,182	4,331
Commercial loans	17,177	17,721	18,018		18,139	18,421
Policy loans	2,967	3,094	3,253		3,350	3,472
Securities purchased under agreements to resell	413	103	2,242		187	153
Other long-term investments	3,266	3,669	3,800		3,538	3,780
Short-term investments	2,565	2,404	2,768		2,705	3,183

Total investments	153,905	154,907	164,636		160,306	165,323
Cash and cash equivalents	5,493	5,915	6,521		7,361	7,243
Accrued investment income	1,358	1,400	1,433		1,466	1,429
Reinsurance recoverables	3,548	3,480	1,869		1,908	1,958
Deferred policy acquisition costs	8,357	8,776	9,239		9,540	9,854
Other assets	15,069	16,279	19,188		17,442	16,997
Separate account assets	153,159	160,506	160,070		166,757	177,463

Total assets	340,889	351,263	362,956		364,780	380,267

Liabilities:
Future policy benefits	51,759	52,661	55,333		55,238	56,245
Policyholders’ account balances	70,091	70,659	74,309		75,614	75,090
Reinsurance payables	3,069	2,994	1,351		1,405	1,458
Securities sold under agreements to repurchase	6,801	7,141	9,564		6,256	5,747
Cash collateral for loaned securities	3,425	3,139	3,834		3,797	4,082
Income taxes	2,136	2,500	1,969		2,827	2,920
Securities sold but not yet purchased	223	132	2,152		313	277
Short-term debt	9,447	9,685	9,723		9,418	10,798
Long-term debt	6,520	7,284	7,520		7,464	9,673
Other liabilities	12,605	13,333	16,707		13,638	14,824
Separate account liabilities	153,159	160,506	160,070		166,757	177,463

Total liabilities	319,235	330,034	342,532		342,727	358,577

Attributed Equity:
Accumulated other comprehensive income (loss)	1,108	512	(180	)	821	496
Other attributed equity	20,546	20,717	20,604		21,232	21,194

Total attributed equity	21,654	21,229	20,424		22,053	21,690

Total liabilities and attributed equity	340,889	351,263	362,956		364,780	380,267

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended December 31, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,593		1,052		88		1,458		(5	)
Policy charges and fee income	737		637		43		70		(13	)
Net investment income	2,011		468		970		376		197
Asset management fees, commissions and other income	1,206		218		840		181		(33	)

Total revenues	6,547		2,375		1,941		2,085		146

Benefits and Expenses (1):
Insurance and annuity benefits	2,605		1,154		303		1,143		5
Interest credited to policyholders’ account balances	745		206		497		67		(25	)
Interest expense	255		44		67		—		144
Deferral of acquisition costs	(545	)	(282	)	(24	)	(252	)	13
Amortization of acquisition costs	239		125		10		112		(8	)
General and administrative expenses	2,138		779		733		617		9

Total benefits and expenses	5,437		2,026		1,586		1,687		138

Adjusted operating income before income taxes	1,110		349		355		398		8


	Quarter Ended December 31, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,450		943		70		1,438		(1	)
Policy charges and fee income	629		530		48		60		(9	)
Net investment income	1,822		425		817		371		209
Asset management fees, commissions and other income	948		164		648		151		(15	)

Total revenues	5,849		2,062		1,583		2,020		184

Benefits and Expenses (1):
Insurance and annuity benefits	2,439		994		266		1,162		17
Interest credited to policyholders’ account balances	632		175		421		50		(14	)
Interest expense	192		30		45		3		114
Deferral of acquisition costs	(439	)	(196	)	(15	)	(242	)	14
Amortization of acquisition costs	172		112		13		89		(42	)
General and administrative expenses	2,039		582		857		581		19

Total benefits and expenses	5,035		1,697		1,587		1,643		108

Adjusted operating income (loss) before income taxes	814		365		(4	)	377		76

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Twelve Months Ended December 31, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	10,287		4,066		294		5,946		(19	)
Policy charges and fee income	2,649		2,213		179		286		(29	)
Net investment income	7,660		1,787		3,663		1,425		785
Asset management fees, commissions and other income	4,250		806		2,866		663		(85	)

Total revenues	24,846		8,872		7,002		8,320		652

Benefits and Expenses (1):
Insurance and annuity benefits	10,423		4,593		1,104		4,682		44
Interest credited to policyholders’ account balances	2,790		763		1,853		251		(77	)
Interest expense	949		139		238		10		562
Deferral of acquisition costs	(2,037	)	(1,001	)	(93	)	(1,007	)	64
Amortization of acquisition costs	670		207		52		454		(43	)
General and administrative expenses	7,877		2,812		2,685		2,364		16

Total benefits and expenses	20,672		7,513		5,839		6,754		566

Adjusted operating income before income taxes	4,174		1,359		1,163		1,566		86


	Twelve Months Ended December 31, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	10,128		3,728		320		6,098		(18	)
Policy charges and fee income	2,529		2,098		188		264		(21	)
Net investment income	6,863		1,702		3,155		1,324		682
Asset management fees, commissions and other income	3,608		651		2,511		472		(26	)

Total revenues	23,128		8,179		6,174		8,158		617

Benefits and Expenses (1):
Insurance and annuity benefits	9,990		4,013		1,049		4,865		63
Interest credited to policyholders’ account balances	2,516		715		1,633		207		(39	)
Interest expense	615		111		115		22		367
Deferral of acquisition costs	(1,801	)	(797	)	(61	)	(1,003	)	60
Amortization of acquisition costs	910		545		54		390		(79	)
General and administrative expenses	7,346		2,365		2,677		2,261		43

Total benefits and expenses	19,576		6,952		5,467		6,742		415

Adjusted operating income before income taxes	3,552		1,227		707		1,416		202

(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, and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses change in experience-rated contractholder liabilities due to asset value changes, and benefits and expenses of divested businesses.

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of December 31, 2006
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	165,323	33,154	65,862	52,884	13,423
Deferred policy acquisition costs	9,854	5,447	176	4,397	(166	)
Other assets	27,627	5,555	8,353	7,968	5,751
Separate account assets	177,463	87,380	91,257	153	(1,327	)

Total assets	380,267	131,536	165,648	65,402	17,681

Liabilities:
Future policy benefits	56,245	7,905	14,517	33,333	490
Policyholders’ account balances	75,090	20,511	40,616	15,842	(1,879	)
Debt	20,471	3,491	2,164	1,346	13,470
Other liabilities	29,308	5,968	10,846	8,154	4,340
Separate account liabilities	177,463	87,380	91,257	153	(1,327	)

Total liabilities	358,577	125,255	159,400	58,828	15,094

Attributed Equity:
Accumulated other comprehensive income (loss)	496	235	118	694	(551	)
Other attributed equity	21,194	6,046	6,130	5,880	3,138

Total attributed equity	21,690	6,281	6,248	6,574	2,587

Total liabilities and attributed equity	380,267	131,536	165,648	65,402	17,681


	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	153,159	74,001	80,319	67	(1,228	)

Total assets	340,889	113,262	149,903	59,101	18,623

Liabilities:
Future policy benefits	51,759	7,129	13,339	30,633	658
Policyholders’ account balances	70,091	19,204	37,901	14,060	(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	153,159	74,001	80,319	67	(1,228	)

Total liabilities	319,235	107,233	143,889	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	340,889	113,262	149,903	59,101	18,623

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of December 31, 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	4,122	4,377		353	3,846	4,199
Investment related	7,053	5,116	12,169		5,442	2,449	7,891
Securities business related	2,334	—	2,334		2,758	107	2,865
Specified other businesses	1,154	381	1,535		893	63	956
Limited recourse and non-recourse borrowing	2	54	56		1	55	56

Total debt - Financial Services Businesses	10,798	9,673	20,471		9,447	6,520	15,967

Ratio of long-term and short-term capital debt to capitalization			17.0	%			17.0	%

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

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


	As of December 31, 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	3,079	1,298	—	4,377	2,902	1,297	—	4,199
Investment related	7,372	3,763	1,034	12,169	4,173	3,718	—	7,891
Securities business related	712	1,191	431	2,334	1,117	1,173	575	2,865
Specified other businesses	424	998	113	1,535	116	692	148	956
Limited recourse and non-recourse borrowing	—	—	56	56	—	—	56	56

Total debt - Financial Services Businesses	11,587	7,250	1,634	20,471	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 December 31, 2006 and December 31, 2005.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year-to-date			% Change			2005		2006
2006	2005		% Change			4Q		1Q		2Q		3Q		4Q
					Revenues (1):
4,066	3,728		9	%	Premiums	943		982		1,005		1,027		1,052
2,213	2,098		5	%	Policy charges and fee income	530		543		559		474		637
1,787	1,702		5	%	Net investment income	425		418		438		463		468
806	651		24	%	Asset management fees, commissions and other income	164		178		169		241		218

