February 6, 2008 - QUARTERLY FINANCIAL SUPPLEMENT FOR THE FINANCIAL SERVICES BUSINESSES - 8-K: Current report

Exhibit 99.1

Prudential Financial, Inc. (PRU)

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Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FOURTH 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.

February 6, 2008

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

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CONTENTS


		Page
HIGHLIGHTS
Financial Highlights		1-2
Operations Highlights		3

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

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

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

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

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

RECLASSIFIED STATEMENTS OF OPERATION AND SUPPLEMENTAL INFORMATION		34-37

KEY DEFINITIONS AND FORMULAS		38-40

RATINGS AND INVESTOR INFORMATION		41

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

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Revenues as reported herein reflect certain reclassifications to conform to current reporting practices.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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


					*Financial Services Businesses:*
					Pre-tax adjusted operating income (loss) by division:
1,609	1,359		18	%	Insurance Division	349		318		390		547		354
1,391	1,129		23	%	Investment Division	361		429		400		257		305
1,747	1,566		12	%	International Insurance and Investments Division	398		475		455		480		337
(50)	47		-206	%	Corporate and other operations	(13	)	9		(8	)	(5	)	(46	)

4,697	4,101		15	%	Total pre-tax adjusted operating income	1,095		1,231		1,237		1,279		950
1,325	1,174		13	%	Income taxes, applicable to adjusted operating income	313		365		365		374		221

3,372	2,927		15	%	Financial Services Businesses after-tax adjusted operating income	782		866		872		905		729


					Reconciling items:
49	90		-46	%	Realized investment gains (losses), net, and related charges and adjustments	130		140		32		(109	)	(14	)
—	35		-100	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	43		82		(108	)	36		(10	)
13	11		18	%	Change in experience-rated contract holder liabilities due to asset value changes	(17	)	(62	)	72		(6	)	9
37	76		-51	%	Divested businesses	18		19		(5	)	15		8
(400)	(322	)	-24	%	Equity in earnings of operating joint ventures	(99	)	(120	)	(100	)	(103	)	(77	)

(301)	(110	)	-174	%	Total reconciling items, before income taxes	75		59		(109	)	(167	)	(84	)
(180)	(48	)	-275	%	Income taxes, not applicable to adjusted operating income	43		14		(45	)	(59	)	(90	)

(121)	(62	)	-95	%	Total reconciling items, after income taxes	32		45		(64	)	(108	)	6

3,251	2,865		13	%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	814		911		808		797		735
246	208		18	%	Equity in earnings of operating joint ventures, net of taxes	62		77		56		67		46

3,497	3,073		14	%	Income from continuing operations (after-tax) of Financial Services Businesses	876		988		864		864		781
15	71		-79	%	Income (loss) from discontinued operations, net of taxes	17		37		(29	)	(4	)	11

3,512	3,144		12	%	Net income of Financial Services Businesses	893		1,025		835		860		792

					Earnings per share of Common Stock (diluted):
7.31	6.06				Financial Services Businesses after-tax adjusted operating income	1.65		1.85		1.87		1.97		1.61

					Reconciling items:
0.10	0.18				Realized investment gains (losses), net, and related charges and adjustments	0.27		0.29		0.07		(0.24	)	(0.03	)
—	0.07				Investment gains (losses) on trading account assets supporting insurance liabilities, net	0.09		0.17		(0.23	)	0.08		(0.02	)
0.03	0.02				Change in experience-rated contract holder liabilities due to asset value changes	(0.04	)	(0.13	)	0.15		(0.01	)	0.02
0.08	0.15				Divested businesses	0.04		0.04		(0.01	)	0.03		0.02
(0.85)	(0.64	)			Equity in earnings of operating joint ventures	(0.20	)	(0.25	)	(0.21	)	(0.22	)	(0.17	)

(0.64)	(0.22	)			Total reconciling items, before income taxes	0.16		0.12		(0.23	)	(0.36	)	(0.18	)
(0.38)	(0.10	)			Income taxes, not applicable to adjusted operating income	0.09		0.03		(0.10	)	(0.13	)	(0.20	)

(0.26)	(0.12	)			Total reconciling items, after income taxes	0.07		0.09		(0.13	)	(0.23	)	0.02

7.05	5.94				Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	1.72		1.94		1.74		1.74		1.63
0.53	0.42				Equity in earnings of operating joint ventures, net of taxes	0.13		0.16		0.12		0.15		0.10

7.58	6.36				Income from continuing operations (after-tax) of Financial Services Businesses	1.85		2.10		1.86		1.89		1.73
0.03	0.14				Income (loss) from discontinued operations, net of taxes	0.03		0.08		(0.06	)	(0.01	)	0.02

7.61	6.50				Net income of Financial Services Businesses	1.88		2.18		1.80		1.88		1.75


468.3	494.0				Weighted average number of outstanding Common shares (diluted basis)	482.8		477.2		472.8		464.9		458.5

15.71%	14.33	%			Operating Return on Average Equity (based on adjusted operating income)	15.01	%	16.40	%	16.31	%	16.68	%	13.38	%

					*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
3,512	3,144				Net income of Financial Services Businesses (above)	893		1,025		835		860		792
192	284				Net income of Closed Block Business	144		95		11		7		79

3,704	3,428				Consolidated net income	1,037		1,120		846		867		871

53	68				Direct equity adjustments for earnings per share calculations	17		15		14		13		11

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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


		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	10,798	12,812	11,533	12,619	14,514
		Long-term debt	9,673	10,080	9,401	9,771	12,351

		Attributed Equity:
		Including accumulated other comprehensive income	21,690	22,265	21,718	21,751	22,170
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	21,306	21,657	21,792	22,244	22,009
		Excluding total accumulated other comprehensive income	21,194	21,585	21,835	22,051	21,711

		Total Capitalization:
		Including accumulated other comprehensive income	31,363	32,345	31,119	31,522	34,521
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	30,979	31,737	31,193	32,015	34,360
		Excluding total accumulated other comprehensive income	30,867	31,665	31,236	31,822	34,062

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	45.18	47.05	46.27	47.08	48.73
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	44.38	45.77	46.43	48.15	48.37
		Excluding total accumulated other comprehensive income	44.15	45.61	46.52	47.73	47.72

		Number of diluted shares at end of period	480.1	473.2	469.4	462.0	455.0

		*Common Stock Price Range (based on closing price):*
103.17	86.84	High	86.84	93.10	103.17	98.71	101.09
84.28	71.47	Low	76.03	85.69	90.21	84.28	89.46
93.04	85.86	Close	85.86	90.26	97.23	97.58	93.04

		*Common Stock market capitalization (1)*	40,449	42,025	44,879	44,309	41,623

(1)	As of end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

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OPERATIONS HIGHLIGHTS


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


		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Institutional customers	156.8	161.0	166.2	170.1	176.4
		Retail customers	79.0	84.2	87.1	88.5	86.6
		General account	167.6	168.9	167.0	171.6	175.5
		Total Investment Management and Advisory Services	403.4	414.1	420.3	430.2	438.5
		Non-proprietary assets under management	54.2	53.4	56.1	57.0	59.7
		Total managed by Investment Division	457.6	467.5	476.4	487.2	498.2
		Managed by International Insurance and Investments Division (3):	86.2	88.8	94.3	71.5	69.2
		Managed by Insurance Division	72.2	73.5	77.7	78.2	80.3
		Total assets under management	616.0	629.8	648.4	636.9	647.7
		Client assets under administration	112.9	117.2	127.0	131.4	136.3
		Total assets under management and administration	728.9	747.0	775.4	768.3	784.0
		Assets managed or administered for customers outside of the United States at end of period (3)	123.8	128.8	137.3	119.6	117.0

		*Distribution Representatives (1):*
		Prudential Agents	2,562	2,505	2,512	2,552	2,425
		International Life Planners	5,828	5,893	6,001	6,038	6,166
		Gibraltar Life Advisors	5,944	5,952	5,815	5,944	6,264

61	53	*Prudential Agent productivity ($ thousands)*	74	49	57	54	85

(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

Fourth Quarter 2007

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COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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


					Revenues (1):
10,794	10,287		5	%	Premiums	2,593		2,720		2,684		2,673		2,717
3,122	2,649		18	%	Policy charges and fee income	737		784		783		727		828
8,214	7,626		8	%	Net investment income	1,994		1,998		2,037		2,070		2,109
4,529	4,000		13	%	Asset management fees, commissions and other income	1,154		1,159		1,194		1,188		988

26,659	24,562		9	%	Total revenues	6,478		6,661		6,698		6,658		6,642


					Benefits and Expenses (1):
10,829	10,423		4	%	Insurance and annuity benefits	2,605		2,763		2,683		2,658		2,725
3,094	2,790		11	%	Interest credited to policyholders’ account balances	745		745		762		779		808
1,120	949		18	%	Interest expense	255		274		276		281		289
(2,248)	(2,037	)	-10	%	Deferral of acquisition costs	(545	)	(539	)	(556	)	(554	)	(599	)
933	670		39	%	Amortization of acquisition costs	239		272		265		106		290
8,234	7,666		7	%	General and administrative expenses	2,084		1,915		2,031		2,109		2,179

21,962	20,461		7	%	Total benefits and expenses	5,383		5,430		5,461		5,379		5,692

4,697	4,101		15	%	Adjusted operating income before income taxes	1,095		1,231		1,237		1,279		950


					Reconciling items:
106	73		45	%	Realized investment gains (losses), net, and related adjustments	143		146		39		(105	)	26
(57)	17		-435	%	Related charges	(13	)	(6	)	(7	)	(4	)	(40	)

