October 31, 2007 - QUARTERLY FINANCIAL SUPPLEMENT FOR THE FINANCIAL SERVICES BUSINESSES - 8-K: Current report

Exhibit 99.1

Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

THIRD 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.

October 31, 2007

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

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

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2006 AND 2007 ACTUARIAL UPDATES		34

KEY DEFINITIONS AND FORMULAS		35-37

RATINGS AND INVESTOR INFORMATION		38

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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


						*Financial Services Businesses:*
						Pre-tax adjusted operating income (loss) by division:
1,255		1,010		24	%	Insurance Division	465		349		318		390		547
1,086		768		41	%	Investment Division	260		361		429		400		257
1,410		1,168		21	%	International Insurance and Investments Division	428		398		475		455		480
(4	)	60		-107	%	Corporate and other operations	4		(13	)	9		(8	)	(5	)

3,747		3,006		25	%	Total pre-tax adjusted operating income	1,157		1,095		1,231		1,237		1,279
1,104		861		28	%	Income taxes, applicable to adjusted operating income	329		313		365		365		374

2,643		2,145		23	%	Financial Services Businesses after-tax adjusted operating income	828		782		866		872		905


						Reconciling items:
63		(40	)	258	%	Realized investment gains (losses), net, and related charges and adjustments	221		130		140		32		(109	)
10		(8	)	225	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	257		43		82		(108	)	36
4		28		-86	%	Change in experience-rated contractholder liabilities due to asset value changes	(168	)	(17	)	(62	)	72		(6	)
29		58		-50	%	Divested businesses	10		18		19		(5	)	15
(323	)	(223	)	-45	%	Equity in earnings of operating joint ventures	(78	)	(99	)	(120	)	(100	)	(103	)

(217	)	(185	)	-17	%	Total reconciling items, before income taxes	242		75		59		(109	)	(167	)
(90	)	(91	)	1	%	Income taxes, not applicable to adjusted operating income	34		43		14		(45	)	(59	)

(127	)	(94	)	-35	%	Total reconciling items, after income taxes	208		32		45		(64	)	(108	)

2,516		2,051		23	%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	1,036		814		911		808		797
200		146		37	%	Equity in earnings of operating joint ventures, net of taxes	50		62		77		56		67

2,716		2,197		24	%	Income from continuing operations (after-tax) of Financial Services Businesses	1,086		876		988		864		864
4		54		-93	%	Income (loss) from discontinued operations, net of taxes	66		17		37		(29	)	(4	)

2,720		2,251		21	%	Net income of Financial Services Businesses	1,152		893		1,025		835		860

						Earnings per share of Common Stock (diluted):
5.69		4.41				Financial Services Businesses after-tax adjusted operating income	1.72		1.65		1.85		1.87		1.97

						Reconciling items:
0.13		(0.08	)			Realized investment gains (losses), net, and related charges and adjustments	0.45		0.27		0.29		0.07		(0.24	)
0.02		(0.02	)			Investment gains (losses) on trading account assets supporting insurance liabilities, net	0.52		0.09		0.17		(0.23	)	0.08
0.01		0.06				Change in experience-rated contractholder liabilities due to asset value changes	(0.34	)	(0.04	)	(0.13	)	0.15		(0.01	)
0.06		0.12				Divested businesses	0.02		0.04		0.04		(0.01	)	0.03
(0.68	)	(0.45	)			Equity in earnings of operating joint ventures	(0.16	)	(0.20	)	(0.25	)	(0.21	)	(0.22	)

(0.46	)	(0.37	)			Total reconciling items, before income taxes	0.49		0.16		0.12		(0.23	)	(0.36	)
(0.19	)	(0.18	)			Income taxes, not applicable to adjusted operating income	0.06		0.09		0.03		(0.10	)	(0.13	)

(0.27	)	(0.19	)			Total reconciling items, after income taxes	0.43		0.07		0.09		(0.13	)	(0.23	)

5.42		4.22				Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	2.15		1.72		1.94		1.74		1.74
0.43		0.29				Equity in earnings of operating joint ventures, net of taxes	0.10		0.13		0.16		0.12		0.15

5.85		4.51				Income from continuing operations (after-tax) of Financial Services Businesses	2.25		1.85		2.10		1.86		1.89
0.01		0.11				Income (loss) from discontinued operations, net of taxes	0.13		0.03		0.08		(0.06	)	(0.01	)

5.86		4.62				Net income of Financial Services Businesses	2.38		1.88		2.18		1.80		1.88


471.6		497.8				Weighted average number of outstanding Common shares (diluted basis)	490.5		482.8		477.2		472.8		464.9

16.46%		14.08	%			Operating Return on Average Equity (based on adjusted operating income)	16.07	%	15.01	%	16.40	%	16.31	%	16.68	%

						*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
2,720		2,251				Net income of Financial Services Businesses (above)	1,152		893		1,025		835		860
113		140				Net income of Closed Block Business	53		144		95		11		7

2,833		2,391				Consolidated net income	1,205		1,037		1,120		846		867

42		51				Direct equity adjustments for earnings per share calculations	16		17		15		14		13

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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


		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	9,418	10,798	12,812	11,533	12,619
		Long-term debt	7,464	9,673	10,080	9,401	9,771

		Attributed Equity:
		Including accumulated other comprehensive income	22,053	21,690	22,265	21,718	21,751
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	21,290	21,306	21,657	21,792	22,244
		Excluding total accumulated other comprehensive income	21,232	21,194	21,585	21,835	22,051

		Total Capitalization:
		Including accumulated other comprehensive income	29,517	31,363	32,345	31,119	31,522
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	28,754	30,979	31,737	31,193	32,015
		Excluding total accumulated other comprehensive income	28,696	30,867	31,665	31,236	31,822

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	45.31	45.18	47.05	46.27	47.08
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	43.74	44.38	45.77	46.43	48.15
		Excluding total accumulated other comprehensive income	43.62	44.15	45.61	46.52	47.73

		Number of diluted shares at end of period	486.7	480.1	473.2	469.4	462.0

		*Common Stock Price Range (based on closing price):*
103.17	79.06	High	79.06	86.84	93.10	103.17	98.71
84.28	71.47	Low	71.47	76.03	85.69	90.21	84.28
97.58	76.25	Close	76.25	85.86	90.26	97.23	97.58

		*Common Stock market capitalization (1)*	36,394	40,449	42,025	44,879	44,309

(1)	As of end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

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OPERATIONS HIGHLIGHTS


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


		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Institutional customers	147.9	156.8	161.0	166.2	170.1
		Retail customers	75.9	79.0	84.2	87.1	88.5
		General account	163.8	167.6	168.9	167.0	171.6
		Total Investment Management and Advisory Services	387.6	403.4	414.1	420.3	430.2
		Non-proprietary assets under management	51.0	54.2	53.4	56.1	57.0
		Total managed by Investment Division	438.6	457.6	467.5	476.4	487.2
		Managed by International Insurance and Investments Division (3):	82.2	86.2	88.8	94.3	71.5
		Managed by Insurance Division	65.4	72.2	73.5	77.7	78.2
		Total assets under management	586.2	616.0	629.8	648.4	636.9
		Client assets under administration	105.8	112.9	117.2	127.0	131.4
		Total assets under management and administration	692.0	728.9	747.0	775.4	768.3
		Assets managed or administered for customers outside of the United States at end of period (3)	115.5	123.8	128.8	137.3	119.6

		*Distribution Representatives (1):*
		Prudential Agents	2,814	2,562	2,505	2,512	2,552
		International Life Planners	5,802	5,828	5,893	6,001	6,038
		Gibraltar Life Advisors	6,036	5,944	5,952	5,815	5,944

53	47	*Prudential Agent productivity ($ thousands)*	46	74	49	57	54

(1)	As of end of period.

(2)	At fair market value.

