August 1, 2007 - QUARTERLY FINANCIAL SUPPLEMENT FOR THE FINANCIAL SERVICES BUSINESSES - 8-K: Current report

Exhibit 99.1

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Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

SECOND 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.

August 1, 2007

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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 (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		34-37

KEY DEFINITIONS AND FORMULAS		38-40

RATINGS AND INVESTOR INFORMATION		41

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

Results for the Company’s equity sales, trading and research operations known as Prudential Equity Group, previously included in the Financial Advisory segment, have been classified as “discontinued operations” for all periods presented, as a result of the Company’s decision to exit these operations. In addition, income from securities relating to trading exchange memberships of Prudential Equity Group and previously reported within the Financial Advisory segment or Corporate and Other operations has been classified as “divested businesses” and excluded from adjusted operating income for all periods presented.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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


						*Financial Services Businesses:*
						Pre-tax adjusted operating income (loss) by division:
708		545		30	%	Insurance Division	247		465		349		318		390
829		508		63	%	Investment Division	309		260		361		429		400
930		740		26	%	International Insurance and Investments Division	358		428		398		475		455
1		56		-98	%	Corporate and other operations	40		4		(13	)	9		(8	)

2,468		1,849		33	%	Total pre-tax adjusted operating income	954		1,157		1,095		1,231		1,237
730		532		37	%	Income taxes, applicable to adjusted operating income	275		329		313		365		365

1,738		1,317		32	%	Financial Services Businesses after-tax adjusted operating income	679		828		782		866		872

						Reconciling items:
172		(261	)	166	%	Realized investment gains (losses), net, and related charges and adjustments	(311	)	221		130		140		32
(26	)	(265	)	90	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(151	)	257		43		82		(108	)
10		196		-95	%	Change in experience-rated contractholder liabilities due to asset value changes	130		(168	)	(17	)	(62	)	72
14		48		-71	%	Divested businesses	(10	)	10		18		19		(5	)
(220	)	(145	)	-52	%	Equity in earnings of operating joint ventures	(67	)	(78	)	(99	)	(120	)	(100	)

(50	)	(427	)	88	%	Total reconciling items, before income taxes	(409	)	242		75		59		(109	)
(31	)	(125	)	75	%	Income taxes, not applicable to adjusted operating income	(119	)	34		43		14		(45	)

(19	)	(302	)	94	%	Total reconciling items, after income taxes	(290	)	208		32		45		(64	)

1,719		1,015		69	%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	389		1,036		814		911		808
133		96		39	%	Equity in earnings of operating joint ventures, net of taxes	45		50		62		77		56

1,852		1,111		67	%	Income from continuing operations (after-tax) of Financial Services Businesses	434		1,086		876		988		864
8		(12	)	167	%	Income (loss) from discontinued operations, net of taxes	(10	)	66		17		37		(29	)

1,860		1,099		69	%	Net income of Financial Services Businesses	424		1,152		893		1,025		835

						Earnings per share of Common Stock (diluted):
3.72		2.70				Financial Services Businesses after-tax adjusted operating income	1.40		1.72		1.65		1.85		1.87

						Reconciling items:
0.36		(0.52	)			Realized investment gains (losses), net, and related charges and adjustments	(0.63	)	0.45		0.27		0.29		0.07
(0.06	)	(0.53	)			Investment gains (losses) on trading account assets supporting insurance liabilities, net	(0.30	)	0.52		0.09		0.17		(0.23	)
0.02		0.39				Change in experience-rated contractholder liabilities due to asset value changes	0.26		(0.34	)	(0.04	)	(0.13	)	0.15
0.03		0.10				Divested businesses	(0.02	)	0.02		0.04		0.04		(0.01	)
(0.46	)	(0.29	)			Equity in earnings of operating joint ventures	(0.13	)	(0.16	)	(0.20	)	(0.25	)	(0.21	)

(0.11	)	(0.85	)			Total reconciling items, before income taxes	(0.82	)	0.49		0.16		0.12		(0.23	)
(0.07	)	(0.25	)			Income taxes, not applicable to adjusted operating income	(0.24	)	0.06		0.09		0.03		(0.10	)

(0.04	)	(0.60	)			Total reconciling items, after income taxes	(0.58	)	0.43		0.07		0.09		(0.13	)

3.68		2.10				Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	0.82		2.15		1.72		1.94		1.74
0.28		0.19				Equity in earnings of operating joint ventures, net of taxes	0.09		0.10		0.13		0.16		0.12

3.96		2.29				Income from continuing operations (after-tax) of Financial Services Businesses	0.91		2.25		1.85		2.10		1.86
0.02		(0.02	)			Income (loss) from discontinued operations, net of taxes	(0.02	)	0.13		0.03		0.08		(0.06	)

3.98		2.27				Net income of Financial Services Businesses	0.89		2.38		1.88		2.18		1.80


474.9		500.6				Weighted average number of outstanding Common shares (diluted basis)	497.1		490.5		482.8		477.2		472.8

16.37	%	13.11	%			Operating Return on Average Equity (based on adjusted operating income)	13.43	%	16.07	%	15.01	%	16.40	%	16.31	%

						*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
1,860		1,099				Net income of Financial Services Businesses (above)	424		1,152		893		1,025		835
106		87				Net income of Closed Block Business	29		53		144		95		11

1,966		1,186				Consolidated net income	453		1,205		1,037		1,120		846

29		35				Direct equity adjustments for earnings per share calculations	16		16		17		15		14

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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


		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	9,723	9,418	10,798	12,812	11,533
		Long-term debt	7,520	7,464	9,673	10,080	9,401

		Attributed Equity:
		Including accumulated other comprehensive income	20,424	22,053	21,690	22,265	21,718
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	20,716	21,290	21,306	21,657	21,792
		Excluding total accumulated other comprehensive income	20,604	21,232	21,194	21,585	21,835

		Total Capitalization:
		Including accumulated other comprehensive income	27,944	29,517	31,363	32,345	31,119
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	28,236	28,754	30,979	31,737	31,193
		Excluding total accumulated other comprehensive income	28,124	28,696	30,867	31,665	31,236

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	41.41	45.31	45.18	47.05	46.27
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	42.00	43.74	44.38	45.77	46.43
		Excluding total accumulated other comprehensive income	41.78	43.62	44.15	45.61	46.52

		Number of diluted shares at end of period	493.2	486.7	480.1	473.2	469.4

		*Common Stock Price Range (based on closing price):*
103.17	78.89	High	78.89	79.06	86.84	93.10	103.17
85.69	73.19	Low	74.43	71.47	76.03	85.69	90.21
97.23	77.70	Close	77.70	76.25	85.86	90.26	97.23

		*Common Stock market capitalization (1)*	37,651	36,394	40,449	42,025	44,879

(1)	As of end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

OPERATIONS HIGHLIGHTS


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


		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Institutional customers	138.5	147.9	156.8	161.0	166.2
		Retail customers	75.1	75.9	79.0	84.2	87.1
		General account	159.7	163.8	167.6	168.9	167.0
		Total Investment Management and Advisory Services	373.3	387.6	403.4	414.1	420.3
		Non-proprietary assets under management	49.6	51.0	54.2	53.4	56.1
		Total managed by Investment Division	422.9	438.6	457.6	467.5	476.4
		Managed by International Insurance and Investments Division	82.6	82.2	86.2	88.8	94.3
		Managed by Insurance Division	62.9	65.4	72.2	73.5	77.7
		Total assets under management	568.4	586.2	616.0	629.8	648.4
		Client assets under administration	101.6	105.8	112.9	117.2	127.0
		Total assets under management and administration	670.0	692.0	728.9	747.0	775.4
		Assets managed or administered for customers outside of the United States at end of period	114.0	115.5	123.8	128.8	137.3

		*Distribution Representatives (1):*
		Prudential Agents	2,844	2,814	2,562	2,505	2,512
		International Life Planners	5,726	5,802	5,828	5,893	6,001
		Gibraltar Life Advisors	5,684	6,036	5,944	5,952	5,815

53	48	*Prudential Agent productivity ($ thousands)*	52	46	74	49	57

(1)	As of end of period.