49	90		-46	%	Total realized investment gains (losses), net, and related charges and adjustments	130		140		32		(109	)	(14	)

—	35		-100	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	43		82		(108	)	36		(10	)
13	11		18	%	Change in experience-rated contract holder liabilities due to asset value changes	(17	)	(62	)	72		(6	)	9
37	76		-51	%	Divested businesses	18		19		(5	)	15		8
(400)	(322)		-24	%	Equity in earnings of operating joint ventures	(99	)	(120	)	(100	)	(103	)	(77	)

(301)	(110)		-174	%	Total reconciling items, before income taxes	75		59		(109	)	(167	)	(84	)


4,396	3,991		10	%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures	1,170		1,290		1,128		1,112		866
1,145	1,126		2	%	Income tax expense	356		379		320		315		131

3,251	2,865		13	%	Income from continuing operations before equity in earnings of operating joint ventures	814		911		808		797		735

(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 contract holder liabilities due to asset value changes and benefits and expenses of divested businesses.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

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COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


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


Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $109,362; $110,980; $108,291; $111,668; $111,405)	112,043	113,833	109,665		112,956		112,748
Fixed maturities, held to maturity, at amortized cost (fair value $3,441; $3,407; $3,287; $3,411; $3,543)	3,469	3,440	3,370		3,473		3,548
Trading account assets supporting insurance liabilities, at fair value	14,262	14,223	14,069		14,612		14,473
Other trading account assets, at fair value	2,209	2,119	2,100		3,118		3,021
Equity securities, available for sale, at fair value (cost $3,825; $3,942; $3,928; $4,385; $4,497)	4,331	4,592	4,588		4,683		4,640
Commercial loans	18,421	18,947	19,852		20,756		22,093
Policy loans	3,472	3,575	3,642		3,815		3,942
Securities purchased under agreements to resell	153	113	198		111		129
Other long-term investments	3,780	4,339	4,430		4,449		5,163
Short-term investments	3,183	3,291	5,421		3,183		3,852

Total investments	165,323	168,472	167,335		171,156		173,609
Cash and cash equivalents	7,243	5,950	5,584		7,687		9,624
Accrued investment income	1,429	1,468	1,432		1,519		1,496
Reinsurance recoverables	1,958	2,021	2,127		2,149		2,119
Deferred policy acquisition costs	9,854	10,067	10,404		11,032		11,396
Other assets	16,997	16,773	15,603		16,379		18,204
Separate account assets	177,463	181,618	187,403		195,324		195,583
Total assets	380,267	386,369	389,888		405,246		412,031

Liabilities:
Future policy benefits	56,245	56,490	55,692		58,117		60,259
Policyholders’ account balances	75,090	75,132	75,606		77,105		78,599
Reinsurance payables	1,458	1,472	1,556		1,593		1,552
Securities sold under agreements to repurchase	5,747	4,794	5,146		5,683		5,281
Cash collateral for loaned securities	4,082	3,697	4,497		5,017		3,041
Income taxes	2,920	3,199	2,746		2,826		3,402
Short-term debt	10,798	12,812	11,533		12,619		14,514
Long-term debt	9,673	10,080	9,401		9,771		12,351
Other liabilities	15,101	14,810	14,590		15,440		15,279
Separate account liabilities	177,463	181,618	187,403		195,324		195,583
Total liabilities	358,577	364,104	368,170		383,495		389,861

Attributed Equity:
Accumulated other comprehensive income (loss)	496	680	(117	)	(300	)	459
Other attributed equity	21,194	21,585	21,835		22,051		21,711
Total attributed equity	21,690	22,265	21,718		21,751		22,170

Total liabilities and attributed equity	380,267	386,369	389,888		405,246		412,031

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended December 31, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,717		1,053		74		1,590		—
Policy charges and fee income	828		715		44		76		(7	)
Net investment income	2,109		483		1,013		434		179
Asset management fees, commissions and other income	988		221		698		126		(57	)

Total revenues	6,642		2,472		1,829		2,226		115


Benefits and Expenses (1):
Insurance and annuity benefits	2,725		1,165		277		1,275		8
Interest credited to policyholders’ account balances	808		209		545		90		(36	)
Interest expense	289		67		75		6		141
Deferral of acquisition costs	(599	)	(304	)	(28	)	(284	)	17
Amortization of acquisition costs	290		164		7		129		(10	)
General and administrative expenses	2,179		817		648		673		41

Total benefits and expenses	5,692		2,118		1,524		1,889		161


Adjusted operating income (loss) before income taxes	950		354		305		337		(46	)


	Quarter Ended December 31, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,593		1,052		88		1,458		(5	)
Policy charges and fee income	737		637		43		70		(13	)
Net investment income	1,994		468		953		376		197
Asset management fees, commissions and other income	1,154		218		807		181		(52	)

Total revenues	6,478		2,375		1,891		2,085		127


Benefits and Expenses (1):
Insurance and annuity benefits	2,605		1,154		303		1,143		5
Interest credited to policyholders’ account balances	745		206		497		67		(25	)
Interest expense	255		44		67		—		144
Deferral of acquisition costs	(545	)	(282	)	(24	)	(252	)	13
Amortization of acquisition costs	239		125		10		112		(8	)
General and administrative expenses	2,084		779		677		617		11

Total benefits and expenses	5,383		2,026		1,530		1,687		140


Adjusted operating income before income taxes	1,095		349		361		398		(13	)

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Twelve Months Ended December 31, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	10,794		4,282		329		6,192		(9	)
Policy charges and fee income	3,122		2,686		172		293		(29	)
Net investment income	8,214		1,907		3,905		1,644		758
Asset management fees, commissions and other income	4,529		1,006		2,914		788		(179	)

Total revenues	26,659		9,881		7,320		8,917		541


Benefits and Expenses (1):
Insurance and annuity benefits	10,829		4,738		1,145		4,907		39
Interest credited to policyholders’ account balances	3,094		817		2,073		330		(126	)
Interest expense	1,120		232		274		19		595
Deferral of acquisition costs	(2,248	)	(1,151	)	(91	)	(1,057	)	51
Amortization of acquisition costs	933		456		38		486		(47	)
General and administrative expenses	8,234		3,180		2,490		2,485		79

Total benefits and expenses	21,962		8,272		5,929		7,170		591


Adjusted operating income (loss) before income taxes	4,697		1,609		1,391		1,747		(50	)


	Twelve Months Ended December 31, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	10,287		4,066		294		5,946		(19	)
Policy charges and fee income	2,649		2,213		179		286		(29	)
Net investment income	7,626		1,787		3,627		1,425		787
Asset management fees, commissions and other income	4,000		806		2,642		663		(111	)

Total revenues	24,562		8,872		6,742		8,320		628


Benefits and Expenses (1):
Insurance and annuity benefits	10,423		4,593		1,104		4,682		44
Interest credited to policyholders’ account balances	2,790		763		1,853		251		(77	)
Interest expense	949		139		238		10		562
Deferral of acquisition costs	(2,037	)	(1,001	)	(93	)	(1,007	)	64
Amortization of acquisition costs	670		207		52		454		(43	)
General and administrative expenses	7,666		2,812		2,459		2,364		31

Total benefits and expenses	20,461		7,513		5,613		6,754		581


Adjusted operating income before income taxes	4,101		1,359		1,129		1,566		47

(1)

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

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of December 31, 2007
	Total Financial Services Businesses	Insurance Division	Investment Division		International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	173,609	34,355	70,723		57,873	10,658
Deferred policy acquisition costs	11,396	6,152	233		5,187	(176	)
Other assets	31,443	5,502	8,062		9,770	8,109
Separate account assets	195,583	99,713	97,030		268	(1,428	)

Total assets	412,031	145,722	176,048		73,098	17,163


Liabilities:
Future policy benefits	60,259	8,730	14,298		36,773	458
Policyholders’ account balances	78,599	20,375	43,371		17,704	(2,851	)
Debt	26,865	4,916	4,657		1,218	16,074
Other liabilities	28,555	5,320	10,578		10,037	2,620
Separate account liabilities	195,583	99,713	97,030		268	(1,428	)

Total liabilities	389,861	139,054	169,934		66,000	14,873


Attributed Equity:
Accumulated other comprehensive income (loss)	459	59	(194	)	702	(108	)
Other attributed equity	21,711	6,609	6,308		6,396	2,398

Total attributed equity	22,170	6,668	6,114		7,098	2,290


Total liabilities and attributed equity	412,031	145,722	176,048		73,098	17,163


	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

Fourth Quarter 2007

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of December 31, 2007				As of December 31, 2006
	Short-term Debt	Long-term Debt	Total Debt		Short-term Debt	Long-term Debt	Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt	1,506	3,275	4,781		255	4,122	4,377
Investment related	8,116	7,120	15,236		7,053	5,116	12,169
Securities business related	3,405	1,371	4,776		2,334	—	2,334
Specified other businesses	1,179	381	1,560		1,072	350	1,422
Limited recourse and non-recourse borrowing	308	204	512		84	85	169

Total debt - Financial Services Businesses	14,514	12,351	26,865		10,798	9,673	20,471

Ratio of long-term and short-term capital debt to capitalization			17.8	%			17.0	%

Closed Block Business
Investment related	1,143	—	1,143		1,738	—	1,738
Limited recourse and non-recourse borrowing	—	1,750	1,750		—	1,750	1,750

