May 2, 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

FIRST QUARTER 2007

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.

May 2, 2007

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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CONTENTS


		Page
HIGHLIGHTS
Financial Highlights		1-2
Operations Highlights		3

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

INSURANCE DIVISION
Combined Statements of Operations		9
Combining Statements of Operations		10
Individual Life Sales, Account Value Activity, and Face Amount in Force		11
Supplementary Information for Individual Life Insurance		12
Individual Annuities Sales Results, Account Values and Minimum Guarantees		13
Individual Annuities Account Value Activity		14
Supplementary Information for Group Insurance		15
Deferred Policy Acquisition Costs		16

INVESTMENT DIVISION
Combined Statements of Operations		17
Combining Statements of Operations		18
Supplementary Revenue And Assets Under Management Information for Asset Management Segment		19
Supplementary Assets Under Management and Assets Under Administration Information for Asset Management Segment		20
Supplementary Information for Financial Advisory Segment		21
Retirement Sales Results and Account Values		22

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations		23
Combining Statements of Operations		24
International Insurance Segment - Supplementary Income Statement Information		25
Sales Results and Supplementary Information		26-27

INVESTMENT PORTFOLIO
Investment Portfolio Composition		28
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		29
Financial Services Businesses Investment Results		30
Financial Services Businesses Investment Results - Japanese Insurance Operations		31
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		32

KEY DEFINITIONS AND FORMULAS		33-35

RATINGS AND INVESTOR INFORMATION		36

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date				% Change			2006								2007
2007		2006		% Change			1Q		2Q		3Q		4Q		1Q


						*Financial Services Businesses:*
						Pre-tax adjusted operating income (loss) by division:
318		298		7	%	Insurance Division	298		247		465		349		318
428		240		78	%	Investment Division	240		316		252		355		428
475		382		24	%	International Insurance and Investments Division	382		358		428		398		475
12		26		-54	%	Corporate and other operations	26		37		15		8		12

1,233		946		30	%	Total pre-tax adjusted operating income	946		958		1,160		1,110		1,233
365		277		32	%	Income taxes, applicable to adjusted operating income	277		276		330		319		365

868		669		30	%	Financial Services Businesses after-tax adjusted operating income	669		682		830		791		868

140		50		180	%	Realized investment gains (losses), net, and related charges and adjustments	50		(311	)	221		130		140
82		(114	)	172	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(114	)	(151	)	257		43		82
(62	)	66		-194	%	Change in experience-rated contractholder liabilities due to asset value changes	66		130		(168	)	(17	)	(62	)
19		13		46	%	Divested businesses	13		(4	)	4		(1	)	19
(120	)	(78	)	-54	%	Equity in earnings of operating joint ventures	(78	)	(67	)	(78	)	(99	)	(120	)

59		(63	)	194	%	Total pre-tax adjustments	(63	)	(403	)	236		56		59
15		(24	)	163	%	Income taxes, not applicable to adjusted operating income	(24	)	(116	)	32		35		15

44		(39	)	213	%	Total adjustments, after income taxes	(39	)	(287	)	204		21		44

912		630		45	%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	630		395		1,034		812		912
77		51		51	%	Equity in earnings of operating joint ventures, net of taxes	51		45		50		62		77

989		681		45	%	Income from continuing operations (after-tax) of Financial Services Businesses	681		440		1,084		874		989
36		(6	)	700	%	Income (loss) from discontinued operations, net of taxes	(6	)	(16	)	68		19		36

1,025		675		52	%	Net income of Financial Services Businesses	675		424		1,152		893		1,025

						Earnings per share of Common Stock (diluted):
1.85		1.36				Financial Services Businesses after-tax adjusted operating income	1.36		1.40		1.72		1.67		1.85
0.29		0.10				Realized investment gains (losses), net, and related charges and adjustments	0.10		(0.63	)	0.45		0.27		0.29
0.17		(0.23	)			Investment gains (losses) on trading account assets supporting insurance liabilities, net	(0.23	)	(0.30	)	0.52		0.09		0.17
(0.13	)	0.13				Change in experience-rated contractholder liabilities due to asset value changes	0.13		0.26		(0.34	)	(0.04	)	(0.13	)
0.04		0.03				Divested businesses	0.03		(0.01	)	0.01		—		0.04
(0.25	)	(0.15	)			Equity in earnings of operating joint ventures	(0.15	)	(0.13	)	(0.16	)	(0.20	)	(0.25	)

0.12		(0.12	)			Total pre-tax adjustments	(0.12	)	(0.81	)	0.48		0.12		0.12
0.03		(0.05	)			Income taxes, not applicable to adjusted operating income	(0.05	)	(0.24	)	0.06		0.07		0.03

0.09		(0.07	)			Total adjustments, after income taxes	(0.07	)	(0.57	)	0.42		0.05		0.09

1.94		1.29				Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	1.29		0.83		2.14		1.72		1.94
0.16		0.10				Equity in earnings of operating joint ventures, net of taxes	0.10		0.09		0.10		0.13		0.16

2.10		1.39				Income from continuing operations (after-tax) of Financial Services Businesses	1.39		0.92		2.24		1.85		2.10
0.08		(0.01	)			Income (loss) from discontinued operations, net of taxes	(0.01	)	(0.03	)	0.14		0.03		0.08

2.18		1.38				Net income of Financial Services Businesses	1.38		0.89		2.38		1.88		2.18

477.2		504.1				Weighted average number of outstanding Common shares (diluted basis)	504.1		497.1		490.5		482.8		477.2
16.4	4%	13.37	%			Operating Return on Average Equity (based on adjusted operating income)	13.37	%	13.48	%	16.11	%	15.18	%	16.44	%
						*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
1,025		675				Net income of Financial Services Businesses (above)	675		424		1,152		893		1,025
95		58				Net income of Closed Block Business	58		29		53		144		95

1,120		733				Consolidated net income	733		453		1,205		1,037		1,120

15		19				Direct equity adjustments for earnings per share calculations	19		16		16		17		15

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Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2006				2007
2007	2006		1Q	2Q	3Q	4Q	1Q


		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	9,685	9,723	9,418	10,798	12,812
		Long-term debt	7,284	7,520	7,464	9,673	10,080

		Attributed Equity:
		Including accumulated other comprehensive income	21,229	20,424	22,053	21,690	22,265
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	20,695	20,716	21,290	21,306	21,657
		Excluding total accumulated other comprehensive income	20,717	20,604	21,232	21,194	21,585

		Total Capitalization:
		Including accumulated other comprehensive income	28,513	27,944	29,517	31,363	32,345
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	27,979	28,236	28,754	30,979	31,737
		Excluding total accumulated other comprehensive income	28,001	28,124	28,696	30,867	31,665

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	42.43	41.41	45.31	45.18	47.05
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	41.37	42.00	43.74	44.38	45.77
		Excluding total accumulated other comprehensive income	41.41	41.78	43.62	44.15	45.61
		Number of diluted shares at end of period	500.3	493.2	486.7	480.1	473.2

		*Common Stock Price Range (based on closing price):*
93.10	77.48	High	77.48	78.89	79.06	86.84	93.10
85.69	73.19	Low	73.19	74.43	71.47	76.03	85.69
90.26	75.81	Close	75.81	77.70	76.25	85.86	90.26

		*Common Stock market capitalization (1)*	37,288	37,651	36,394	40,449	42,025

(1)	As of end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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OPERATIONS HIGHLIGHTS


Year-to-date			2006				2007
2007	2006		1Q	2Q	3Q	4Q	1Q


		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Institutional customers	138.7	138.5	147.9	156.8	161.0
		Retail customers	75.6	75.1	75.9	79.0	84.2
		General account	157.8	159.7	163.8	167.6	168.9
		Total Investment Management and Advisory Services	372.1	373.3	387.6	403.4	414.1
		Non-proprietary assets under management	51.3	49.6	51.0	54.2	53.4
		Total managed by Investment Division	423.4	422.9	438.6	457.6	467.5
		Managed by International Insurance and Investments Division	74.5	82.6	82.2	86.2	88.8
		Managed by Insurance Division	49.5	62.9	65.4	72.2	73.5
		Total assets under management	547.4	568.4	586.2	616.0	629.8
		Client assets under administration	100.0	101.6	105.8	112.9	117.2
		Total assets under management and administration	647.4	670.0	692.0	728.9	747.0
		Assets managed or administered for customers outside of the United States at end of period	105.3	114.0	115.5	123.8	128.8

		*Distribution Representatives (1):*
		Prudential Agents	2,850	2,844	2,814	2,562	2,505
		International Life Planners	5,712	5,726	5,802	5,828	5,893
		Gibraltar Life Advisors	5,716	5,684	6,036	5,944	5,952

49	45	*Prudential Agent productivity ($ thousands)*	45	52	46	74	49

(1)	As of end of period.