(3)

Assets managed by the International Insurance and Investments Division and Assets managed or administered for customers outside of the United States at end of period at June 30, 2007 included $28 billion associated with investments in operating joint ventures which the Company sold in the third quarter of 2007. As a result, these assets are no longer reported as a component of its assets under management and administration.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

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COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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


						Revenues (1):
8,077		7,694		5	%	Premiums	2,548		2,593		2,720		2,684		2,673
2,294		1,912		20	%	Policy charges and fee income	583		737		784		783		727
6,240		5,647		11	%	Net investment income	1,962		2,010		2,053		2,074		2,113
3,406		2,831		20	%	Asset management fees, commissions and other income	971		1,138		1,104		1,157		1,145

20,017		18,084		11	%	Total revenues	6,064		6,478		6,661		6,698		6,658


						Benefits and Expenses (1):
8,104		7,818		4	%	Insurance and annuity benefits	2,650		2,605		2,763		2,683		2,658
2,286		2,045		12	%	Interest credited to policyholders’ account balances	716		745		745		762		779
831		694		20	%	Interest expense	249		255		274		276		281
(1,649	)	(1,492	)	-11	%	Deferral of acquisition costs	(496	)	(545	)	(539	)	(556	)	(554	)
643		431		49	%	Amortization of acquisition costs	(73	)	239		272		265		106
6,055		5,582		8	%	General and administrative expenses	1,861		2,084		1,915		2,031		2,109

16,270		15,078		8	%	Total benefits and expenses	4,907		5,383		5,430		5,461		5,379

3,747		3,006		25	%	Adjusted operating income before income taxes	1,157		1,095		1,231		1,237		1,279


						Reconciling items:
80		(70	)	214	%	Realized investment gains (losses), net, and related adjustments	214		143		146		39		(105	)
(17	)	30		-157	%	Related charges	7		(13	)	(6	)	(7	)	(4	)

63		(40	)	258	%	Total realized investment gains (losses), net, and related charges and adjustments	221		130		140		32		(109	)

10		(8	)	225	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	257		43		82		(108	)	36
4		28		-86	%	Change in experience-rated contractholder liabilities due to asset value changes	(168	)	(17	)	(62	)	72		(6	)
29		58		-50	%	Divested businesses	10		18		19		(5	)	15
(323	)	(223	)	-45	%	Equity in earnings of operating joint ventures	(78	)	(99	)	(120	)	(100	)	(103	)

(217	)	(185	)	-17	%	Total reconciling items, before income taxes	242		75		59		(109	)	(167	)


3,530		2,821		25	%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures	1,399		1,170		1,290		1,128		1,112
1,014		770		32	%	Income tax expense	363		356		379		320		315

2,516		2,051		23	%	Income from continuing operations before equity in earnings of operating joint ventures	1,036		814		911		808		797

(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

Third Quarter 2007

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COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


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


Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $105,750; $109,362; $110,980; $108,291; $111,668)	108,346	112,043	113,833	109,665		112,956
Fixed maturities, held to maturity, at amortized cost (fair value $3,400; $3,441; $3,407; $3,287; $3,411)	3,473	3,469	3,440	3,370		3,473
Trading account assets supporting insurance liabilities, at fair value	14,453	14,262	14,223	14,069		14,612
Other trading account assets, at fair value	1,933	2,209	2,119	2,100		3,118
Equity securities, available for sale, at fair value (cost $3,761; $3,825; $3,942; $3,928; $4,385)	4,182	4,331	4,592	4,588		4,683
Commercial loans	18,139	18,421	18,947	19,852		20,756
Policy loans	3,350	3,472	3,575	3,642		3,815
Securities purchased under agreements to resell	187	153	113	198		111
Other long-term investments	3,538	3,780	4,339	4,430		4,449
Short-term investments	2,705	3,183	3,291	5,421		3,183
Total investments	160,306	165,323	168,472	167,335		171,156
Cash and cash equivalents	7,361	7,243	5,950	5,584		7,687
Accrued investment income	1,466	1,429	1,468	1,432		1,519
Reinsurance recoverables	1,908	1,958	2,021	2,127		2,149
Deferred policy acquisition costs	9,540	9,854	10,067	10,404		11,032
Other assets	17,442	16,997	16,773	15,603		16,379
Separate account assets	166,757	177,463	181,618	187,403		195,324
Total assets	364,780	380,267	386,369	389,888		405,246

Liabilities:
Future policy benefits	55,238	56,245	56,490	55,692		58,117
Policyholders’ account balances	75,614	75,090	75,132	75,606		77,105
Reinsurance payables	1,405	1,458	1,472	1,556		1,593
Securities sold under agreements to repurchase	6,256	5,747	4,794	5,146		5,683
Cash collateral for loaned securities	3,797	4,082	3,697	4,497		5,017
Income taxes	2,827	2,920	3,199	2,746		2,826
Securities sold but not yet purchased	313	277	307	267		204
Short-term debt	9,418	10,798	12,812	11,533		12,619
Long-term debt	7,464	9,673	10,080	9,401		9,771
Other liabilities	13,638	14,824	14,503	14,323		15,236
Separate account liabilities	166,757	177,463	181,618	187,403		195,324
Total liabilities	342,727	358,577	364,104	368,170		383,495

Attributed Equity:
Accumulated other comprehensive income (loss)	821	496	680	(117	)	(300	)
Other attributed equity	21,232	21,194	21,585	21,835		22,051
Total attributed equity	22,053	21,690	22,265	21,718		21,751

Total liabilities and attributed equity	364,780	380,267	386,369	389,888		405,246

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended September 30, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,673		1,073		88		1,518		(6	)
Policy charges and fee income	727		632		40		72		(17	)
Net investment income	2,113		479		1,022		419		193
Asset management fees, commissions and other income	1,145		313		649		225		(42	)

Total revenues	6,658		2,497		1,799		2,234		128


Benefits and Expenses (1):
Insurance and annuity benefits	2,658		1,161		290		1,194		13
Interest credited to policyholders’ account balances	779		201		528		84		(34	)
Interest expense	281		59		76		8		138
Deferral of acquisition costs	(554	)	(290	)	(19	)	(253	)	8
Amortization of acquisition costs	106		(1	)	11		103		(7	)
General and administrative expenses	2,109		820		656		618		15

Total benefits and expenses	5,379		1,950		1,542		1,754		133


Adjusted operating income (loss) before income taxes	1,279		547		257		480		(5	)


	Quarter Ended September 30, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,548		1,027		84		1,438		(1	)
Policy charges and fee income	583		474		45		70		(6	)
Net investment income	1,962		463		926		376		197
Asset management fees, commissions and other income	971		241		578		172		(20	)

Total revenues	6,064		2,205		1,633		2,056		170


Benefits and Expenses (1):
Insurance and annuity benefits	2,650		1,225		297		1,112		16
Interest credited to policyholders’ account balances	716		196		475		66		(21	)
Interest expense	249		37		63		3		146
Deferral of acquisition costs	(496	)	(235	)	(25	)	(242	)	6
Amortization of acquisition costs	(73	)	(191	)	12		111		(5	)
General and administrative expenses	1,861		708		551		578		24

Total benefits and expenses	4,907		1,740		1,373		1,628		166


Adjusted operating income before income taxes	1,157		465		260		428		4

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Nine Months Ended September 30, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	8,077		3,229		255		4,602		(9	)
Policy charges and fee income	2,294		1,971		128		217		(22	)
Net investment income	6,240		1,424		3,027		1,210		579
Asset management fees, commissions and other income	3,406		785		2,081		662		(122	)

Total revenues	20,017		7,409		5,491		6,691		426


Benefits and Expenses (1):
Insurance and annuity benefits	8,104		3,573		868		3,632		31
Interest credited to policyholders’ account balances	2,286		608		1,528		240		(90	)
Interest expense	831		165		199		13		454
Deferral of acquisition costs	(1,649	)	(847	)	(63	)	(773	)	34
Amortization of acquisition costs	643		292		31		357		(37	)
General and administrative expenses	6,055		2,363		1,842		1,812		38

Total benefits and expenses	16,270		6,154		4,405		5,281		430


Adjusted operating income (loss) before income taxes	3,747		1,255		1,086		1,410		(4	)


	Nine Months Ended September 30, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	7,694		3,014		206		4,488		(14	)
Policy charges and fee income	1,912		1,576		136		216		(16	)
Net investment income	5,647		1,319		2,689		1,049		590
Asset management fees, commissions and other income	2,831		588		1,820		482		(59	)

Total revenues	18,084		6,497		4,851		6,235		501


Benefits and Expenses (1):
Insurance and annuity benefits	7,818		3,439		801		3,539		39
Interest credited to policyholders’ account balances	2,045		557		1,356		184		(52	)
Interest expense	694		95		171		10		418
Deferral of acquisition costs	(1,492	)	(719	)	(69	)	(755	)	51
Amortization of acquisition costs	431		82		42		342		(35	)
General and administrative expenses	5,582		2,033		1,782		1,747		20