(2)	At fair market value.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

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COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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


						Revenues (1):
5,404		5,146		5	%	Premiums	2,542		2,548		2,593		2,720		2,684
1,567		1,329		18	%	Policy charges and fee income	667		583		737		784		783
4,127		3,685		12	%	Net investment income	1,874		1,962		2,010		2,053		2,074
2,261		1,860		22	%	Asset management fees, commissions and other income	913		971		1,138		1,104		1,157
13,359		12,020		11	%	Total revenues	5,996		6,064		6,478		6,661		6,698
						Benefits and Expenses (1):

5,446		5,168		5	%	Insurance and annuity benefits	2,591		2,650		2,605		2,763		2,683
1,507		1,329		13	%	Interest credited to policyholders’ account balances	677		716		745		745		762
550		445		24	%	Interest expense	233		249		255		274		276
(1,095	)	(996	)	-10	%	Deferral of acquisition costs	(495	)	(496	)	(545	)	(539	)	(556	)
537		504		7	%	Amortization of acquisition costs	264		(73	)	239		272		265
3,946		3,721		6	%	General and administrative expenses	1,772		1,861		2,084		1,915		2,031
10,891		10,171		7	%	Total benefits and expenses	5,042		4,907		5,383		5,430		5,461
2,468		1,849		33	%	Adjusted operating income before income taxes	954		1,157		1,095		1,231		1,237
						Reconciling items:
185		(284	)	165	%	Realized investment gains (losses), net, and related adjustments	(334	)	214		143		146		39
(13	)	23		-157	%	Related charges	23		7		(13	)	(6	)	(7	)
172		(261	)	166	%	Total realized investment gains (losses), net, and related charges and adjustments	(311	)	221		130		140		32
(26	)	(265	)	90	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(151	)	257		43		82		(108	)
10		196		-95	%	Change in experience-rated contractholder liabilities due to asset value changes	130		(168	)	(17	)	(62	)	72
14		48		-71	%	Divested businesses	(10	)	10		18		19		(5	)
(220	)	(145	)	-52	%	Equity in earnings of operating joint ventures	(67	)	(78	)	(99	)	(120	)	(100	)
(50	)	(427	)	88	%	Total reconciling items, before income taxes	(409	)	242		75		59		(109)
2,418		1,422		70	%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures	545		1,399		1,170		1,290		1,128
699		407		72	%	Income tax expense	156		363		356		379		320


1,719		1,015		69	%	Income from continuing operations before equity in earnings of operating joint ventures	389		1,036		814		911		808

(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

Second Quarter 2007

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


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


Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $107,756; $105,750; $109,362; $110,980; $108,291)	108,150		108,346	112,043	113,833	109,665
Fixed maturities, held to maturity, at amortized cost (fair value $3,416; $3,400; $3,441; $3,407; $3,287)	3,555		3,473	3,469	3,440	3,370
Trading account assets supporting insurance liabilities, at fair value	14,239		14,453	14,262	14,223	14,069
Other trading account assets, at fair value	4,561		1,933	2,209	2,119	2,100
Equity securities, available for sale, at fair value (cost $3,672; $3,761; $3,825; $3,942; $3,928)	4,050		4,182	4,331	4,592	4,588
Commercial loans	18,018		18,139	18,421	18,947	19,852
Policy loans	3,253		3,350	3,472	3,575	3,642
Securities purchased under agreements to resell	2,242		187	153	113	198
Other long-term investments	3,800		3,538	3,780	4,339	4,430
Short-term investments	2,768		2,705	3,183	3,291	5,421
Total investments	164,636		160,306	165,323	168,472	167,335
Cash and cash equivalents	6,521		7,361	7,243	5,950	5,584
Accrued investment income	1,433		1,466	1,429	1,468	1,432
Reinsurance recoverables	1,869		1,908	1,958	2,021	2,127
Deferred policy acquisition costs	9,239		9,540	9,854	10,067	10,404
Other assets	19,188		17,442	16,997	16,773	15,603
Separate account assets	160,070		166,757	177,463	181,618	187,403
Total assets	362,956		364,780	380,267	386,369	389,888
Liabilities:
Future policy benefits	55,333		55,238	56,245	56,490	55,692
Policyholders’ account balances	74,309		75,614	75,090	75,132	75,606
Reinsurance payables	1,351		1,405	1,458	1,472	1,556
Securities sold under agreements to repurchase	9,564		6,256	5,747	4,794	5,146
Cash collateral for loaned securities	3,834		3,797	4,082	3,697	4,497
Income taxes	1,969		2,827	2,920	3,199	2,746
Securities sold but not yet purchased	2,152		313	277	307	267
Short-term debt	9,723		9,418	10,798	12,812	11,533
Long-term debt	7,520		7,464	9,673	10,080	9,401
Other liabilities	16,707		13,638	14,824	14,503	14,323
Separate account liabilities	160,070		166,757	177,463	181,618	187,403
Total liabilities	342,532		342,727	358,577	364,104	368,170
Attributed Equity:
Accumulated other comprehensive income (loss)	(180	)	821	496	680	(117	)
Other attributed equity	20,604		21,232	21,194	21,585	21,835
Total attributed equity	20,424		22,053	21,690	22,265	21,718
Total liabilities and attributed equity	362,956		364,780	380,267	386,369	389,888

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended June 30, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,684		1,083		71		1,531		(1	)
Policy charges and fee income	783		672		44		73		(6	)
Net investment income	2,074		475		1,013		405		181
Asset management fees, commissions and other income	1,157		242		733		217		(35	)

Total revenues	6,698		2,472		1,861		2,226		139

Benefits and Expenses (1):
Insurance and annuity benefits	2,683		1,182		276		1,219		6
Interest credited to policyholders’ account balances	762		205		508		79		(30	)
Interest expense	276		53		64		3		156
Deferral of acquisition costs	(556	)	(287	)	(25	)	(259	)	15
Amortization of acquisition costs	265		140		11		126		(12	)
General and administrative expenses	2,031		789		627		603		12

Total benefits and expenses	5,461		2,082		1,461		1,771		147

Adjusted operating income (loss) before income taxes	1,237		390		400		455		(8	)


	Quarter Ended June 30, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,542		1,005		30		1,517		(10	)
Policy charges and fee income	667		559		43		70		(5	)
Net investment income	1,874		438		916		343		177
Asset management fees, commissions and other income	913		169		597		150		(3	)

Total revenues	5,996		2,171		1,586		2,080		159

Benefits and Expenses (1):
Insurance and annuity benefits	2,591		1,144		235		1,203		9
Interest credited to policyholders’ account balances	677		181		452		61		(17	)
Interest expense	233		28		62		4		139
Deferral of acquisition costs	(495	)	(228	)	(22	)	(257	)	12
Amortization of acquisition costs	264		142		17		115		(10	)
General and administrative expenses	1,772		657		533		596		(14	)

Total benefits and expenses	5,042		1,924		1,277		1,722		119

Adjusted operating income before income taxes	954		247		309		358		40

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Six Months Ended June 30, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	5,404		2,156		167		3,084		(3	)
Policy charges and fee income	1,567		1,339		88		145		(5	)
Net investment income	4,127		945		2,005		791		386
Asset management fees, commissions and other income	2,261		472		1,432		437		(80	)

Total revenues	13,359		4,912		3,692		4,457		298

Benefits and Expenses (1):
Insurance and annuity benefits	5,446		2,412		578		2,438		18
Interest credited to policyholders’ account balances	1,507		407		1,000		156		(56	)
Interest expense	550		106		123		5		316
Deferral of acquisition costs	(1,095	)	(557	)	(44	)	(520	)	26
Amortization of acquisition costs	537		293		20		254		(30	)
General and administrative expenses	3,946		1,543		1,186		1,194		23

Total benefits and expenses	10,891		4,204		2,863		3,527		297

Adjusted operating income before income taxes	2,468		708		829		930		1


	Six Months Ended June 30, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	5,146		1,987		122		3,050		(13	)
Policy charges and fee income	1,329		1,102		91		146		(10	)
Net investment income	3,685		856		1,763		673		393
Asset management fees, commissions and other income	1,860		347		1,242		310		(39	)

Total revenues	12,020		4,292		3,218		4,179		331

Benefits and Expenses (1):
Insurance and annuity benefits	5,168		2,214		504		2,427		23
Interest credited to policyholders’ account balances	1,329		361		881		118		(31	)
Interest expense	445		58		108		7		272
Deferral of acquisition costs	(996	)	(484	)	(44	)	(513	)	45
Amortization of acquisition costs	504		273		30		231		(30	)
General and administrative expenses	3,721		1,325		1,231		1,169		(4	)

Total benefits and expenses	10,171		3,747		2,710		3,439		275

Adjusted operating income before income taxes	1,849		545		508		740		56

(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

Second Quarter 2007

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FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of June 30, 2007
	Total Financial Services Businesses		Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	167,335		33,434	68,396	53,693	11,812
Deferred policy acquisition costs	10,404		5,768	206	4,596	(166	)
Other assets	24,746		4,907	8,049	7,925	3,865
Separate account assets	187,403		94,236	94,305	216	(1,354	)

Total assets	389,888		138,345	170,956	66,430	14,157

Liabilities:
Future policy benefits	55,692		8,052	14,101	33,058	481
Policyholders’ account balances	75,606		20,055	42,081	15,852	(2,382	)
Debt	20,934		4,041	3,413	1,023	12,457
Other liabilities	28,535		5,699	10,961	9,646	2,229
Separate account liabilities	187,403		94,236	94,305	216	(1,354	)