(2)	At fair market value.

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Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date				% Change			2006								2007
2007		2006		% Change			1Q		2Q		3Q		4Q		1Q


						Revenues (1):
2,720		2,604		4	%	Premiums	2,604		2,542		2,548		2,593		2,720
784		662		18	%	Policy charges and fee income	662		667		583		737		784
2,054		1,812		13	%	Net investment income	1,812		1,875		1,962		2,011		2,054
1,149		1,054		9	%	Asset management fees, commissions and other income	1,054		966		1,024		1,206		1,149

6,707		6,132		9	%	Total revenues	6,132		6,050		6,117		6,547		6,707

						Benefits and Expenses (1):

2,763		2,577		7	%	Insurance and annuity benefits	2,577		2,591		2,650		2,605		2,763
745		652		14	%	Interest credited to policyholders' account balances	652		677		716		745		745
274		212		29	%	Interest expense	212		233		249		255		274
(539	)	(501	)	-8	%	Deferral of acquisition costs	(501	)	(495	)	(496	)	(545	)	(539	)
272		240		13	%	Amortization of acquisition costs	240		264		(73	)	239		272
1,959		2,006		-2	%	General and administrative expenses	2,006		1,822		1,911		2,138		1,959

5,474		5,186		6	%	Total benefits and expenses	5,186		5,092		4,957		5,437		5,474

1,233		946		30	%	Adjusted operating income before income taxes	946		958		1,160		1,110		1,233

146		50		192	%	Realized investment gains (losses), net, and related adjustments	50		(334	)	214		143		146
(6	)	—		—		Related charges	—		23		7		(13	)	(6	)

140		50		180	%	Total realized investment gains (losses), net, and related charges and adjustments	50		(311	)	221		130		140

82		(114	)	172	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(114	)	(151	)	257		43		82
(62	)	66		-194	%	Change in experience-rated contractholder liabilities due to asset value changes	66		130		(168	)	(17	)	(62	)
19		13		46	%	Divested businesses	13		(4	)	4		(1	)	19
(120	)	(78	)	-54	%	Equity in earnings of operating joint ventures	(78	)	(67	)	(78	)	(99	)	(120	)

59		(63	)	194	%	Total pre-tax adjustments	(63	)	(403	)	236		56		59

1,292		883		46	%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures	883		555		1,396		1,166		1,292
380		253		50	%	Income tax expense	253		160		362		354		380

912		630		45	%	Income from continuing operations before equity in earnings of operating joint ventures	630		395		1,034		812		912

(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

First Quarter 2007

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COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	3/31/2006	6/30/2006		9/30/2006	12/31/2006	3/31/2007


Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $102,220; $107,756; $105,750; $109,362; $110,980)	104,276	108,150		108,346	112,043	113,833
Fixed maturities, held to maturity, at amortized cost (fair value $3,397; $3,416; $3,400; $3,441; $3,407)	3,430	3,555		3,473	3,469	3,440
Trading account assets supporting insurance liabilities, at fair value	13,877	14,239		14,453	14,262	14,223
Other trading account assets, at fair value	2,358	4,561		1,933	2,209	2,119
Equity securities, available for sale, at fair value (cost $3,489; $3,672; $3,761; $3,825; $3,942)	3,975	4,050		4,182	4,331	4,592
Commercial loans	17,721	18,018		18,139	18,421	18,947
Policy loans	3,094	3,253		3,350	3,472	3,575
Securities purchased under agreements to resell	103	2,242		187	153	113
Other long-term investments	3,669	3,800		3,538	3,780	4,339
Short-term investments	2,404	2,768		2,705	3,183	3,291
Total investments	154,907	164,636		160,306	165,323	168,472
Cash and cash equivalents	5,915	6,521		7,361	7,243	5,950
Accrued investment income	1,400	1,433		1,466	1,429	1,468
Reinsurance recoverables	3,480	1,869		1,908	1,958	2,021
Deferred policy acquisition costs	8,776	9,239		9,540	9,854	10,067
Other assets	16,279	19,188		17,442	16,997	16,773
Separate account assets	160,506	160,070		166,757	177,463	181,618
Total assets	351,263	362,956		364,780	380,267	386,369
Liabilities:
Future policy benefits	52,661	55,333		55,238	56,245	56,490
Policyholders' account balances	70,659	74,309		75,614	75,090	75,132
Reinsurance payables	2,994	1,351		1,405	1,458	1,472
Securities sold under agreements to repurchase	7,141	9,564		6,256	5,747	4,794
Cash collateral for loaned securities	3,139	3,834		3,797	4,082	3,697
Income taxes	2,500	1,969		2,827	2,920	3,199
Securities sold but not yet purchased	132	2,152		313	277	307
Short-term debt	9,685	9,723		9,418	10,798	12,812
Long-term debt	7,284	7,520		7,464	9,673	10,080
Other liabilities	13,333	16,707		13,638	14,824	14,503
Separate account liabilities	160,506	160,070		166,757	177,463	181,618
Total liabilities	330,034	342,532		342,727	358,577	364,104
Attributed Equity:
Accumulated other comprehensive income (loss)	512	(180	)	821	496	680
Other attributed equity	20,717	20,604		21,232	21,194	21,585
Total attributed equity	21,229	20,424		22,053	21,690	22,265
Total liabilities and attributed equity	351,263	362,956		364,780	380,267	386,369

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Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Three Months Ended March 31, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,720		1,073		96		1,553		(2	)
Policy charges and fee income	784		667		44		72		1
Net investment income	2,054		470		993		386		205
Asset management fees, commissions and other income	1,149		230		744		220		(45	)

Total revenues	6,707		2,440		1,877		2,231		159

Benefits and Expenses (1):
Insurance and annuity benefits	2,763		1,230		302		1,219		12
Interest credited to policyholders' account balances	745		202		492		77		(26	)
Interest expense	274		53		59		2		160
Deferral of acquisition costs	(539	)	(270	)	(19	)	(261	)	11
Amortization of acquisition costs	272		153		9		128		(18	)
General and administrative expenses	1,959		754		606		591		8

Total benefits and expenses	5,474		2,122		1,449		1,756		147

Adjusted operating income before income taxes	1,233		318		428		475		12


	Three Months Ended March 31, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,604		982		92		1,533		(3	)
Policy charges and fee income	662		543		48		76		(5	)
Net investment income	1,812		418		849		330		215
Asset management fees, commissions and other income	1,054		178		745		160		(29	)