8,872	8,179		8	%	Total revenues	2,062		2,121		2,171		2,205		2,375

					Benefits and Expenses (1):
4,593	4,013		14	%	Insurance and annuity benefits	994		1,070		1,144		1,225		1,154
763	715		7	%	Interest credited to policyholders’ account balances	175		180		181		196		206
139	111		25	%	Interest expense	30		30		28		37		44
(1,001)	(797	)	-26	%	Deferral of acquisition costs	(196	)	(256	)	(228	)	(235	)	(282	)
207	545		-62	%	Amortization of acquisition costs	112		131		142		(191	)	125
2,812	2,365		19	%	General and administrative expenses	582		668		657		708		779

7,513	6,952		8	%	Total benefits and expenses	1,697		1,823		1,924		1,740		2,026

1,359	1,227		11	%	Adjusted operating income before income taxes	365		298		247		465		349

(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

Fourth Quarter 2006

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Twelve Months Ended December 31, 2006								Quarter Ended December 31, 2006
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance		Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	4,066		429		81		3,556		1,052		117		24		911
Policy charges and fee income	2,213		920		986		307		637		267		291		79
Net investment income	1,787		548		618		621		468		149		156		163
Asset management fees, commissions and other income	806		319		416		71		218		72		125		21

Total revenues	8,872		2,216		2,101		4,555		2,375		605		596		1,174

Benefits and Expenses (1):
Insurance and annuity benefits	4,593		863		233		3,497		1,154		203		67		884
Interest credited to policyholders’ account balances	763		203		356		204		206		54		97		55
Interest expense	139		82		50		7		44		27		15		2
Deferral of acquisition costs	(1,001	)	(351	)	(534	)	(116	)	(282	)	(97	)	(151	)	(34	)
Amortization of acquisition costs	207		2		203		2		125		57		67		1
General and administrative expenses (2)	2,812		873		1,207		732		779		229		347		203

Total benefits and expenses	7,513		1,672		1,515		4,326		2,026		473		442		1,111

Adjusted operating income before income taxes	1,359		544		586		229		349		132		154		63


	Twelve Months Ended December 31, 2005								Quarter Ended December 31, 2005
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance		Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	3,728		391		67		3,270		943		109		17		817
Policy charges and fee income	2,098		1,095		712		291		530		277		181		72
Net investment income	1,702		496		615		591		425		128		150		147
Asset management fees, commissions and other income	651		280		323		48		164		66		84		14

Total revenues	8,179		2,262		1,717		4,200		2,062		580		432		1,050

Benefits and Expenses (1):
Insurance and annuity benefits	4,013		631		168		3,214		994		175		39		780
Interest credited to policyholders’ account balances	715		177		337		201		175		48		79		48
Interest expense	111		66		30		15		30		18		10		2
Deferral of acquisition costs	(797	)	(314	)	(421	)	(62	)	(196	)	(82	)	(113	)	(1	)
Amortization of acquisition costs	545		369		173		3		112		75		37		—
General and administrative expenses (2)	2,365		835		925		605		582		204		237		141

Total benefits and expenses	6,952		1,764		1,212		3,976		1,697		438		289		970

Adjusted operating income before income taxes	1,227		498		505		224		365		142		143		80

(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 $89 million for the twelve months ended December 31, 2006, $42 million for the twelve months ended December 31, 2005, $30 million for the quarter ended December 31, 2006 and $5 million for the quarter ended December 31, 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

Fourth Quarter 2006

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

(in millions)


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

				Excluding corporate-owned life insurance:
90		83		Variable life	27		21		24		25		20
192		214		Universal life	56		40		43		34		75
148		122		Term life	33		31		34		35		48

430		419		Total excluding corporate-owned life insurance	116		92		101		94		143
12		7		Corporate-owned life insurance	2		1		4		5		2

442		426		Total	118		93		105		99		145

				SALES BY DISTRIBUTION CHANNEL:

				Excluding corporate-owned life insurance:
181		212		Prudential Agents	50		45		45		37		54
249		207		Third party distribution	66		47		56		57		89
12		7		Corporate-owned life insurance	2		1		4		5		2

442		426		Total	118		93		105		99		145

				ACCOUNT VALUE ACTIVITY:

				*Policyholders’ Account Balances (1):*
5,694		5,284		Beginning balance	5,619		5,694		5,802		5,891		6,018
1,278		1,208		Premiums and deposits	289		307		332		299		340
(1,018	)	(815	)	Surrenders and withdrawals	(216	)	(242	)	(278	)	(284	)	(214	)

260		393		Net sales	73		65		54		15		126
(138	)	(126	)	Benefit payments	(39	)	(37	)	(32	)	(36	)	(33	)

122		267		Net flows	34		28		22		(21	)	93
352		154		Interest credited and other	45		83		60		149		60
242		188		Net transfers from separate account	49		55		66		59		62
(245	)	(199	)	Policy charges	(53	)	(58	)	(59	)	(60	)	(68	)

6,165		5,694		Ending balance	5,694		5,802		5,891		6,018		6,165

				*Separate Account Liabilities:*
16,170		15,180		Beginning balance	15,808		16,170		16,682		16,313		16,747
1,221		1,356		Premiums and deposits	407		301		332		298		290
(693	)	(653	)	Surrenders and withdrawals	(149	)	(177	)	(198	)	(173	)	(145	)

528		703		Net sales	258		124		134		125		145
(34	)	(18	)	Benefit payments	(5	)	(9	)	(9	)	(7	)	(9	)

494		685		Net flows	253		115		125		118		136
1,962		1,298		Change in market value, interest credited and other	359		653		(228	)	574		963
(242	)	(188	)	Net transfers to general account	(49	)	(55	)	(66	)	(59	)	(62	)
(798	)	(805	)	Policy charges	(201	)	(201	)	(200	)	(199	)	(198	)

17,586		16,170		Ending balance	16,170		16,682		16,313		16,747		17,586

				FACE AMOUNT IN FORCE (2):

				Variable life	142,408		141,962		140,629		140,139		139,847
				Universal life	18,835		19,639		20,318		21,017		21,971
				Term life	201,139		210,589		221,072		231,971		247,933

				Total	362,382		372,190		382,019		393,127		409,751

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

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

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


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

			Policy Surrender Experience:
744	698		Cash value of surrenders	163		191		212		181		160
3.5%	3.5	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.2	%	3.7	%	4.1	%	3.4	%	2.9	%
			Death benefits per $1,000 of in force (1):
3.31	2.97		Variable and universal life	3.04		2.87		3.59		3.22		3.51
1.38	1.12		Term life	0.89		1.09		1.64		1.92		1.17
2.84	2.61		Total, Individual Life Insurance	2.63		2.50		3.20		2.93		2.84

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

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

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

(in millions)


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

				Variable Annuities:
50,778		47,418		Beginning total account value	49,484		50,778		53,181		68,807		70,555
9,593		7,106		Sales	1,964		2,129		2,500		2,323		2,641
(7,722	)	(5,691	)	Surrenders and withdrawals	(1,436	)	(1,585	)	(1,757	)	(2,084	)	(2,296	)

1,871		1,415		Net sales	528		544		743		239		345
(918)		(678	)	Benefit payments	(158	)	(185	)	(225	)	(244	)	(264	)

953		737		Net flows	370		359		518		(5	)	81
7,448		3,299		Change in market value, interest credited, and other	1,106		2,228		(1,000	)	2,012		4,208
(936	)	(676	)	Policy charges	(182	)	(184	)	(204	)	(259	)	(289	)
16,312		—		Acquisition	—		—		16,312		—		—

74,555		50,778		Ending total account value	50,778		53,181		68,807		70,555		74,555

				Fixed Annuities:
3,991		3,879		Beginning total account value	4,033		3,991		3,941		3,871		3,814
119		361		Sales	27		28		32		33		26
(313	)	(231	)	Surrenders and withdrawals	(66	)	(69	)	(92	)	(75	)	(77	)

(194	)	130		Net sales (redemptions)	(39	)	(41	)	(60	)	(42	)	(51	)
(176	)	(160	)	Benefit payments	(41	)	(43	)	(42	)	(41	)	(50	)

(370	)	(30	)	Net flows	(80	)	(84	)	(102	)	(83	)	(101	)
131		147		Interest credited and other	39		35		33		27		36
(4	)	(5	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)

3,748		3,991		Ending total account value	3,991		3,941		3,871		3,814		3,748

				SALES BY DISTRIBUTION CHANNEL:

				Variable and Fixed Annuities (1):
1,990		1,494		Insurance Agents	391		405		481		466		638
1,069		542		Wirehouses	176		194		266		257		352
6,653		5,431		Independent Financial Planners (2)	1,424		1,558		1,785		1,633		1,677