Total benefits and expenses	15,078		5,487		4,083		5,067		441


Adjusted operating income before income taxes	3,006		1,010		768		1,168		60

(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

Third Quarter 2007

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FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of September 30, 2007
	Total Financial Services Businesses		Insurance Division	Investment Division		International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	171,156		34,288	70,325		55,840	10,703
Deferred policy acquisition costs	11,032		6,030	212		4,957	(167	)
Other assets	27,734		5,747	8,709		9,019	4,259
Separate account assets	195,324		99,435	97,065		264	(1,440	)

Total assets	405,246		145,500	176,311		70,080	13,355


Liabilities:
Future policy benefits	58,117		8,193	14,221		35,230	473
Policyholders’ account balances	77,105		20,136	42,544		16,926	(2,501	)
Debt	22,390		4,421	4,738		1,785	11,446
Other liabilities	30,559		6,879	11,707		9,507	2,466
Separate account liabilities	195,324		99,435	97,065		264	(1,440	)

Total liabilities	383,495		139,064	170,275		63,712	10,444


Attributed Equity:
Accumulated other comprehensive income (loss)	(300	)	56	(111	)	335	(580	)
Other attributed equity	22,051		6,380	6,147		6,033	3,491

Total attributed equity	21,751		6,436	6,036		6,368	2,911


Total liabilities and attributed equity	405,246		145,500	176,311		70,080	13,355


	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

Third Quarter 2007

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SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of September 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	1,399	2,736	4,135		255	4,122	4,377
Investment related	5,963	6,112	12,075		7,053	5,116	12,169
Securities business related	3,790	268	4,058		2,334	—	2,334
Specified other businesses	1,143	530	1,673		1,072	350	1,422
Limited recourse and non-recourse borrowing	324	125	449		84	85	169

Total debt - Financial Services Businesses	12,619	9,771	22,390		10,798	9,673	20,471

Ratio of long-term and short-term capital debt to capitalization			15.7	%			17.0	%

Closed Block Business
Investment related	865	—	865		1,738	—	1,738
Limited recourse and non-recourse borrowing	—	1,750	1,750		—	1,750	1,750

Total debt	865	1,750	2,615		1,738	1,750	3,488


	As of September 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	3,086	1,049	—	4,135	3,079	1,298	—	4,377
Investment related	6,562	4,270	1,243	12,075	7,372	3,763	1,034	12,169
Securities business related	2,494	1,507	57	4,058	712	1,191	431	2,334
Specified other businesses	542	1,131	—	1,673	424	998	—	1,422
Limited recourse and non-recourse borrowing	—	—	449	449	—	—	169	169

Total debt - Financial Services Businesses	12,684	7,957	1,749	22,390	11,587	7,250	1,634	20,471

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $444 million and $693 million of Surplus Notes for September 30, 2007 and December 31, 2006, respectively.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

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COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


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


						Revenues (1):
3,229		3,014		7	%	Premiums	1,027		1,052		1,073		1,083		1,073
1,971		1,576		25	%	Policy charges and fee income	474		637		667		672		632
1,424		1,319		8	%	Net investment income	463		468		470		475		479
785		588		34	%	Asset management fees, commissions and other income	241		218		230		242		313

7,409		6,497		14	%	Total revenues	2,205		2,375		2,440		2,472		2,497


						Benefits and Expenses (1):
3,573		3,439		4	%	Insurance and annuity benefits	1,225		1,154		1,230		1,182		1,161
608		557		9	%	Interest credited to policyholders’ account balances	196		206		202		205		201
165		95		74	%	Interest expense	37		44		53		53		59
(847	)	(719	)	-18	%	Deferral of acquisition costs	(235	)	(282	)	(270	)	(287	)	(290	)
292		82		256	%	Amortization of acquisition costs	(191	)	125		153		140		(1	)
2,363		2,033		16	%	General and administrative expenses	708		779		754		789		820

6,154		5,487		12	%	Total benefits and expenses	1,740		2,026		2,122		2,082		1,950


1,255		1,010		24	%	Adjusted operating income before income taxes	465		349		318		390		547

(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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Nine Months Ended September 30, 2007								Quarter Ended September 30, 2007
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance		Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	3,229		389		53		2,787		1,073		137		13		923
Policy charges and fee income	1,971		762		941		268		632		226		322		84
Net investment income	1,424		481		443		500		479		165		144		170
Asset management fees, commissions and other income	785		296		428		61		313		140		150		23

Total revenues	7,409		1,928		1,865		3,616		2,497		668		629		1,200


Benefits and Expenses (1):
Insurance and annuity benefits	3,573		693		149		2,731		1,161		254		31		876
Interest credited to policyholders’ account balances	608		162		269		177		201		54		87		60
Interest expense	165		116		43		6		59		41		16		2
Deferral of acquisition costs	(847	)	(333	)	(480	)	(34	)	(290	)	(115	)	(158	)	(17	)
Amortization of acquisition costs	292		74		213		5		(1	)	(68	)	64		3
General and administrative expenses (2)	2,363		727		1,122		514		820		255		386		179

Total benefits and expenses	6,154		1,439		1,316		3,399		1,950		421		426		1,103


Adjusted operating income before income taxes	1,255		489		549		217		547		247		203		97


	Nine Months Ended September 30, 2006								Quarter Ended September 30, 2006
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance		Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	3,014		312		57		2,645		1,027		109		26		892
Policy charges and fee income	1,576		653		695		228		474		117		270		87
Net investment income	1,319		399		462		458		463		137		169		157
Asset management fees, commissions and other income	588		247		291		50		241		104		118		19

Total revenues	6,497		1,611		1,505		3,381		2,205		467		583		1,155


Benefits and Expenses (1):
Insurance and annuity benefits	3,439		660		166		2,613		1,225		300		66		859
Interest credited to policyholders’ account balances	557		149		259		149		196		51		93		52
Interest expense	95		55		35		5		37		20		15		2
Deferral of acquisition costs	(719	)	(254	)	(383	)	(82	)	(235	)	(91	)	(131	)	(13	)
Amortization of acquisition costs	82		(55	)	136		1		(191	)	(220	)	28		1
General and administrative expenses (2)	2,033		644		860		529		708		224		320		164

Total benefits and expenses	5,487		1,199		1,073		3,215		1,740		284		391		1,065


Adjusted operating income before income taxes	1,010		412		432		166		465		183		192		90

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

(2)

General and administrative expenses for Individual Annuities include $109 million for the nine months ended September 30, 2007, $59 million for the nine months ended September 30, 2006, $43 million for the quarter ended September 30, 2007 and $33 million for the quarter ended September 30, 2006 for the amortization, net of interest, of value of business acquired (VOBA).

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

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

(in millions)


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


				SALES:
				Excluding corporate-owned life insurance:
86		70		Variable life	25		20		48		19		19
129		117		Universal life	34		75		44		45		40
157		100		Term life	35		48		49		54		54

372		287		Total excluding corporate-owned life insurance	94		143		141		118		113
9		10		Corporate-owned life insurance	5		2		5		3		1

381		297		Total	99		145		146		121		114


				SALES BY DISTRIBUTION CHANNEL:
				Excluding corporate-owned life insurance:
128		127		Prudential Agents	37		54		42		42		44
244		160		Third party distribution	57		89		99		76		69
9		10		Corporate-owned life insurance	5		2		5		3		1

381		297		Total	99		145		146		121		114


				ACCOUNT VALUE ACTIVITY:
				*Policyholders’ Account Balances (1):*
6,165		5,694		Beginning balance	5,891		6,018		6,165		6,253		6,385
969		938		Premiums and deposits	299		340		325		345		299
(756	)	(804	)	Surrenders and withdrawals	(284	)	(214	)	(236	)	(263	)	(257	)

213		134		Net sales	15		126		89		82		42
(115	)	(105	)	Benefit payments	(36	)	(33	)	(46	)	(40	)	(29	)

98		29		Net flows	(21	)	93		43		42		13
231		292		Interest credited and other	149		60		46		92		93
200		180		Net transfers from separate account	59		62		65		65		70
(205	)	(177	)	Policy charges	(60	)	(68	)	(66	)	(67	)	(72	)

6,489		6,018		Ending balance	6,018		6,165		6,253		6,385		6,489


				*Separate Account Liabilities:*
17,586		16,170		Beginning balance	16,313		16,747		17,586		17,748		18,517
990		931		Premiums and deposits	298		290		316		314		360
(506	)	(548	)	Surrenders and withdrawals	(173	)	(145	)	(166	)	(156	)	(184	)