Total revenues	6,132		2,121		1,734		2,099		178

Benefits and Expenses (1):
Insurance and annuity benefits	2,577		1,070		269		1,224		14
Interest credited to policyholders' account balances	652		180		429		57		(14	)
Interest expense	212		30		46		3		133
Deferral of acquisition costs	(501	)	(256	)	(22	)	(256	)	33
Amortization of acquisition costs	240		131		13		116		(20	)
General and administrative expenses	2,006		668		759		573		6

Total benefits and expenses	5,186		1,823		1,494		1,717		152

Adjusted operating income before income taxes	946		298		240		382		26

(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

First Quarter 2007

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FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of March 31, 2007
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	168,472	33,237	68,050	53,537	13,648
Deferred policy acquisition costs	10,067	5,537	183	4,509	(162	)
Other assets	26,212	5,017	7,992	8,116	5,087
Separate account assets	181,618	89,449	93,344	175	(1,350	)

Total assets	386,369	133,240	169,569	66,337	17,223

Liabilities:
Future policy benefits	56,490	8,016	14,477	33,509	488
Policyholders' account balances	75,132	20,288	41,059	15,904	(2,119	)
Debt	22,892	3,447	3,507	1,363	14,575
Other liabilities	27,972	5,436	10,894	8,653	2,989
Separate account liabilities	181,618	89,449	93,344	175	(1,350	)

Total liabilities	364,104	126,636	163,281	59,604	14,583

Attributed Equity:
Accumulated other comprehensive income (loss)	680	244	160	816	(540	)
Other attributed equity	21,585	6,360	6,128	5,917	3,180

Total attributed equity	22,265	6,604	6,288	6,733	2,640

Total liabilities and attributed equity	386,369	133,240	169,569	66,337	17,223


	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

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Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of March 31, 2007				As of December 31, 2006
	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	4,125	4,380		255	4,122	4,377
Investment related	8,459	5,279	13,738		7,053	5,116	12,169
Securities business related	2,951	182	3,133		2,334	—	2,334
Specified other businesses	904	368	1,272		1,072	350	1,422
Limited recourse and non-recourse borrowing	243	126	369		84	85	169

Total debt - Financial Services Businesses	12,812	10,080	22,892		10,798	9,673	20,471

Ratio of long-term and short-term capital debt to capitalization			16.8	%			17.0	%

Closed Block Business
Investment related	1,122	—	1,122		1,738	—	1,738
Limited recourse and non-recourse borrowing	—	1,750	1,750		—	1,750	1,750

Total debt	1,122	1,750	2,872		1,738	1,750	3,488


	As of March 31, 2007				As of December 31, 2006
	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	3,081	1,299	—	4,380	3,079	1,298	—	4,377
Investment related	7,846	4,857	1,035	13,738	7,372	3,763	1,034	12,169
Securities business related	1,436	1,578	119	3,133	712	1,191	431	2,334
Specified other businesses	411	861	—	1,272	424	998	—	1,422
Limited recourse and non-recourse borrowing	—	—	369	369	—	—	169	169

Total debt - Financial Services Businesses	12,774	8,595	1,523	22,892	11,587	7,250	1,634	20,471

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $693 million of Surplus Notes for March 31, 2007 and December 31, 2006.

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year-to-date				% Change			2006								2007
2007		2006		% Change			1Q		2Q		3Q		4Q		1Q
						Revenues (1):
1,073		982		9	%	Premiums	982		1,005		1,027		1,052		1,073
667		543		23	%	Policy charges and fee income	543		559		474		637		667
470		418		12	%	Net investment income	418		438		463		468		470
230		178		29	%	Asset management fees, commissions and other income	178		169		241		218		230

2,440		2,121		15	%	Total revenues	2,121		2,171		2,205		2,375		2,440

						Benefits and Expenses (1):
1,230		1,070		15	%	Insurance and annuity benefits	1,070		1,144		1,225		1,154		1,230
202		180		12	%	Interest credited to policyholders' account balances	180		181		196		206		202
53		30		77	%	Interest expense	30		28		37		44		53
(270	)	(256	)	-5	%	Deferral of acquisition costs	(256	)	(228	)	(235	)	(282	)	(270	)
153		131		17	%	Amortization of acquisition costs	131		142		(191	)	125		153
754		668		13	%	General and administrative expenses	668		657		708		779		754

2,122		1,823		16	%	Total benefits and expenses	1,823		1,924		1,740		2,026		2,122

318		298		7	%	Adjusted operating income before income taxes	298		247		465		349		318

(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 9

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Three Months Ended March 31, 2007
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	1,073		126		21		926
Policy charges and fee income	667		272		299		96
Net investment income	470		155		151		164
Asset management fees, commissions and other income	230		78		133		19

Total revenues	2,440		631		604		1,205

Benefits and Expenses (1):
Insurance and annuity benefits	1,230		236		59		935
Interest credited to policyholders' account balances	202		54		89		59
Interest expense	53		38		13		2
Deferral of acquisition costs	(270	)	(103	)	(154	)	(13	)
Amortization of acquisition costs	153		78		74		1
General and administrative expenses (2)	754		227		357		170

Total benefits and expenses	2,122		530		438		1,154

Adjusted operating income before income taxes	318		101		166		51


	Three Months Ended March 31, 2006
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	982		100		15		867
Policy charges and fee income	543		266		200		77
Net investment income	418		126		144		148
Asset management fees, commissions and other income	178		67		94		17

Total revenues	2,121		559		453		1,109

Benefits and Expenses (1):
Insurance and annuity benefits	1,070		161		49		860
Interest credited to policyholders' account balances	180		48		83		49
Interest expense	30		17		10		3
Deferral of acquisition costs	(256	)	(80	)	(119	)	(57	)
Amortization of acquisition costs	131		74		57		—
General and administrative expenses (2)	668		206		255		207

Total benefits and expenses	1,823		426		335		1,062

Adjusted operating income before income taxes	298		133		118		47

(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 $32 million for the three months ended March 31, 2007 and $11 million for the three months ended March 31, 2006, for the amortization, net of interest, of value of business acquired (VOBA) associated with the American Skandia and Allstate acquisitions.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

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

(in millions)


Year-to-date					2006								2007
2007		2006			1Q		2Q		3Q		4Q		1Q


				SALES:
				Excluding corporate-owned life insurance:
48		21		Variable life	21		24		25		20		48
44		40		Universal life	40		43		34		75		44
49		31		Term life	31		34		35		48		49

141		92		Total excluding corporate-owned life insurance	92		101		94		143		141
5		1		Corporate-owned life insurance	1		4		5		2		5

146		93		Total	93		105		99		145		146

				SALES BY DISTRIBUTION CHANNEL:
				Excluding corporate-owned life insurance:
42		45		Prudential Agents	45		45		37		54		42
99		47		Third party distribution	47		56		57		89		99
5		1		Corporate-owned life insurance	1		4		5		2		5

146		93		Total	93		105		99		145		146

				ACCOUNT VALUE ACTIVITY:
				*Policyholders’ Account Balances (1):*
6,165		5,694		Beginning balance	5,694		5,802		5,891		6,018		6,165
325		307		Premiums and deposits	307		332		299		340		325
(236	)	(242	)	Surrenders and withdrawals	(242	)	(278	)	(284	)	(214	)	(236	)

89		65		Net sales	65		54		15		126		89
(46	)	(37	)	Benefit payments	(37	)	(32	)	(36	)	(33	)	(46	)

43		28		Net flows	28		22		(21	)	93		43
46		83		Interest credited and other	83		60		149		60		46
65		55		Net transfers from separate account	55		66		59		62		65
(66	)	(58	)	Policy charges	(58	)	(59	)	(60	)	(68	)	(66	)

6,253		5,802		Ending balance	5,802		5,891		6,018		6,165		6,253

				*Separate Account Liabilities:*
17,586		16,170		Beginning balance	16,170		16,682		16,313		16,747		17,586
316		301		Premiums and deposits	301		332		298		290		316
(166	)	(177	)	Surrenders and withdrawals	(177	)	(198	)	(173	)	(145	)	(166	)