9,712		7,467		Total	1,991		2,157		2,532		2,356		2,667

				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (3):

				Return of net deposits:
				Account value	28,290		29,988		32,897		34,288		37,071
				Net amount at risk	1,974		1,751		1,870		1,724		1,491
				Minimum return, anniversary contract value, or maximum contract value:
				Account value	17,022		17,755		30,594		30,942		32,118
				Net amount at risk	1,809		1,600		3,378		3,009		2,528

				Variable Annuity Account Values with Living Benefit Features (3):
				Guaranteed minimum accumulation benefits	7,162		7,738		9,231		9,667		10,452
				Guaranteed minimum withdrawal benefits	815		885		1,678		1,853		2,028
				Guaranteed minimum income benefits	3,052		3,203		7,047		7,113		7,329
				Guaranteed minimum withdrawal & income benefits	2,951		4,155		5,304		6,678		8,570

				Total	13,980		15,981		23,260		25,311		28,379

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

(3)	At end of period.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

INSURANCE DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


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

				Account Values in General Account (1):
9,231		9,613		Beginning balance	9,437		9,231		8,850		10,722		10,222
462		649		Premiums and deposits	69		74		96		182		110
(1,268	)	(935	)	Surrenders and withdrawals	(250	)	(273	)	(313	)	(350	)	(332	)

(806	)	(286	)	Net redemptions	(181	)	(199	)	(217	)	(168	)	(222	)
(401	)	(303	)	Benefit payments	(72	)	(94	)	(92	)	(101	)	(114	)

(1,207	)	(589	)	Net flows	(253	)	(293	)	(309	)	(269	)	(336	)
368		361		Interest credited and other	88		86		89		98		95
(416	)	(146	)	Net transfers (to) from separate account	(39	)	(173	)	539		(329	)	(453	)
(3	)	(8	)	Policy charges	(2	)	(1	)	(1	)	—		(1	)
1,554		—		Acquisition	—		—		1,554		—		—

9,527		9,231		Ending balance	9,231		8,850		10,722		10,222		9,527

				Account Values in Separate Account:
45,538		41,684		Beginning balance	44,080		45,538		48,272		61,956		64,147
9,250		6,818		Premiums and deposits	1,922		2,083		2,436		2,173		2,558
(6,767	)	(4,988	)	Surrenders and withdrawals	(1,252	)	(1,380	)	(1,537	)	(1,809	)	(2,041	)

2,483		1,830		Net sales	670		703		899		364		517
(692	)	(534	)	Benefit payments	(127	)	(134	)	(175	)	(184	)	(199	)

1,791		1,296		Net flows	543		569		724		180		318
7,210		3,085		Change in market value, interest credited and other	1,057		2,177		(1,056	)	1,942		4,147
416		146		Net transfers (to) from general account	39		173		(539	)	329		453
(937	)	(673	)	Policy charges	(181	)	(185	)	(203	)	(260	)	(289	)
14,758		—		Acquisition	—		—		14,758		—		—

68,776		45,538		Ending balance	45,538		48,272		61,956		64,147		68,776

(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

Fourth Quarter 2006

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


Year-to-date					2005		2006
2006		2005			4Q		1Q		2Q		3Q		4Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
366		370		Group life	34		206		25		98		37
138		154		Group disability (1)	17		74		18		29		17

504		524		Total	51		280		43		127		54

				Future Policy Benefits (2):
				Group life	2,004		1,967		1,980		1,953		2,181
				Group disability (1)	413		474		496		498		519

				Total	2,417		2,441		2,476		2,451		2,700

				Policyholders’ Account Balances (2):
				Group life	4,916		4,935		5,178		5,325		5,466
				Group disability (1)	98		95		101		108		112

				Total	5,014		5,030		5,279		5,433		5,578

				Separate Account Liabilities (2):
				Group life	12,294		12,588		14,334		15,023		16,412
				Group disability (1)	—		—		—		—		—

				Total	12,294		12,588		14,334		15,023		16,412

				Group Life Insurance:
3,296		3,009		Gross premiums, policy charges and fee income (3)	964		791		954		763		788
3,085		2,822		Earned premiums, policy charges and fee income	707		755		752		784		794
91.8	%	88.9	%	Benefits ratio	86.4	%	92.1	%	95.4	%	89.8	%	90.1	%
9.6	%	8.9	%	Administrative operating expense ratio	7.3	%	9.4	%	7.9	%	10.0	%	11.4	%
				Persistency ratio	95.2	%	96.5	%	95.9	%	95.1	%	94.8	%
				Group Disability Insurance (1):
823		781		Gross premiums, policy charges and fee income (3)	190		199		203		210		211
778		739		Earned premiums, policy charges and fee income	182		189		198		195		196
85.5	%	95.4	%	Benefits ratio	92.9	%	87.3	%	89.4	%	79.5	%	85.7	%
21.5	%	20.9	%	Administrative operating expense ratio	21.6	%	21.6	%	21.7	%	20.5	%	22.3	%
				Persistency ratio	85.4	%	94.2	%	92.2	%	90.8	%	89.9	%

(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 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

INSURANCE DIVISION – DEFERRED POLICY ACQUISITION COSTS

(in millions)


Year-to-date					2005		2006
2006		2005			4Q		1Q		2Q		3Q		4Q
				INDIVIDUAL LIFE INSURANCE:
3,187		3,151		Beginning balance	3,158		3,187		3,253		3,277		3,508
351		314		Capitalization	82		80		83		91		97
(2	)	(369	)	Amortization - operating results	(75	)	(74	)	(91	)	220		(57	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
14		91		Impact of unrealized (gains) or losses on AFS securities	22		60		32		(80	)	2

3,550		3,187		Ending balance	3,187		3,253		3,277		3,508		3,550

				INDIVIDUAL ANNUITIES:
1,256		907		Beginning balance	1,155		1,256		1,337		1,470		1,532
534		421		Capitalization	113		119		133		131		151
(203	)	(173	)	Amortization - operating results	(37	)	(57	)	(51	)	(28	)	(67	)
20		(1	)	Amortization - realized investment gains and losses	2		—		8		12		—
6		102		Impact of unrealized (gains) or losses on AFS securities	23		19		43		(53	)	(3	)

1,613		1,256		Ending balance	1,256		1,337		1,470		1,532		1,613

				GROUP INSURANCE:
170		111		Beginning balance	169		170		227		239		251
116		62		Capitalization	1		57		12		13		34
(2	)	(3	)	Amortization - operating results	—		—		—		(1	)	(1	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

284		170		Ending balance	170		227		239		251		284

				TOTAL INSURANCE DIVISION:
4,613		4,169		Beginning balance	4,482		4,613		4,817		4,986		5,291
1,001		797		Capitalization	196		256		228		235		282
(207	)	(545	)	Amortization - operating results	(112	)	(131	)	(142	)	191		(125	)
20		(1	)	Amortization - realized investment gains and losses	2		—		8		12		—
20		193		Impact of unrealized (gains) or losses on AFS securities	45		79		75		(133	)	(1	)

5,447		4,613		Ending balance	4,613		4,817		4,986		5,291		5,447

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date				% Change			2005		2006
2006		2005		% Change			4Q		1Q		2Q		3Q		4Q
						Revenues (1):
294		320		-8	%	Premiums	70		92		30		84		88
179		188		-5	%	Policy charges and fee income	48		48		43		45		43
3,663		3,155		16	%	Net investment income	817		849		917		927		970
2,866		2,511		14	%	Asset management fees, commissions and other income	648		745		656		625		840

7,002		6,174		13	%	Total revenues	1,583		1,734		1,646		1,681		1,941

						Benefits and Expenses (1):
1,104		1,049		5	%	Insurance and annuity benefits	266		269		235		297		303
1,853		1,633		13	%	Interest credited to policyholders’ account balances	421		429		452		475		497
238		115		107	%	Interest expense	45		46		62		63		67
(93	)	(61	)	-52	%	Deferral of acquisition costs	(15	)	(22	)	(22	)	(25	)	(24	)
52		54		-4	%	Amortization of acquisition costs	13		13		17		12		10
2,685		2,677		0	%	General and administrative expenses	857		759		586		607		733

5,839		5,467		7	%	Total benefits and expenses	1,587		1,494		1,330		1,429		1,586

1,163		707		64	%	Adjusted operating income (loss) before income taxes	(4	)	240		316		252		355

(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 include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Twelve Months Ended December 31, 2006								Quarter Ended December 31, 2006
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	294		—		—		294		88		—		—		88
Policy charges and fee income	179		—		—		179		43		—		—		43
Net investment income	3,663		213		25		3,425		970		65		1		904
Asset management fees, commissions and other income	2,866		1,837		549		480		840		571		141		128