Total liabilities	368,170		132,083	164,861	59,795	11,431

Attributed Equity:
Accumulated other comprehensive income (loss)	(117	)	13	4	468	(602	)
Other attributed equity	21,835		6,249	6,091	6,167	3,328

Total attributed equity	21,718		6,262	6,095	6,635	2,726

Total liabilities and attributed equity	389,888		138,345	170,956	66,430	14,157


	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	65,805	52,884	13,480
Deferred policy acquisition costs	9,854		5,447	176	4,397	(166	)
Other assets	27,627		5,555	8,232	7,968	5,872
Separate account assets	177,463		87,380	91,257	153	(1,327	)

Total assets	380,267		131,536	165,470	65,402	17,859

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	10,753	8,154	4,433
Separate account liabilities	177,463		87,380	91,257	153	(1,327	)

Total liabilities	358,577		125,255	159,307	58,828	15,187

Attributed Equity:
Accumulated other comprehensive income (loss)	496		235	116	694	(549	)
Other attributed equity	21,194		6,046	6,047	5,880	3,221

Total attributed equity	21,690		6,281	6,163	6,574	2,672

Total liabilities and attributed equity	380,267		131,536	165,470	65,402	17,859

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of June 30, 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	1,647	2,735	4,382		255	4,122	4,377
Investment related	5,258	5,743	11,001		7,053	5,116	12,169
Securities business related	3,319	270	3,589		2,334	—	2,334
Specified other businesses	1,023	528	1,551		1,072	350	1,422
Limited recourse and non-recourse borrowing	286	125	411		84	85	169

Total debt - Financial Services Businesses	11,533	9,401	20,934		10,798	9,673	20,471

Ratio of long-term and short-term capital debt to capitalization			16.7	%			17.0	%

Closed Block Business
Investment related	1,414	—	1,414		1,738	—	1,738
Limited recourse and non-recourse borrowing	—	1,750	1,750		—	1,750	1,750

Total debt	1,414	1,750	3,164		1,738	1,750	3,488


	As of June 30, 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	3,083	1,299	—	4,382	3,079	1,298	—	4,377
Investment related	6,288	3,719	994	11,001	7,372	3,763	1,034	12,169
Securities business related	2,144	1,406	39	3,589	712	1,191	431	2,334
Specified other businesses	557	994	—	1,551	424	998	—	1,422
Limited recourse and non-recourse borrowing	—	—	411	411	—	—	169	169

Total debt - Financial Services Businesses	12,072	7,418	1,444	20,934	11,587	7,250	1,634	20,471

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $694 million and $693 million of Surplus Notes for June 30, 2007 and December 31, 2006, respectively.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


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


						Revenues (1):
2,156		1,987		9	%	Premiums	1,005		1,027		1,052		1,073		1,083
1,339		1,102		22	%	Policy charges and fee income	559		474		637		667		672
945		856		10	%	Net investment income	438		463		468		470		475
472		347		36	%	Asset management fees, commissions and other income	169		241		218		230		242
4,912		4,292		14	%	Total revenues	2,171		2,205		2,375		2,440		2,472
						Benefits and Expenses (1):
2,412		2,214		9	%	Insurance and annuity benefits	1,144		1,225		1,154		1,230		1,182
407		361		13	%	Interest credited to policyholders’ account balances	181		196		206		202		205
106		58		83	%	Interest expense	28		37		44		53		53
(557	)	(484	)	-15	%	Deferral of acquisition costs	(228	)	(235	)	(282	)	(270	)	(287	)
293		273		7	%	Amortization of acquisition costs	142		(191	)	125		153		140
1,543		1,325		16	%	General and administrative expenses	657		708		779		754		789
4,204		3,747		12	%	Total benefits and expenses	1,924		1,740		2,026		2,122		2,082
708		545		30	%	Adjusted operating income before income taxes	247		465		349		318		390

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

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO LOGO

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Six Months Ended June 30, 2007								Quarter Ended June 30, 2007
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance		Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	2,156		252		40		1,864		1,083		126		19		938
Policy charges and fee income	1,339		536		619		184		672		264		320		88
Net investment income	945		316		299		330		475		161		148		166
Asset management fees, commissions and other income	472		156		278		38		242		78		145		19

Total revenues	4,912		1,260		1,236		2,416		2,472		629		632		1,211

Benefits and Expenses (1):
Insurance and annuity benefits	2,412		439		118		1,855		1,182		203		59		920
Interest credited to policyholders’ account balances	407		108		182		117		205		54		93		58
Interest expense	106		75		27		4		53		37		14		2
Deferral of acquisition costs	(557	)	(218	)	(322	)	(17	)	(287	)	(115	)	(168	)	(4	)
Amortization of acquisition costs	293		142		149		2		140		64		75		1
General and administrative expenses (2)	1,543		472		736		335		789		245		379		165

Total benefits and expenses	4,204		1,018		890		2,296		2,082		488		452		1,142

Adjusted operating income before income taxes	708		242		346		120		390		141		180		69


	Six Months Ended June 30, 2006								Quarter Ended June 30, 2006
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance		Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	1,987		203		31		1,753		1,005		103		16		886
Policy charges and fee income	1,102		536		425		141		559		270		225		64
Net investment income	856		262		293		301		438		136		149		153
Asset management fees, commissions and other income	347		143		173		31		169		76		79		14

Total revenues	4,292		1,144		922		2,226		2,171		585		469		1,117

Benefits and Expenses (1):
Insurance and annuity benefits	2,214		360		100		1,754		1,144		199		51		894
Interest credited to policyholders’ account balances	361		98		166		97		181		50		83		48
Interest expense	58		35		20		3		28		18		10		—
Deferral of acquisition costs	(484	)	(163	)	(252	)	(69	)	(228	)	(83	)	(133	)	(12	)
Amortization of acquisition costs	273		165		108		—		142		91		51		—
General and administrative expenses (2)	1,325		420		540		365		657		214		285		158

Total benefits and expenses	3,747		915		682		2,150		1,924		489		347		1,088

Adjusted operating income before income taxes	545		229		240		76		247		96		122		29

(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 $66 million for the six months ended June 30, 2007, $26 million for the six months ended June 30, 2006, $34 million for the quarter ended June 30, 2007 and $15 million for the quarter ended June 30, 2006 for the amortization, net of interest, of value of business acquired (VOBA).

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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			2Q		3Q		4Q		1Q		2Q


				SALES:
				Excluding corporate-owned life insurance:
67		45		Variable life	24		25		20		48		19
89		83		Universal life	43		34		75		44		45
103		65		Term life	34		35		48		49		54
259		193		Total excluding corporate-owned life insurance	101		94		143		141		118
8		5		Corporate-owned life insurance	4		5		2		5		3
267		198		Total	105		99		145		146		121
				SALES BY DISTRIBUTION CHANNEL:
				Excluding corporate-owned life insurance:
84		90		Prudential Agents	45		37		54		42		42
175		103		Third party distribution	56		57		89		99		76
8		5		Corporate-owned life insurance	4		5		2		5		3
267		198		Total	105		99		145		146		121
				ACCOUNT VALUE ACTIVITY:
				*Policyholders’ Account Balances (1):*
6,165		5,694		Beginning balance	5,802		5,891		6,018		6,165		6,253
670		639		Premiums and deposits	332		299		340		325		345
(499	)	(520	)	Surrenders and withdrawals	(278	)	(284	)	(214	)	(236	)	(263	)
171		119		Net sales	54		15		126		89		82
(86	)	(69	)	Benefit payments	(32	)	(36	)	(33	)	(46	)	(40	)
85		50		Net flows	22		(21	)	93		43		42
138		143		Interest credited and other	60		149		60		46		92
130		121		Net transfers from separate account	66		59		62		65		65
(133	)	(117	)	Policy charges	(59	)	(60	)	(68	)	(66	)	(67	)
6,385		5,891		Ending balance	5,891		6,018		6,165		6,253		6,385
				*Separate Account Liabilities:*
17,586		16,170		Beginning balance	16,682		16,313		16,747		17,586		17,748
630		633		Premiums and deposits	332		298		290		316		314
(322	)	(375	)	Surrenders and withdrawals	(198	)	(173	)	(145	)	(166	)	(156	)
308		258		Net sales	134		125		145		150		158
(33	)	(18	)	Benefit payments	(9	)	(7	)	(9	)	(28	)	(5	)
275		240		Net flows	125		118		136		122		153
1,183		425		Change in market value, interest credited and other	(228	)	574		963		303		880
(130	)	(121	)	Net transfers to general account	(66	)	(59	)	(62	)	(65	)	(65	)
(397	)	(401	)	Policy charges	(200	)	(199	)	(198	)	(198	)	(199	)
18,517		16,313		Ending balance	16,313		16,747		17,586		17,748		18,517
				FACE AMOUNT IN FORCE (2):
				Variable life	140,629		140,139		139,847		139,418		139,280
				Universal life	20,318		21,017		21,971		22,910		23,696
				Term life	221,072		231,971		247,933		264,840		282,434
				Total	382,019		393,127		409,751		427,168		445,410