Total debt	1,143	1,750	2,893		1,738	1,750	3,488


	As of December 31, 2007				As of December 31, 2006
	Prudential Financial, Inc.	The Prudential Insurance Co. of America (1)(2)	Other Affiliates	Total	Prudential Financial, Inc.	The Prudential Insurance Co. of America (1)(2)	Other Affiliates	Total
Financial Services Businesses
*Borrowings by sources:*
Capital Debt	3,661	1,120	—	4,781	3,079	1,298	—	4,377
Investment related	9,423	3,863	1,950	15,236	7,372	3,763	1,034	12,169
Securities business related	3,235	1,445	96	4,776	712	1,191	431	2,334
Specified other businesses	393	1,167	—	1,560	424	998	—	1,422
Limited recourse and non-recourse borrowing	—	—	512	512	—	—	169	169

Total debt - Financial Services Businesses	16,712	7,595	2,558	26,865	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 December 31, 2007 and December 31, 2006, respectively.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


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


					Revenues (1):
4,282	4,066		5	%	Premiums	1,052		1,073		1,083		1,073		1,053
2,686	2,213		21	%	Policy charges and fee income	637		667		672		632		715
1,907	1,787		7	%	Net investment income	468		470		475		479		483
1,006	806		25	%	Asset management fees, commissions and other income	218		230		242		313		221

9,881	8,872		11	%	Total revenues	2,375		2,440		2,472		2,497		2,472


					Benefits and Expenses (1):
4,738	4,593		3	%	Insurance and annuity benefits	1,154		1,230		1,182		1,161		1,165
817	763		7	%	Interest credited to policyholders’ account balances	206		202		205		201		209
232	139		67	%	Interest expense	44		53		53		59		67
(1,151)	(1,001	)	-15	%	Deferral of acquisition costs	(282	)	(270	)	(287	)	(290	)	(304	)
456	207		120	%	Amortization of acquisition costs	125		153		140		(1	)	164
3,180	2,812		13	%	General and administrative expenses	779		754		789		820		817

8,272	7,513		10	%	Total benefits and expenses	2,026		2,122		2,082		1,950		2,118


1,609	1,359		18	%	Adjusted operating income before income taxes	349		318		390		547		354

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

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Twelve Months Ended December 31, 2007								Quarter Ended December 31, 2007
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance		Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	4,282		533		70		3,679		1,053		144		17		892
Policy charges and fee income	2,686		1,040		1,280		366		715		278		339		98
Net investment income	1,907		656		580		671		483		175		137		171
Asset management fees, commissions and other income	1,006		365		565		76		221		69		137		15

Total revenues	9,881		2,594		2,495		4,792		2,472		666		630		1,176


Benefits and Expenses (1):
Insurance and annuity benefits	4,738		904		211		3,623		1,165		211		62		892
Interest credited to policyholders’ account balances	817		218		359		240		209		56		90		63
Interest expense	232		165		59		8		67		49		16		2
Deferral of acquisition costs	(1,151	)	(452	)	(653	)	(46	)	(304	)	(119	)	(173	)	(12	)
Amortization of acquisition costs	456		164		283		9		164		90		70		4
General and administrative expenses (2)	3,180		981		1,520		679		817		254		398		165

Total benefits and expenses	8,272		1,980		1,779		4,513		2,118		541		463		1,114


Adjusted operating income before income taxes	1,609		614		716		279		354		125		167		62


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

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


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

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


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

(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 $143 million for the twelve months ended December 31, 2007, $89 million for the twelve months ended December 31, 2006, $34 million for the quarter ended December 31, 2007 and $30 million for the quarter ended December 31, 2006 for the amortization, net of interest, of value of business acquired (VOBA).

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

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

(in millions)


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


				SALES:
				Excluding corporate-owned life insurance:
106		90		Variable life	20		48		19		19		20
176		192		Universal life	75		44		45		40		47
212		148		Term life	48		49		54		54		55

494		430		Total excluding corporate-owned life insurance	143		141		118		113		122
11		12		Corporate-owned life insurance	2		5		3		1		2

505		442		Total	145		146		121		114		124


				SALES BY DISTRIBUTION CHANNEL:
				Excluding corporate-owned life insurance:
174		181		Prudential Agents	54		42		42		44		46
320		249		Third party distribution	89		99		76		69		76
11		12		Corporate-owned life insurance	2		5		3		1		2

505		442		Total	145		146		121		114		124


				ACCOUNT VALUE ACTIVITY:
				*Policyholders’ Account Balances (1):*
6,165		5,694		Beginning balance	6,018		6,165		6,253		6,385		6,489
1,298		1,278		Premiums and deposits	340		325		345		299		329
(995	)	(1,018	)	Surrenders and withdrawals	(214	)	(236	)	(263	)	(257	)	(239)

303		260		Net sales	126		89		82		42		90
(152	)	(138	)	Benefit payments	(33	)	(46	)	(40	)	(29	)	(37	)

151		122		Net flows	93		43		42		13		53
269		352		Interest credited and other	60		46		92		93		38
270		242		Net transfers from separate account	62		65		65		70		70
(273	)	(245	)	Policy charges	(68	)	(66	)	(67	)	(72	)	(68	)

6,582		6,165		Ending balance	6,165		6,253		6,385		6,489		6,582


				*Separate Account Liabilities:*
17,586		16,170		Beginning balance	16,747		17,586		17,748		18,517		18,876
1,282		1,221		Premiums and deposits	290		316		314		360		292
(680	)	(693	)	Surrenders and withdrawals	(145	)	(166	)	(156	)	(184	)	(174	)

602		528		Net sales	145		150		158		176		118
(62	)	(34	)	Benefit payments	(9	)	(28	)	(5	)	(13	)	(16	)

540		494		Net flows	136		122		153		163		102
1,523		1,962		Change in market value, interest credited and other	963		303		880		461		(121	)
(270	)	(242	)	Net transfers to general account	(62	)	(65	)	(65	)	(70	)	(70	)
(794	)	(798	)	Policy charges	(198	)	(198	)	(199	)	(195	)	(202	)

18,585		17,586		Ending balance	17,586		17,748		18,517		18,876		18,585


				FACE AMOUNT IN FORCE (2):
				Variable life	139,847		139,418		139,280		138,872		137,889
				Universal life	21,971		22,910		23,696		24,424		25,416
				Term life	247,933		264,840		282,434		300,056		316,969

				Total	409,751		427,168		445,410		463,352		480,274

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

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

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


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

				Individual Life Insurance:
				Policy Surrender Experience:
752		744		Cash value of surrenders	160		167		175		223		187
3.3	%	3.5	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	2.9	%	3.0	%	3.1	%	3.8	%	3.2	%

				Death benefits per $1,000 of in force (1):
3.46		3.31		Variable and universal life	3.51		3.66		3.04		4.00		3.13
1.79		1.38		Term life	1.17		3.18		1.62		1.99		0.91
2.97		2.84		Total, Individual Life Insurance	2.84		3.64		2.68		3.38		2.36

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

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

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

(in millions)


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


				SALES AND ACCOUNT VALUES:
				Variable Annuities:
74,555		50,778		Beginning total account value	70,555		74,555		75,591		78,968		81,173
11,678		9,593		Sales	2,641		2,779		3,033		2,825		3,041
(9,568	)	(7,722	)	Surrenders and withdrawals	(2,296	)	(2,310	)	(2,515	)	(2,328	)	(2,415	)

2,110		1,871		Net sales	345		469		518		497		626
(1,131	)	(918	)	Benefit payments	(264	)	(306	)	(299	)	(265	)	(261	)

979		953		Net flows	81		163		219		232		365
6,076		7,448		Change in market value, interest credited, and other	4,208		1,168		3,478		2,295		(865	)
(1,280	)	(936	)	Policy charges	(289	)	(295	)	(320	)	(322	)	(343	)
—		16,312		Acquisition	—		—		—		—		—

80,330		74,555		Ending total account value	74,555		75,591		78,968		81,173		80,330

				Fixed Annuities:
3,748		3,991		Beginning total account value	3,814		3,748		3,679		3,608		3,546
73		119		Sales	26		21		20		16		16
(286	)	(313	)	Surrenders and withdrawals	(77	)	(81	)	(74	)	(69	)	(62	)

(213	)	(194	)	Net redemptions	(51	)	(60	)	(54	)	(53	)	(46	)
(167	)	(176	)	Benefit payments	(50	)	(43	)	(45	)	(41	)	(38	)

(380	)	(370	)	Net flows	(101	)	(103	)	(99	)	(94	)	(84	)
124		131		Interest credited and other	36		35		29		33		27
(4	)	(4	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)

3,488		3,748		Ending total account value	3,748		3,679		3,608		3,546		3,488


				SALES BY DISTRIBUTION CHANNEL:
				Variable and Fixed Annuities (1):
2,569		1,990		Insurance Agents	638		589		660		607		713
1,449		1,069		Wirehouses	352		318		376		358		397
7,733		6,653		Independent Financial Planners (2)	1,677		1,893		2,017		1,876		1,947

11,751		9,712		Total	2,667		2,800		3,053		2,841		3,057


				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (3):
				Return of net deposits:
				Account value	37,071		38,287		40,762		42,708		42,995
				Net amount at risk	1,491		1,433		1,268		1,171		1,204

				Minimum return, anniversary contract value, or maximum contract value:
				Account value	32,118		32,059		32,925		33,184		32,194
				Net amount at risk	2,528		2,439		2,108		1,978		2,255

				Variable Annuity Account Values with Living Benefit Features (3):
				Guaranteed minimum accumulation benefits	10,452		10,731		11,335		11,757		11,724
				Guaranteed minimum withdrawal benefits	2,028		2,105		2,229		2,274		2,234
				Guaranteed minimum income benefits	7,329		7,269		7,386		7,320		6,948
				Guaranteed minimum withdrawal & income benefits	8,570		10,205		12,448		14,659		16,260