Total revenues	7,002		2,050		574		4,378		1,941		636		142		1,163

Benefits and Expenses (1):
Insurance and annuity benefits	1,104		—		—		1,104		303		—		—		303
Interest credited to policyholders’ account balances	1,853		—		—		1,853		497		—		—		497
Interest expense	238		41		—		197		67		16		—		51
Deferral of acquisition costs	(93	)	(17	)	—		(76	)	(24	)	(3	)	—		(21	)
Amortization of acquisition costs	52		27		—		25		10		6		—		4
General and administrative expenses	2,685		1,406		513		766		733		430		95		208

Total benefits and expenses	5,839		1,457		513		3,869		1,586		449		95		1,042

Adjusted operating income before income taxes	1,163		593		61		509		355		187		47		121


	Twelve Months Ended December 31, 2005								Quarter Ended December 31, 2005
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	320		—		—		320		70		—		—		70
Policy charges and fee income	188		—		—		188		48		—		—		48
Net investment income	3,155		105		10		3,040		817		30		3		784
Asset management fees, commissions and other income	2,511		1,591		443		477		648		406		121		121

Total revenues	6,174		1,696		453		4,025		1,583		436		124		1,023

Benefits and Expenses (1):
Insurance and annuity benefits	1,049		—		—		1,049		266		—		—		266
Interest credited to policyholders’ account balances	1,633		—		—		1,633		421		—		—		421
Interest expense	115		16		—		99		45		6		—		39
Deferral of acquisition costs	(61	)	(17	)	—		(44	)	(15	)	(3	)	—		(12	)
Amortization of acquisition costs	54		33				21		13		7		—		6
General and administrative expenses	2,677		1,200		708		769		857		317		328		212

Total benefits and expenses	5,467		1,232		708		3,527		1,587		327		328		932

Adjusted operating income (loss) before income taxes	707		464		(255	)	498		(4	)	109		(204	)	91

(1)

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

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


Year-to-date		% Change			2005	2006
2006	2005	% Change			4Q	1Q	2Q	3Q	4Q
				Supplementary Revenue Information (in millions):

				Analysis of revenues by type:
974	886	10	%	Asset management fees	233	234	237	244	259
581	345	68	%	Incentive, transaction, principal investing and capital markets revenues	88	144	111	79	247
495	465	6	%	Service, distribution and other revenues	115	124	121	120	130

2,050	1,696	21	%	Total Asset Management segment revenues	436	502	469	443	636

				Analysis of asset management fees by source:
426	359	19	%	Institutional customers	97	98	102	111	115
310	289	7	%	Retail customers	76	76	76	75	83
238	238	0	%	General account	60	60	59	58	61

974	886	10	%	Total asset management fees	233	234	237	244	259


					December 31, 2006
					Equity	Fixed Income	Real Estate	Total
				Supplementary Assets Under Management Information (in billions):

				Institutional customers	54.7	78.7	23.4	156.8
				Retail customers	58.1	19.4	1.5	79.0
				General account	4.0	162.8	0.8	167.6

				Total	116.8	260.9	25.7	403.4


					December 31, 2005
					Equity	Fixed Income	Real Estate	Total
				Institutional customers	48.9	68.2	17.6	134.7
				Retail customers	52.7	19.2	1.6	73.5
				General account	3.5	154.6	1.1	159.2

				Total	105.1	242.0	20.3	367.4

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

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

(in billions)


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

				Assets gathered by Investment Management & Advisory Services sales force:
101.3		84.8		Beginning assets under management	95.0		101.3		106.7		107.1		115.0
27.7		22.9		Additions (1)	7.3		7.3		5.3		6.8		8.3
(16.9	)	(12.5	)	Withdrawals	(3.1	)	(4.0	)	(4.4	)	(3.6	)	(4.9	)
10.3		6.3		Change in market value	2.0		1.9		(0.4	)	4.3		4.5
0.5		(0.2	)	Net money market flows	0.1		0.2		(0.1	)	0.4		—

122.9		101.3		Ending assets under management	101.3		106.7		107.1		115.0		122.9
33.9		33.4		Affiliated institutional assets under management	33.4		32.0		31.4		32.9		33.9

156.8		134.7		Total assets managed for institutional customers at end of period	134.7		138.7		138.5		147.9		156.8


10.8		10.4		Net institutional additions other than money market	4.2		3.3		0.9		3.2		3.4


				Retail Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
38.7		33.2		Beginning assets under management	36.8		38.7		40.5		40.7		41.3
10.0		8.8		Additions	3.3		2.7		3.3		1.9		2.1
(9.8	)	(8.2	)	Withdrawals	(2.3	)	(2.3	)	(3.0	)	(2.6	)	(1.9	)
3.6		4.1		Change in market value	1.0		1.3		(1.0	)	1.3		2.0
0.9		0.1		Net money market flows	0.1		0.1		0.9		—		(0.1	)
—		0.7		Other (2)	(0.2	)	—		—		—		—

43.4		38.7		Ending assets under management	38.7		40.5		40.7		41.3		43.4
35.6		34.8		Affiliated retail assets under management	34.8		35.1		34.4		34.6		35.6

79.0		73.5		Total assets managed for retail customers at end of period	73.5		75.6		75.1		75.9		79.0

0.2		0.6		Net retail additions (withdrawals) other than money market	1.0		0.4		0.3		(0.7	)	0.2


				Wrap-fee Product Assets Under Administration:

53.6		39.7		Beginning total wrap-fee product assets	50.2		53.6		59.1		60.5		63.9
22.3		21.7		Additions (3)	5.3		6.9		6.1		4.7		4.6
(14.6	)	(10.8	)	Withdrawals	(3.0	)	(4.1	)	(3.6	)	(3.2	)	(3.7	)
7.8		3.0		Change in market value	1.1		2.7		(1.1	)	1.9		4.3

69.1		53.6		Ending total wrap-fee product assets	53.6		59.1		60.5		63.9		69.1

7.7		10.9		Net wrap-fee product additions	2.3		2.8		2.5		1.5		0.9

(1)

Additions include $1.8 billion for the year ended December 31, 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 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)


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

				Revenues:
308		252		Net investment income	70		72		76		78		82
1,846		1,852		Commissions	449		483		451		422		490
2,126		1,842		Fees	485		503		534		534		555
206		170		Other non-interest revenues	47		53		33		53		67

4,486		4,116		Total revenues	1,051		1,111		1,094		1,087		1,194
				Expenses:
3,700		3,529		Expenses before transition costs	892		933		926		894		947
—		65		Transition costs	—		—		—		—		—

3,700		3,594		Total expenses	892		933		926		894		947

786		522		Income before income taxes	159		178		168		193		247

299		198		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	60		68		63		74		94
(5	)	(6	)	Purchase accounting and related adjustments	1		1		(3	)	(1	)	(2	)

294		192		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	61		69		60		73		92

				Recurring revenue as a percentage of total non-interest revenue (1)	48.2	%	48.4	%	49.0	%	49.1	%	49.4	%
				Total client assets ($ in billions) (2) (3)	683.6		688.7		704.3		729.9		754.8
				Distribution representatives (2):
				Series 7 Financial Advisors	8,028		7,926		7,973		7,972		7,993
				Series 6 Financial Representatives	2,458		2,454		2,541		2,477		2,497
				Customer debit balances ($ in billions) (2)	5.8		5.4		5.1		4.9		4.8
27		(255	)	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	(206	)	(107	)	30		51		53

(1)	Calculated on a YTD annualized basis.

(2)	As of end of period.

(3)	Beginning in 2Q06, certain mutual fund assets were added to the overall client asset total. Prior periods have not been restated.

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


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

				Full Service:
88,385		83,891		Beginning total account value	88,337		88,385		91,854		91,537		93,364
16,156		13,006		Deposits and sales	3,046		5,381		4,138		2,914		3,723
(15,989	)	(13,918	)	Withdrawals and benefits	(4,530	)	(5,471	)	(3,412	)	(3,272	)	(3,834	)
8,878		5,406		Change in market value, interest credited and interest income	1,532		3,559		(1,043	)	2,185		4,177

97,430		88,385		Ending total account value	88,385		91,854		91,537		93,364		97,430

167		(912	)	Net additions (withdrawals)	(1,484	)	(90	)	726		(358	)	(111	)

				Stable value account values included above	31,266		30,696		30,784		30,971		30,796

				Institutional Investment Products:

48,080		47,680		Beginning total account value	48,917		48,080		47,215		46,913		49,468
5,993		4,065		Additions	785		1,536		1,088		2,004		1,365
(6,356	)	(5,533	)	Withdrawals and benefits (1)	(2,234	)	(2,452	)	(1,429	)	(711	)	(1,764	)
2,247		2,319		Change in market value, interest credited and interest income	562		182		423		995		647
305		(451	)	Other (2)	50		(131	)	(384	)	267		553

50,269		48,080		Ending total account value	48,080		47,215		46,913		49,468		50,269

