July 30, 2008 - QUARTERLY FINANCIAL SUPPLEMENT - 8-K: Current report

Exhibit 99.1

Prudential Financial, Inc. (PRU)

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Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

SECOND QUARTER 2008

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.

July 30, 2008

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

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 SUPPLEMENTARY INFORMATION - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION		34

KEY DEFINITIONS AND FORMULAS		35-37

RATINGS AND INVESTOR INFORMATION		38

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

This Quarterly Financial Supplement reflects the following:

The calculation of International Insurance and Investment Division constant exchange rate information for “Net premiums, policy charges and fees” has been modified to provide a more meaningful presentation, and such data presented for earlier periods has been conformed to the current reporting practice.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date				% Change		2007						2008
2008		2007		% Change		2Q		3Q		4Q		1Q		2Q


					*Financial Services Businesses:*
					Pre-tax adjusted operating income (loss) by division:
638		708		-10%	Insurance Division	390		556		366		301		337
641		797		-20%	Investment Division	377		311		372		287		354
918		927		-1%	International Insurance and Investments Division	453		537		393		439		479
(40	)	1		-4100%	Corporate and other operations	(8	)	(12	)	(51	)	(35	)	(5	)

2,157		2,433		-11%	Total pre-tax adjusted operating income	1,212		1,392		1,080		992		1,165
560		716		-22%	Income taxes, applicable to adjusted operating income	355		416		268		263		297

1,597		1,717		-7%	Financial Services Businesses after-tax adjusted operating income	857		976		812		729		868


					Reconciling items:
(1,164	)	175		-765%	Realized investment gains (losses), net, and related charges and adjustments	34		(180	)	(91	)	(678	)	(486	)
(385	)	(26	)	-1381%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(108	)	36		(10	)	(262	)	(123	)
294		10		2840%	Change in experience-rated contractholder liabilities due to asset value changes	72		(6	)	9		200		94
(125	)	46		-372%	Divested businesses	18		(27	)	(45	)	(112	)	(13	)
(100	)	(220	)	55%	Equity in earnings of operating joint ventures	(100	)	(103	)	(77	)	(60	)	(40	)

(1,480	)	(15	)	-9767%	Total reconciling items, before income taxes	(84	)	(280	)	(214	)	(912	)	(568	)
(470	)	(17	)	-2665%	Income taxes, not applicable to adjusted operating income	(35	)	(101	)	(137	)	(216	)	(254	)

(1,010	)	2		-50600%	Total reconciling items, after income taxes	(49	)	(179	)	(77	)	(696	)	(314	)

587		1,719		-66%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	808		797		735		33		554
67		133		-50%	Equity in earnings of operating joint ventures, net of taxes	56		67		46		43		24

654		1,852		-65%	Income from continuing operations (after-tax) of Financial Services Businesses	864		864		781		76		578
(2	)	8		-125%	Income (loss) from discontinued operations, net of taxes	(29	)	(4	)	11		1		(3	)

652		1,860		-65%	Net income of Financial Services Businesses	835		860		792		77		575

					Earnings per share of Common Stock (diluted):
3.66		3.68			Financial Services Businesses after-tax adjusted operating income	1.84		2.13		1.79		1.65		2.02

					Reconciling items:
(2.63	)	0.37			Realized investment gains (losses), net, and related charges and adjustments	0.07		(0.39	)	(0.20	)	(1.51	)	(1.11	)
(0.87	)	(0.06	)		Investment gains (losses) on trading account assets supporting insurance liabilities, net	(0.23	)	0.08		(0.02	)	(0.58	)	(0.28	)
0.66		0.02			Change in experience-rated contractholder liabilities due to asset value changes	0.15		(0.01	)	0.02		0.44		0.21
(0.28	)	0.10			Divested businesses	0.04		(0.06	)	(0.10	)	(0.25	)	(0.03	)
(0.22	)	(0.46	)		Equity in earnings of operating joint ventures	(0.21	)	(0.22	)	(0.17	)	(0.13	)	(0.09	)

(3.34	)	(0.03	)		Total reconciling items, before income taxes	(0.18	)	(0.60	)	(0.47	)	(2.03	)	(1.30	)
(1.06	)	(0.03	)		Income taxes, not applicable to adjusted operating income	(0.08	)	(0.21	)	(0.31	)	(0.48	)	(0.58	)