				Total	28,379		30,310		33,398		36,010		37,166

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

(3)	At end of period.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

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INSURANCE DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


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

				INDIVIDUAL ANNUITIES:
				Account Values in General Account (1):
9,527		9,231		Beginning balance	10,222		9,527		9,246		8,784		8,647
292		462		Premiums and deposits	110		83		79		62		68
(1,156	)	(1,268	)	Surrenders and withdrawals	(332	)	(333	)	(307	)	(263	)	(253	)

(864	)	(806	)	Net redemptions	(222	)	(250	)	(228	)	(201	)	(185	)
(392	)	(401	)	Benefit payments	(114	)	(102	)	(105	)	(96	)	(89	)

(1,256	)	(1,207	)	Net flows	(336	)	(352	)	(333	)	(297	)	(274	)
342		368		Interest credited and other	95		85		84		89		84
35		(416	)	Net transfers (to) from separate account	(453	)	(13	)	(212	)	72		188
(4	)	(3	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)
—		1,554		Acquisition	—		—		—		—		—

8,644		9,527		Ending balance	9,527		9,246		8,784		8,647		8,644


				Account Values in Separate Account:
68,776		45,538		Beginning balance	64,147		68,776		70,024		73,792		76,072
11,459		9,250		Premiums and deposits	2,558		2,717		2,974		2,779		2,989
(8,698	)	(6,767	)	Surrenders and withdrawals	(2,041	)	(2,058	)	(2,282	)	(2,134	)	(2,224	)

2,761		2,483		Net sales	517		659		692		645		765
(906	)	(692	)	Benefit payments	(199	)	(247	)	(239	)	(210	)	(210	)

1,855		1,791		Net flows	318		412		453		435		555
5,858		7,210		Change in market value, interest credited and other	4,147		1,118		3,423		2,239		(922	)
(35	)	416		Net transfers (to) from general account	453		13		212		(72	)	(188	)
(1,280	)	(937	)	Policy charges	(289	)	(295	)	(320	)	(322	)	(343	)
—		14,758		Acquisition	—		—		—		—		—


75,174		68,776		Ending balance	68,776		70,024		73,792		76,072		75,174

(1)

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

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


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


				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
197		366		Group life	37		103		26		33		35
155		138		Group disability (1)	17		92		26		21		16
352		504		Total	54		195		52		54		51

				Future Policy Benefits (2):
				Group life	2,181		2,103		2,105		2,032		2,240
				Group disability (1)	519		589		614		640		662
				Total	2,700		2,692		2,719		2,672		2,902

				Policyholders’ Account Balances (2):
				Group life	5,466		5,439		5,521		5,610		5,734
				Group disability (1)	112		109		124		132		148
				Total	5,578		5,548		5,645		5,742		5,882

				Separate Account Liabilities (2):
				Group life	16,412		16,898		17,293		19,462		19,992
				Group disability (1)	—		—		—		—		—
				Total	16,412		16,898		17,293		19,462		19,992

				Group Life Insurance:
3,422		3,296		Gross premiums, policy charges and fee income (3)	788		832		860		841		889
3,178		3,085		Earned premiums, policy charges and fee income	794		811		810		784		773
90.4	%	91.8	%	Benefits ratio	90.1	%	91.5	%	91.1	%	88.4	%	90.4	%
9.3	%	9.6	%	Administrative operating expense ratio	11.4	%	9.6	%	9.3	%	9.8	%	8.4	%
				Persistency ratio	94.8	%	95.6	%	95.3	%	94.2	%	93.6	%

				Group Disability Insurance (1):
902		823		Gross premiums, policy charges and fee income (3)	211		217		225		233		227
867		778		Earned premiums, policy charges and fee income	196		211		216		223		217
86.6	%	85.5	%	Benefits ratio	85.7	%	91.0	%	84.7	%	82.1	%	88.9	%
21.0	%	21.5	%	Administrative operating expense ratio	22.3	%	22.1	%	20.0	%	20.6	%	21.2	%
				Persistency ratio	89.9	%	92.1	%	91.1	%	88.9	%	88.0	%

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

(2)	As of end of period.

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

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


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


				INDIVIDUAL LIFE INSURANCE:
3,550		3,187		Beginning balance	3,508		3,550		3,570		3,678		3,841
452		351		Capitalization	97		103		115		115		119
(164	)	(2	)	Amortization - operating results	(57	)	(78	)	(64	)	68		(90	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
17		14		Impact of unrealized (gains) or losses on AFS securities	2		(5	)	57		(20	)	(15	)

3,855		3,550		Ending balance	3,550		3,570		3,678		3,841		3,855


				INDIVIDUAL ANNUITIES:
1,613		1,256		Beginning balance	1,532		1,613		1,671		1,791		1,876
653		534		Capitalization	151		154		168		158		173
(283	)	(203	)	Amortization - operating results	(67	)	(74	)	(75	)	(64	)	(70	)
5		20		Amortization - realized investment gains and losses	—		1		(1	)	3		2
1		6		Impact of unrealized (gains) or losses on AFS securities	(3	)	(10	)	28		(12	)	(5	)
(13	)	—		Other (1)	—		(13	)	—		—		—

1,976		1,613		Ending balance	1,613		1,671		1,791		1,876		1,976


				GROUP INSURANCE:
284		170		Beginning balance	251		284		296		299		313
46		116		Capitalization	34		13		4		17		12
(9	)	(2	)	Amortization - operating results	(1	)	(1	)	(1	)	(3	)	(4	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

321		284		Ending balance	284		296		299		313		321


				TOTAL INSURANCE DIVISION:
5,447		4,613		Beginning balance	5,291		5,447		5,537		5,768		6,030
1,151		1,001		Capitalization	282		270		287		290		304
(456	)	(207	)	Amortization - operating results	(125	)	(153	)	(140	)	1		(164	)
5		20		Amortization - realized investment gains and losses	—		1		(1	)	3		2
18		20		Impact of unrealized (gains) or losses on AFS securities	(1	)	(15	)	85		(32	)	(20	)
(13	)	—		Other (1)	—		(13	)	—		—		—

6,152		5,447		Ending balance	5,447		5,537		5,768		6,030		6,152

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

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


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

						Revenues (1):
329		294		12	%	Premiums	88		96		71		88		74
172		179		-4	%	Policy charges and fee income	43		44		44		40		44
3,905		3,627		8	%	Net investment income	953		937		976		979		1,013
2,914		2,642		10	%	Asset management fees, commissions and other income	807		754		770		692		698

7,320		6,742		9	%	Total revenues	1,891		1,831		1,861		1,799		1,829


						Benefits and Expenses (1):
1,145		1,104		4	%	Insurance and annuity benefits	303		302		276		290		277
2,073		1,853		12	%	Interest credited to policyholders’ account balances	497		492		508		528		545
274		238		15	%	Interest expense	67		59		64		76		75
(91	)	(93	)	2	%	Deferral of acquisition costs	(24	)	(19	)	(25	)	(19	)	(28	)
38		52		-27	%	Amortization of acquisition costs	10		9		11		11		7
2,490		2,459		1	%	General and administrative expenses	677		559		627		656		648

5,929		5,613		6	%	Total benefits and expenses	1,530		1,402		1,461		1,542		1,524


1,391		1,129		23	%	Adjusted operating income before income taxes	361		429		400		257		305

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Twelve Months Ended December 31, 2007							Quarter Ended December 31, 2007
	Total Investment Division		Asset Management		Financial Advisory	Retirement		Total Investment Division		Asset Management		Financial Advisory	Retirement
Revenues (1):
Premiums	329		—		—	329		74		—		—	74
Policy charges and fee income	172		—		—	172		44		—		—	44
Net investment income	3,905		226		3	3,676		1,013		73		1	939
Asset management fees, commissions and other income	2,914		2,039		370	505		698		500		69	129

Total revenues	7,320		2,265		373	4,682		1,829		573		70	1,186


Benefits and Expenses (1):
Insurance and annuity benefits	1,145		—		—	1,145		277		—		—	277
Interest credited to policyholders’ account balances	2,073		—		—	2,073		545		—		—	545
Interest expense	274		62		—	212		75		19		—	56
Deferral of acquisition costs	(91	)	(16	)	—	(75	)	(28	)	(4	)	—	(24	)
Amortization of acquisition costs	38		20		—	18		7		5		—	2
General and administrative expenses	2,490		1,561		76	853		648		408		27	213

Total benefits and expenses	5,929		1,627		76	4,226		1,524		428		27	1,069


Adjusted operating income before income taxes	1,391		638		297	456		305		145		43	117


	Twelve Months Ended December 31, 2006							Quarter Ended December 31, 2006
	Total Investment Division		Asset Management		Financial Advisory	Retirement		Total Investment Division		Asset Management		Financial Advisory	Retirement
Revenues (1):
Premiums	294		—		—	294		88		—		—	88
Policy charges and fee income	179		—		—	179		43		—		—	43
Net investment income	3,627		182		20	3,425		953		49		—	904
Asset management fees, commissions and other income	2,642		1,868		294	480		807		587		92	128

Total revenues	6,742		2,050		314	4,378		1,891		636		92	1,163


Benefits and Expenses (1):
Insurance and annuity benefits	1,104		—		—	1,104		303		—		—	303
Interest credited to policyholders’ account balances	1,853		—		—	1,853		497		—		—	497
Interest expense	238		41		—	197		67		16		—	51
Deferral of acquisition costs	(93	)	(17	)	—	(76	)	(24	)	(3	)	—	(21	)
Amortization of acquisition costs	52		27		—	25		10		6		—	4
General and administrative expenses	2,459		1,406		287	766		677		430		39	208