(363	)	(1,468	)	Net additions (withdrawals)	(1,449	)	(916	)	(341	)	1,293		(399	)

(1)

Withdrawals and benefits include $1.8 billion for the year ended December 31, 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 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date				% Change			2005		2006
2006		2005		% Change			4Q		1Q		2Q		3Q		4Q
						Revenues (1):
5,946		6,098		-2	%	Premiums	1,438		1,533		1,517		1,438		1,458
286		264		8	%	Policy charges and fee income	60		76		70		70		70
1,425		1,324		8	%	Net investment income	371		330		343		376		376
663		472		40	%	Asset management fees, commissions and other income	151		160		150		172		181

8,320		8,158		2	%	Total revenues	2,020		2,099		2,080		2,056		2,085

						Benefits and Expenses (1):
4,682		4,865		-4	%	Insurance and annuity benefits	1,162		1,224		1,203		1,112		1,143
251		207		21	%	Interest credited to policyholders’ account balances	50		57		61		66		67
10		22		-55	%	Interest expense	3		3		4		3		—
(1,007	)	(1,003	)	0	%	Deferral of acquisition costs	(242	)	(256	)	(257	)	(242	)	(252	)
454		390		16	%	Amortization of acquisition costs	89		116		115		111		112
2,364		2,261		5	%	General and administrative expenses	581		573		596		578		617

6,754		6,742		0	%	Total benefits and expenses	1,643		1,717		1,722		1,628		1,687

1,566		1,416		11	%	Adjusted operating income before income taxes	377		382		358		428		398

(1)

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Twelve Months Ended December 31, 2006							Quarter Ended December 31, 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	5,946		3,917		2,029		—	1,458		988		470		—
Policy charges and fee income	286		221		65		—	70		57		13		—
Net investment income	1,425		670		724		31	376		179		186		11
Asset management fees, commissions and other income	663		68		36		559	181		22		8		151

Total revenues	8,320		4,876		2,854		590	2,085		1,246		677		162

Benefits and Expenses (1):
Insurance and annuity benefits	4,682		3,018		1,664		—	1,143		773		370		—
Interest credited to policyholders’ account balances	251		106		145		—	67		25		42		—
Interest expense	10		11		(2	)	1	—		2		(2	)	—
Deferral of acquisition costs	(1,007	)	(724	)	(283	)	—	(252	)	(187	)	(65	)	—
Amortization of acquisition costs	454		357		97		—	112		88		24		—
General and administrative expenses	2,364		1,178		740		446	617		313		176		128

Total benefits and expenses	6,754		3,946		2,361		447	1,687		1,014		545		128

Adjusted operating income before income taxes	1,566		930		493		143	398		232		132		34


	Twelve Months Ended December 31, 2005							Quarter Ended December 31, 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	6,098		3,659		2,439		—	1,438		890		548		—
Policy charges and fee income	264		197		67		—	60		44		16		—
Net investment income	1,324		623		676		25	371		193		171		7
Asset management fees, commissions and other income	472		3		7		462	151		21		6		124

Total revenues	8,158		4,482		3,189		487	2,020		1,148		741		131

Benefits and Expenses (1):
Insurance and annuity benefits	4,865		2,836		2,029		—	1,162		707		455		—
Interest credited to policyholders’ account balances	207		102		105		—	50		23		27		—
Interest expense	22		21		(1	)	2	3		4		—		(1	)
Deferral of acquisition costs	(1,003	)	(738	)	(265	)	—	(242	)	(175	)	(67	)	—
Amortization of acquisition costs	390		296		94		—	89		68		21		—
General and administrative expenses	2,261		1,157		725		379	581		292		194		95

Total benefits and expenses	6,742		3,674		2,687		381	1,643		919		630		94

Adjusted operating income before income taxes	1,416		808		502		106	377		229		111		37

(1)

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2005		2006
2006		2005			4Q		1Q		2Q		3Q		4Q
				Japanese Yen Basis Results:
				Revenues (1):
¥	381,925	¥	351,573	Japanese insurance operations excluding Gibraltar Life	¥	92,934	¥	98,534	¥	92,370	¥	95,125	¥	95,896
	326,980		347,469	Gibraltar Life		84,366		84,650		84,387		80,804		77,139

	708,905		699,042	Total revenues, Japan, yen basis		177,300		183,184		176,757		175,929		173,035

				Benefits and Expenses (1):
	299,290		274,658	Japanese insurance operations excluding Gibraltar Life		71,278		77,842		74,339		72,202		74,907
	273,675		292,252	Gibraltar Life		71,963		72,640		73,067		65,292		62,677

	572,965		566,910	Total benefits and expenses, Japan, yen basis		143,241		150,482		147,406		137,494		137,584

				Adjusted operating income (2):
	82,635		76,915	Japanese insurance operations excluding Gibraltar Life		21,656		20,692		18,031		22,923		20,989
	53,305		55,217	Gibraltar Life		12,403		12,010		11,320		15,513		14,462

¥	135,940	¥	132,132	Total adjusted operating income, Japan, yen basis	¥	34,059	¥	32,702	¥	29,351	¥	38,436	¥	35,451

				U.S. Dollar adjusted operating income (3):
$	775	$	700	Japanese insurance operations excluding Gibraltar Life	$	197	$	196	$	172	$	213	$	194
	493		502	Gibraltar Life		111		110		102		149		132

	1,268		1,202	Total adjusted operating income, Japan, U.S. dollar basis		308		306		274		362		326
	155		108	All other countries		32		32		50		35		38

$	1,423	$	1,310	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	340	$	338	$	324	$	397	$	364

(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 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
2,789	2,699	Japan, excluding Gibraltar Life	630	731	693	685	680
2,094	2,506	Gibraltar Life	564	562	559	490	483
1,349	1,157	All other countries	304	316	335	333	365

6,232	6,362	Total	1,498	1,609	1,587	1,508	1,528

		Annualized new business premiums:
480	576	Japan, excluding Gibraltar Life	109	138	113	114	115
357	323	Gibraltar Life	74	73	115	91	78
287	280	All other countries	82	78	72	60	77

1,124	1,179	Total	265	289	300	265	270

		Annualized new business premiums by distribution channel:
767	856	Life Planners	191	216	185	174	192
308	323	Gibraltar Life Advisors	74	73	96	71	68
49	—	Banks (2)	—	—	19	20	10

1,124	1,179	Total	265	289	300	265	270

		Constant exchange rate basis (3):

		Net premiums, policy charges and fee income:
3,180	2,906	Japan, excluding Gibraltar Life	722	839	777	779	785
2,386	2,669	Gibraltar Life	631	649	626	554	557
1,278	1,160	All other countries	308	304	317	316	341

6,844	6,735	Total	1,661	1,792	1,720	1,649	1,683

		Annualized new business premiums:
529	599	Japan, excluding Gibraltar Life	119	153	123	125	128
385	340	Gibraltar Life	81	80	121	98	86
273	281	All other countries	83	75	69	57	72

1,187	1,220	Total	283	308	313	280	286

		Annualized new business premiums by distribution channel:
802	880	Life Planners	202	228	192	182	200
336	340	Gibraltar Life Advisors	81	80	102	78	76
49	—	Banks (2)	—	—	19	20	10

1,187	1,220	Total	283	308	313	280	286

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

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

(3)	Foreign currencies translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen, 102 per U.S. dollar; Korean won 1030 per U.S. dollar.

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2005		2006
	4Q		1Q		2Q		3Q		4Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	222		226		229		232		236
Gibraltar Life	199		198		197		197		196
All other countries	87		90		91		92		93

Total	508		514		517		521		525

Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	1,956		1,996		2,023		2,049		2,074
Gibraltar Life	3,915		3,890		3,871		3,872		3,871
All other countries	1,088		1,127		1,150		1,169		1,201

Total	6,959		7,013		7,044		7,090		7,146

International life insurance policy persistency:
Excluding Gibraltar Life:
13 months	93.0	%	92.8	%	93.0	%	92.9	%	93.0	%
25 months	87.1	%	87.1	%	87.4	%	87.0	%	87.1	%
Gibraltar Life:
13 months	94.2	%	94.3	%	94.2	%	94.4	%	94.4	%
25 months	87.3	%	87.7	%	88.0	%	87.9	%	87.8	%
Number of Life Planners at end of period:
Japan	2,753		2,855		2,847		2,941		2,956
All other countries	2,874		2,857		2,879		2,861		2,872

Total life planners	5,627		5,712		5,726		5,802		5,828

Gibraltar Life Advisors	5,436		5,716		5,684		6,036		5,944

(1)	Foreign currencies translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen, 102 per U.S. dollar; Korean won 1030 per U.S. dollar.