(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

Second Quarter 2007

LOGO

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


Year-to-date					2006						2007
2007		2006			2Q		3Q		4Q		1Q		2Q
				Individual Life Insurance:
				Policy Surrender Experience:
342		403		Cash value of surrenders	212		181		160		167		175
3.0	%	3.9	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	4.1	%	3.4	%	2.9	%	3.0	%	3.1	%
				Death benefits per $1,000 of in force (1):
3.36		3.24		Variable and universal life	3.59		3.22		3.51		3.66		3.04
2.34		1.22		Term life	1.64		1.92		1.17		3.18		1.62
3.14		2.75		Total, Individual Life Insurance	3.20		2.93		2.84		3.64		2.68

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

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

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

(in millions)


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


				SALES AND ACCOUNT VALUES:
				Variable Annuities:
74,555		50,778		Beginning total account value	53,181		68,807		70,555		74,555		75,591
5,812		4,629		Sales	2,500		2,323		2,641		2,779		3,033
(4,825	)	(3,342	)	Surrenders and withdrawals	(1,757	)	(2,084	)	(2,296	)	(2,310	)	(2,515	)
987		1,287		Net sales	743		239		345		469		518
(605	)	(410	)	Benefit payments	(225	)	(244	)	(264	)	(306	)	(299	)
382		877		Net flows	518		(5	)	81		163		219
4,646		1,228		Change in market value, interest credited, and other	(1,000	)	2,012		4,208		1,168		3,478
(615	)	(388	)	Policy charges	(204	)	(259	)	(289	)	(295	)	(320	)
—		16,312		Acquisition	16,312		—		—		—		—
78,968		68,807		Ending total account value	68,807		70,555		74,555		75,591		78,968
				Fixed Annuities:
3,748		3,991		Beginning total account value	3,941		3,871		3,814		3,748		3,679
41		60		Sales	32		33		26		21		20
(155	)	(161	)	Surrenders and withdrawals	(92	)	(75	)	(77	)	(81	)	(74	)
(114	)	(101	)	Net redemptions	(60	)	(42	)	(51	)	(60	)	(54	)
(88	)	(85	)	Benefit payments	(42	)	(41	)	(50	)	(43	)	(45	)
(202	)	(186	)	Net flows	(102	)	(83	)	(101	)	(103	)	(99	)
64		68		Interest credited and other	33		27		36		35		29
(2	)	(2	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)
3,608		3,871		Ending total account value	3,871		3,814		3,748		3,679		3,608
				SALES BY DISTRIBUTION CHANNEL:
				Variable and Fixed Annuities (1):
1,249		886		Insurance Agents	481		466		638		589		660
694		460		Wirehouses	266		257		352		318		376
3,910		3,343		Independent Financial Planners (2)	1,785		1,633		1,677		1,893		2,017
5,853		4,689		Total	2,532		2,356		2,667		2,800		3,053
				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (3):
				Return of net deposits:
				Account value	32,897		34,288		37,071		38,287		40,762
				Net amount at risk	1,870		1,724		1,491		1,433		1,268
				Minimum return, anniversary contract value, or maximum contract value:
				Account value	30,594		30,942		32,118		32,059		32,925
				Net amount at risk	3,378		3,009		2,528		2,439		2,108
				Variable Annuity Account Values with Living Benefit Features (3):
				Guaranteed minimum accumulation benefits	9,231		9,667		10,452		10,731		11,335
				Guaranteed minimum withdrawal benefits	1,678		1,853		2,028		2,105		2,229
				Guaranteed minimum income benefits	7,047		7,113		7,329		7,269		7,386
				Guaranteed minimum withdrawal & income benefits	5,304		6,678		8,570		10,205		12,448
				Total	23,260		25,311		28,379		30,310		33,398

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

(3)	At end of period.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

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INSURANCE DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date					2006						2007
2007		2006			2Q		3Q		4Q		1Q		2Q
				INDIVIDUAL ANNUITIES:
				Account Values in General Account (1):
9,527		9,231		Beginning balance	8,850		10,722		10,222		9,527		9,246
162		170		Premiums and deposits	96		182		110		83		79
(640	)	(586	)	Surrenders and withdrawals	(313	)	(350	)	(332	)	(333	)	(307	)
(478	)	(416	)	Net redemptions	(217	)	(168	)	(222	)	(250	)	(228	)
(207	)	(186	)	Benefit payments	(92	)	(101	)	(114	)	(102	)	(105	)
(685	)	(602	)	Net flows	(309	)	(269	)	(336	)	(352	)	(333	)
169		175		Interest credited and other	89		98		95		85		84
(225	)	366		Net transfers (to) from separate account	539		(329	)	(453	)	(13	)	(212	)
(2	)	(2	)	Policy charges	(1	)	—		(1	)	(1	)	(1	)
—		1,554		Acquisition	1,554		—		—		—		—
8,784		10,722		Ending balance	10,722		10,222		9,527		9,246		8,784
				Account Values in Separate Account:
68,776		45,538		Beginning balance	48,272		61,956		64,147		68,776		70,024
5,691		4,519		Premiums and deposits	2,436		2,173		2,558		2,717		2,974
(4,340	)	(2,917	)	Surrenders and withdrawals	(1,537	)	(1,809	)	(2,041	)	(2,058	)	(2,282	)
1,351		1,602		Net sales	899		364		517		659		692
(486	)	(309	)	Benefit payments	(175	)	(184	)	(199	)	(247	)	(239	)
865		1,293		Net flows	724		180		318		412		453
4,541		1,121		Change in market value, interest credited and other	(1,056	)	1,942		4,147		1,118		3,423
225		(366	)	Net transfers (to) from general account	(539	)	329		453		13		212
(615	)	(388	)	Policy charges	(203	)	(260	)	(289	)	(295	)	(320	)
—		14,758		Acquisition	14,758		—		—		—		—
73,792		61,956		Ending balance	61,956		64,147		68,776		70,024		73,792

(1)

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

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


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


				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
129		231		Group life	25		98		37		103		26
118		92		Group disability (1)	18		29		17		92		26
247		323		Total	43		127		54		195		52
				Future Policy Benefits (2):
				Group life	1,980		1,953		2,181		2,103		2,105
				Group disability (1)	496		498		519		589		614
				Total	2,476		2,451		2,700		2,692		2,719
				Policyholders’ Account Balances (2):
				Group life	5,178		5,325		5,466		5,439		5,521
				Group disability (1)	101		108		112		109		124
				Total	5,279		5,433		5,578		5,548		5,645
				Separate Account Liabilities (2):
				Group life	14,334		15,023		16,412		16,898		17,293
				Group disability (1)	—		—		—		—		—
				Total	14,334		15,023		16,412		16,898		17,293
				Group Life Insurance:
1,692		1,745		Gross premiums, policy charges and fee income (3)	954		763		788		832		860
1,621		1,507		Earned premiums, policy charges and fee income	752		784		794		811		810
91.3	%	93.7	%	Benefits ratio	95.4	%	89.8	%	90.1	%	91.5	%	91.1	%
9.5	%	8.5	%	Administrative operating expense ratio	7.9	%	10.0	%	11.4	%	9.6	%	9.3	%
				Persistency ratio	95.9	%	95.1	%	94.8	%	95.6	%	95.3	%

				Group Disability Insurance (1):
442		402		Gross premiums, policy charges and fee income (3)	203		210		211		217		225
427		387		Earned premiums, policy charges and fee income	198		195		196		211		216
87.8	%	88.4	%	Benefits ratio	89.4	%	79.5	%	85.7	%	91.0	%	84.7	%
21.0	%	21.6	%	Administrative operating expense ratio	21.7	%	20.5	%	22.3	%	22.1	%	20.0	%
				Persistency ratio	92.2	%	90.8	%	89.9	%	92.1	%	91.1	%

(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 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