Total benefits and expenses	5,613		1,457		287	3,869		1,530		449		39	1,042


Adjusted operating income (loss) before income taxes	1,129		593		27	509		361		187		53	121

(1)

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth 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				4Q	1Q	2Q	3Q	4Q


				Analysis of revenues by type:
1,081	974	11	%	Asset management fees	259	262	271	265	283
506	581	-13	%	Incentive, transaction, principal investing and capital markets revenues	247	143	186	93	84
678	495	37	%	Service, distribution and other revenues	130	152	160	160	206

2,265	2,050	10	%	Total Asset Management segment revenues	636	557	617	518	573


				Analysis of asset management fees by source:
488	426	15	%	Institutional customers	115	117	123	118	130
347	310	12	%	Retail customers	83	84	87	87	89
246	238	3	%	General account	61	61	61	60	64

1,081	974	11	%	Total asset management fees	259	262	271	265	283


Supplementary Assets Under Management Information (in billions):

	December 31, 2007
	Equity	Fixed Income	Real Estate	Total
Institutional customers	56.7	92.0	27.7	176.4
Retail customers	65.9	19.5	1.2	86.6
General account	4.5	170.0	1.0	175.5

Total	127.1	281.5	29.9	438.5


	December 31, 2006
	Equity	Fixed Income	Real Estate	Total
Institutional customers	54.7	78.7	23.4	156.8
Retail customers	58.1	19.4	1.5	79.0
General account	4.0	162.8	0.8	167.6

Total	116.8	260.9	25.7	403.4

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth 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			4Q		1Q		2Q		3Q		4Q


				Institutional Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
122.9		101.3		Beginning assets under management	115.0		122.9		127.0		132.0		135.0
27.9		25.8		Additions (1)	6.7		5.1		6.3		5.4		11.1
(20.9	)	(15.0	)	Withdrawals (2)	(3.3	)	(3.9	)	(4.6	)	(6.0	)	(6.4	)
10.9		10.3		Change in market value	4.5		2.5		3.5		3.7		1.2
0.9		0.5		Net money market flows	—		0.4		(0.2	)	(0.1	)	0.8

141.7		122.9		Ending assets under management	122.9		127.0		132.0		135.0		141.7
34.7		33.9		Affiliated institutional assets under management	33.9		34.0		34.2		35.1		34.7

176.4		156.8		Total assets managed for institutional customers at end of period	156.8		161.0		166.2		170.1		176.4


7.0		10.8		Net institutional additions (withdrawals) other than money market	3.4		1.2		1.7		(0.6	)	4.7


				Retail Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
43.4		38.7		Beginning assets under management	41.3		43.4		47.7		49.3		51.3
10.5		10.0		Additions	2.1		2.9		2.3		2.7		2.6
(10.4	)	(9.8	)	Withdrawals	(1.9	)	(2.6	)	(3.0	)	(2.4	)	(2.4	)
4.9		3.6		Change in market value	2.0		1.1		2.3		1.7		(0.2	)
(0.5	)	0.9		Net money market flows	(0.1	)	0.1		—		—		(0.6	)
3.0		—		Other (3)	—		2.8		—		—		0.2

50.9		43.4		Ending assets under management	43.4		47.7		49.3		51.3		50.9
35.7		35.6		Affiliated retail assets under management	35.6		36.5		37.8		37.2		35.7

86.6		79.0		Total assets managed for retail customers at end of period	79.0		84.2		87.1		88.5		86.6


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


				Wrap-fee Product Assets Under Administration:
69.1		53.6		Beginning total wrap-fee product assets	63.9		69.1		72.3		78.7		82.1
19.1		22.3		Additions (4)	4.6		5.8		5.7		3.6		4.0
(15.5	)	(14.6	)	Withdrawals	(3.7	)	(3.8	)	(3.9	)	(3.6	)	(4.2	)
9.0		7.8		Change in market value	4.3		1.2		4.6		3.4		(0.2	)

81.7		69.1		Ending total wrap-fee product assets	69.1		72.3		78.7		82.1		81.7


3.6		7.7		Net wrap-fee product additions (withdrawals)	0.9		2.0		1.8		—		(0.2	)

(1)	Additions include $0.3 billion for the three months ended June 30, 2007 and the twelve months ended December 31, 2007, and $1.8 billion for the twelve months ended December 31, 2006 for assets transferred from the Retirement segment.

(2)

Withdrawals include $(0.1) billion for the three months ended December 31, 2007, $(0.4) billion for the three months ended September 30, 2007, $(0.1) billion for the three months ended December 31, 2006, $(0.5) billion for the twelve months ended December 31, 2007 and $(0.4) billion for the twelve months ended December 31, 2006 for assets transferred to the Retirement segment.

(3)	Represents transfer of retail assets from an externally managed fund family to the Jennison Dryden Fund Family (internally managed).

(4)	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

Fourth 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			4Q		1Q		2Q		3Q		4Q


				Information pertaining to Wachovia Securities Financial Holdings, LLC:

				Revenues:
306		308		Net investment income	82		79		77		75		75
2,043		1,846		Commissions	490		529		519		484		511
2,508		2,126		Fees	555		588		608		644		668
415		206		Other non-interest revenues (1)	67		75		84		62		194

5,272		4,486		Total revenues	1,194		1,271		1,288		1,265		1,448
4,295		3,700		Expenses (1)	947		978		1,043		1,009		1,265

977		786		Income before income taxes	247		293		245		256		183

371		299		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	94		111		94		97		69
(1	)	(5	)	Purchase accounting and related adjustments	(2	)	—		(1	)	—		—

370		294		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	92		111		93		97		69

				Recurring revenue as a percentage of total revenue (2)	56.7	%	54.8	%	55.2	%	56.6	%	58.6	%
				Total client assets ($ in billions) (3)	754.8		768.0		791.4		802.4		799.2
				Distribution representatives (3):
				Series 7 Financial Advisors	7,993		8,073		8,193		8,272		8,343
				Series 6 Financial Representatives	2,497		2,521		2,531		2,996		3,296
				Customer debit balances ($ in billions) (3)	4.8		4.5		4.6		4.6		5.1

297		27		Prudential Financial, Inc. income from investment in Wachovia Securities Financial Holdings, LLC, including 38% interest in results, costs incurred at Prudential level, and purchase accounting adjustments	53		97		72		85		43

(1)

Wachovia Securities has changed its presentation of certain revenues that are received from customers and subsequently remitted to third parties, formerly reported on a net basis, to report the activity on a gross basis as Other non-interest revenues and Expenses. This reclassification has no impact on income before taxes. Wachovia Securities did not restate prior periods, but rather reflected the reclassification of amounts for the first nine months of 2007 together with current quarter activity in the amounts reported for fourth quarter 2007.

(2)	Calculated on a YTD annualized basis. Percentages for periods prior to fourth quarter 2007 have been recalculated by Wachovia Securities to conform to current presentation.

(3)	As of end of period.

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


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


				RETIREMENT SALES AND ACCOUNT VALUES

				Full Service:
97,430		88,385		Beginning total account value	93,364		97,430		99,558		104,033		105,601
14,692		16,156		Deposits and sales	3,723		4,003		3,212		3,219		4,258
(13,749	)	(15,989	)	Withdrawals and benefits	(3,834	)	(3,433	)	(3,203	)	(3,309	)	(3,804	)
6,563		8,878		Change in market value, interest credited and interest income (1)	4,177		1,558		4,466		1,658		(1,119	)
7,256		—		Acquisition (2)	—		—		—		—		7,256

112,192		97,430		Ending total account value	97,430		99,558		104,033		105,601		112,192

943		167		Net additions (withdrawals)	(111	)	570		9		(90	)	454

				Stable value account values included above	30,796		30,758		31,274		31,578		32,314

				Institutional Investment Products:
50,269		48,080		Beginning total account value	49,468		50,269		50,661		50,926		51,627
4,973		5,993		Additions	1,365		1,533		1,597		545		1,298
(5,866	)	(4,881	)	Withdrawals and benefits (3)	(1,871	)	(1,743	)	(1,067	)	(1,193	)	(1,863	)
2,765		2,247		Change in market value, interest credited and interest income	647		607		325		933		900
(550	)	(1,170	)	Other (3)	660		(5	)	(590	)	416		(371	)

51,591		50,269		Ending total account value	50,269		50,661		50,926		51,627		51,591


(893	)	1,112		Net additions (withdrawals)	(506	)	(210	)	530		(648	)	(565	)

(1)	Includes $511 million for second quarter of 2007 and the twelve months ended December 31, 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)	On December 31, 2007, the company acquired a portion of the Union Bank of California, N.A.’s retirement business.