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

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

INVESTMENT PORTFOLIO COMPOSITION

(in million)


	December 31, 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	131,554	38,752	92,802	58.2	%	122,897	35,885	87,012	58.3	%
Public, held to maturity, at amortized cost	3,025	—	3,025	1.9	%	3,022	—	3,022	2.0	%
Private, available for sale, at fair value	30,357	12,021	18,336	11.5	%	30,980	13,361	17,619	11.8	%
Private, held to maturity, at amortized cost	443	—	443	0.3	%	227	—	227	0.1	%
Trading account assets supporting insurance liabilities, at fair value	14,262	—	14,262	8.9	%	13,781	—	13,781	9.2	%
Other trading account assets, at fair value	109	—	109	0.1	%	124	—	124	0.1	%
Equity securities, available for sale, at fair value	8,086	3,772	4,314	2.7	%	7,067	3,216	3,851	2.6	%
Commercial loans	24,593	7,318	17,275	10.8	%	23,045	7,264	15,781	10.6	%
Policy loans	8,887	5,415	3,472	2.2	%	8,370	5,403	2,967	2.0	%
Other long-term investments (1)	3,756	965	2,791	1.7	%	3,491	973	2,518	1.7	%
Short-term investments	4,603	1,851	2,752	1.7	%	3,837	1,394	2,443	1.6	%

Subtotal (2)	229,675	70,094	159,581	100.0	%	216,841	67,496	149,345	100.0	%

Invested assets of other entities and operations (3)	5,742	—	5,742			4,560	—	4,560

Total investments	235,417	70,094	165,323			221,401	67,496	153,905


	December 31, 2006						December 31, 2005
	Financial Services Businesses						Financial Services Businesses
Fixed Maturities by Credit Quality (2):	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	75,796	1,787	322	77,261	80.6	%	67,981	2,254	298	69,937	77.7	%
2 Baa	13,328	580	137	13,771	14.4	%	15,376	746	138	15,984	17.8	%

Subtotal Investment Grade	89,124	2,367	459	91,032	95.0	%	83,357	3,000	436	85,921	95.5	%

3 Ba	2,692	109	22	2,779	2.9	%	2,710	124	43	2,791	3.1	%
4 B	1,746	93	23	1,816	1.9	%	1,109	71	20	1,160	1.3	%
5 C and lower	115	8	2	121	0.1	%	102	6	5	103	0.1	%
6 In or near default	48	7	1	54	0.1	%	28	10	1	37	0.0	%

Subtotal Below Investment Grade	4,601	217	48	4,770	5.0	%	3,949	211	69	4,091	4.5	%

Total	93,725	2,584	507	95,802	100.0	%	87,306	3,211	505	90,012	100.0	%

Private Fixed Maturities:
NAIC Rating (4) Rating Agency Equivalent
1 Aaa, Aa, A	6,214	248	49	6,413	34.2	%	5,596	269	27	5,838	32.7	%
2 Baa	9,463	377	73	9,767	52.0	%	9,437	522	63	9,896	55.5	%

Subtotal Investment Grade	15,677	625	122	16,180	86.2	%	15,033	791	90	15,734	88.2	%

3 Ba	1,422	50	11	1,461	7.7	%	1,105	44	7	1,142	6.4	%
4 B	645	12	7	650	3.5	%	507	33	5	535	3.0	%
5 C and lower	321	18	4	335	1.8	%	339	23	2	360	2.0	%
6 In or near default	139	11	1	149	0.8	%	70	8	2	76	0.4	%

Subtotal Below Investment Grade	2,527	91	23	2,595	13.8	%	2,021	108	16	2,113	11.8	%

Total	18,204	716	145	18,775	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 December 31, 2006 and December 31, 2005, respectively, 231 securities with amortized cost of $3,515 million (fair value $3,588 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 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2006			December 31, 2005
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	32,242	67.9	%	30,757	69.6	%
Public, held to maturity, at amortized cost	3,025	6.4	%	3,022	6.8	%
Private, available for sale, at fair value	3,139	6.6	%	2,659	6.0	%
Private, held to maturity, at amortized cost	443	0.9	%	227	0.5	%
Trading account assets supporting insurance liabilities, at fair value	1,106	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	2,372	5.0	%	2,021	4.6	%
Commercial loans	2,782	5.9	%	2,278	5.2	%
Policy loans	1,016	2.1	%	943	2.1	%
Other long-term investments (1)	970	2.0	%	941	2.1	%
Short-term investments	374	0.8	%	326	0.7	%

Total	47,497	100.0	%	44,222	100.0	%


	December 31, 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	60,560	54.0	%	56,255	53.6	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	15,197	13.6	%	14,960	14.3	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	13,156	11.7	%	12,759	12.1	%
Other trading account assets, at fair value	81	0.1	%	98	0.1	%
Equity securities, available for sale, at fair value	1,942	1.7	%	1,830	1.7	%
Commercial loans	14,493	12.9	%	13,503	12.8	%
Policy loans	2,456	2.2	%	2,024	1.9	%
Other long-term investments (1)	1,821	1.7	%	1,577	1.5	%
Short-term investments	2,378	2.1	%	2,117	2.0	%

Total	112,084	100.0	%	105,123	100.0	%

(1)

(2)

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended December 31
	2006						2005 (4)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount		Realized Gains / (Losses)		Yield (3)		Amount		Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities	4.96	%	1,386		34		4.72	%	1,219		(91	)
Equity securities	5.30	%	49		1		4.63	%	39		95
Commercial loans	6.02	%	197		3		6.29	%	183		(8	)
Policy loans	5.13	%	44		—		4.90	%	36		—
Short-term investments and cash equivalents	5.33	%	102		—		4.28	%	68		—
Other investments	8.21	%	57		95		17.74	%	115		13

Gross investment income before investment expenses	5.16	%	1,835		133		5.13	%	1,660		9
Investment expenses	-0.16	%	(138	)	—		-0.19	%	(112	)	—

Subtotal	5.00	%	1,697		133		4.94	%	1,548		9

Investment results of other entities and operations (2)			317		96				276		20
Less, investment income relating to divested businesses			(3	)					(2	)

Total			2,011		229				1,822		29


	Twelve Months Ended December 31
	2006						2005 (4)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount		Realized Gains / (Losses)		Yield (3)		Amount		Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities	4.95	%	5,315		(284	)	4.71	%	4,699		(2	)
Equity securities	5.15	%	182		122		5.53	%	165		152
Commercial loans	6.25	%	760		1		6.89	%	773		102
Policy loans	5.04	%	158		—		4.90	%	141		—
Short-term investments and cash equivalents	5.05	%	342		—		2.91	%	205		2
Other investments	8.12	%	217		287		8.54	%	248		357

Gross investment income before investment expenses	5.15	%	6,974		126		4.96	%	6,231		611
Investment expenses	-0.17	%	(515	)	—		-0.19	%	(391	)	—

Subtotal	4.98	%	6,459		126		4.77	%	5,840		611

Investment results of other entities and operations (2)			1,215		167				1,036		131
Less, investment income relating to divested businesses			(14	)					(13	)

Total			7,660		293				6,863		742

(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, discontinued real estate operations, 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 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2006						2005 (2)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount		Realized Gains / (Losses)		Yield (1)		Amount		Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities	2.57	%	249		1		2.42	%	222		(63	)
Equity securities	2.73	%	13		(2	)	2.53	%	11		85
Commercial loans	4.13	%	28		3		4.14	%	25		—
Policy loans	3.81	%	10		—		3.44	%	8		—
Short-term investments and cash equivalents	4.93	%	7		1		1.81	%	2		1
Other investments	10.43	%	25		40		32.50	%	74		(21	)

Gross investment income before investment expenses	2.90	%	332		43		3.18	%	342		2
Investment expenses	-0.20	%	(28	)	—		-0.21	%	(25	)	—

Total	2.70	%	304		43		2.97	%	317		2


	Twelve Months Ended December 31
	2006						2005 (2)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount		Realized Gains / (Losses)		Yield (1)		Amount		Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities	2.54	%	955		7		2.33	%	858		(131	)
Equity securities	2.92	%	54		93		3.02	%	52		123
Commercial loans	3.81	%	93		18		4.15	%	115		120
Policy loans	3.66	%	36		—		3.43	%	34		—
Short-term investments and cash equivalents	3.91	%	20		(1	)	0.74	%	5		4
Other investments	12.43	%	111		89		13.96	%	156		55

Gross investment income before investment expenses	2.87	%	1,269		206		2.71	%	1,220		171
Investment expenses	-0.19	%	(96	)	—		-0.19	%	(90	)	—

Total	2.68	%	1,173		206		2.52	%	1,130		171

(1)

Yields are annualized, for interim periods, and based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for securities lending activity are calculated net of corresponding liabilities and rebate expenses. Yields exclude investment income and assets related to trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets of the Financial Services Businesses.