484		383		Net sales	125		145		150		158		176
(46	)	(25	)	Benefit payments	(7	)	(9	)	(28	)	(5	)	(13	)

438		358		Net flows	118		136		122		153		163
1,644		999		Change in market value, interest credited and other	574		963		303		880		461
(200	)	(180	)	Net transfers to general account	(59	)	(62	)	(65	)	(65	)	(70	)
(592	)	(600	)	Policy charges	(199	)	(198	)	(198	)	(199	)	(195	)

18,876		16,747		Ending balance	16,747		17,586		17,748		18,517		18,876


				FACE AMOUNT IN FORCE (2):
				Variable life	140,139		139,847		139,418		139,280		138,872
				Universal life	21,017		21,971		22,910		23,696		24,424
				Term life	231,971		247,933		264,840		282,434		300,056

				Total	393,127		409,751		427,168		445,410		463,352

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

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

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INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


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

				Individual Life Insurance:
				Policy Surrender Experience:
565		584		Cash value of surrenders	181		160		167		175		223
3.3	%	3.7	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.4	%	2.9	%	3.0	%	3.1	%	3.8	%

				Death benefits per $1,000 of in force (1):
3.58		3.23		Variable and universal life	3.22		3.51		3.66		3.04		4.00
2.17		1.41		Term life	1.92		1.17		3.18		1.62		1.99
3.20		2.80		Total, Individual Life Insurance	2.93		2.84		3.64		2.68		3.38

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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			3Q		4Q		1Q		2Q		3Q


				SALES AND ACCOUNT VALUES:
				Variable Annuities:
74,555		50,778		Beginning total account value	68,807		70,555		74,555		75,591		78,968
8,637		6,952		Sales	2,323		2,641		2,779		3,033		2,825
(7,153	)	(5,426	)	Surrenders and withdrawals	(2,084	)	(2,296	)	(2,310	)	(2,515	)	(2,328	)

1,484		1,526		Net sales	239		345		469		518		497
(870	)	(654	)	Benefit payments	(244	)	(264	)	(306	)	(299	)	(265	)

614		872		Net flows	(5	)	81		163		219		232
6,941		3,240		Change in market value, interest credited, and other	2,012		4,208		1,168		3,478		2,295
(937	)	(647	)	Policy charges	(259	)	(289	)	(295	)	(320	)	(322	)
—		16,312		Acquisition	—		—		—		—		—

81,173		70,555		Ending total account value	70,555		74,555		75,591		78,968		81,173

				Fixed Annuities:
3,748		3,991		Beginning total account value	3,871		3,814		3,748		3,679		3,608
57		93		Sales	33		26		21		20		16
(224	)	(236	)	Surrenders and withdrawals	(75	)	(77	)	(81	)	(74	)	(69	)

(167	)	(143	)	Net redemptions	(42	)	(51	)	(60	)	(54	)	(53	)
(129	)	(126	)	Benefit payments	(41	)	(50	)	(43	)	(45	)	(41	)

(296	)	(269	)	Net flows	(83	)	(101	)	(103	)	(99	)	(94	)
97		95		Interest credited and other	27		36		35		29		33
(3	)	(3	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)

3,546		3,814		Ending total account value	3,814		3,748		3,679		3,608		3,546


				SALES BY DISTRIBUTION CHANNEL:
				Variable and Fixed Annuities (1):
1,856		1,352		Insurance Agents	466		638		589		660		607
1,052		717		Wirehouses	257		352		318		376		358
5,786		4,976		Independent Financial Planners (2)	1,633		1,677		1,893		2,017		1,876

8,694		7,045		Total	2,356		2,667		2,800		3,053		2,841


				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (3):
				Return of net deposits:
				Account value	34,288		37,071		38,287		40,762		42,708
				Net amount at risk	1,724		1,491		1,433		1,268		1,171

				Minimum return, anniversary contract value, or maximum contract value:
				Account value	30,942		32,118		32,059		32,925		33,184
				Net amount at risk	3,009		2,528		2,439		2,108		1,978

				Variable Annuity Account Values with Living Benefit Features (3):
				Guaranteed minimum accumulation benefits	9,667		10,452		10,731		11,335		11,757
				Guaranteed minimum withdrawal benefits	1,853		2,028		2,105		2,229		2,274
				Guaranteed minimum income benefits	7,113		7,329		7,269		7,386		7,320
				Guaranteed minimum withdrawal & income benefits	6,678		8,570		10,205		12,448		14,659

				Total	25,311		28,379		30,310		33,398		36,010

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

(3)	At end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

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INSURANCE DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


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

				INDIVIDUAL ANNUITIES:
				Account Values in General Account (1):
9,527		9,231		Beginning balance	10,722		10,222		9,527		9,246		8,784
224		352		Premiums and deposits	182		110		83		79		62
(903	)	(936	)	Surrenders and withdrawals	(350	)	(332	)	(333	)	(307	)	(263	)

(679	)	(584	)	Net redemptions	(168	)	(222	)	(250	)	(228	)	(201	)
(303	)	(287	)	Benefit payments	(101	)	(114	)	(102	)	(105	)	(96	)

(982	)	(871	)	Net flows	(269	)	(336	)	(352	)	(333	)	(297	)
258		273		Interest credited and other	98		95		85		84		89
(153	)	37		Net transfers (to) from separate account	(329	)	(453	)	(13	)	(212	)	72
(3	)	(2	)	Policy charges	—		(1	)	(1	)	(1	)	(1	)
—		1,554		Acquisition	—		—		—		—		—

8,647		10,222		Ending balance	10,222		9,527		9,246		8,784		8,647


				Account Values in Separate Account:
68,776		45,538		Beginning balance	61,956		64,147		68,776		70,024		73,792
8,470		6,692		Premiums and deposits	2,173		2,558		2,717		2,974		2,779
(6,474	)	(4,726	)	Surrenders and withdrawals	(1,809	)	(2,041	)	(2,058	)	(2,282	)	(2,134	)

1,996		1,966		Net sales	364		517		659		692		645
(696	)	(493	)	Benefit payments	(184	)	(199	)	(247	)	(239	)	(210	)

1,300		1,473		Net flows	180		318		412		453		435
6,780		3,063		Change in market value, interest credited and other	1,942		4,147		1,118		3,423		2,239
153		(37	)	Net transfers (to) from general account	329		453		13		212		(72	)
(937	)	(648	)	Policy charges	(260	)	(289	)	(295	)	(320	)	(322	)
—		14,758		Acquisition	—		—		—		—		—


76,072		64,147		Ending balance	64,147		68,776		70,024		73,792		76,072

(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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

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INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


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


				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
162		329		Group life	98		37		103		26		33
139		121		Group disability (1)	29		17		92		26		21
301		450		Total	127		54		195		52		54

				Future Policy Benefits (2):
				Group life	1,953		2,181		2,103		2,105		2,032
				Group disability (1)	498		519		589		614		640
				Total	2,451		2,700		2,692		2,719		2,672

				Policyholders’ Account Balances (2):
				Group life	5,325		5,466		5,439		5,521		5,610
				Group disability (1)	108		112		109		124		132
				Total	5,433		5,578		5,548		5,645		5,742

				Separate Account Liabilities (2):
				Group life	15,023		16,412		16,898		17,293		19,462
				Group disability (1)	—		—		—		—		—
				Total	15,023		16,412		16,898		17,293		19,462

				Group Life Insurance:
2,533		2,508		Gross premiums, policy charges and fee income (3)	763		788		832		860		841
2,405		2,291		Earned premiums, policy charges and fee income	784		794		811		810		784
90.4	%	92.4	%	Benefits ratio	89.8	%	90.1	%	91.5	%	91.1	%	88.4	%
9.6	%	9.0	%	Administrative operating expense ratio	10.0	%	11.4	%	9.6	%	9.3	%	9.8	%
				Persistency ratio	95.1	%	94.8	%	95.6	%	95.3	%	94.2	%

				Group Disability Insurance (1):
675		612		Gross premiums, policy charges and fee income (3)	210		211		217		225		233
650		582		Earned premiums, policy charges and fee income	195		196		211		216		223
85.9	%	85.4	%	Benefits ratio	79.5	%	85.7	%	91.0	%	84.7	%	82.1	%
20.9	%	21.2	%	Administrative operating expense ratio	20.5	%	22.3	%	22.1	%	20.0	%	20.6	%
				Persistency ratio	90.8	%	89.9	%	92.1	%	91.1	%	88.9	%

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

(2)	As of end of period.