(3)

“Other” activity includes transfers from (to) the Asset Management segment of $107 million, $(332) million, $407 million and $110 million for the fourth quarter of 2006 and the second, third and fourth quarters of 2007, respectively; and $185 million and $(1,475) million for the twelve months ended December 31, 2007 and 2006, respectively. “Other” activity also includes $(511) million for the second quarter of 2007 and the twelve months ended December 31, 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

Fourth Quarter 2007

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


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


						Revenues (1):
6,192		5,946		4	%	Premiums	1,458		1,553		1,531		1,518		1,590
293		286		2	%	Policy charges and fee income	70		72		73		72		76
1,644		1,425		15	%	Net investment income	376		386		405		419		434
788		663		19	%	Asset management fees, commissions and other income	181		220		217		225		126

8,917		8,320		7	%	Total revenues	2,085		2,231		2,226		2,234		2,226


						Benefits and Expenses (1):
4,907		4,682		5	%	Insurance and annuity benefits	1,143		1,219		1,219		1,194		1,275
330		251		31	%	Interest credited to policyholders’ account balances	67		77		79		84		90
19		10		90	%	Interest expense	—		2		3		8		6
(1,057	)	(1,007	)	-5	%	Deferral of acquisition costs	(252	)	(261	)	(259	)	(253	)	(284	)
486		454		7	%	Amortization of acquisition costs	112		128		126		103		129
2,485		2,364		5	%	General and administrative expenses	617		591		603		618		673

7,170		6,754		6	%	Total benefits and expenses	1,687		1,756		1,771		1,754		1,889


1,747		1,566		12	%	Adjusted operating income before income taxes	398		475		455		480		337

(1)

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Twelve Months Ended December 31, 2007							Quarter Ended December 31, 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	6,192		4,276		1,916		—	1,590		1,106		484		—
Policy charges and fee income	293		230		63		—	76		59		17		—
Net investment income	1,644		799		809		36	434		217		209		8
Asset management fees, commissions and other income	788		8		47		733	126		(28	)	(10	)	164

Total revenues	8,917		5,313		2,835		769	2,226		1,354		700		172


Benefits and Expenses (1):
Insurance and annuity benefits	4,907		3,386		1,521		—	1,275		894		381		—
Interest credited to policyholders’ account balances	330		137		193		—	90		36		54		—
Interest expense	19		12		1		6	6		4		1		1
Deferral of acquisition costs	(1,057	)	(782	)	(275	)	—	(284	)	(211	)	(73	)	—
Amortization of acquisition costs	486		361		125		—	129		96		33		—
General and administrative expenses	2,485		1,280		701		504	673		352		190		131

Total benefits and expenses	7,170		4,394		2,266		510	1,889		1,171		586		132


Adjusted operating income before income taxes	1,747		919		569		259	337		183		114		40


	Twelve Months Ended December 31, 2006							Quarter Ended December 31, 2006
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	5,946		3,917		2,029		—	1,458		988		470		—
Policy charges and fee income	286		221		65		—	70		57		13		—
Net investment income	1,425		670		724		31	376		179		186		11
Asset management fees, commissions and other income	663		68		36		559	181		22		8		151

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


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

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


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

(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 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

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INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


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


				Japanese Yen Basis Results:
				Revenues (1):
¥	410,318	¥	381,925	Japanese insurance operations excluding Gibraltar Life	¥	95,896	¥	110,222	¥	103,793	¥	98,206	¥	98,097
	327,699		326,980	Gibraltar Life		77,139		80,554		86,499		82,385		78,261

	738,017		708,905	Total revenues, Japan, yen basis		173,035		190,776		190,292		180,591		176,358


				Benefits and Expenses (1):
	329,924		299,290	Japanese insurance operations excluding Gibraltar Life		74,907		86,553		80,649		79,125		83,597
	266,472		273,675	Gibraltar Life		62,677		65,133		70,199		66,148		64,992

	596,396		572,965	Total benefits and expenses, Japan, yen basis		137,584		151,686		150,848		145,273		148,589

				Adjusted operating income (2):
	80,394		82,635	Japanese insurance operations excluding Gibraltar Life		20,989		23,669		23,144		19,081		14,500
	61,227		53,305	Gibraltar Life		14,462		15,421		16,300		16,237		13,269

¥	141,621	¥	135,940	Total adjusted operating income, Japan, yen basis	¥	35,451	¥	39,090	¥	39,444	¥	35,318	¥	27,769


				U.S. Dollar adjusted operating income (3):
$	739	$	775	Japanese insurance operations excluding Gibraltar Life	$	194	$	219	$	212	$	171	$	137
	569		493	Gibraltar Life		132		143		159		153		114

	1,308		1,268	Total adjusted operating income, Japan, U.S. dollar basis		326		362		371		324		251
	180		155	All other countries (4)		38		51		41		42		46

$	1,488	$	1,423	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	364	$	413	$	412	$	366	$	297

(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.

(4)	Results include corporate management and development expenses incurred in the U.S. related to Japanese Insurance operations excluding Gibraltar Life.

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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


		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
3,002	2,789	Japan, excluding Gibraltar Life	680	787	719	731	765
1,979	2,094	Gibraltar Life	483	483	523	472	501
1,504	1,349	All other countries	365	355	362	387	400
6,485	6,232	Total	1,528	1,625	1,604	1,590	1,666

		Annualized new business premiums:
491	480	Japan, excluding Gibraltar Life	115	153	109	103	126
359	357	Gibraltar Life	78	76	96	92	95
297	287	All other countries	77	70	69	75	83
1,147	1,124	Total	270	299	274	270	304

		Annualized new business premiums by distribution channel:
788	767	Life Planners	192	223	178	178	209
334	308	Gibraltar Life Advisors	68	69	90	87	88
25	49	Banks (2)	10	7	6	5	7
1,147	1,124	Total	270	299	274	270	304

		Constant exchange rate basis (3):
		Net premiums, policy charges and fee income:
3,332	3,061	Japan, excluding Gibraltar Life	756	885	819	812	816
2,206	2,296	Gibraltar Life	536	544	587	537	538
1,489	1,374	All other countries	366	357	360	382	390
7,027	6,731	Total	1,658	1,786	1,766	1,731	1,744

		Annualized new business premiums:
525	515	Japan, excluding Gibraltar Life	125	165	118	111	131
382	377	Gibraltar Life	84	82	102	99	99
296	293	All other countries	78	71	70	75	80
1,203	1,185	Total	287	318	290	285	310

		Annualized new business premiums by distribution channel:
821	808	Life Planners	203	236	188	186	211
357	328	Gibraltar Life Advisors	74	75	96	94	92
25	49	Banks (2)	10	7	6	5	7
1,203	1,185	Total	287	318	290	285	310

(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 106 per U.S. dollar; Korean won 950 per U.S. dollar.

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


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

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	227		231		233		236		238
Gibraltar Life	189		188		186		186		186
All other countries	101		103		104		105		106

Total	517		522		523		527		530


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	2,074		2,118		2,144		2,167		2,194
Gibraltar Life	3,871		3,846		3,816		3,815		3,817
All other countries	1,201		1,225		1,246		1,270		1,296

Total	7,146		7,189		7,206		7,252		7,307


International life insurance policy persistency:

Excluding Gibraltar Life:
13 months	93.0	%	92.8	%	92.7	%	92.6	%	92.4	%
25 months	87.1	%	86.9	%	86.9	%	86.5	%	85.9	%

Gibraltar Life:
13 months	94.4	%	93.9	%	93.5	%	92.6	%	91.7	%
25 months	87.8	%	88.0	%	87.9	%	88.0	%	87.9	%

Number of Life Planners at end of period:
Japan	2,956		3,001		3,012		3,030		3,068
All other countries	2,872		2,892		2,989		3,008		3,098

Total life planners	5,828		5,893		6,001		6,038		6,166

Gibraltar Life Advisors	5,944		5,952		5,815		5,944		6,264

(1)	Foreign currencies translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 106 per U.S. dollar; Korean won 950 per U.S. dollar.

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

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2007					December 31, 2006
			Financial Services Businesses					Financial Services Businesses
	Consolidated Portfolio	Closed Block Business	Amount	% of Total		Consolidated Portfolio	Closed Block Business	Amount	% of Total
Fixed maturities:
Public, available for sale, at fair value	128,130	37,168	90,962	55.8	%	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	32,559	12,246	20,313	12.5	%	30,357	12,021	18,336	11.5	%
Private, held to maturity, at amortized cost	669	—	669	0.4	%	443	—	443	0.3	%
Trading account assets supporting insurance liabilities, at fair value	14,473	—	14,473	8.9	%	14,262	—	14,262	8.9	%
Other trading account assets, at fair value	346	142	204	0.1	%	109	—	109	0.1	%
Equity securities, available for sale, at fair value	8,569	3,940	4,629	2.8	%	8,086	3,772	4,314	2.7	%
Commercial loans	27,557	7,954	19,603	12.0	%	24,593	7,318	17,275	10.8	%
Policy loans	9,337	5,395	3,942	2.4	%	8,887	5,415	3,472	2.2	%
Other long-term investments (1)	3,992	1,268	2,724	1.7	%	3,756	965	2,791	1.7	%
Short-term investments (2)	3,983	1,385	2,598	1.6	%	4,603	1,851	2,752	1.7	%

Subtotal (3)	232,494	69,498	162,996	100.0	%	229,675	70,094	159,581	100.0	%

Invested assets of other entities and operations (4)	10,613	—	10,613			5,742	—	5,742

Total investments	243,107	69,498	173,609			235,417	70,094	165,323

Fixed Maturities by Credit Quality (3):


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

NAIC Rating (5) Rating Agency Equivalent
1 Aaa, Aa, A	74,678	2,036	1,184	75,530	80.5	%	75,796	1,787	322	77,261	80.6	%
2 Baa	13,573	490	351	13,712	14.6	%	13,328	580	137	13,771	14.4	%

Subtotal Investment Grade	88,251	2,526	1,535	89,242	95.1	%	89,124	2,367	459	91,032	95.0	%

3 Ba	2,830	68	102	2,796	3.1	%	2,692	109	22	2,779	2.9	%
4 B	1,681	38	82	1,637	1.7	%	1,746	93	23	1,816	1.9	%
5 C and lower	115	5	6	114	0.1	%	115	8	2	121	0.1	%
6 In or near default	34	5	1	38	0.0	%	48	7	1	54	0.1	%

Subtotal Below Investment Grade	4,660	116	191	4,585	4.9	%	4,601	217	48	4,770	5.0	%

Total	92,911	2,642	1,726	93,827	100.0	%	93,725	2,584	507	95,802	100.0	%

Private Fixed Maturities:
NAIC Rating (5) Rating Agency Equivalent
1 Aaa, Aa, A	7,139	230	84	7,285	34.7	%	6,214	248	49	6,413	34.2	%
2 Baa	10,595	344	118	10,821	51.6	%	9,463	377	73	9,767	52.0	%

Subtotal Investment Grade	17,734	574	202	18,106	86.3	%	15,677	625	122	16,180	86.2	%

3 Ba	1,637	49	26	1,660	7.9	%	1,422	50	11	1,461	7.7	%
4 B	738	6	12	732	3.5	%	645	12	7	650	3.5	%
5 C and lower	319	8	4	323	1.5	%	321	18	4	335	1.8	%
6 In or near default	147	23	—	170	0.8	%	139	11	1	149	0.8	%

Subtotal Below Investment Grade	2,841	86	42	2,885	13.7	%	2,527	91	23	2,595	13.8	%

Total	20,575	660	244	20,991	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 investment in operating joint ventures, which includes our investment in Wachovia Securities) and partnerships, investment real estate held through direct ownership, and other miscellaneous investments.