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


				INDIVIDUAL LIFE INSURANCE:
3,550		3,187		Beginning balance	3,253		3,277		3,508		3,550		3,570
218		163		Capitalization	83		91		97		103		115
(142	)	(165	)	Amortization - operating results	(91	)	220		(57	)	(78	)	(64	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
52		92		Impact of unrealized (gains) or losses on AFS securities	32		(80	)	2		(5	)	57
3,678		3,277		Ending balance	3,277		3,508		3,550		3,570		3,678
				INDIVIDUAL ANNUITIES:
1,613		1,256		Beginning balance	1,337		1,470		1,532		1,613		1,671
322		252		Capitalization	133		131		151		154		168
(149	)	(108	)	Amortization - operating results	(51	)	(28	)	(67	)	(74	)	(75	)
—		8		Amortization - realized investment gains and losses	8		12		—		1		(1	)
18		62		Impact of unrealized (gains) or losses on AFS securities	43		(53	)	(3	)	(10	)	28
(13	)	—		Other (1)	—		—		—		(13	)	—
1,791		1,470		Ending balance	1,470		1,532		1,613		1,671		1,791
				GROUP INSURANCE:
284		170		Beginning balance	227		239		251		284		296
17		69		Capitalization	12		13		34		13		4
(2	)	—		Amortization - operating results	—		(1	)	(1	)	(1	)	(1	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—
299		239		Ending balance	239		251		284		296		299
				TOTAL INSURANCE DIVISION:
5,447		4,613		Beginning balance	4,817		4,986		5,291		5,447		5,537
557		484		Capitalization	228		235		282		270		287
(293	)	(273	)	Amortization - operating results	(142	)	191		(125	)	(153	)	(140	)
—		8		Amortization - realized investment gains and losses	8		12		—		1		(1	)
70		154		Impact of unrealized (gains) or losses on AFS securities	75		(133	)	(1	)	(15	)	85
(13	)	—		Other (1)	—		—		—		(13	)	—
5,768		4,986		Ending balance	4,986		5,291		5,447		5,537		5,768

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

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date				% Change			2006						2007
2007		2006		% Change			2Q		3Q		4Q		1Q		2Q
						Revenues (1):
167		122		37	%	Premiums	30		84		88		96		71
88		91		-3	%	Policy charges and fee income	43		45		43		44		44
2,005		1,763		14	%	Net investment income	916		926		969		992		1,013
1,432		1,242		15	%	Asset management fees, commissions and other income	597		578		791		699		733

3,692		3,218		15	%	Total revenues	1,586		1,633		1,891		1,831		1,861

						Benefits and Expenses (1):
578		504		15	%	Insurance and annuity benefits	235		297		303		302		276
1,000		881		14	%	Interest credited to policyholders’ account balances	452		475		497		492		508
123		108		14	%	Interest expense	62		63		67		59		64
(44	)	(44	)	0	%	Deferral of acquisition costs	(22	)	(25	)	(24	)	(19	)	(25	)
20		30		-33	%	Amortization of acquisition costs	17		12		10		9		11
1,186		1,231		-4	%	General and administrative expenses	533		551		677		559		627

2,863		2,710		6	%	Total benefits and expenses	1,277		1,373		1,530		1,402		1,461

829		508		63	%	Adjusted operating income before income taxes	309		260		361		429		400

(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

Second Quarter 2007

LOGO

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Six Months Ended June 30, 2007								Quarter Ended June 30, 2007
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory	Retirement
Revenues (1):
Premiums	167		—		—		167		71		—		—	71
Policy charges and fee income	88		—		—		88		44		—		—	44
Net investment income	2,005		201		1		1,803		1,013		103		1	909
Asset management fees, commissions and other income	1,432		973		204		255		733		514		93	126

Total revenues	3,692		1,174		205		2,313		1,861		617		94	1,150

Benefits and Expenses (1):
Insurance and annuity benefits	578		—		—		578		276		—		—	276
Interest credited to policyholders’ account balances	1,000		—		—		1,000		508		—		—	508
Interest expense	123		24		—		99		64		14		—	50
Deferral of acquisition costs	(44	)	(8	)	—		(36	)	(25	)	(4	)	—	(21	)
Amortization of acquisition costs	20		11		—		9		11		5		—	6
General and administrative expenses	1,186		773		36		377		627		412		22	193

Total benefits and expenses	2,863		800		36		2,027		1,461		427		22	1,012

Adjusted operating income before income taxes	829		374		169		286		400		190		72	138


	Six Months Ended June 30, 2006								Quarter Ended June 30, 2006
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory	Retirement
Revenues (1):
Premiums	122		—		—		122		30		—		—	30
Policy charges and fee income	91		—		—		91		43		—		—	43
Net investment income	1,763		93		15		1,655		916		51		8	857
Asset management fees, commissions and other income	1,242		878		129		235		597		418		60	119

Total revenues	3,218		971		144		2,103		1,586		469		68	1,049

Benefits and Expenses (1):
Insurance and annuity benefits	504		—		—		504		235		—		—	235
Interest credited to policyholders’ account balances	881		—		—		881		452		—		—	452
Interest expense	108		15		—		93		62		9		—	53
Deferral of acquisition costs	(44	)	(11	)	—		(33	)	(22	)	(6	)	—	(16	)
Amortization of acquisition costs	30		15		—		15		17		8		—	9
General and administrative expenses	1,231		646		221		364		533		321		38	174

Total benefits and expenses	2,710		665		221		1,824		1,277		332		38	907

Adjusted operating income (loss) before income taxes	508		306		(77	)	279		309		137		30	142

(1)

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

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


		% Change		Supplementary Revenue Information (in millions):
Year-to-date					2006			2007
2007	2006				2Q	3Q	4Q	1Q	2Q


				Analysis of revenues by type:
533	471	13	%	Asset management fees	237	244	259	262	271
329	255	29	%	Incentive, transaction, principal investing and capital markets revenues	111	79	247	143	186
312	245	27	%	Service, distribution and other revenues	121	120	130	152	160

1,174	971	21	%	Total Asset Management segment revenues	469	443	636	557	617

				Analysis of asset management fees by source:
240	200	20	%	Institutional customers	102	111	115	117	123
171	152	13	%	Retail customers	76	75	83	84	87
122	119	3	%	General account	59	58	61	61	61

533	471	13	%	Total asset management fees	237	244	259	262	271


Supplementary Assets Under Management Information (in billions):

	June 30, 2007
	Equity	Fixed Income	Real Estate	Total
Institutional customers	56.6	84.4	25.2	166.2
Retail customers	64.4	21.1	1.6	87.1
General account	4.3	161.9	0.8	167.0

Total	125.3	267.4	27.6	420.3


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

Total	106.8	244.3	22.2	373.3

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

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

(in billions)


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


				Institutional Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
122.9		101.3		Beginning assets under management	106.7		107.1		115.0		122.9		127.0
15.8		12.6		Additions (1)	5.3		6.8		8.3		5.9		9.9
(12.9	)	(8.4	)	Withdrawals	(4.4	)	(3.6	)	(4.9	)	(4.7	)	(8.2	)
6.0		1.5		Change in market value	(0.4	)	4.3		4.5		2.5		3.5
0.2		0.1		Net money market flows	(0.1	)	0.4		—		0.4		(0.2	)

132.0		107.1		Ending assets under management	107.1		115.0		122.9		127.0		132.0
34.2		31.4		Affiliated institutional assets under management	31.4		32.9		33.9		34.0		34.2

166.2		138.5		Total assets managed for institutional customers at end of period	138.5		147.9		156.8		161.0		166.2

2.9		4.2		Net institutional additions other than money market	0.9		3.2		3.4		1.2		1.7

				Retail Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
43.4		38.7		Beginning assets under management	40.5		40.7		41.3		43.4		47.7
5.7		6.0		Additions	3.3		1.9		2.1		3.0		2.7
(6.1	)	(5.3	)	Withdrawals	(3.0	)	(2.6	)	(1.9	)	(2.7	)	(3.4	)
3.4		0.3		Change in market value	(1.0	)	1.3		2.0		1.1		2.3
0.1		1.0		Net money market flows	0.9		—		(0.1	)	0.1		—
2.8		—		Other (2)	—		—		—		2.8		—

49.3		40.7		Ending assets under management	40.7		41.3		43.4		47.7		49.3
37.8		34.4		Affiliated retail assets under management	34.4		34.6		35.6		36.5		37.8

87.1		75.1		Total assets managed for retail customers at end of period	75.1		75.9		79.0		84.2		87.1

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

				Wrap-fee Product Assets Under Administration:
69.1		53.6		Beginning total wrap-fee product assets	59.1		60.5		63.9		69.1		72.3
11.5		13.0		Additions (3)	6.1		4.7		4.6		5.8		5.7
(7.7	)	(7.7	)	Withdrawals	(3.6	)	(3.2	)	(3.7	)	(3.8	)	(3.9	)
5.8		1.6		Change in market value	(1.1	)	1.9		4.3		1.2		4.6