150		124		Net sales	124		134		125		145		150
(28	)	(9	)	Benefit payments	(9	)	(9	)	(7	)	(9	)	(28	)

122		115		Net flows	115		125		118		136		122
303		653		Change in market value, interest credited and other	653		(228	)	574		963		303
(65	)	(55	)	Net transfers to general account	(55	)	(66	)	(59	)	(62	)	(65	)
(198	)	(201	)	Policy charges	(201	)	(200	)	(199	)	(198	)	(198	)

17,748		16,682		Ending balance	16,682		16,313		16,747		17,586		17,748

				FACE AMOUNT IN FORCE (2):
				Variable life	141,962		140,629		140,139		139,847		139,418
				Universal life	19,639		20,318		21,017		21,971		22,910
				Term life	210,589		221,072		231,971		247,933		264,840
				Total	372,190		382,019		393,127		409,751		427,168

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

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


Year-to-date					2006								2007
2007		2006			1Q		2Q		3Q		4Q		1Q
				Individual Life Insurance:
				Policy Surrender Experience:
167		191		Cash value of surrenders	191		212		181		160		167
3.0	%	3.7	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders' account balances, and separate account balances	3.7	%	4.1	%	3.4	%	2.9	%	3.0	%
				Death benefits per $1,000 of in force (1):
3.66		2.87		Variable and universal life	2.87		3.59		3.22		3.51		3.66
3.18		1.09		Term life	1.09		1.64		1.92		1.17		3.18
3.64		2.50		Total, Individual Life Insurance	2.50		3.20		2.93		2.84		3.64

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

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

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

(in millions)


Year-to-date					2006								2007
2007		2006			1Q		2Q		3Q		4Q		1Q


				SALES AND ACCOUNT VALUES:
				Variable Annuities:
74,555		50,778		Beginning total account value	50,778		53,181		68,807		70,555		74,555
2,779		2,129		Sales	2,129		2,500		2,323		2,641		2,779
(2,310	)	(1,585	)	Surrenders and withdrawals	(1,585	)	(1,757	)	(2,084	)	(2,296	)	(2,310	)

469		544		Net sales	544		743		239		345		469
(306	)	(185	)	Benefit payments	(185	)	(225	)	(244	)	(264	)	(306	)

163		359		Net flows	359		518		(5	)	81		163
1,168		2,228		Change in market value, interest credited, and other	2,228		(1,000	)	2,012		4,208		1,168
(295	)	(184	)	Policy charges	(184	)	(204	)	(259	)	(289	)	(295	)
—		—		Acquisition	—		16,312		—		—		—

75,591		53,181		Ending total account value	53,181		68,807		70,555		74,555		75,591

				Fixed Annuities:
3,748		3,991		Beginning total account value	3,991		3,941		3,871		3,814		3,748
21		28		Sales	28		32		33		26		21
(81	)	(69	)	Surrenders and withdrawals	(69	)	(92	)	(75	)	(77	)	(81	)

(60	)	(41	)	Net redemptions	(41	)	(60	)	(42	)	(51	)	(60	)
(43	)	(43	)	Benefit payments	(43	)	(42	)	(41	)	(50	)	(43	)

(103	)	(84	)	Net flows	(84	)	(102	)	(83	)	(101	)	(103	)
35		35		Interest credited and other	35		33		27		36		35
(1	)	(1	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)

3,679		3,941		Ending total account value	3,941		3,871		3,814		3,748		3,679

				SALES BY DISTRIBUTION CHANNEL:
				Variable and Fixed Annuities (1):
589		405		Insurance Agents	405		481		466		638		589
318		194		Wirehouses	194		266		257		352		318
1,893		1,558		Independent Financial Planners (2)	1,558		1,785		1,633		1,677		1,893

2,800		2,157		Total	2,157		2,532		2,356		2,667		2,800

				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (3):
				Return of net deposits:
				Account value	29,988		32,897		34,288		37,071		38,287
				Net amount at risk	1,751		1,870		1,724		1,491		1,433
				Minimum return, anniversary contract value, or maximum contract value:
				Account value	17,755		30,594		30,942		32,118		32,059
				Net amount at risk	1,600		3,378		3,009		2,528		2,439
				Variable Annuity Account Values with Living Benefit Features (3):
				Guaranteed minimum accumulation benefits	7,738		9,231		9,667		10,452		10,731
				Guaranteed minimum withdrawal benefits	885		1,678		1,853		2,028		2,105
				Guaranteed minimum income benefits	3,203		7,047		7,113		7,329		7,269
				Guaranteed minimum withdrawal & income benefits	4,155		5,304		6,678		8,570		10,205

				Total	15,981		23,260		25,311		28,379		30,310

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

(3)	At end of Period.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

INSURANCE DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date					2006								2007
2007		2006			1Q		2Q		3Q		4Q		1Q
				INDIVIDUAL ANNUITIES:
				Account Values in General Account (1):
9,527		9,231		Beginning balance	9,231		8,850		10,722		10,222		9,527
83		74		Premiums and deposits	74		96		182		110		83
(333	)	(273	)	Surrenders and withdrawals	(273	)	(313	)	(350	)	(332	)	(333	)

(250	)	(199	)	Net redemptions	(199	)	(217	)	(168	)	(222	)	(250	)
(102	)	(94	)	Benefit payments	(94	)	(92	)	(101	)	(114	)	(102	)

(352	)	(293	)	Net flows	(293	)	(309	)	(269	)	(336	)	(352	)
85		86		Interest credited and other	86		89		98		95		85
(13	)	(173	)	Net transfers (to) from separate account	(173	)	539		(329	)	(453	)	(13	)
(1	)	(1	)	Policy charges	(1	)	(1	)	—		(1	)	(1	)
—		—		Acquisition	—		1,554		—		—		—

9,246		8,850		Ending balance	8,850		10,722		10,222		9,527		9,246

				Account Values in Separate Account:
68,776		45,538		Beginning balance	45,538		48,272		61,956		64,147		68,776
2,717		2,083		Premiums and deposits	2,083		2,436		2,173		2,558		2,717
(2,058	)	(1,380	)	Surrenders and withdrawals	(1,380	)	(1,537	)	(1,809	)	(2,041	)	(2,058	)

659		703		Net sales	703		899		364		517		659
(247	)	(134	)	Benefit payments	(134	)	(175	)	(184	)	(199	)	(247	)

412		569		Net flows	569		724		180		318		412
1,118		2,177		Change in market value, interest credited and other	2,177		(1,056	)	1,942		4,147		1,118
13		173		Net transfers (to) from general account	173		(539	)	329		453		13
(295	)	(185	)	Policy charges	(185	)	(203	)	(260	)	(289	)	(295	)
—		—		Acquisition	—		14,758		—		—		—

70,024		48,272		Ending balance	48,272		61,956		64,147		68,776		70,024

(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 14

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


Year-to-date					2006								2007
2007		2006			1Q		2Q		3Q		4Q		1Q


				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
103		206		Group life	206		25		98		37		103
92		74		Group disability (1)	74		18		29		17		92
195		280		Total	280		43		127		54		195
				Future Policy Benefits (2):
				Group life	1,967		1,980		1,953		2,181		2,103
				Group disability (1)	474		496		498		519		589
				Total	2,441		2,476		2,451		2,700		2,692
				Policyholders' Account Balances (2):
				Group life	4,935		5,178		5,325		5,466		5,439
				Group disability (1)	95		101		108		112		109
				Total	5,030		5,279		5,433		5,578		5,548
				Separate Account Liabilities (2):
				Group life	12,588		14,334		15,023		16,412		16,898
				Group disability (1)	—		—		—		—		—
				Total	12,588		14,334		15,023		16,412		16,898
				Group Life Insurance:
832		791		Gross premiums, policy charges and fee income (3)	791		954		763		788		832
811		755		Earned premiums, policy charges and fee income	755		752		784		794		811
91.5	%	92.1	%	Benefits ratio	92.1	%	95.4	%	89.8	%	90.1	%	91.5	%
9.6	%	9.4	%	Administrative operating expense ratio	9.4	%	7.9	%	10.0	%	11.4	%	9.6	%
				Persistency ratio	96.5	%	95.9	%	95.1	%	94.8	%	95.6	%