(2)	Short-term investments consist primarily of money market funds with virtually no sub-prime exposure.

(3)

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.

(4)

Includes invested assets of securities brokerage, securities trading, banking operations, real estate and relocation services, and asset management operations. Excludes assets of our asset management operations managed for third parties and those assets classified as “separate account assets” on our balance sheet.

(5)

Reflects equivalent ratings for investments of international insurance operations that are not rated by United States insurance regulatory authorities. Includes, as of December 31, 2007 and December 31, 2006, respectively, 196 securities with amortized cost of $2,306 million (fair value $2,319 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

Fourth Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2007			December 31, 2006
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	34,752	68.5	%	32,242	67.9	%
Public, held to maturity, at amortized cost	2,879	5.7	%	3,025	6.4	%
Private, available for sale, at fair value	3,467	6.8	%	3,139	6.6	%
Private, held to maturity, at amortized cost	668	1.3	%	443	0.9	%
Trading account assets supporting insurance liabilities, at fair value	1,132	2.2	%	1,106	2.3	%
Other trading account assets, at fair value	48	0.1	%	28	0.1	%
Equity securities, available for sale, at fair value	2,550	5.0	%	2,372	5.0	%
Commercial loans	2,881	5.7	%	2,782	5.9	%
Policy loans	1,133	2.2	%	1,016	2.1	%
Other long-term investments (1)	993	2.0	%	970	2.0	%
Short-term investments	239	0.5	%	374	0.8	%

Total	50,742	100.0	%	47,497	100.0	%


	December 31, 2007			December 31, 2006
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value	56,210	50.1	%	60,560	54.0	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	16,846	15.0	%	15,197	13.6	%
Private, held to maturity, at amortized cost	1	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	13,341	11.9	%	13,156	11.7	%
Other trading account assets, at fair value	156	0.1	%	81	0.1	%
Equity securities, available for sale, at fair value	2,079	1.9	%	1,942	1.7	%
Commercial loans	16,722	14.9	%	14,493	12.9	%
Policy loans	2,809	2.5	%	2,456	2.2	%
Other long-term investments (1)	1,731	1.5	%	1,821	1.7	%
Short-term investments	2,359	2.1	%	2,378	2.1	%

Total	112,254	100.0	%	112,084	100.0	%

(1)	Other long-term investments consist of real estate and non-real estate related investments in joint ventures and partnerships, investment real estate held through direct ownership, and other miscellaneous investments.

(2)

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended December 31
	2007						2006
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1):
Fixed maturities	5.04	%	1,437		(15	)	4.96	%	1,386		34
Equity securities	4.48	%	49		(27	)	5.30	%	50		1
Commercial loans	5.99	%	222		3		6.02	%	197		3
Policy loans	5.35	%	52		—		5.13	%	44		—
Short-term investments and cash equivalents	4.08	%	103		—		5.43	%	102		—
Other investments	2.33	%	17		(60	)	8.00	%	57		95

Gross investment income before investment expenses	5.03	%	1,880		(99	)	5.16	%	1,836		133
Investment expenses	-0.15	%	(119	)	—		-0.17	%	(138	)	—

Subtotal	4.88	%	1,761		(99	)	4.99	%	1,698		133

Investment results of other entities and operations (2)			351		(18	)			299		96
Less, investment income relating to divested businesses			(3	)					(3	)

Total			2,109		(117	)			1,994		229


	Twelve Months Ended December 31
	2007						2006
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1):
Fixed maturities	5.10	%	5,700		(48	)	4.95	%	5,315		(284	)
Equity securities	4.95	%	198		296		5.15	%	182		122
Commercial loans	6.24	%	850		6		6.25	%	760		1
Policy loans	5.23	%	188		—		5.04	%	158		—
Short-term investments and cash equivalents	4.58	%	378		(7	)	5.38	%	342		—
Other investments	4.80	%	136		(230	)	8.03	%	217		287

Gross investment income before investment expenses	5.19	%	7,450		17		5.16	%	6,974		126
Investment expenses	-0.16	%	(521	)	—		-0.17	%	(515	)	—

Subtotal	5.03	%	6,929		17		4.99	%	6,459		126

Investment results of other entities and operations (2)			1,299		7				1,181		167
Less, investment income relating to divested businesses			(14	)					(14	)

Total			8,214		24				7,626		293

(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)

Includes 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. Prior periods yields are presented on a basis consistent with the current presentation.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2007						2006
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	2.75	%	281		(19	)	2.57	%	249		1
Equity securities	2.46	%	15		(44	)	2.73	%	13		(2	)
Commercial loans	4.22	%	30		—		4.13	%	28		3
Policy loans	4.15	%	11		—		3.81	%	10		—
Short-term investments and cash equivalents	5.27	%	14		—		4.04	%	7		1
Other investments	9.37	%	22		52		10.43	%	25		40

Gross investment income before investment expenses	3.03	%	373		(11	)	2.89	%	332		43
Investment expenses	-0.19	%	(26	)	—		-0.20	%	(28	)	—

Total	2.84	%	347		(11	)	2.69	%	304		43


	Twelve Months Ended December 31
	2007						2006
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	2.72	%	1,058		34		2.54	%	955		7
Equity securities	2.74	%	59		239		2.92	%	54		93
Commercial loans	4.45	%	122		12		3.81	%	93		18
Policy loans	3.91	%	40		—		3.66	%	36		—
Short-term investments and cash equivalents	3.96	%	32		(1	)	3.56	%	20		(1	)
Other investments	11.95	%	105		(58	)	12.43	%	111		89

Gross investment income before investment expenses	3.05	%	1,416		226		2.87	%	1,269		206
Investment expenses	-0.18	%	(96	)	—		-0.19	%	(96	)	—

Total	2.87	%	1,320		226		2.68	%	1,173		206

(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 contract holders and investment income on assets other than those included in invested assets of the Financial Services Businesses. Prior periods yields are presented on a basis consistent with the current presentation.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2007						2006
					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	%	1,156		4		6.31	%	1,137		33
Equity securities	6.94	%	34		17		8.12	%	37		3
Commercial loans	6.41	%	192		3		6.51	%	169		—
Policy loans	5.84	%	41		—		5.68	%	34		—
Short-term investments and cash equivalents	3.87	%	89		—		5.64	%	95		(1	)
Other investments	-1.11	%	(5	)	(112	)	6.73	%	32		55

Gross investment income before investment expenses	6.07	%	1,507		(88	)	6.33	%	1,504		90
Investment expenses	-0.14	%	(93	)	—		-0.15	%	(110	)	—

Total	5.93	%	1,414		(88	)	6.18	%	1,394		90


	Twelve Months Ended December 31
	2007						2006
					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	6.47	%	4,642		(82	)	6.33	%	4,360		(291	)
Equity securities	7.51	%	139		57		7.56	%	128		29
Commercial loans	6.68	%	728		(6	)	6.86	%	667		(17	)
Policy loans	5.76	%	148		—		5.66	%	122		—
Short-term investments and cash equivalents	4.68	%	346		(6	)	5.65	%	322		1
Other investments	1.55	%	31		(172	)	5.82	%	106		198

Gross investment income before investment expenses	6.29	%	6,034		(209	)	6.36	%	5,705		(80	)
Investment expenses	-0.15	%	(425	)	—		-0.17	%	(419	)	—

Total	6.14	%	5,609		(209	)	6.19	%	5,286		(80	)

(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 contract holders, 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)

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 contract holders and investment income on assets other than those included in invested assets of the Financial Services Businesses. Prior periods yields are presented on a basis consistent with the current presentation.