78.7		60.5		Ending total wrap-fee product assets	60.5		63.9		69.1		72.3		78.7

3.8		5.3		Net wrap-fee product additions	2.5		1.5		0.9		2.0		1.8

(1)	Additions include $1.8 billion for the year ended December 31, 2006 and $0.4 billion for the quarter ended June 30, 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 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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			2Q		3Q		4Q		1Q		2Q


				Information pertaining to Wachovia Securities Financial Holdings, LLC:
				Revenues:
156		148		Net investment income	76		78		82		79		77
1,048		934		Commissions	451		422		490		529		519
1,196		1,037		Fees	534		534		555		588		608
159		86		Other non-interest revenues	33		53		67		75		84

2,559		2,205		Total revenues	1,094		1,087		1,194		1,271		1,288
2,021		1,859		Expenses	926		894		947		978		1,043

538		346		Income before income taxes	168		193		247		293		245

205		131		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	63		74		94		111		94
(1	)	(2	)	Purchase accounting and related adjustments	(3	)	(1	)	(2	)	—		(1	)

204		129		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	60		73		92		111		93

				Recurring revenue as a percentage of total non-interest revenue (1)	49.0	%	49.1	%	49.4	%	49.5	%	49.6	%
				Total client assets ($ in billions) (2)	704.3		729.9		754.8		768.0		791.4
				Distribution representatives (2):
				Series 7 Financial Advisors	7,973		7,972		7,993		8,073		8,193
				Series 6 Financial Representatives	2,541		2,477		2,497		2,521		2,531
				Customer debit balances ($ in billions) (2)	5.1		4.9		4.8		4.5		4.6
169		(77	)	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	30		51		53		97		72

(1)	Calculated on a YTD annualized basis.

(2)	As of end of period.

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


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


				RETIREMENT SALES AND ACCOUNT VALUES
				Full Service:
97,430		88,385		Beginning total account value	91,854		91,537		93,364		97,430		99,558
7,215		9,519		Deposits and sales	4,138		2,914		3,723		4,003		3,212
(6,636	)	(8,883	)	Withdrawals and benefits	(3,412	)	(3,272	)	(3,834	)	(3,433	)	(3,203	)
6,024		2,516		Change in market value, interest credited and interest income (1)	(1,043	)	2,185		4,177		1,558		4,466

104,033		91,537		Ending total account value	91,537		93,364		97,430		99,558		104,033

579		636		Net additions (withdrawals)	726		(358	)	(111	)	570		9

				Stable value account values included above	30,784		30,971		30,796		30,758		31,274
				Institutional Investment Products:
50,269		48,080		Beginning total account value	47,215		46,913		49,468		50,269		50,661
3,130		2,624		Additions	1,088		2,004		1,365		1,533		1,597
(3,142	)	(3,881	)	Withdrawals and benefits (2)	(1,429	)	(711	)	(1,764	)	(1,743	)	(1,399	)
932		605		Change in market value, interest credited and interest income	423		995		647		607		325
(263	)	(515	)	Other (3)	(384	)	267		553		(5	)	(258	)

50,926		46,913		Ending total account value	46,913		49,468		50,269		50,661		50,926

(12	)	(1,257	)	Net additions (withdrawals)	(341	)	1,293		(399	)	(210	)	198

(1)	Includes $0.5 billion for the six months and quarter ended June 30, 2007 representing a transfer from Institutional Investment Products to Full Service as a result of one client’s change in contract form.

(2)	Withdrawals and benefits include $1.8 billion for the year ended December 31, 2006 and $0.4 billion for the quarter ended June 30, 2006 for assets transferred to the Asset Management segment.

(3)

Includes $(0.5) billion for the six months and quarter ended June 30, 2007 representing a transfer from Institutional Investment Products to Full Service as a result of one client’s change in contract form. Remainder for all periods presented primarily represents changes in asset balances for externally managed accounts.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


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


						Revenues (1):
3,084		3,050		1	%	Premiums	1,517		1,438		1,458		1,553		1,531
145		146		-1	%	Policy charges and fee income	70		70		70		72		73
791		673		18	%	Net investment income	343		376		376		386		405
437		310		41	%	Asset management fees, commissions and other income	150		172		181		220		217

4,457		4,179		7	%	Total revenues	2,080		2,056		2,085		2,231		2,226

						Benefits and Expenses (1):
2,438		2,427		0	%	Insurance and annuity benefits	1,203		1,112		1,143		1,219		1,219
156		118		32	%	Interest credited to policyholders’ account balances	61		66		67		77		79
5		7		-29	%	Interest expense	4		3		—		2		3
(520	)	(513	)	-1	%	Deferral of acquisition costs	(257	)	(242	)	(252	)	(261	)	(259	)
254		231		10	%	Amortization of acquisition costs	115		111		112		128		126
1,194		1,169		2	%	General and administrative expenses	596		578		617		591		603

3,527		3,439		3	%	Total benefits and expenses	1,722		1,628		1,687		1,756		1,771

930		740		26	%	Adjusted operating income before income taxes	358		428		398		475		455

(1)

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Six Months Ended June 30, 2007							Quarter Ended June 30, 2007
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	3,084		2,110		974		—	1,531		1,024		507		—
Policy charges and fee income	145		113		32		—	73		57		16		—
Net investment income	791		375		399		17	405		188		208		9
Asset management fees, commissions and other income	437		70		38		329	217		39		18		160

Total revenues	4,457		2,668		1,443		346	2,226		1,308		749		169

Benefits and Expenses (1):
Insurance and annuity benefits	2,438		1,655		783		—	1,219		807		412		—
Interest credited to policyholders’ account balances	156		65		91		—	79		31		48		—
Interest expense	5		6		(4	)	3	3		3		(2	)	2
Deferral of acquisition costs	(520	)	(384	)	(136	)	—	(259	)	(188	)	(71	)	—
Amortization of acquisition costs	254		191		63		—	126		94		32		—
General and administrative expenses	1,194		612		344		238	603		308		171		124

Total benefits and expenses	3,527		2,145		1,141		241	1,771		1,055		590		126

Adjusted operating income before income taxes	930		523		302		105	455		253		159		43


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

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

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

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

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

(1)

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


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


				Japanese Yen Basis Results:
				Revenues (1):
¥	214,015	¥	190,904	Japanese insurance operations excluding Gibraltar Life	¥	92,370	¥	95,125	¥	95,896	¥	110,222	¥	103,793
	167,053		169,037	Gibraltar Life		84,387		80,804		77,139		80,554		86,499

	381,068		359,941	Total revenues, Japan, yen basis		176,757		175,929		173,035		190,776		190,292

				Benefits and Expenses (1):
	167,202		152,181	Japanese insurance operations excluding Gibraltar Life		74,339		72,202		74,907		86,553		80,649
	135,332		145,707	Gibraltar Life		73,067		65,292		62,677		65,133		70,199

	302,534		297,888	Total benefits and expenses, Japan, yen basis		147,406		137,494		137,584		151,686		150,848

				Adjusted operating income (2):
	46,813		38,723	Japanese insurance operations excluding Gibraltar Life		18,031		22,923		20,989		23,669		23,144
	31,721		23,330	Gibraltar Life		11,320		15,513		14,462		15,421		16,300

¥	78,534	¥	62,053	Total adjusted operating income, Japan, yen basis	¥	29,351	¥	38,436	¥	35,451	¥	39,090	¥	39,444

				U.S. Dollar adjusted operating income (3):
$	431	$	368	Japanese insurance operations excluding Gibraltar Life	$	172	$	213	$	194	$	219	$	212
	302		212	Gibraltar Life		102		149		132		143		159

	733		580	Total adjusted operating income, Japan, U.S. dollar basis		274		362		326		362		371
	92		82	All other countries		50		35		38		51		41

$	825	$	662	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	324	$	397	$	364	$	413	$	412

(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

Second Quarter 2007

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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


		INTERNATIONAL INSURANCE OPERATING DATA:
		Actual exchange rate basis (1):
		Net premiums, policy charges and fee income:
1,506	1,424	Japan, excluding Gibraltar Life	693	685	680	787	719
1,006	1,121	Gibraltar Life	559	490	483	483	523
717	651	All other countries	335	333	365	355	362
3,229	3,196	Total	1,587	1,508	1,528	1,625	1,604
		Annualized new business premiums:
262	251	Japan, excluding Gibraltar Life	113	114	115	153	109
172	188	Gibraltar Life	115	91	78	76	96
139	150	All other countries	72	60	77	70	69
573	589	Total	300	265	270	299	274
		Annualized new business premiums by distribution channel:
401	401	Life Planners	185	174	192	223	178
159	169	Gibraltar Life Advisors	96	71	68	69	90
13	19	Banks (2)	19	20	10	7	6
573	589	Total	300	265	270	299	274
		Constant exchange rate basis (3):
		Net premiums, policy charges and fee income:
1,771	1,616	Japan, excluding Gibraltar Life	777	779	785	920	851
1,175	1,275	Gibraltar Life	626	554	557	564	611
666	621	All other countries	317	316	341	331	335
3,612	3,512	Total	1,720	1,649	1,683	1,815	1,797
		Annualized new business premiums:
290	276	Japan, excluding Gibraltar Life	123	125	128	169	121
189	201	Gibraltar Life	121	98	86	84	105
131	144	All other countries	69	57	72	66	65
610	621	Total	313	280	286	319	291
		Annualized new business premiums by distribution channel:
421	420	Life Planners	192	182	200	235	186
176	182	Gibraltar Life Advisors	102	78	76	77	99
13	19	Banks (2)	19	20	10	7	6
610	621	Total	313	280	286	319	291