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

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2006						2005 (3)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount		Realized Gains / (Losses)		Yield (2)		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	6.31	%	1,137		33		6.05	%	997		(28	)
Equity securities	8.12	%	36		3		6.88	%	28		10
Commercial loans	6.51	%	169		—		6.86	%	158		(8	)
Policy loans	5.68	%	34		—		5.60	%	28		—
Short-term investments and cash equivalents	5.37	%	95		(1	)	4.65	%	66		(1	)
Other investments	7.04	%	32		55		9.60	%	41		34

Gross investment income before investment expenses	6.32	%	1,503		90		6.16	%	1,318		7
Investment expenses	-0.15	%	(110	)	—		-0.18	%	(87	)	—

Total	6.17	%	1,393		90		5.98	%	1,231		7


	Twelve Months Ended December 31
	2006						2005 (3)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount		Realized Gains / (Losses)		Yield (2)		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	6.33	%	4,360		(291	)	6.16	%	3,841		129
Equity securities	7.56	%	128		29		8.91	%	113		29
Commercial loans	6.86	%	667		(17	)	7.79	%	658		(18	)
Policy loans	5.66	%	122		—		5.65	%	107		—
Short-term investments and cash equivalents	5.19	%	322		1		3.35	%	200		(2	)
Other investments	5.90	%	106		198		5.06	%	92		302

Gross investment income before investment expenses	6.34	%	5,705		(80	)	6.21	%	5,011		440
Investment expenses	-0.17	%	(419	)	—		-0.19	%	(301	)	—

Total	6.17	%	5,286		(80	)	6.02	%	4,710		440

(1)

(2)

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

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year ended December 31 2004			2005								2006
Year ended December 31 2004			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
8,736		Premiums	2,519		2,585		2,574		2,450		2,604		2,542		2,548
2,385		Policy charges and fee income	617		615		668		629		662		667		583
5,772		Net investment income	1,639		1,658		1,744		1,822		1,812		1,875		1,962
3,065		Asset management fees, commissions and other income	848		852		960		948		1,054		966		1,024

19,958		Total revenues	5,623		5,710		5,946		5,849		6,132		6,050		6,117

		Benefits and Expenses (1):
8,897		Insurance and annuity benefits	2,536		2,519		2,496		2,439		2,577		2,591		2,650
2,220		Interest credited to policyholders’ account balances	605		626		653		632		652		677		716
334		Interest expense	124		145		154		192		212		233		249
(1,528	)	Deferral of acquisition costs	(422	)	(496	)	(444	)	(439	)	(501	)	(495	)	(496	)
766		Amortization of acquisition costs	235		232		271		172		240		264		(73	)
6,753		General and administrative expenses	1,659		1,863		1,785		2,039		2,006		1,822		1,911

17,442		Total benefits and expenses	4,737		4,889		4,915		5,035		5,186		5,092		4,957

2,516		Adjusted operating income before income taxes	886		821		1,031		814		946		958		1,160

62		Realized investment gains (losses), net, and related adjustments	257		321		89		2		50		(334	)	214
(58	)	Related charges	(21	)	(73	)	(10	)	(4	)	—		23		7

4		Total realized investment gains (losses), net, and related charges and adjustments	236		248		79		(2	)	50		(311	)	221

(55	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(132	)	190		(99	)	8		(114	)	(151	)	257
1		Change in experience-rated contractholder liabilities due to asset value changes	88		(145	)	47		(34	)	66		130		(168	)
(24	)	Divested businesses	(5	)	1		(1	)	(11	)	13		(4	)	4
(72	)	Equity in earnings of operating joint ventures	(45	)	(37	)	(66	)	(66	)	(78	)	(67	)	(78	)

(146	)	Total pre-tax adjustments	142		257		(40	)	(105	)	(63	)	(403	)	236

2,370		Income from continuing operations before income taxes and equity in earnings of operating joint ventures	1,028		1,078		991		709		883		555		1,396
605		Income tax expense (benefit)	293		307		(303	)	350		253		160		362

1,765		Income from continuing operations before equity in earnings of operating joint ventures	735		771		1,294		359		630		395		1,034

(1)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year ended December 31 2004		2005								2006
Year ended December 31 2004		1Q		2Q		3Q		4Q		1Q		2Q		3Q
	Revenues (1):
3,347	Premiums	935		938		912		943		982		1,005		1,027
2,005	Policy charges and fee income	504		505		559		530		543		559		474
1,565	Net investment income	431		419		427		425		418		438		463
626	Asset management fees, commissions and other income	138		166		183		164		178		169		241

7,543	Total revenues	2,008		2,028		2,081		2,062		2,121		2,171		2,205

	Benefits and Expenses (1):
3,740	Insurance and annuity benefits	1,052		1,029		938		994		1,070		1,144		1,225
733	Interest credited to policyholders’ account balances	177		183		180		175		180		181		196
32	Interest expense	25		25		31		30		30		28		37
(691)	Deferral of acquisition costs	(165	)	(234	)	(202	)	(196	)	(256	)	(228	)	(235	)
403	Amortization of acquisition costs	127		126		180		112		131		142		(191	)
2,335	General and administrative expenses	537		633		613		582		668		657		708

6,552	Total benefits and expenses	1,753		1,762		1,740		1,697		1,823		1,924		1,740

991	Adjusted operating income before income taxes	255		266		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 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE SEGMENT

(in millions)


Year ended December 31 2004			2005								2006
Year ended December 31 2004			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
334		Premiums	92		93		97		109		100		103		109
1,027		Policy charges and fee income	261		259		298		277		266		270		117
420		Net investment income	124		118		126		128		126		136		137
292		Asset management fees, commissions and other income	55		78		81		66		67		76		104

2,073		Total revenues	532		548		602		580		559		585		467

		Benefits and Expenses (1):
609		Insurance and annuity benefits	163		160		133		175		161		199		300
165		Interest credited to policyholders’ account balances	42		44		43		48		48		50		51
15		Interest expense	15		15		18		18		17		18		20
(311	)	Deferral of acquisition costs	(74	)	(79	)	(79	)	(82	)	(80	)	(83	)	(91	)
274		Amortization of acquisition costs	72		70		152		75		74		91		(220	)
931		General and administrative expenses	197		219		215		204		206		214		224

1,683		Total benefits and expenses	415		429		482		438		426		489		284

390		Adjusted operating income before income taxes	117		119		120		142		133		96		183

(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 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INDIVIDUAL ANNUITIES SEGMENT

(in millions)


Year ended December 31 2004			2005								2006
Year ended December 31 2004			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
63		Premiums	25		12		13		17		15		16		26
636		Policy charges and fee income	169		177		185		181		200		225		270
586		Net investment income	156		154		155		150		144		149		169
293		Asset management fees, commissions and other income	74		77		88		84		94		79		118

1,578		Total revenues	424		420		441		432		453		469		583

		Benefits and Expenses (1):
201		Insurance and annuity benefits	62		51		16		39		49		51		66
358		Interest credited to policyholders’ account balances	84		87		87		79		83		83		93
9		Interest expense	5		6		9		10		10		10		15
(353	)	Deferral of acquisition costs	(83	)	(117	)	(108	)	(113	)	(119	)	(133	)	(131	)
125		Amortization of acquisition costs	54		55		27		37		57		51		28
811		General and administrative expenses	202		237		249		237		255		285		320

1,151		Total benefits and expenses	324		319		280		289		335		347		391

427		Adjusted operating income before income taxes	100		101		161		143		118		122		192

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

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - GROUP INSURANCE SEGMENT

(in millions)


Year ended December 31 2004			2005								2006
Year ended December 31 2004			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
2,950		Premiums	818		833		802		817		867		886		892
342		Policy charges and fee income	74		69		76		72		77		64		87
559		Net investment income	151		147		146		147		148		153		157
41		Asset management fees, commissions and other income	9		11		14		14		17		14		19

3,892		Total revenues	1,052		1,060		1,038		1,050		1,109		1,117		1,155

		Benefits and Expenses (1):
2,930		Insurance and annuity benefits	827		818		789		780		860		894		859
210		Interest credited to policyholders’ account balances	51		52		50		48		49		48		52
8		Interest expense	5		4		4		2		3		—		2
(27	)	Deferral of acquisition costs	(8	)	(38	)	(15	)	(1	)	(57	)	(12	)	(13	)
4		Amortization of acquisition costs	1		1		1		—		—		—		1
593		General and administrative expenses	138		177		149		141		207		158		164

3,718		Total benefits and expenses	1,014		1,014		978		970		1,062		1,088		1,065

174		Adjusted operating income before income taxes	38		46		60		80		47		29		90

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

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year ended December 31 2004			2005								2006
Year ended December 31 2004			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
93		Premiums	41		103		106		70		92		30		84
155		Policy charges and fee income	46		48		46		48		48		43		45
2,689		Net investment income	768		762		808		817		849		917		927
2,070		Asset management fees, commissions and other income	618		595		650		648		745		656		625