				Group Disability Insurance (1):
217		199		Gross premiums, policy charges and fee income (3)	199		203		210		211		217
211		189		Earned premiums, policy charges and fee income	189		198		195		196		211
91.0	%	87.3	%	Benefits ratio	87.3	%	89.4	%	79.5	%	85.7	%	91.0	%
22.1	%	21.6	%	Administrative operating expense ratio	21.6	%	21.7	%	20.5	%	22.3	%	22.1	%
				Persistency ratio	94.2	%	92.2	%	90.8	%	89.9	%	92.1	%

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

(2)	As of end of period.

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

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


Year-to-date					2006								2007
2007		2006			1Q		2Q		3Q		4Q		1Q


				INDIVIDUAL LIFE INSURANCE:
3,550		3,187		Beginning balance	3,187		3,253		3,277		3,508		3,550
103		80		Capitalization	80		83		91		97		103
(78	)	(74	)	Amortization - operating results	(74	)	(91	)	220		(57	)	(78	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
(5	)	60		Impact of unrealized (gains) or losses on AFS securities	60		32		(80	)	2		(5	)

3,570		3,253		Ending balance	3,253		3,277		3,508		3,550		3,570

				INDIVIDUAL ANNUITIES:
1,613		1,256		Beginning balance	1,256		1,337		1,470		1,532		1,613
154		119		Capitalization	119		133		131		151		154
(74	)	(57	)	Amortization - operating results	(57	)	(51	)	(28	)	(67	)	(74	)
1		—		Amortization - realized investment gains and losses	—		8		12		—		1
(10	)	19		Impact of unrealized (gains) or losses on AFS securities	19		43		(53	)	(3	)	(10	)
(13	)	—		Other (1)	—		—		—		—		(13	)

1,671		1,337		Ending balance	1,337		1,470		1,532		1,613		1,671

				GROUP INSURANCE:
284		170		Beginning balance	170		227		239		251		284
13		57		Capitalization	57		12		13		34		13
(1	)	—		Amortization - operating results	—		—		(1	)	(1	)	(1	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

296		227		Ending balance	227		239		251		284		296

				TOTAL INSURANCE DIVISION:
5,447		4,613		Beginning balance	4,613		4,817		4,986		5,291		5,447
270		256		Capitalization	256		228		235		282		270
(153	)	(131	)	Amortization - operating results	(131	)	(142	)	191		(125	)	(153	)
1		—		Amortization - realized investment gains and losses	—		8		12		—		1
(15	)	79		Impact of unrealized (gains) or losses on AFS securities	79		75		(133	)	(1	)	(15	)
(13	)	—		Other (1)	—		—		—		—		(13	)

5,537		4,817		Ending balance	4,817		4,986		5,291		5,447		5,537

(1)	Reflects the impact of adoption of SOP 05-1 on January 1, 2007.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date				% Change			2006								2007
2007		2006		% Change			1Q		2Q		3Q		4Q		1Q
						Revenues (1):
96		92		4	%	Premiums	92		30		84		88		96
44		48		-8	%	Policy charges and fee income	48		43		45		43		44
993		849		17	%	Net investment income	849		917		927		970		993
744		745		0	%	Asset management fees, commissions and other income	745		656		625		840		744

1,877		1,734		8	%	Total revenues	1,734		1,646		1,681		1,941		1,877

						Benefits and Expenses (1):
302		269		12	%	Insurance and annuity benefits	269		235		297		303		302
492		429		15	%	Interest credited to policyholders' account balances	429		452		475		497		492
59		46		28	%	Interest expense	46		62		63		67		59
(19	)	(22	)	14	%	Deferral of acquisition costs	(22	)	(22	)	(25	)	(24	)	(19	)
9		13		-31	%	Amortization of acquisition costs	13		17		12		10		9
606		759		-20	%	General and administrative expenses	759		586		607		733		606

1,449		1,494		-3	%	Total benefits and expenses	1,494		1,330		1,429		1,586		1,449

428		240		78	%	Adjusted operating income before income taxes	240		316		252		355		428

(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 17

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Three Months Ended March 31, 2007
	Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	96		—		—		96
Policy charges and fee income	44		—		—		44
Net investment income	993		98		1		894
Asset management fees, commissions and other income	744		459		156		129

Total revenues	1,877		557		157		1,163

Benefits and Expenses (1):
Insurance and annuity benefits	302		—		—		302
Interest credited to policyholders' account balances	492		—		—		492
Interest expense	59		10		—		49
Deferral of acquisition costs	(19	)	(4	)	—		(15	)
Amortization of acquisition costs	9		6		—		3
General and administrative expenses	606		361		61		184

Total benefits and expenses	1,449		373		61		1,015

Adjusted operating income before income taxes	428		184		96		148


	Three Months Ended March 31, 2006
	Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	92		—		—		92
Policy charges and fee income	48		—		—		48
Net investment income	849		42		9		798
Asset management fees, commissions and other income	745		460		169		116

Total revenues	1,734		502		178		1,054

Benefits and Expenses (1):
Insurance and annuity benefits	269		—		—		269
Interest credited to policyholders' account balances	429		—		—		429
Interest expense	46		6		—		40
Deferral of acquisition costs	(22	)	(5	)	—		(17	)
Amortization of acquisition costs	13		7		—		6
General and administrative expenses	759		325		244		190

Total benefits and expenses	1,494		333		244		917

Adjusted operating income (loss) before income taxes	240		169		(66	)	137

(1)

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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


				Supplementary Revenue Information (in millions):

Year-to-date		% Change			2006				2007
2007	2006	% Change			1Q	2Q	3Q	4Q	1Q


				Analysis of revenues by type:
262	234	12	%	Asset management fees	234	237	244	259	262
143	144	-1	%	Incentive, transaction, principal investing and capital markets revenues	144	111	79	247	143
152	124	23	%	Service, distribution and other revenues	124	121	120	130	152

557	502	11	%	Total Asset Management segment revenues	502	469	443	636	557

				Analysis of asset management fees by source:
117	98	19	%	Institutional customers	98	102	111	115	117
84	76	11	%	Retail customers	76	76	75	83	84
61	60	2	%	General account	60	59	58	61	61

262	234	12	%	Total asset management fees	234	237	244	259	262


Supplementary Assets Under Management Information (in billions):

	March 31, 2007
	Equity	Fixed Income	Real Estate	Total
Institutional customers	55.2	81.8	24.0	161.0
Retail customers	61.8	20.5	1.9	84.2
General account	4.1	163.9	0.9	168.9

Total	121.1	266.2	26.8	414.1


	March 31, 2006
	Equity	Fixed Income	Real Estate	Total
Institutional customers	51.2	68.6	18.9	138.7
Retail customers	55.4	19.1	1.1	75.6
General account	3.8	152.9	1.1	157.8

Total	110.4	240.6	21.1	372.1

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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

(in billions)