(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

Second Quarter 2007

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2006						2007
	2Q		3Q		4Q		1Q		2Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	229		232		236		239		242
Gibraltar Life	197		197		196		195		194
All other countries	91		92		93		96		97
Total	517		521		525		530		533
Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	2,023		2,049		2,074		2,118		2,144
Gibraltar Life	3,871		3,872		3,871		3,846		3,816
All other countries	1,150		1,169		1,201		1,225		1,246
Total	7,044		7,090		7,146		7,189		7,206
International life insurance policy persistency:
Excluding Gibraltar Life:
13 months	93.0	%	92.9	%	93.0	%	92.8	%	92.7	%
25 months	87.4	%	87.0	%	87.1	%	86.9	%	86.9	%
Gibraltar Life:
13 months	94.2	%	94.4	%	94.4	%	93.9	%	93.5	%
25 months	88.0	%	87.9	%	87.8	%	88.0	%	87.9	%
Number of Life Planners at end of period:
Japan	2,847		2,941		2,956		3,001		3,012
All other countries	2,879		2,861		2,872		2,892		2,989
Total life planners	5,726		5,802		5,828		5,893		6,001
Gibraltar Life Advisors	5,684		6,036		5,944		5,952		5,815

(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

Second Quarter 2007

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2007					December 31, 2006
			Financial Services Businesses					Financial Services Businesses
	Consolidated Portfolio	Closed Block Business	Amount	% of Total		Consolidated Portfolio	Closed Block Business	Amount	% of Total
Fixed maturities:
Public, available for sale, at fair value	125,995	36,438	89,557	56.8	%	131,554	38,752	92,802	58.2	%
Public, held to maturity, at amortized cost	2,842	—	2,842	1.8	%	3,025	—	3,025	1.9	%
Private, available for sale, at fair value	30,380	11,786	18,594	11.8	%	30,357	12,021	18,336	11.5	%
Private, held to maturity, at amortized cost	528	—	528	0.3	%	443	—	443	0.3	%
Trading account assets supporting insurance liabilities, at fair value	14,069	—	14,069	8.9	%	14,262	—	14,262	8.9	%
Other trading account assets, at fair value	150	13	137	0.1	%	109	—	109	0.1	%
Equity securities, available for sale, at fair value	8,678	4,097	4,581	2.9	%	8,086	3,772	4,314	2.7	%
Commercial loans	24,812	7,227	17,585	11.2	%	24,593	7,318	17,275	10.8	%
Policy loans	9,042	5,400	3,642	2.3	%	8,887	5,415	3,472	2.2	%
Other long-term investments (1)	3,588	914	2,674	1.7	%	3,756	965	2,791	1.7	%
Short-term investments	5,803	2,376	3,427	2.2	%	4,603	1,851	2,752	1.7	%

Subtotal (2)	225,887	68,251	157,636	100.0	%	229,675	70,094	159,581	100.0	%

Invested assets of other entities and operations (3)	9,699	—	9,699			5,742	—	5,742

Total investments	235,586	68,251	167,335			235,417	70,094	165,323

Fixed Maturities by Credit Quality (2):


	June 30, 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	73,373	1,207	773	73,807	80.0	%	75,796	1,787	322	77,261	80.6	%
2 Baa	13,671	497	217	13,951	15.1	%	13,328	580	137	13,771	14.4	%

Subtotal Investment Grade	87,044	1,704	990	87,758	95.1	%	89,124	2,367	459	91,032	95.0	%

3 Ba	2,579	97	44	2,632	2.9	%	2,692	109	22	2,779	2.9	%
4 B	1,691	75	28	1,738	1.9	%	1,746	93	23	1,816	1.9	%
5 C and lower	146	9	4	151	0.1	%	115	8	2	121	0.1	%
6 In or near default	35	10	—	45	0.0	%	48	7	1	54	0.1	%

Subtotal Below Investment Grade	4,451	191	76	4,566	4.9	%	4,601	217	48	4,770	5.0	%

Total	91,495	1,895	1,066	92,324	100.0	%	93,725	2,584	507	95,802	100.0	%

Private Fixed Maturities:
NAIC Rating (4) Rating Agency Equivalent
1 Aaa, Aa, A	6,027	228	81	6,174	32.3	%	6,214	248	49	6,413	34.2	%
2 Baa	9,915	339	107	10,147	53.1	%	9,463	377	73	9,767	52.0	%

Subtotal Investment Grade	15,942	567	188	16,321	85.4	%	15,677	625	122	16,180	86.2	%

3 Ba	1,378	52	9	1,421	7.4	%	1,422	50	11	1,461	7.7	%
4 B	769	15	5	779	4.1	%	645	12	7	650	3.5	%
5 C and lower	432	18	2	448	2.3	%	321	18	4	335	1.8	%
6 In or near default	128	18	—	146	0.8	%	139	11	1	149	0.8	%

Subtotal Below Investment Grade	2,707	103	16	2,794	14.6	%	2,527	91	23	2,595	13.8	%

Total	18,649	670	204	19,115	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 June 30, 2007 and December 31, 2006, respectively, 237 securities with amortized cost of $4,136 million (fair value $4,128 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 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2007			December 31, 2006
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	31,246	67.4	%	32,242	67.9	%
Public, held to maturity, at amortized cost	2,842	6.1	%	3,025	6.4	%
Private, available for sale, at fair value	3,170	6.8	%	3,139	6.6	%
Private, held to maturity, at amortized cost	528	1.1	%	443	0.9	%
Trading account assets supporting insurance liabilities, at fair value	1,146	2.5	%	1,106	2.3	%
Other trading account assets, at fair value	28	0.1	%	28	0.1	%
Equity securities, available for sale, at fair value	2,526	5.5	%	2,372	5.0	%
Commercial loans	2,758	6.0	%	2,782	5.9	%
Policy loans	1,003	2.2	%	1,016	2.1	%
Other long-term investments (1)	744	1.6	%	970	2.0	%
Short-term investments	339	0.7	%	374	0.8	%

Total	46,330	100.0	%	47,497	100.0	%


	June 30, 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	58,311	52.4	%	60,560	54.0	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	15,424	13.9	%	15,197	13.6	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	12,923	11.6	%	13,156	11.7	%
Other trading account assets, at fair value	109	0.1	%	81	0.1	%
Equity securities, available for sale, at fair value	2,055	1.8	%	1,942	1.7	%
Commercial loans	14,827	13.3	%	14,493	12.9	%
Policy loans	2,639	2.4	%	2,456	2.2	%
Other long-term investments (1)	1,930	1.7	%	1,821	1.7	%
Short-term investments	3,088	2.8	%	2,378	2.1	%

Total	111,306	100.0	%	112,084	100.0	%

(1)

(2)

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended June 30
	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	5.05	%	1,423		14		4.84	%	1,322		(253	)
Equity securities	4.56	%	44		74		4.00	%	36		49
Commercial loans	6.10	%	205		(4	)	6.20	%	189		2
Policy loans	5.10	%	46		—		4.80	%	38		—
Short-term investments and cash equivalents	4.41	%	87		—		5.40	%	79		—
Other investments	6.65	%	46		7		4.83	%	35		(105	)

Gross investment income before investment expenses	5.15	%	1,851		91		4.97	%	1,699		(307	)
Investment expenses	-0.17	%	(135	)	—		-0.17	%	(126	)	—

Subtotal	4.98	%	1,716		91		4.80	%	1,573		(307	)

Investment results of other entities and operations (2)			362		34				304		17
Less, investment income relating to divested businesses			(4	)					(3	)

Total			2,074		125				1,874		(290	)


	Six Months Ended June 30
	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	5.05	%	2,837		41		4.82	%	2,572		(313	)
Equity securities	4.63	%	89		205		4.77	%	83		109
Commercial loans	6.16	%	409		(7	)	6.19	%	369		(2	)
Policy loans	5.08	%	89		—		4.86	%	75		—
Short-term investments and cash equivalents	4.89	%	183		(7	)	4.95	%	150		—
Other investments	6.66	%	92		41		7.19	%	98		(22	)