(2.28	)	0.00			Total reconciling items, after income taxes	(0.10	)	(0.39	)	(0.16	)	(1.55	)	(0.72	)

1.38		3.68			Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	1.74		1.74		1.63		0.10		1.30
0.15		0.28			Equity in earnings of operating joint ventures, net of taxes	0.12		0.15		0.10		0.10		0.05

1.53		3.96			Income from continuing operations (after-tax) of Financial Services Businesses	1.86		1.89		1.73		0.20		1.35
0.00		0.02			Income (loss) from discontinued operations, net of taxes	(0.06	)	(0.01	)	0.02		0.00		0.00

1.53		3.98			Net income of Financial Services Businesses	1.80		1.88		1.75		0.20		1.35


443.1		474.9			Weighted average number of outstanding Common shares (diluted basis)	472.8		464.9		458.5		448.6		437.7

14.37%		16.18	%		Operating Return on Average Equity (based on adjusted operating income)	16.04	%	17.97	%	14.88	%	13.03	%	15.76	%

					*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
652		1,860			Net income of Financial Services Businesses (above)	835		860		792		77		575
7		106			Net income (loss) of Closed Block Business	11		7		79		(8	)	15

659		1,966			Consolidated net income	846		867		871		69		590

26		29			Direct equity adjustments for earnings per share calculations	14		13		11		12		14

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2007			2008
2008	2007		2Q	3Q	4Q	1Q	2Q


		*Financial Services Businesses Capitalization Data (1):*
		Senior Debt:
		Short-term debt	11,533	12,619	14,514	13,788	12,955
		Long-term debt	9,401	9,771	12,351	13,302	13,856
		Junior Subordinated Long-Term Debt	—	—	—	—	1,398

		Attributed Equity:
		Including accumulated other comprehensive income	21,718	21,751	22,170	21,484	20,502
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	21,792	22,244	22,009	22,499	22,282
		Excluding total accumulated other comprehensive income	21,835	22,051	21,711	21,957	21,733

		Total Capitalization:
		Including accumulated other comprehensive income	31,119	31,522	34,521	34,786	35,756
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	31,193	32,015	34,360	35,801	37,536
		Excluding total accumulated other comprehensive income	31,236	31,822	34,062	35,259	36,987

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	46.27	47.08	48.73	48.45	47.58
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	46.43	48.15	48.37	50.74	51.71
		Excluding total accumulated other comprehensive income	46.52	47.73	47.72	49.52	50.44

		Number of diluted shares at end of period	469.4	462.0	455.0	443.4	430.9

		*Common Stock Price Range (based on closing price):*
91.36	103.17	High	103.17	98.71	101.09	91.36	82.21
59.74	85.69	Low	90.21	84.28	89.46	67.36	59.74
59.74	97.23	Close	97.23	97.58	93.04	78.25	59.74

		*Common Stock market capitalization (1)*	44,879	44,309	41,623	34,227	25,465

(1)	As of end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

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OPERATIONS HIGHLIGHTS


Year-to-date			2007			2008
2008	2007		2Q	3Q	4Q	1Q	2Q

		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management:
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Institutional customers	166.2	170.1	176.4	174.2	179.3
		Retail customers	87.1	88.5	86.6	81.8	84.6
		General account	167.0	171.6	175.5	177.9	175.0

		Total Investment Management and Advisory Services	420.3	430.2	438.5	433.9	438.9
		Non-proprietary assets under management	56.1	57.0	59.7	54.7	60.1

		Total managed by Investment Division	476.4	487.2	498.2	488.6	499.0
		Managed by International Insurance and Investments Division (3):	94.3	71.5	69.2	71.0	69.4
		Managed by Insurance Division	77.7	78.2	80.3	71.5	69.5

		Total assets under management	648.4	636.9	647.7	631.1	637.9
		Client assets under administration	127.0	131.4	136.3	129.4	125.0

		Total assets under management and administration	775.4	768.3	784.0	760.5	762.9

		Assets managed or administered for customers outside of the United States at end of period (3)	137.3	119.6	117.0	117.4	116.0

		*Distribution Representatives (1):*
		Prudential Agents	2,512	2,552	2,425	2,436	2,446
		International Life Planners	6,001	6,038	6,166	6,138	6,179
		Gibraltar Life Advisors	5,815	5,944	6,264	6,035	5,899