5,007		Total revenues	1,473		1,508		1,610		1,583		1,734		1,646		1,681

		Benefits and Expenses (1):
862		Insurance and annuity benefits	215		272		296		266		269		235		297
1,362		Interest credited to policyholders’ account balances	384		397		431		421		429		452		475
48		Interest expense	22		25		23		45		46		62		63
(51	)	Deferral of acquisition costs	(17	)	(16	)	(13	)	(15	)	(22	)	(22	)	(25	)
53		Amortization of acquisition costs	14		14		13		13		13		17		12
2,378		General and administrative expenses	551		666		603		857		759		586		607

4,652		Total benefits and expenses	1,169		1,358		1,353		1,587		1,494		1,330		1,429

355		Adjusted operating income (loss) before income taxes	304		150		257		(4	)	240		316		252

(1)

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - RETIREMENT SEGMENT

(in millions)


Year ended December 31 2004			2005								2006
Year ended December 31 2004			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
93		Premiums	41		103		106		70		92		30		84
155		Policy charges and fee income	46		48		46		48		48		43		45
2,600		Net investment income	740		744		772		784		798		857		866
377		Asset management fees, commissions and other income	116		117		123		121		116		119		117

3,225		Total revenues	943		1,012		1,047		1,023		1,054		1,049		1,112

		Benefits and Expenses (1):
862		Insurance and annuity benefits	215		272		296		266		269		235		297
1,362		Interest credited to policyholders’ account balances	384		397		431		421		429		452		475
37		Interest expense	19		21		20		39		40		53		53
(32	)	Deferral of acquisition costs	(13	)	(11	)	(8	)	(12	)	(17	)	(16	)	(22	)
10		Amortization of acquisition costs	5		5		5		6		6		9		6
652		General and administrative expenses	178		186		193		212		190		174		194

2,891		Total benefits and expenses	788		870		937		932		917		907		1,003

334		Adjusted operating income before income taxes	155		142		110		91		137		142		109

(1)

Page 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)


Year ended December 31 2004			2005								2006
Year ended December 31 2004			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
(7	)	Premiums	(5	)	(6	)	(6	)	(1	)	(3	)	(10	)	(1	)
(15	)	Policy charges and fee income	(4	)	(4	)	(4	)	(9	)	(5	)	(5	)	(6	)
585		Net investment income	135		162		176		209		215		177		196
(9	)	Asset management fees, commissions and other income	(28	)	4		13		(15	)	(29	)	(9	)	(14	)

554		Total revenues	98		156		179		184		178		153		175

		Benefits and Expenses (1):
85		Insurance and annuity benefits	16		18		12		17		14		9		16
(4	)	Interest credited to policyholders’ account balances	(4	)	(9	)	(12	)	(14	)	(14	)	(17	)	(21	)
247		Interest expense	71		89		93		114		133		139		146
63		Deferral of acquisition costs	17		15		14		14		33		12		6
(55	)	Amortization of acquisition costs	(13	)	(12	)	(12	)	(42	)	(20	)	(10	)	(5	)
42		General and administrative expenses	(6	)	(4	)	34		19		6		(17	)	18

378		Total benefits and expenses	81		97		129		108		152		116		160

176		Adjusted operating income before income taxes	17		59		50		76		26		37		15

(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; change in experience-rated contractholder liabilities due to asset value changes and benefits and expenses of divested businesses.

Page 41

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

RECLASSIFIED SUPPLEMENTAL INFORMATION - INTERNATIONAL INSURANCE SEGMENT

(dollar amounts in millions, unless otherwise noted)


Year ended December 31 2004		2005				2006
Year ended December 31 2004		1Q	2Q	3Q	4Q	1Q	2Q	3Q
	Constant exchange rate basis (1):
	Net premiums, policy charges and fee income:
2,301	Japan, excluding Gibraltar Life	762	706	716	722	839	777	779
2,584	Gibraltar Life	613	687	738	631	649	626	554
1,042	All other countries	275	284	293	308	304	317	316

5,927	Total	1,650	1,677	1,747	1,661	1,792	1,720	1,649

	Annualized new business premiums:
470	Japan, excluding Gibraltar Life	174	182	124	119	153	123	125
295	Gibraltar Life	73	99	87	81	80	121	98
239	All other countries	67	69	62	83	75	69	57

1,004	Total	314	350	273	283	308	313	280

	Annualized new business premiums by distribution channel:
709	Life Planners	241	251	186	202	228	192	182
295	Gibraltar Life Advisors	73	99	87	81	80	102	78
—	Banks (2)	—	—	—	—	—	19	20

1,004	Total	314	350	273	283	308	313	280

	Face amount of individual policies in force at end of period (in billions) (3):
	Japan, excluding Gibraltar Life	212	217	220	222	226	229	232
	Gibraltar Life	205	202	201	199	198	197	197
	All other countries	82	83	84	87	90	91	92

	Total	499	502	505	508	514	517	521

(1)	Foreign currencies translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen, 102 per U.S. dollar; Korean won 1030 per U.S. dollar.

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

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

Page 42

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure of performance of our Financial Services Businesses 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. Adjusted operating income includes equity in earnings of operating joint ventures 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. Realized investment gains and losses from products that are free standing derivatives or contain embedded derivatives, and from associated derivative portfolios that are part of an economic hedging program related to the risk of those products, 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 are adjusted for the items above as well. Adjusted operating income does not equate to “Income from continuing operations” 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 items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability factors of our businesses.

2. After-tax adjusted operating income:

Adjusted operating income before taxes, as defined above, less the income tax effect applicable to adjusted operating income before taxes.

3. Assets Under Management:

Fair market value or account value of assets which Prudential manages directly in proprietary products, such as mutual funds and variable annuities, in separate accounts, wrap-fee products and the general account, and assets invested in investment options included in the Company’s products that are managed by third party sub-managers (i.e., the non-proprietary investment options in the Company’s products).

4. Attributed Equity:

Amount of capital assigned to each of the Company’s segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment’s risks. Attributed equity for the Financial Services Businesses represents all of the Company’s equity that is not included in the Closed Block Business.

5. Book value per share of Common Stock:

Equity attributed to Financial Services Businesses divided by the number of Common shares outstanding at end of period, on a diluted basis.

6. Borrowings - Capital Debt:

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

7. Borrowings - Investment Related:

Debt issued to finance specific investment assets or portfolios of investment assets, including institutional spread lending investment portfolios, real estate, and real estate related investments held in consolidated joint ventures, as well as institutional and insurance company portfolio cash flow timing differences.

8. Borrowings - Securities Business Related:

Debt issued to finance primarily the liquidity of our broker-dealers, and our capital markets and other securities business related operations.

9. Borrowings - Specified Other Businesses:

Borrowings associated with consumer banking activities, the individual annuity business, real estate franchises, and relocation services.

10. Client Assets:

Fair market value of assets in client accounts of International brokerage operations, Prudential Bank and mortgage loan servicing business, that are not included in Assets Under Management. Prudential does not receive a management or administrative fee on these assets, but may receive a fee for executing trades, custody or recordkeeping services.

Page 43

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

KEY DEFINITIONS AND FORMULAS

11. Earned Premiums:

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

12. Earnings Per Share of Common Stock:

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

13. Full Service:

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

14. Full Service Stable Value:

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

15. General Account:

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

16. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

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

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

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

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

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

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

20. Individual Life Insurance Sales:

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

21. Insurance and Annuity Benefits:

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

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 and accumulated other comprehensive income related to pension and postretirement benefits.

An alternative measure to operating return on average equity (based on adjusted operating income) is return on average equity (based on income from continuing operations). Return on average equity (based on income from continuing operations) represents income from continuing operations after-tax as determined in accordance with GAAP (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average total attributed equity for the Financial Services Businesses. Return on average equity (based on income from continuing operations) is 14.70% for the twelve months ended December 31, 2006, 15.52% for the twelve months ended December 31, 2005, 16.29% for the three months ended December 31, 2006, 7.70% for the three months ended December 31, 2005, 20.72% for the three months ended September 30, 2006, 8.76% for the three months ended June 30, 2006 and 13.06% for the three months ended March 31, 2006.

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 accumulated other comprehensive income related to pension and postretirement benefits, 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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2006

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of February 7, 2007


	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)	NR (1)	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA-	Aa3	NR

CREDIT RATINGS:
as of February 7, 2007

Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-1	P-2	F1
Long-Term Senior Debt (2)	a-	A	A3	A

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	AA-

PRICOA Global Funding I
Long-Term Senior Debt	aa-	AA-	Aa3	AA

*	NR indicates not rated.

(1)	Company participation in interactive rating program was discontinued in January 2007.

(2)	Includes the retail medium-term notes program.


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.

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Form: 8-K

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