Gross investment income before investment expenses	5.17	%	3,699		273		5.00	%	3,347		(228	)
Investment expenses	-0.17	%	(274	)	—		-0.17	%	(239	)	—

Subtotal	5.00	%	3,425		273		4.83	%	3,108		(228	)

Investment results of other entities and operations (2)			710		65				583		53
Less, investment income relating to divested businesses			(8	)					(6	)

Total			4,127		338				3,685		(175	)

(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

Second Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2007						2006(2)
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	2.75	%	262		15		2.47	%	236		(23	)
Equity securities	2.15	%	11		56		2.53	%	12		38
Commercial loans	4.50	%	31		4		3.60	%	22		6
Policy loans	3.79	%	10		—		3.37	%	8		—
Short-term investments and cash equivalents	3.37	%	5		—		3.93	%	5		—
Other investments	17.32	%	36		(66	)	11.54	%	27		(69	)

Gross investment income before investment expenses	3.13	%	355		9		2.76	%	310		(48	)
Investment expenses	-0.19	%	(24	)	—		-0.18	%	(23	)	—

Total	2.94	%	331		9		2.58	%	287		(48	)


	Six Months Ended June 30
	2007						2006(2)
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	2.69	%	515		41		2.46	%	460		(17	)
Equity securities	2.42	%	24		176		2.48	%	22		90
Commercial loans	4.43	%	61		7		3.43	%	40		11
Policy loans	3.78	%	19		—		3.50	%	17		—
Short-term investments and cash equivalents	2.91	%	10		(1	)	3.08	%	7		—
Other investments	14.11	%	61		(77	)	12.41	%	57		(98	)

Gross investment income before investment expenses	3.03	%	690		146		2.76	%	603		(14	)
Investment expenses	-0.18	%	(48	)	—		-0.18	%	(45	)	—

Total	2.85	%	642		146		2.58	%	558		(14	)

(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

Second Quarter 2007

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FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	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	6.31	%	1,161		(1	)	6.21	%	1,086		(230	)
Equity securities	7.19	%	33		18		5.57	%	24		11
Commercial loans	6.51	%	174		(8	)	6.84	%	167		(4	)
Policy loans	5.61	%	36		—		5.46	%	30		—
Short-term investments and cash equivalents	4.55	%	82		—		5.60	%	74		—
Other investments	2.07	%	10		73		1.59	%	8		(36	)

Gross investment income before investment expenses	6.16	%	1,496		82		6.13	%	1,389		(259	)
Investment expenses	-0.17	%	(111	)	—		-0.16	%	(103	)	—

Total	5.99	%	1,385		82		5.97	%	1,286		(259	)


	Six Months Ended June 30
	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	6.35	%	2,322		—		6.17	%	2,112		(296	)
Equity securities	7.06	%	65		29		7.16	%	61		19
Commercial loans	6.61	%	348		(14	)	6.87	%	329		(13	)
Policy loans	5.60	%	70		—		5.49	%	58		—
Short-term investments and cash equivalents	5.19	%	173		(6	)	5.21	%	143		—
Other investments	3.29	%	31		118		4.55	%	41		76

Gross investment income before investment expenses	6.25	%	3,009		127		6.18	%	2,744		(214	)
Investment expenses	-0.16	%	(226	)	—		-0.17	%	(194	)	—

Total	6.09	%	2,783		127		6.01	%	2,550		(214	)

(1)

(2)

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

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q
		Revenues (1):
10,128		Premiums	2,604		2,542		2,548		2,593		2,720
2,529		Policy charges and fee income	662		667		583		737		784
6,861		Net investment income	1,811		1,874		1,962		2,010		2,053
3,358		Asset management fees, commissions and other income	947		913		971		1,138		1,104

22,876		Total revenues	6,024		5,996		6,064		6,478		6,661

		Benefits and Expenses (1):
9,990		Insurance and annuity benefits	2,577		2,591		2,650		2,605		2,763
2,516		Interest credited to policyholders’ account balances	652		677		716		745		745
615		Interest expense	212		233		249		255		274
(1,801	)	Deferral of acquisition costs	(501	)	(495	)	(496	)	(545	)	(539	)
910		Amortization of acquisition costs	240		264		(73	)	239		272
7,108		General and administrative expenses	1,949		1,772		1,861		2,084		1,915

19,338		Total benefits and expenses	5,129		5,042		4,907		5,383		5,430

3,538		Adjusted operating income before income taxes	895		954		1,157		1,095		1,231

		Reconciling items:
669		Realized investment gains (losses), net, and related adjustments	50		(334	)	214		143		146
(108	)	Related charges	—		23		7		(13	)	(6	)

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

(33	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(114	)	(151	)	257		43		82
(44	)	Change in experience-rated contractholder liabilities due to asset value changes	66		130		(168	)	(17	)	(62	)
(16	)	Divested businesses	58		(10	)	10		18		19
(214	)	Equity in earnings of operating joint ventures	(78	)	(67	)	(78	)	(99	)	(120	)

254		Total reconciling items, before income taxes	(18	)	(409	)	242		75		59

3,792		Income from continuing operations before income taxes and equity in earnings of operating joint ventures	877		545		1,399		1,170		1,290
642		Income tax expense	251		156		363		356		379

3,150		Income from continuing operations before equity in earnings of operating joint ventures	626		389		1,036		814		911

(1)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q
		Revenues (1):
320		Premiums	92		30		84		88		96
188		Policy charges and fee income	48		43		45		43		44
3,151		Net investment income	847		916		926		969		992
2,261		Asset management fees, commissions and other income	645		597		578		791		699

5,920		Total revenues	1,632		1,586		1,633		1,891		1,831

		Benefits and Expenses (1):
1,049		Insurance and annuity benefits	269		235		297		303		302
1,633		Interest credited to policyholders’ account balances	429		452		475		497		492
115		Interest expense	46		62		63		67		59
(61	)	Deferral of acquisition costs	(22	)	(22	)	(25	)	(24	)	(19	)
54		Amortization of acquisition costs	13		17		12		10		9
2,423		General and administrative expenses	698		533		551		677		559

5,213		Total benefits and expenses	1,433		1,277		1,373		1,530		1,402

707		Adjusted operating income before income taxes	199		309		260		361		429

(1)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL ADVISORY SEGMENT

(in millions)


Year ended December 31			2006					2007
2005			1Q		2Q	3Q	4Q	1Q
		Revenues (1):
—		Premiums	—		—	—	—	—
—		Policy charges and fee income	—		—	—	—	—
6		Net investment income	7		8	5	—	—
193		Asset management fees, commissions and other income	69		60	73	92	111

199		Total revenues	76		68	78	92	111

		Benefits and Expenses (1):
—		Insurance and annuity benefits	—		—	—	—	—
—		Interest credited to policyholders’ account balances	—		—	—	—	—
—		Interest expense	—		—	—	—	—
—		Deferral of acquisition costs	—		—	—	—	—
—		Amortization of acquisition costs	—		—	—	—	—
454		General and administrative expenses	183		38	27	39	14

454		Total benefits and expenses	183		38	27	39	14

(255	)	Adjusted operating income (loss) before income taxes	(107	)	30	51	53	97

(1)

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)


Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q
		Revenues (1):
(18	)	Premiums	(3	)	(10	)	(1	)	(5	)	(2	)
(21	)	Policy charges and fee income	(5	)	(5	)	(6	)	(13	)	1
684		Net investment income	216		177		197		197		205
(26	)	Asset management fees, commissions and other income	(36	)	(3	)	(20	)	(52	)	(45	)

619		Total revenues	172		159		170		127		159

		Benefits and Expenses (1):
63		Insurance and annuity benefits	14		9		16		5		12
(39	)	Interest credited to policyholders’ account balances	(14	)	(17	)	(21	)	(25	)	(26	)
367		Interest expense	133		139		146		144		160
60		Deferral of acquisition costs	33		12		6		13		11
(79	)	Amortization of acquisition costs	(20	)	(10	)	(5	)	(8	)	(18	)
59		General and administrative expenses	10		(14	)	24		11		11

431		Total benefits and expenses	156		119		166		140		150

188		Adjusted operating income (loss) before income taxes	16		40		4		(13	)	9

(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. 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 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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.

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 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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.

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 17.19% for the six months ended June 30, 2007, 10.86% for the six months ended June 30, 2006, 15.97% for the three months ended June 30, 2007, 8.64% for the three months ended June 30, 2006, 18.25% for the three months ended March 31, 2007, 16.33% for the three months ended December 31, 2006, and 20.75% for the three months ended September 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 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2007

LOGO

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of August 1, 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 August 1, 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 41

Form: 8-K

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