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
10,128		Premiums	2,604		2,542		2,548		2,593		2,720		2,684		2,673
2,529		Policy charges and fee income	662		667		583		737		784		783		727
6,861		Net investment income	1,811		1,863		1,958		1,994		1,998		2,037		2,070
3,358		Asset management fees, commissions and other income	947		924		975		1,154		1,159		1,194		1,188

22,876		Total revenues	6,024		5,996		6,064		6,478		6,661		6,698		6,658


		Benefits and Expenses (1):
9,990		Insurance and annuity benefits	2,577		2,591		2,650		2,605		2,763		2,683		2,658
2,516		Interest credited to policyholders’ account balances	652		677		716		745		745		762		779
615		Interest expense	212		233		249		255		274		276		281
(1,801	)	Deferral of acquisition costs	(501	)	(495	)	(496	)	(545	)	(539	)	(556	)	(554	)
910		Amortization of acquisition costs	240		264		(73	)	239		272		265		106
7,108		General and administrative expenses	1,949		1,772		1,861		2,084		1,915		2,031		2,109

19,338		Total benefits and expenses	5,129		5,042		4,907		5,383		5,430		5,461		5,379


3,538		Adjusted operating income before income taxes	895		954		1,157		1,095		1,231		1,237		1,279


		Reconciling items:
669		Realized investment gains (losses), net, and related adjustments	50		(334	)	214		143		146		39		(105	)
(108)		Related charges	—		23		7		(13	)	(6	)	(7	)	(4	)

561		Total realized investment gains (losses), net, and related charges and adjustments	50		(311	)	221		130		140		32		(109	)

(33	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(114	)	(151	)	257		43		82		(108	)	36
(44	)	Change in experience-rated contract holder liabilities due to asset value changes	66		130		(168	)	(17	)	(62	)	72		(6	)
(16	)	Divested businesses	58		(10	)	10		18		19		(5	)	15
(214)		Equity in earnings of operating joint ventures	(78	)	(67	)	(78	)	(99	)	(120	)	(100	)	(103	)

254		Total reconciling items, before income taxes	(18	)	(409	)	242		75		59		(109	)	(167	)


3,792		Income from continuing operations before income taxes and equity in earnings of operating joint ventures	877		545		1,399		1,170		1,290		1,128		1,112
642		Income tax expense	251		156		363		356		379		320		315

3,150		Income from continuing operations before equity in earnings of operating joint ventures	626		389		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.

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
320		Premiums	92		30		84		88		96		71		88
188		Policy charges and fee income	48		43		45		43		44		44		40
3,151		Net investment income	847		905		922		953		937		976		979
2,261		Asset management fees, commissions and other income	645		608		582		807		754		770		692

5,920		Total revenues	1,632		1,586		1,633		1,891		1,831		1,861		1,799


		Benefits and Expenses (1):
1,049		Insurance and annuity benefits	269		235		297		303		302		276		290
1,633		Interest credited to policyholders’ account balances	429		452		475		497		492		508		528
115		Interest expense	46		62		63		67		59		64		76
(61	)	Deferral of acquisition costs	(22	)	(22	)	(25	)	(24	)	(19	)	(25	)	(19	)
54		Amortization of acquisition costs	13		17		12		10		9		11		11
2,423		General and administrative expenses	698		533		551		677		559		627		656

5,213		Total benefits and expenses	1,433		1,277		1,373		1,530		1,402		1,461		1,542


707		Adjusted operating income before income taxes	199		309		260		361		429		400		257

(1)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT

(in millions)


Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
—		Premiums	—		—		—		—		—		—		—
—		Policy charges and fee income	—		—		—		—		—		—		—
105		Net investment income	42		40		51		49		43		66		44
1,591		Asset management fees, commissions and other income	460		429		392		587		514		551		474

1,696		Total revenues	502		469		443		636		557		617		518


		Benefits and Expenses (1):
—		Insurance and annuity benefits	—		—		—		—		—		—		—
—		Interest credited to policyholders’ account balances	—		—		—		—		—		—		—
16		Interest expense	6		9		10		16		10		14		19
(17	)	Deferral of acquisition costs	(5	)	(6	)	(3	)	(3	)	(4	)	(4	)	(4	)
33		Amortization of acquisition costs	7		8		6		6		6		5		4
1,200		General and administrative expenses	325		321		330		430		361		412		380

1,232		Total benefits and expenses	333		332		343		449		373		427		399


464		Adjusted operating income (loss) before income taxes	169		137		100		187		184		190		119

(1)

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

RECLASSIFIED SUPPLEMENTAL INFORMATION - INTERNATIONAL INSURANCE SEGMENT

(dollar amounts in millions, unless otherwise noted)


Year ended December 31		2006				2007
2005		1Q	2Q	3Q	4Q	1Q	2Q	3Q
	Constant exchange rate basis (1):
	Net premiums, policy charges and fee income:
2,799	Japan, excluding Gibraltar Life	807	748	750	756	885	819	812
2,568	Gibraltar Life	618	609	533	536	544	587	537
1,247	All other countries	328	340	340	366	357	360	382

6,614	Total	1,753	1,697	1,623	1,658	1,786	1,766	1,731

	Annualized new business premiums:
587	Japan, excluding Gibraltar Life	149	119	122	125	165	118	111
329	Gibraltar Life	78	119	96	84	82	102	99
302	All other countries	80	74	61	78	71	70	75

1,218	Total	307	312	279	287	318	290	285

	Annualized new business premiums by distribution channel:
889	Life Planners	229	193	183	203	236	188	186
329	Gibraltar Life Advisors	78	100	76	74	75	96	94
—	Banks (2)	—	19	20	10	7	6	5

1,218	Total	307	312	279	287	318	290	285

	Face amount of individual policies in force at end of period (in billions) (3):
	Japan, excluding Gibraltar Life	218	221	224	227	231	233	236
	Gibraltar Life	190	189	189	189	188	186	186
	All other countries	97	98	99	101	103	104	105

	Total	505	508	512	517	522	523	527

(1)	Foreign currencies translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 106 per U.S. dollar; Korean won 950 per U.S. dollar.

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

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

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure of performance of our Financial Services Businesses that excludes “Realized investment gains (losses), net”, as adjusted, and related charges and adjustments; net investment gains and losses on trading account assets supporting insurance liabilities; change in experience-rated contractholder liabilities due to asset value changes; results of divested businesses and discontinued operations; and the related tax effects thereof. Adjusted operating income includes equity in earnings of operating joint ventures and the related tax effects thereof. Realized investment gains (losses) representing profit or loss of certain of our businesses which primarily originate investments for sale or syndication to unrelated investors, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Realized investment gains and losses from products that are free standing derivatives or contain embedded derivatives, and from associated derivative portfolios that are part of an economic hedging program related to the risk of those products, are included in adjusted operating income. Revenues and benefits and expenses shown as components of adjusted operating income, are presented on the same basis as pre-tax adjusted operating income and are adjusted for the items above as well. Adjusted operating income does not equate to “Income from continuing operations” as determined in accordance with GAAP but is the measure of profit or loss we use to evaluate segment performance. Adjusted operating income is not a substitute for income determined in accordance with GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability factors of our businesses.

2. After-tax adjusted operating income:

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

3. Assets Under Management:

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

4. Attributed Equity:

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

5. Book value per share of Common Stock:

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

6. Borrowings - Capital Debt:

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

7. Borrowings - Investment Related:

Debt issued to finance specific investment assets or portfolios of investment assets, including institutional spread lending investment

portfolios, real estate, and real estate related investments held in consolidated joint ventures, as well as institutional and insurance company portfolio cash flow timing differences.

8. Borrowings - Securities Business Related:

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

9. Borrowings - Specified Other Businesses:

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

10. Client Assets:

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

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

KEY DEFINITIONS AND FORMULAS

11. Earned Premiums:

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

12. Earnings Per Share of Common Stock:

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

13. Full Service:

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

14. Full Service Stable Value:

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

15. General Account:

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

16. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

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

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

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

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

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

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

20. Individual Life Insurance Sales:

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

21. Insurance and Annuity Benefits:

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

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth 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 16.20% for the twelve months ended December 31, 2007, 14.67% for the twelve months ended December 31, 2006, 14.43% for the three months ended December 31, 2007, 16.33% for the three months ended December 31, 2006, 16.14% for the three months ended September 30, 2007, 15.97% for the three months ended June 30, 2007, and 18.25% for the three months ended March 31, 2007.

26. Policy Persistency - Group Insurance:

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

27. Policy Persistency - International Insurance:

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

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

28. Prudential Agents:

Insurance agents in our insurance operations in the United States.

29. Prudential Agent productivity:

Commissions on new sales of all products by Prudential Agents under contract for the entire period, divided by the number of those Prudential Agents. Excludes

commissions on new sales by Prudential Agents hired or departed during the period. For interim reporting periods, the productivity measures are annualized.

30. Ratio of capital debt to total capitalization:

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

accumulated other comprehensive income related to unrealized gains and losses on investments, pension and postretirement benefits and capital debt.

31. Separate Accounts:

Assets of our insurance companies allocated under certain policies and contracts that are segregated from the general account and other separate accounts. The policyholder or contractholder predominantly bears the risk of investments held in a separate account.

32. Wrap-Fee Products:

Investment products generating asset-based fees in which the funds of the customer are generally invested in other

investment products such as mutual funds.

Page 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2007

LOGO

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of February 6, 2008


	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
Prudential Annuities Life Assurance Corporation (1)	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 February 6, 2008

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

The Prudential Insurance Company of America :
Capital and surplus notes	a	A+	A2	A+

Prudential Funding, LLC:
Short-Term Debt	AMB-1	A-1+	P-1	F1+
Long-Term Senior Debt	a+	AA	A1	AA-

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

*	NR indicates not rated.

(1)	Formerly known as American Skandia Life Assurance Corporation

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

INVESTOR INFORMATION:


Corporate Offices:		Investor Information Hotline:

Prudential Financial, Inc. 751 Broad Street Newark, New Jersey 07102		Dial 877-998-ROCK for additional printed information or inquiries.

		Web Site:
		www.prudential.com

Common Stock:

Common Stock of Prudential Financial, Inc. is traded on the New York Stock Exchange under the symbol PRU.

Page 41

Form: 8-K

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