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

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


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


				INDIVIDUAL LIFE INSURANCE:
3,550		3,187		Beginning balance	3,277		3,508		3,550		3,570		3,678
333		254		Capitalization	91		97		103		115		115
(74	)	55		Amortization - operating results	220		(57	)	(78	)	(64	)	68
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
32		12		Impact of unrealized (gains) or losses on AFS securities	(80	)	2		(5	)	57		(20	)

3,841		3,508		Ending balance	3,508		3,550		3,570		3,678		3,841


				INDIVIDUAL ANNUITIES:
1,613		1,256		Beginning balance	1,470		1,532		1,613		1,671		1,791
480		383		Capitalization	131		151		154		168		158
(213	)	(136	)	Amortization - operating results	(28	)	(67	)	(74	)	(75	)	(64	)
3		20		Amortization - realized investment gains and losses	12		—		1		(1	)	3
6		9		Impact of unrealized (gains) or losses on AFS securities	(53	)	(3	)	(10	)	28		(12	)
(13	)	—		Other (1)	—		—		(13	)	—		—

1,876		1,532		Ending balance	1,532		1,613		1,671		1,791		1,876


				GROUP INSURANCE:
284		170		Beginning balance	239		251		284		296		299
34		82		Capitalization	13		34		13		4		17
(5	)	(1	)	Amortization - operating results	(1	)	(1	)	(1	)	(1	)	(3	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

313		251		Ending balance	251		284		296		299		313


				TOTAL INSURANCE DIVISION:
5,447		4,613		Beginning balance	4,986		5,291		5,447		5,537		5,768
847		719		Capitalization	235		282		270		287		290
(292	)	(82	)	Amortization - operating results	191		(125	)	(153	)	(140	)	1
3		20		Amortization - realized investment gains and losses	12		—		1		(1	)	3
38		21		Impact of unrealized (gains) or losses on AFS securities	(133	)	(1	)	(15	)	85		(32	)
(13	)	—		Other (1)	—		—		(13	)	—		—

6,030		5,291		Ending balance	5,291		5,447		5,537		5,768		6,030

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

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


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

					Revenues (1):
255	206		24	%	Premiums	84		88		96		71		88
128	136		-6	%	Policy charges and fee income	45		43		44		44		40
3,027	2,689		13	%	Net investment income	926		969		992		1,013		1,022
2,081	1,820		14	%	Asset management fees, commissions and other income	578		791		699		733		649

5,491	4,851		13	%	Total revenues	1,633		1,891		1,831		1,861		1,799


					Benefits and Expenses (1):
868	801		8	%	Insurance and annuity benefits	297		303		302		276		290
1,528	1,356		13	%	Interest credited to policyholders’ account balances	475		497		492		508		528
199	171		16	%	Interest expense	63		67		59		64		76
(63)	(69	)	9	%	Deferral of acquisition costs	(25	)	(24	)	(19	)	(25	)	(19	)
31	42		-26	%	Amortization of acquisition costs	12		10		9		11		11
1,842	1,782		3	%	General and administrative expenses	551		677		559		627		656

4,405	4,083		8	%	Total benefits and expenses	1,373		1,530		1,402		1,461		1,542


1,086	768		41	%	Adjusted operating income before income taxes	260		361		429		400		257

(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

Third Quarter 2007

LOGO

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Nine Months Ended September 30, 2007								Quarter Ended September 30, 2007
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory	Retirement
Revenues (1):
Premiums	255		—		—		255		88		—		—	88
Policy charges and fee income	128		—		—		128		40		—		—	40
Net investment income	3,027		288		2		2,737		1,022		87		1	934
Asset management fees, commissions and other income	2,081		1,404		301		376		649		431		97	121

Total revenues	5,491		1,692		303		3,496		1,799		518		98	1,183


Benefits and Expenses (1):
Insurance and annuity benefits	868		—		—		868		290		—		—	290
Interest credited to policyholders’ account balances	1,528		—		—		1,528		528		—		—	528
Interest expense	199		43		—		156		76		19		—	57
Deferral of acquisition costs	(63	)	(12	)	—		(51	)	(19	)	(4	)	—	(15	)
Amortization of acquisition costs	31		15		—		16		11		4		—	7
General and administrative expenses	1,842		1,153		49		640		656		380		13	263

Total benefits and expenses	4,405		1,199		49		3,157		1,542		399		13	1,130


Adjusted operating income before income taxes	1,086		493		254		339		257		119		85	53


	Nine Months Ended September 30, 2006								Quarter Ended September 30, 2006
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory	Retirement
Revenues (1):
Premiums	206		—		—		206		84		—		—	84
Policy charges and fee income	136		—		—		136		45		—		—	45
Net investment income	2,689		148		20		2,521		926		55		5	866
Asset management fees, commissions and other income	1,820		1,266		202		352		578		388		73	117

Total revenues	4,851		1,414		222		3,215		1,633		443		78	1,112


Benefits and Expenses (1):
Insurance and annuity benefits	801		—		—		801		297		—		—	297
Interest credited to policyholders’ account balances	1,356		—		—		1,356		475		—		—	475
Interest expense	171		25		—		146		63		10		—	53
Deferral of acquisition costs	(69	)	(14	)	—		(55	)	(25	)	(3	)	—	(22	)
Amortization of acquisition costs	42		21		—		21		12		6		—	6
General and administrative expenses	1,782		976		248		558		551		330		27	194

Total benefits and expenses	4,083		1,008		248		2,827		1,373		343		27	1,003


Adjusted operating income (loss) before income taxes	768		406		(26	)	388		260		100		51	109

(1)

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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				3Q	4Q	1Q	2Q	3Q


				Analysis of revenues by type:
798	715	12	%	Asset management fees	244	259	262	271	265
422	334	26	%	Incentive, transaction, principal investing and capital markets revenues	79	247	143	186	93
472	365	29	%	Service, distribution and other revenues	120	130	152	160	160

1,692	1,414	20	%	Total Asset Management segment revenues	443	636	557	617	518


				Analysis of asset management fees by source:
358	311	15	%	Institutional customers	111	115	117	123	118
258	227	14	%	Retail customers	75	83	84	87	87
182	177	3	%	General account	58	61	61	61	60

798	715	12	%	Total asset management fees	244	259	262	271	265


Supplementary Assets Under Management Information (in billions):

	September 30, 2007
	Equity	Fixed Income	Real Estate	Total
Institutional customers	57.5	86.5	26.1	170.1
Retail customers	66.5	20.6	1.4	88.5
General account	4.2	166.6	0.8	171.6

Total	128.2	273.7	28.3	430.2


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

Total	109.9	254.0	23.7	387.6

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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			3Q		4Q		1Q		2Q		3Q


				Institutional Assets Under Management: (1)
				Assets gathered by Investment Management & Advisory Services sales force:
122.9		101.3		Beginning assets under management	107.1		115.0		122.9		127.0		132.0
16.8		19.1		Additions (2)	6.5		6.7		5.1		6.3		5.4
(14.5	)	(11.7	)	Withdrawals (3)	(3.3	)	(3.3	)	(3.9	)	(4.6	)	(6.0	)
9.7		5.8		Change in market value	4.3		4.5		2.5		3.5		3.7
0.1		0.5		Net money market flows	0.4		—		0.4		(0.2	)	(0.1	)

135.0		115.0		Ending assets under management	115.0		122.9		127.0		132.0		135.0
35.1		32.9		Affiliated institutional assets under management	32.9		33.9		34.0		34.2		35.1

170.1		147.9		Total assets managed for institutional customers at end of period	147.9		156.8		161.0		166.2		170.1


2.3		7.4		Net institutional additions (withdrawals) other than money market	3.2		3.4		1.2		1.7		(0.6	)


				Retail Assets Under Management: (1)
				Assets gathered by Investment Management & Advisory Services sales force:
43.4		38.7		Beginning assets under management	40.7		41.3		43.4		47.7		49.3
7.9		7.9		Additions	1.9		2.1		2.9		2.3		2.7
(8.0	)	(7.9	)	Withdrawals	(2.6	)	(1.9	)	(2.6	)	(3.0	)	(2.4	)
5.1		1.6		Change in market value	1.3		2.0		1.1		2.3		1.7
0.1		1.0		Net money market flows	—		(0.1	)	0.1		—		—
2.8		—		Other (4)	—		—		2.8		—		—