Year-to-date					2006								2007
2007		2006			1Q		2Q		3Q		4Q		1Q


				Institutional Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
122.9		101.3		Beginning assets under management	101.3		106.7		107.1		115.0		122.9
5.9		7.3		Additions (1)	7.3		5.3		6.8		8.3		5.9
(4.7	)	(4.0	)	Withdrawals	(4.0	)	(4.4	)	(3.6	)	(4.9	)	(4.7	)
2.5		1.9		Change in market value	1.9		(0.4	)	4.3		4.5		2.5
0.4		0.2		Net money market flows	0.2		(0.1)		0.4		—		0.4
127.0		106.7		Ending assets under management	106.7		107.1		115.0		122.9		127.0
34.0		32.0		Affiliated institutional assets under management	32.0		31.4		32.9		33.9		34.0
161.0		138.7		Total assets managed for institutional customers at end of period	138.7		138.5		147.9		156.8		161.0
1.2		3.3		Net institutional additions other than money market	3.3		0.9		3.2		3.4		1.2
				Retail Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
43.4		38.7		Beginning assets under management	38.7		40.5		40.7		41.3		43.4
3.0		2.7		Additions	2.7		3.3		1.9		2.1		3.0
(2.7	)	(2.3	)	Withdrawals	(2.3	)	(3.0	)	(2.6	)	(1.9	)	(2.7	)
1.1		1.3		Change in market value	1.3		(1.0	)	1.3		2.0		1.1
0.1		0.1		Net money market flows	0.1		0.9		—		(0.1	)	0.1
2.8		—		Other (2)	—		—		—		—		2.8
47.7		40.5		Ending assets under management	40.5		40.7		41.3		43.4		47.7
36.5		35.1		Affiliated retail assets under management	35.1		34.4		34.6		35.6		36.5
84.2		75.6		Total assets managed for retail customers at end of period	75.6		75.1		75.9		79.0		84.2
0.3		0.4		Net retail additions (withdrawals) other than money market	0.4		0.3		(0.7	)	0.2		0.3
				Wrap-fee Product Assets Under Administration:
69.1		53.6		Beginning total wrap-fee product assets	53.6		59.1		60.5		63.9		69.1
5.8		6.9		Additions (3)	6.9		6.1		4.7		4.6		5.8
(3.8	)	(4.1	)	Withdrawals	(4.1	)	(3.6	)	(3.2	)	(3.7	)	(3.8	)
1.2		2.7		Change in market value	2.7		(1.1)		1.9		4.3		1.2
72.3		59.1		Ending total wrap-fee product assets	59.1		60.5		63.9		69.1		72.3
2.0		2.8		Net wrap-fee product additions	2.8		2.5		1.5		0.9		2.0

(1)	Additions include $1.8 billion for the year ended December 31, 2006, $0.4 billion for the quarter ended June 30, 2006 and $1.4 billion for the quarter ended March 31, 2006, for assets transferred from the Retirement segment.

(2)	Represents transfer of retail assets from an externally managed fund family to the Jennison Dryden Fund Family (internally managed) in the quarter ended March 31, 2007.

(3)	Substantially all relates to a contractual arrangement with Wachovia which provides for an essentially fixed annual fee and is scheduled to expire July 1, 2008.

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)


Year-to-date				2006								2007
2007	2006			1Q		2Q		3Q		4Q		1Q


			Information pertaining to Wachovia Securities Financial Holdings, LLC:
			Revenues:
79	72		Net investment income	72		76		78		82		79
529	483		Commissions	483		451		422		490		529
588	503		Fees	503		534		534		555		588
75	53		Other non-interest revenues	53		33		53		67		75
1,271	1,111		Total revenues	1,111		1,094		1,087		1,194		1,271
			Expenses:
978	933		Expenses before transition costs	933		926		894		947		978
—	—		Transition costs	—		—		—		—		—
978	933		Total expenses	933		926		894		947		978
293	178		Income before income taxes	178		168		193		247		293
111	68		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	68		63		74		94		111
—	1		Purchase accounting and related adjustments	1		(3)		(1)		(2)		—
111	69		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	69		60		73		92		111
			Recurring revenue as a percentage of total non-interest revenue (1)	48.4	%	49.0	%	49.1	%	49.4	%	49.5	%
			Total client assets ($ in billions) (2) (3)	688.7		704.3		729.9		754.8		768.0
			Distribution representatives (2):
			Series 7 Financial Advisors	7,926		7,973		7,972		7,993		8,073
			Series 6 Financial Representatives	2,454		2,541		2,477		2,497		2,521
			Customer debit balances ($ in billions) (2)	5.4		5.1		4.9		4.8		4.5
97	(107	)	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	(107	)	30		51		53		97

(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 21

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


Year-to-date					2006								2007
2007		2006			1Q		2Q		3Q		4Q		1Q


				RETIREMENT SALES AND ACCOUNT VALUES
				Full Service:
97,430		88,385		Beginning total account value	88,385		91,854		91,537		93,364		97,430
4,003		5,381		Deposits and sales	5,381		4,138		2,914		3,723		4,003
(3,433)		(5,471	)	Withdrawals and benefits	(5,471	)	(3,412	)	(3,272	)	(3,834	)	(3,433	)
1,558		3,559		Change in market value, interest credited and interest income	3,559		(1,043)		2,185		4,177		1,558
99,558		91,854		Ending total account value	91,854		91,537		93,364		97,430		99,558
570		(90	)	Net additions (withdrawals)	(90	)	726		(358	)	(111	)	570
				Stable value account values included above	30,696		30,784		30,971		30,796		30,758
				Institutional Investment Products:

50,269		48,080		Beginning total account value	48,080		47,215		46,913		49,468		50,269
1,533		1,536		Additions	1,536		1,088		2,004		1,365		1,533
(1,743	)	(2,452	)	Withdrawals and benefits (1)	(2,452	)	(1,429	)	(711	)	(1,764	)	(1,743	)
607		182		Change in market value, interest credited and interest income	182		423		995		647		607
(5)		(131)		Other (2)	(131)		(384)		267		553		(5)
50,661		47,215		Ending total account value	47,215		46,913		49,468		50,269		50,661
(210	)	(916	)	Net additions (withdrawals)	(916	)	(341	)	1,293		(399	)	(210	)

(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 and $1.4 billion for the quarter ended March 31, 2006, for assets transferred to the Asset Management segment.

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date				% Change			2006								2007
2007		2006		% Change			1Q		2Q		3Q		4Q		1Q


						Revenues (1):
1,553		1,533		1	%	Premiums	1,533		1,517		1,438		1,458		1,553
72		76		-5	%	Policy charges and fee income	76		70		70		70		72
386		330		17	%	Net investment income	330		343		376		376		386
220		160		38	%	Asset management fees, commissions and other income	160		150		172		181		220
2,231		2,099		6	%	Total revenues	2,099		2,080		2,056		2,085		2,231
						Benefits and Expenses (1):
1,219		1,224		0	%	Insurance and annuity benefits	1,224		1,203		1,112		1,143		1,219
77		57		35	%	Interest credited to policyholders' account balances	57		61		66		67		77
2		3		-33	%	Interest expense	3		4		3		—		2
(261	)	(256	)	-2	%	Deferral of acquisition costs	(256	)	(257	)	(242	)	(252	)	(261	)
128		116		10	%	Amortization of acquisition costs	116		115		111		112		128
591		573		3	%	General and administrative expenses	573		596		578		617		591
1,756		1,717		2	%	Total benefits and expenses	1,717		1,722		1,628		1,687		1,756
475		382		24	%	Adjusted operating income before income taxes	382		358		428		398		475

(1)

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Three Months Ended March 31, 2007
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	1,553		1,086		467		—
Policy charges and fee income	72		56		16		—
Net investment income	386		187		191		8
Asset management fees, commissions and other income	220		31		20		169