51.3		41.3		Ending assets under management	41.3		43.4		47.7		49.3		51.3
37.2		34.6		Affiliated retail assets under management	34.6		35.6		36.5		37.8		37.2

88.5		75.9		Total assets managed for retail customers at end of period	75.9		79.0		84.2		87.1		88.5


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


				Wrap-fee Product Assets Under Administration:
69.1		53.6		Beginning total wrap-fee product assets	60.5		63.9		69.1		72.3		78.7
15.1		17.7		Additions (5)	4.7		4.6		5.8		5.7		3.6
(11.3	)	(10.9	)	Withdrawals	(3.2	)	(3.7	)	(3.8	)	(3.9	)	(3.6	)
9.2		3.5		Change in market value	1.9		4.3		1.2		4.6		3.4

82.1		63.9		Ending total wrap-fee product assets	63.9		69.1		72.3		78.7		82.1


3.8		6.8		Net wrap-fee product additions	1.5		0.9		2.0		1.8		—

(1)

Additions and withdrawals have been reclassified to report certain client transfers between asset classes on a net basis, for all periods presented, rather than a gross basis as formerly reported. These reclassifications had no impact on net additions (withdrawals) or assets under management at end of each period.

(2)	Additions include $0.3 billion for the three months ended June 30, 2007 and the nine months ended September 30, 2007, and $1.8 billion for the nine months ended September 30, 2006 for assets transferred from the Retirement segment.

(3)	Withdrawals include $(0.4) billion for the three and nine months ended September 30, 2007, $(0.3) billion for the three and nine months ended September 30, 2006 and $(0.1) billion for the three months ended December 31, 2006 for assets transferred to the Retirement segment.

(4)	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.

(5)	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

Third 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			3Q		4Q		1Q		2Q		3Q


				Information pertaining to Wachovia Securities Financial Holdings, LLC:

				Revenues:
231		226		Net investment income	78		82		79		77		75
1,532		1,356		Commissions	422		490		529		519		484
1,840		1,571		Fees	534		555		588		608		644
221		139		Other non-interest revenues	53		67		75		84		62

3,824		3,292		Total revenues	1,087		1,194		1,271		1,288		1,265
3,030		2,753		Expenses	894		947		978		1,043		1,009

794		539		Income before income taxes	193		247		293		245		256

302		205		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	74		94		111		94		97
(1	)	(3	)	Purchase accounting and related adjustments	(1	)	(2	)	—		(1	)	—

301		202		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	73		92		111		93		97

				Recurring revenue as a percentage of total revenue (1)	49.1	%	49.4	%	49.5	%	49.6	%	49.6	%
				Total client assets ($ in billions) (2)	729.9		754.8		768.0		791.4		802.4
				Distribution representatives (2):
				Series 7 Financial Advisors	7,972		7,993		8,073		8,193		8,272
				Series 6 Financial Representatives	2,477		2,497		2,521		2,531		2,996
				Customer debit balances ($ in billions) (2)	4.9		4.8		4.5		4.6		4.6

254		(26	)	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	51		53		97		72		85

(1)	Calculated on a YTD annualized basis.

(2)	As of end of period.

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


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


				RETIREMENT SALES AND ACCOUNT VALUES

				Full Service:
97,430		88,385		Beginning total account value	91,537		93,364		97,430		99,558		104,033
10,434		12,433		Deposits and sales	2,914		3,723		4,003		3,212		3,219
(9,945	)	(12,155	)	Withdrawals and benefits	(3,272	)	(3,834	)	(3,433	)	(3,203	)	(3,309	)
7,682		4,701		Change in market value, interest credited and interest income (1)	2,185		4,177		1,558		4,466		1,658

105,601		93,364		Ending total account value	93,364		97,430		99,558		104,033		105,601

489		278		Net additions (withdrawals)	(358	)	(111	)	570		9		(90	)

				Stable value account values included above	30,971		30,796		30,758		31,274		31,578

				Institutional Investment Products:
50,269		48,080		Beginning total account value	46,913		49,468		50,269		50,661		50,926
3,675		4,628		Additions	2,004		1,365		1,533		1,597		545
(4,003	)	(3,010	)	Withdrawals and benefits (2)	(974	)	(1,871	)	(1,743	)	(1,067	)	(1,193	)
1,865		1,600		Change in market value, interest credited and interest income	995		647		607		325		933
(179	)	(1,830	)	Other (2)	530		660		(5	)	(590	)	416

51,627		49,468		Ending total account value	49,468		50,269		50,661		50,926		51,627


(328	)	1,618		Net additions (withdrawals)	1,030		(506	)	(210	)	530		(648	)

(1)	Includes $511 million for second quarter of 2007 and the nine months ended September 30, 2007 representing a transfer within the Retirement segment from Institutional Investment Products to Full Service as a result of one client’s change in contract form.

(2)

Transfers between the Retirement and Asset Management segments, formerly included in “Withdrawals and benefits,” have been reclassified to “Other” activity for all periods presented. “Other” activity includes transfers from (to) the Asset Management segment of $263 million, $107 million, $(332) million and $407 million for the third and fourth quarters of 2006 and the second and third quarters of 2007, respectively; and $75 million and $(1,582) million for the nine months ended September 30, 2007 and 2006, respectively. “Other” activity also includes $(511) million for the second quarter of 2007 and the nine months ended September 30, 2007 representing a transfer within the Retirement segment from Institutional Investment Products to Full Service as a result of one client’s change in contract form. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


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


						Revenues (1):
4,602		4,488		3	%	Premiums	1,438		1,458		1,553		1,531		1,518
217		216		0	%	Policy charges and fee income	70		70		72		73		72
1,210		1,049		15	%	Net investment income	376		376		386		405		419
662		482		37	%	Asset management fees, commissions and other income	172		181		220		217		225

6,691		6,235		7	%	Total revenues	2,056		2,085		2,231		2,226		2,234


						Benefits and Expenses (1):
3,632		3,539		3	%	Insurance and annuity benefits	1,112		1,143		1,219		1,219		1,194
240		184		30	%	Interest credited to policyholders’ account balances	66		67		77		79		84
13		10		30	%	Interest expense	3		—		2		3		8
(773	)	(755	)	-2	%	Deferral of acquisition costs	(242	)	(252	)	(261	)	(259	)	(253	)
357		342		4	%	Amortization of acquisition costs	111		112		128		126		103
1,812		1,747		4	%	General and administrative expenses	578		617		591		603		618

5,281		5,067		4	%	Total benefits and expenses	1,628		1,687		1,756		1,771		1,754


1,410		1,168		21	%	Adjusted operating income before income taxes	428		398		475		455		480

(1)

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Nine Months Ended September 30, 2007							Quarter Ended September 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	4,602		3,170		1,432		—	1,518		1,060		458		—
Policy charges and fee income	217		171		46		—	72		58		14		—
Net investment income	1,210		582		600		28	419		207		201		11
Asset management fees, commissions and other income	662		36		57		569	225		(34	)	19		240

Total revenues	6,691		3,959		2,135		597	2,234		1,291		692		251


Benefits and Expenses (1):
Insurance and annuity benefits	3,632		2,492		1,140		—	1,194		837		357		—
Interest credited to policyholders’ account balances	240		101		139		—	84		36		48		—
Interest expense	13		8		—		5	8		2		4		2
Deferral of acquisition costs	(773	)	(571	)	(202	)	—	(253	)	(187	)	(66	)	—
Amortization of acquisition costs	357		265		92		—	103		74		29		—
General and administrative expenses	1,812		928		511		373	618		316		167		135

Total benefits and expenses	5,281		3,223		1,680		378	1,754		1,078		539		137


Adjusted operating income before income taxes	1,410		736		455		219	480		213		153		114


	Nine Months Ended September 30, 2006							Quarter Ended September 30, 2006
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	4,488		2,929		1,559		—	1,438		963		475		—
Policy charges and fee income	216		164		52		—	70		55		15		—
Net investment income	1,049		491		538		20	376		173		196		7
Asset management fees, commissions and other income	482		46		28		408	172		25		22		125

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


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

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


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

(1)

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


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


				Japanese Yen Basis Results:
				Revenues (1):
¥	312,221	¥	286,029	Japanese insurance operations excluding Gibraltar Life	¥	95,125	¥	95,896	¥	110,222	¥	103,793	¥	98,206
	249,438		249,841	Gibraltar Life		80,804		77,139		80,554		86,499		82,385

	561,659		535,870	Total revenues, Japan, yen basis		175,929		173,035		190,776		190,292		180,591


				Benefits and Expenses (1):
	246,327		224,383	Japanese insurance operations excluding Gibraltar Life		72,202		74,907		86,553		80,649		79,125
	201,480		210,998	Gibraltar Life		65,292		62,677		65,133		70,199		66,148

	447,807		435,381	Total benefits and expenses, Japan, yen basis		137,494		137,584		151,686		150,848		145,273

				Adjusted operating income (2):
	65,894		61,646	Japanese insurance operations excluding Gibraltar Life		22,923		20,989		23,669		23,144		19,081
	47,958		38,843	Gibraltar Life		15,513		14,462		15,421		16,300		16,237

¥	113,852	¥	100,489	Total adjusted operating income, Japan, yen basis	¥	38,436	¥	35,451	¥	39,090	¥	39,444	¥	35,318


				U.S. Dollar adjusted operating income (3):
$	602	$	581	Japanese insurance operations excluding Gibraltar Life	$	213	$	194	$	219	$	212	$	171
	455		361	Gibraltar Life		149		132		143		159		153

	1,057		942	Total adjusted operating income, Japan, U.S. dollar basis		362		326		362		371		324
	134		117	All other countries		35		38		51		41		42

$	1,191	$	1,059	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	397	$	364	$	413	$	412	$	366

(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

Third Quarter 2007

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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


		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
2,237	2,109	Japan, excluding Gibraltar Life	685	680	787	719	731
1,478	1,611	Gibraltar Life	490	483	483	523	472
1,104	984	All other countries	333	365	355	362	387
4,819	4,704	Total	1,508	1,528	1,625	1,604	1,590

		Annualized new business premiums:
365	365	Japan, excluding Gibraltar Life	114	115	153	109	103
264	279	Gibraltar Life	91	78	76	96	92
214	210	All other countries	60	77	70	69	75
843	854	Total	265	270	299	274	270

		Annualized new business premiums by distribution channel:
579	575	Life Planners	174	192	223	178	178
246	240	Gibraltar Life Advisors	71	68	69	90	87
18	39	Banks (2)	20	10	7	6	5
843	854	Total	265	270	299	274	270

		Constant exchange rate basis (3):
		Net premiums, policy charges and fee income:
2,614	2,395	Japan, excluding Gibraltar Life	779	785	920	851	843
1,733	1,829	Gibraltar Life	554	557	564	611	558
1,022	937	All other countries	316	341	331	335	356
5,369	5,161	Total	1,649	1,683	1,815	1,797	1,757

		Annualized new business premiums:
405	401	Japan, excluding Gibraltar Life	125	128	169	121	115
289	299	Gibraltar Life	98	86	84	105	100
201	201	All other countries	57	72	66	65	70
895	901	Total	280	286	319	291	285

		Annualized new business premiums by distribution channel:
606	602	Life Planners	182	200	235	186	185
271	260	Gibraltar Life Advisors	78	76	77	99	95
18	39	Banks (2)	20	10	7	6	5
895	901	Total	280	286	319	291	285

(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

Third Quarter 2007

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2006				2007
	3Q		4Q		1Q		2Q		3Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	232		236		239		242		244
Gibraltar Life	197		196		195		194		194
All other countries	92		93		96		97		99
Total	521		525		530		533		537

Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	2,049		2,074		2,118		2,144		2,167
Gibraltar Life	3,872		3,871		3,846		3,816		3,815
All other countries	1,169		1,201		1,225		1,246		1,270
Total	7,090		7,146		7,189		7,206		7,252

International life insurance policy persistency:

Excluding Gibraltar Life:
13 months	92.9	%	93.0	%	92.8	%	92.7	%	92.6	%
25 months	87.0	%	87.1	%	86.9	%	86.9	%	86.5	%

Gibraltar Life:
13 months	94.4	%	94.4	%	93.9	%	93.5	%	92.6	%
25 months	87.9	%	87.8	%	88.0	%	87.9	%	88.0	%

Number of Life Planners at end of period:
Japan	2,941		2,956		3,001		3,012		3,030
All other countries	2,861		2,872		2,892		2,989		3,008
Total life planners	5,802		5,828		5,893		6,001		6,038
Gibraltar Life Advisors	6,036		5,944		5,952		5,815		5,944

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

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

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2007					December 31, 2006
			Financial Services Business					Financial Services Businesses
	Consolidated Portfolio	Closed Block Business	Amount	% of Total		Consolidated Portfolio	Closed Block Business	Amount	% of Total
Fixed maturities:
Public, available for sale, at fair value	130,071	38,595	91,476	56.8	%	131,554	38,752	92,802	58.2	%
Public, held to maturity, at amortized cost	2,879	—	2,879	1.8	%	3,025	—	3,025	1.9	%
Private, available for sale, at fair value	32,042	12,221	19,821	12.3	%	30,357	12,021	18,336	11.5	%
Private, held to maturity, at amortized cost	594	—	594	0.4	%	443	—	443	0.3	%
Trading account assets supporting insurance liabilities, at fair value	14,612	—	14,612	9.1	%	14,262	—	14,262	8.9	%
Other trading account assets, at fair value	326	142	184	0.1	%	109	—	109	0.1	%
Equity securities, available for sale, at fair value	8,755	4,080	4,675	2.9	%	8,086	3,772	4,314	2.7	%
Commercial loans	26,243	7,580	18,663	11.6	%	24,593	7,318	17,275	10.8	%
Policy loans	9,214	5,399	3,815	2.3	%	8,887	5,415	3,472	2.2	%
Other long-term investments (1)	3,782	1,034	2,748	1.7	%	3,756	965	2,791	1.7	%
Short-term investments	2,586	941	1,645	1.0	%	4,603	1,851	2,752	1.7	%

Subtotal (2)	231,104	69,992	161,112	100.0	%	229,675	70,094	159,581	100.0	%

Invested assets of other entities and operations (3)	10,044	—	10,044			5,742	—	5,742

Total investments	241,148	69,992	171,156			235,417	70,094	165,323

Fixed Maturities by Credit Quality (2):


	September 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	75,115	1,470	876	75,709	80.3	%	75,796	1,787	322	77,261	80.6	%
2 Baa	13,813	452	294	13,971	14.8	%	13,328	580	137	13,771	14.4	%

Subtotal Investment Grade	88,928	1,922	1,170	89,680	95.1	%	89,124	2,367	459	91,032	95.0	%

3 Ba	2,693	80	72	2,701	3.0	%	2,692	109	22	2,779	2.9	%
4 B	1,760	53	59	1,754	1.9	%	1,746	93	23	1,816	1.9	%
5 C and lower	114	6	4	116	0.0	%	115	8	2	121	0.1	%
6 In or near default	32	9	—	41	0.0	%	48	7	1	54	0.1	%

Subtotal Below Investment Grade	4,599	148	135	4,612	4.9	%	4,601	217	48	4,770	5.0	%

Total	93,527	2,070	1,305	94,292	100.0	%	93,725	2,584	507	95,802	100.0	%


Private Fixed Maturities:

NAIC Rating (4) Rating Agency Equivalent
1 Aaa, Aa, A	6,651	216	63	6,804	33.3	%	6,214	248	49	6,413	34.2	%
2 Baa	10,445	343	89	10,699	52.4	%	9,463	377	73	9,767	52.0	%

Subtotal Investment Grade	17,096	559	152	17,503	85.7	%	15,677	625	122	16,180	86.2	%

3 Ba	1,587	53	18	1,622	7.9	%	1,422	50	11	1,461	7.7	%
4 B	883	9	16	876	4.3	%	645	12	7	650	3.5	%
5 C and lower	229	5	1	233	1.1	%	321	18	4	335	1.8	%
6 In or near default	160	24	2	182	1.0	%	139	11	1	149	0.8	%

Subtotal Below Investment Grade	2,859	91	37	2,913	14.3	%	2,527	91	23	2,595	13.8	%

Total	19,955	650	189	20,416	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 September 30, 2007 and December 31, 2006, respectively, 248 securities with amortized cost of $4,413 million (fair value $4,400 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