Total revenues	2,231		1,360		694		177

Benefits and Expenses (1):
Insurance and annuity benefits	1,219		848		371		—
Interest credited to policyholders' account balances	77		34		43		—
Interest expense	2		3		(2	)	1
Deferral of acquisition costs	(261	)	(196	)	(65	)	—
Amortization of acquisition costs	128		97		31		—
General and administrative expenses	591		304		173		114

Total benefits and expenses	1,756		1,090		551		115

Adjusted operating income before income taxes	475		270		143		62


	Three Months Ended March 31, 2006
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	1,533		989		544		—
Policy charges and fee income	76		58		18		—
Net investment income	330		156		167		7
Asset management fees, commissions and other income	160		14		3		143

Total revenues	2,099		1,217		732		150

Benefits and Expenses (1):
Insurance and annuity benefits	1,224		769		455		—
Interest credited to policyholders' account balances	57		27		30		—
Interest expense	3		3		—		—
Deferral of acquisition costs	(256	)	(191	)	(65	)	—
Amortization of acquisition costs	116		91		25		—
General and administrative expenses	573		290		177		106

Total benefits and expenses	1,717		989		622		106

Adjusted operating income before income taxes	382		228		110		44

(1)

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2006								2007
2007		2006			1Q		2Q		3Q		4Q		1Q


				Japanese Yen Basis Results:
				Revenues (1):
¥	110,222	¥	98,534	Japanese insurance operations excluding Gibraltar Life	¥	98,534	¥	92,370	¥	95,125	¥	95,896	¥	110,222
	80,554		84,650	Gibraltar Life		84,650		84,387		80,804		77,139		80,554
	190,776		183,184	Total revenues, Japan, yen basis		183,184		176,757		175,929		173,035		190,776
				Benefits and Expenses (1):
	86,553		77,842	Japanese insurance operations excluding Gibraltar Life		77,842		74,339		72,202		74,907		86,553
	65,133		72,640	Gibraltar Life		72,640		73,067		65,292		62,677		65,133
	151,686		150,482	Total benefits and expenses, Japan, yen basis		150,482		147,406		137,494		137,584		151,686

				Adjusted operating income (2):
	23,669		20,692	Japanese insurance operations excluding Gibraltar Life		20,692		18,031		22,923		20,989		23,669
	15,421		12,010	Gibraltar Life		12,010		11,320		15,513		14,462		15,421
¥	39,090	¥	32,702	Total adjusted operating income, Japan, yen basis	¥	32,702	¥	29,351	¥	38,436	¥	35,451	¥	39,090
				U.S. Dollar adjusted operating income (3):
$	219	$	196	Japanese insurance operations excluding Gibraltar Life	$	196	$	172	$	213	$	194	$	219
	143		110	Gibraltar Life		110		102		149		132		143
	362		306	Total adjusted operating income, Japan, U.S. dollar basis		306		274		362		326		362
	51		32	All other countries		32		50		35		38		51
$	413	$	338	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	338	$	324	$	397	$	364	$	413

(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 25

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date			2006				2007
2007	2006		1Q	2Q	3Q	4Q	1Q


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

		Net premiums, policy charges and fee income:
787	731	Japan, excluding Gibraltar Life	731	693	685	680	787
483	562	Gibraltar Life	562	559	490	483	483
355	316	All other countries	316	335	333	365	355

1,625	1,609	Total	1,609	1,587	1,508	1,528	1,625

		Annualized new business premiums:
153	138	Japan, excluding Gibraltar Life	138	113	114	115	153
76	73	Gibraltar Life	73	115	91	78	76
70	78	All other countries	78	72	60	77	70

299	289	Total	289	300	265	270	299

		Annualized new business premiums by distribution channel:
223	216	Life Planners	216	185	174	192	223
69	73	Gibraltar Life Advisors	73	96	71	68	69
7	—	Banks (2)	—	19	20	10	7

299	289	Total	289	300	265	270	299

		Constant exchange rate basis (3):

		Net premiums, policy charges and fee income:
920	839	Japan, excluding Gibraltar Life	839	777	779	785	920
564	649	Gibraltar Life	649	626	554	557	564
331	304	All other countries	304	317	316	341	331

1,815	1,792	Total	1,792	1,720	1,649	1,683	1,815

		Annualized new business premiums:
169	153	Japan, excluding Gibraltar Life	153	123	125	128	169
84	80	Gibraltar Life	80	121	98	86	84
66	75	All other countries	75	69	57	72	66

319	308	Total	308	313	280	286	319

		Annualized new business premiums by distribution channel:
235	228	Life Planners	228	192	182	200	235
77	80	Gibraltar Life Advisors	80	102	78	76	77
7	—	Banks (2)	—	19	20	10	7

319	308	Total	308	313	280	286	319

(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 26

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

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INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2006								2007
	1Q		2Q		3Q		4Q		1Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	226		229		232		236		239
Gibraltar Life	198		197		197		196		195
All other countries	90		91		92		93		96
Total	514		517		521		525		530
Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	1,996		2,023		2,049		2,074		2,118
Gibraltar Life	3,890		3,871		3,872		3,871		3,846
All other countries	1,127		1,150		1,169		1,201		1,225
Total	7,013		7,044		7,090		7,146		7,189
International life insurance policy persistency:
Excluding Gibraltar Life:
13 months	92.8	%	93.0	%	92.9	%	93.0	%	92.8	%
25 months	87.1	%	87.4	%	87.0	%	87.1	%	86.9	%
Gibraltar Life:
13 months	94.3	%	94.2	%	94.4	%	94.4	%	93.9	%
25 months	87.7	%	88.0	%	87.9	%	87.8	%	88.0	%
Number of Life Planners at end of period:
Japan	2,855		2,847		2,941		2,956		3,001
All other countries	2,857		2,879		2,861		2,872		2,892
Total life planners	5,712		5,726		5,802		5,828		5,893
Gibraltar Life Advisors	5,716		5,684		6,036		5,944		5,952

(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 27

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2007					December 31, 2006
	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	131,495	37,640	93,855	58.3	%	131,554	38,752	92,802	58.2	%
Public, held to maturity, at amortized cost	2,960	—	2,960	1.8	%	3,025	—	3,025	1.9	%
Private, available for sale, at fair value	30,700	12,132	18,568	11.5	%	30,357	12,021	18,336	11.5	%
Private, held to maturity, at amortized cost	480	—	480	0.3	%	443	—	443	0.3	%
Trading account assets supporting insurance liabilities, at fair value	14,223	—	14,223	8.8	%	14,262	—	14,262	8.9	%
Other trading account assets, at fair value	109	—	109	0.1	%	109	—	109	0.1	%
Equity securities, available for sale, at fair value	8,448	3,862	4,586	2.9	%	8,086	3,772	4,314	2.7	%
Commercial loans	24,428	7,190	17,238	10.7	%	24,593	7,318	17,275	10.8	%
Policy loans	8,972	5,396	3,576	2.2	%	8,887	5,415	3,472	2.2	%
Other long-term investments (1)	3,554	895	2,659	1.7	%	3,756	965	2,791	1.7	%
Short-term investments	4,351	1,673	2,678	1.7	%	4,603	1,851	2,752	1.7	%

Subtotal (2)	229,720	68,788	160,932	100.0	%	229,675	70,094	159,581	100.0	%

Invested assets of other entities and operations (3)	7,540	—	7,540			5,742	—	5,742

Total investments	237,260	68,788	168,472			235,417	70,094	165,323

Fixed Maturities by Credit Quality (2):


	March 31, 2007						December 31, 2006
	Financial Services Businesses						Financial Services Businesses
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value	% of Total		Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value	% of Total
Public Fixed Maturities:

NAIC Rating (4) Rating Agency Equivalent

1 Aaa, Aa, A	76,422	1,806	278	77,950	80.5	%	75,796	1,787	322	77,261	80.6	%
2 Baa	13,540	610	110	14,040	14.5	%	13,328	580	137	13,771	14.4	%

Subtotal Investment Grade	89,962	2,416	388	91,990	95.0	%	89,124	2,367	459	91,032	95.0	%

3 Ba	2,676	110	24	2,762	2.9	%	2,692	109	22	2,779	2.9	%
4 B	1,762	100	15	1,847	1.9	%	1,746	93	23	1,816	1.9	%
5 C and lower	124	9	2	131	0.1	%	115	8	2	121	0.1	%
6 In or near default	45	10	1	54	0.1	%	48	7	1	54	0.1	%

Subtotal Below Investment Grade	4,607	229	42	4,794	5.0	%	4,601	217	48	4,770	5.0	%

Total	94,569	2,645	430	96,784	100.0	%	93,725	2,584	507	95,802	100.0	%

Private Fixed Maturities:

NAIC Rating (4) Rating Agency Equivalent

1 Aaa, Aa, A	5,988	235	41	6,182	32.5	%	6,214	248	49	6,413	34.2	%
2 Baa	9,617	379	63	9,933	52.1	%	9,463	377	73	9,767	52.0	%

Subtotal Investment Grade	15,605	614	104	16,115	84.6	%	15,677	625	122	16,180	86.2	%

3 Ba	1,459	53	8	1,504	7.9	%	1,422	50	11	1,461	7.7	%
4 B	703	13	6	710	3.7	%	645	12	7	650	3.5	%
5 C and lower	549	23	3	569	3.0	%	321	18	4	335	1.8	%
6 In or near default	132	16	—	148	0.8	%	139	11	1	149	0.8	%

Subtotal Below Investment Grade	2,843	105	17	2,931	15.4	%	2,527	91	23	2,595	13.8	%

Total	18,448	719	121	19,046	100.0	%	18,204	716	145	18,775	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 March 31, 2007 and December 31, 2006, respectively, 256 securities with amortized cost of $4,400 million (fair value $4,430 million) and 231 securities with amortized cost of $3,515 million (fair value, $3,588 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2007			December 31, 2006
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	32,247	68.1	%	32,242	67.9	%
Public, held to maturity, at amortized cost	2,960	6.2	%	3,025	6.4	%
Private, available for sale, at fair value	3,126	6.6	%	3,139	6.6	%
Private, held to maturity, at amortized cost	480	1.0	%	443	0.9	%
Trading account assets supporting insurance liabilities, at fair value	1,144	2.4	%	1,106	2.3	%
Other trading account assets, at fair value	29	0.1	%	28	0.1	%
Equity securities, available for sale, at fair value	2,587	5.5	%	2,372	5.0	%
Commercial loans	2,752	5.8	%	2,782	5.9	%
Policy loans	1,039	2.2	%	1,016	2.1	%
Other long-term investments (1)	903	1.9	%	970	2.0	%
Short-term investments	102	0.2	%	374	0.8	%

Total	47,369	100.0	%	47,497	100.0	%


	March 31, 2007			December 31, 2006
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value	61,608	54.2	%	60,560	54.0	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	15,442	13.6	%	15,197	13.6	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	13,079	11.5	%	13,156	11.7	%
Other trading account assets, at fair value	80	0.1	%	81	0.1	%
Equity securities, available for sale, at fair value	1,999	1.8	%	1,942	1.7	%
Commercial loans	14,486	12.8	%	14,493	12.9	%
Policy loans	2,537	2.2	%	2,456	2.2	%
Other long-term investments (1)	1,756	1.5	%	1,821	1.7	%
Short-term investments	2,576	2.3	%	2,378	2.1	%

Total	113,563	100.0	%	112,084	100.0	%

(1)

(2)

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Three Months Ended March 31
	2007						2006(4)
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1):
Fixed maturities	4.95	%	1,414		27		4.77	%	1,249		(60	)
Equity securities	4.61	%	44		131		5.55	%	48		60
Commercial loans	6.17	%	204		(4	)	6.12	%	179		(4	)
Policy loans	4.98	%	44		—		4.87	%	37		—
Short-term investments and cash equivalents	5.44	%	96		(7	)	4.13	%	71		1
Other investments	6.63	%	47		35		9.48	%	64		82

Gross investment income before investment expenses	5.11	%	1,849		182		5.00	%	1,648		79
Investment expenses	-0.15	%	(139	)	—		-0.17	%	(113	)	—

Subtotal	4.96	%	1,710		182		4.83	%	1,535		79

Investment results of other entities and operations (2)			348		31				280		36
Less, investment income relating to divested businesses			(4	)					(3	)

Total			2,054		213				1,812		115

(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 30

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2007						2006(2)
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	2.61	%	252		25		2.45	%	224		6
Equity securities	2.64	%	13		120		2.43	%	10		52
Commercial loans	4.32	%	30		2		3.27	%	19		5
Policy loans	3.71	%	9		—		3.61	%	9		—
Short-term investments and cash equivalents	2.66	%	5		(1	)	3.05	%	3		—
Other investments	10.40	%	25		(11	)	13.18	%	30		(29	)

Gross investment income before investment expenses	2.90	%	334		135		2.75	%	295		34
Investment expenses	-0.17	%	(23	)	—		-0.18	%	(22	)	—

Total	2.73	%	311		135		2.57	%	273		34

(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 31

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2007						2006(3)
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (2)		Amount				Yield (2)		Amount
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	6.24	%	1,162		2		6.08	%	1,025		(66	)
Equity securities	6.80	%	31		11		8.70	%	38		8
Commercial loans	6.66	%	174		(6	)	6.81	%	160		(9	)
Policy loans	5.51	%	35		—		5.45	%	28		—
Short-term investments and cash equivalents	5.88	%	91		(6	)	4.23	%	68		1
Other investments	6.63	%	22		46		7.46	%	34		111

Gross investment income before investment expenses	6.27	%	1,515		47		6.15	%	1,353		45
Investment expenses	-0.15	%	(116	)	—		-0.17	%	(91	)	—

Total	6.12	%	1,399		47		5.98	%	1,262		45

(1)

(2)

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

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

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

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 33

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

KEY DEFINITIONS AND FORMULAS

11. Earned Premiums:

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

12. Earnings Per Share of Common Stock:

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

13. Full Service:

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

14. Full Service Stable Value:

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

15. General Account:

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

16. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

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

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

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

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

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

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

20. Individual Life Insurance Sales:

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

21. Insurance and Annuity Benefits:

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

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

KEY DEFINITIONS AND FORMULAS

22. International Life Planners:

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

23. New annualized premiums:

Premiums from new sales that are expected to be collected over a one year period. Group insurance new annualized premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers' Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance new annualized premiums include premiums from the takeover of claim liabilities. Group disability amounts include long-term care products. Single premium business for the Company's international insurance operations is included in annualized new business premiums based on 10% credit.

24. Non-recourse and Limited-recourse Debt:

Limited and non-recourse borrowing is where the holder is entitled to collect only against the assets pledged to the debt as collateral or has only very limited rights to collect against other assets. Classification for the earlier period presented has been conformed to the current presentation.

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 accumulated other comprehensive income related to unrealized gains and losses on investments and pension/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 18.27% for the three months ended March 31, 2007, 13.06% for the three months ended March 31, 2006, 16.29% for the three months ended December 31, 2006, 20.72% for the three months ended September 30, 2006 and 8.76% for the three months ended June 30, 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 accumulated other comprehensive income related to unrealized gains and losses on investments, 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.

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2007

LOGO

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of May 2, 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	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA-	Aa3	NR

CREDIT RATINGS:
as of May 2, 2007

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

Page 36

Form: 8-K

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