Third Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2007			December 31, 2006
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	33,061	68.3	%	32,242	67.9	%
Public, held to maturity, at amortized cost	2,879	5.9	%	3,025	6.4	%
Private, available for sale, at fair value	3,325	6.9	%	3,139	6.6	%
Private, held to maturity, at amortized cost	594	1.2	%	443	0.9	%
Trading account assets supporting insurance liabilities, at fair value	1,160	2.4	%	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	2,533	5.2	%	2,372	5.0	%
Commercial loans	2,812	5.8	%	2,782	5.9	%
Policy loans	1,091	2.3	%	1,016	2.1	%
Other long-term investments (1)	871	1.8	%	970	2.0	%
Short-term investments	35	0.1	%	374	0.8	%

Total	48,389	100.0	%	47,497	100.0	%


	September 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	58,415	51.8	%	60,560	54.0	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	16,496	14.6	%	15,197	13.6	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	13,452	11.9	%	13,156	11.7	%
Other trading account assets, at fair value	156	0.2	%	81	0.1	%
Equity securities, available for sale, at fair value	2,142	1.9	%	1,942	1.7	%
Commercial loans	15,851	14.1	%	14,493	12.9	%
Policy loans	2,724	2.4	%	2,456	2.2	%
Other long-term investments (1)	1,877	1.7	%	1,821	1.7	%
Short-term investments	1,610	1.4	%	2,378	2.1	%

Total	112,723	100.0	%	112,084	100.0	%

(1)

(2)

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended September 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	5.01	%	1,426		(74	)	4.90	%	1,357		(5	)
Equity securities	5.82	%	60		118		5.35	%	49		11
Commercial loans	6.26	%	219		10		6.11	%	194		1
Policy loans	5.08	%	47		—		4.94	%	41		—
Short-term investments and cash equivalents	5.10	%	93		—		4.43	%	90		(1	)
Other investments	3.61	%	26		(211	)	9.12	%	62		215

Gross investment income before investment expenses	5.14	%	1,871		(157	)	5.11	%	1,793		221
Investment expenses	-0.15	%	(128	)	—		-0.17	%	(138	)	—

Subtotal	4.99	%	1,743		(157	)	4.94	%	1,655		221

Investment results of other entities and operations (2)			373		(40	)			312		18
Less, investment income relating to divested businesses			(3	)					(5	)

Total			2,113		(197	)			1,962		239


	Nine Months Ended September 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	5.06	%	4,264		(33	)	4.91	%	3,929		(318	)
Equity securities	5.04	%	149		323		5.02	%	132		120
Commercial loans	6.24	%	629		3		6.23	%	563		(2	)
Policy loans	5.11	%	136		—		4.94	%	115		—
Short-term investments and cash equivalents	4.96	%	275		(7	)	4.75	%	240		—
Other investments	5.65	%	118		(170	)	8.02	%	161		192

Gross investment income before investment expenses	5.19	%	5,571		116		5.10	%	5,140		(8	)
Investment expenses	-0.16	%	(402	)	—		-0.17	%	(377	)	—

Subtotal	5.03	%	5,169		116		4.93	%	4,763		(8	)

Investment results of other entities and operations (2)			1,082		25				895		72
Less, investment income relating to divested businesses			(11	)					(11	)

Total			6,240		141				5,647		64

(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

Third Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 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	2.72	%	263		12		2.54	%	246		22
Equity securities	3.66	%	20		107		3.76	%	18		5
Commercial loans	4.53	%	31		5		3.99	%	25		4
Policy loans	3.81	%	10		—		3.58	%	9		—
Short-term investments and cash equivalents	3.45	%	9		—		3.36	%	6		(1	)
Other investments	10.10	%	21		(32	)	12.83	%	30		147

Gross investment income before investment expenses	3.04	%	354		92		2.92	%	334		177
Investment expenses	-0.18	%	(22	)	—		-0.17	%	(23	)	—

Total	2.86	%	332		92		2.75	%	311		177


	Nine Months Ended September 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	2.70	%	777		53		2.52	%	706		5
Equity securities	2.82	%	44		283		2.95	%	40		95
Commercial loans	4.49	%	92		12		3.66	%	66		15
Policy loans	3.78	%	29		—		3.57	%	26		—
Short-term investments and cash equivalents	2.91	%	18		(1	)	3.40	%	13		(2	)
Other investments	12.76	%	83		(109	)	12.89	%	87		50

Gross investment income before investment expenses	3.03	%	1,043		238		2.84	%	938		163
Investment expenses	-0.18	%	(70	)	—		-0.18	%	(68	)	—

Total	2.85	%	973		238		2.66	%	870		163

(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

Third Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 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	6.30	%	1,163		(86	)	6.26	%	1,111		(27	)
Equity securities	8.25	%	40		11		7.08	%	31		6
Commercial loans	6.68	%	188		5		6.64	%	169		(3	)
Policy loans	5.58	%	37		—		5.55	%	32		—
Short-term investments and cash equivalents	5.47	%	84		—		4.60	%	84		—
Other investments	0.95	%	5		(179	)	7.16	%	32		68

Gross investment income before investment expenses	6.20	%	1,517		(249	)	6.25	%	1,459		44
Investment expenses	-0.13	%	(106	)	—		-0.16	%	(115	)	—

Total	6.07	%	1,411		(249	)	6.09	%	1,344		44


	Nine Months Ended September 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	6.39	%	3,487		(86	)	6.29	%	3,223		(323	)
Equity securities	7.55	%	105		40		7.22	%	92		25
Commercial loans	6.69	%	537		(9	)	6.87	%	497		(17	)
Policy loans	5.65	%	107		—		5.56	%	89		—
Short-term investments and cash equivalents	5.36	%	257		(6	)	4.93	%	227		2
Other investments	2.49	%	35		(61	)	5.50	%	74		142

Gross investment income before investment expenses	6.29	%	4,528		(122	)	6.28	%	4,202		(171	)
Investment expenses	-0.15	%	(332	)	—		-0.17	%	(309	)	—

Total	6.14	%	4,196		(122	)	6.11	%	3,893		(171	)

(1)

(2)

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

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2006 AND 2007 ACTUARIAL UPDATES

(in millions)


	Policy Charges and Fee Income (1)				Insurance and Annuity Benefits (2)		Amortization of Deferred Policy Acquisition Costs				Pre-Tax Adjusted Operating Income
	Third Quarter 2006		Third Quarter 2007		Third Quarter 2006	Third Quarter 2007	Third Quarter 2006		Third Quarter 2007		Third Quarter 2006		Third Quarter 2007
Actuarial Item:
Annual review of assumptions for mortality, persistency, premium payment pattern, and other elements of expected gross profits, and guaranteed minimum death benefits	(62	)	(45	)	34	12	(156	)	(135	)	60		78

Refinement of reserving period for certain benefits on block of variable life insurance policies	(85	)	0		62	0	(133	)	0		(14	)	0

Total impact on reported results	(147	)	(45	)	96	12	(289	)	(135	)	46		78


Reported amount	117		226		300	254	(220	)	(68	)


Amount excluding impact of items indicated above	264		271		204	242	69		67

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

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

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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 16.82% for the nine months ended September 30, 2007, 14.04% for the nine months ended September 30, 2006, 16.14% for the three months ended September 30, 2007, 20.75% for the three months ended September 30, 2006, 15.97% for the three months ended June 30, 2007, 18.25% for the three months ended March 31, 2007, and 16.33% for the three months ended December 31, 2006.

26. Policy Persistency - - Group Insurance:

Percentage of the premiums in force at the end of the prior year that are still in force at the end of the period (excluding Servicemembers’ Group Life Insurance and Prudential Employee Benefit Plan).

27. Policy Persistency - International Insurance:

13 month persistency represents the percentage of policies issued that are still in force at the beginning of their second policy year. 25 month persistency represents the percentage of policies issued that are still in force at the beginning of their third policy year.

28. Prudential Agents:

Insurance agents in our insurance operations in the United States.

29. Prudential Agent productivity:

Commissions on new sales of all products by Prudential Agents under contract for the entire period, divided by the number of those Prudential Agents. Excludes commissions on new sales by Prudential Agents hired or departed during the period. For interim reporting periods, the productivity measures are annualized.

30. Ratio of capital debt to total capitalization:

For purposes of this ratio, we measure “debt” as borrowings for capital debt, and we measure “total capitalization” as the sum of equity, excluding 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 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2007

LOGO

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of October 31, 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 October 31, 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 38

Form: 8-K

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