54	53	*Prudential Agent productivity ($ thousands)*	57	54	85	50	58

(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

Second Quarter 2008

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COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date				% Change			2007						2008
2008		2007		% Change			2Q		3Q		4Q		1Q		2Q

						Revenues (1):
6,063		5,404		12	%	Premiums	2,684		2,673		2,717		3,102		2,961
1,633		1,567		4	%	Policy charges and fee income	783		727		828		824		809
4,257		4,028		6	%	Net investment income	2,033		2,070		2,106		2,111		2,146
1,917		2,318		-17	%	Asset management fees, commissions and other income	1,169		1,301		1,121		939		978

13,870		13,317		4	%	Total revenues	6,669		6,771		6,772		6,976		6,894


						Benefits and Expenses (1):
6,026		5,446		11	%	Insurance and annuity benefits	2,683		2,658		2,725		3,082		2,944
1,609		1,507		7	%	Interest credited to policyholders’ account balances	762		779		808		806		803
517		550		-6	%	Interest expense	276		281		289		283		234
(1,176	)	(1,095	)	-7	%	Deferral of acquisition costs	(556	)	(554	)	(599	)	(588	)	(588	)
653		537		22	%	Amortization of acquisition costs	265		108		290		338		315
4,084		3,939		4	%	General and administrative expenses	2,027		2,107		2,179		2,063		2,021

11,713		10,884		8	%	Total benefits and expenses	5,457		5,379		5,692		5,984		5,729

2,157		2,433		-11	%	Adjusted operating income before income taxes	1,212		1,392		1,080		992		1,165


						Reconciling items:
(1,192	)	188		-734	%	Realized investment gains (losses), net, and related adjustments	41		(178	)	(51	)	(665	)	(527	)
28		(13	)	315	%	Related charges	(7	)	(2	)	(40	)	(13	)	41

(1,164	)	175		-765	%	Total realized investment gains (losses), net, and related charges and adjustments	34		(180	)	(91	)	(678	)	(486	)

(385	)	(26	)	-1381	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(108	)	36		(10	)	(262	)	(123	)
294		10		2840	%	Change in experience-rated contractholder liabilities due to asset value changes	72		(6	)	9		200		94
(125	)	46		-372	%	Divested businesses	18		(27	)	(45	)	(112	)	(13	)
(100	)	(220	)	55	%	Equity in earnings of operating joint ventures	(100	)	(103	)	(77	)	(60	)	(40	)

(1,480	)	(15	)	-9767	%	Total reconciling items, before income taxes	(84	)	(280	)	(214	)	(912	)	(568	)


677		2,418		-72	%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures	1,128		1,112		866		80		597
90		699		-87	%	Income tax expense	320		315		131		47		43

587		1,719		-66	%	Income from continuing operations before equity in earnings of operating joint ventures	808		797		735		33		554

(1)

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

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COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	6/30/2007		9/30/2007		12/31/2007	3/31/2008		6/30/2008

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $108,291; $111,668; $111,405; $117,893; $116,193)	109,665		112,956		112,748	117,914		114,541
Fixed maturities, held to maturity, at amortized cost (fair value $3,287; $3,411; $3,543; $3,741; $3,490)	3,370		3,473		3,548	3,735		3,572
Trading account assets supporting insurance liabilities, at fair value	14,069		14,612		14,473	14,644		14,624
Other trading account assets, at fair value	2,214		3,354		3,471	2,684		2,984
Equity securities, available for sale, at fair value (cost $3,928; $4,385; $4,497; $4,786; $4,686)	4,588		4,683		4,640	4,551		4,567
Commercial loans	19,852		20,756		22,093	23,444		23,837
Policy loans	3,642		3,815		3,942	4,147		4,207
Securities purchased under agreements to resell	198		111		129	178		184
Other long-term investments	4,430		4,449		5,163	5,266		5,683
Short-term investments	5,421		3,183		3,852	4,176		5,601

Total investments	167,449		171,392		174,059	180,739		179,800
Cash and cash equivalents	5,584		7,687		9,624	8,133		8,762
Accrued investment income	1,432		1,519		1,496	1,540		1,531
Reinsurance recoverables	2,127		2,149		2,119	1,975		1,961
Deferred policy acquisition costs	10,404		11,032		11,396	11,924		12,203
Other assets	15,489		16,143		17,754	20,357		23,021
Separate account assets	187,403		195,324		195,583	181,902		179,323

Total assets	389,888		405,246		412,031	406,570		406,601


Liabilities:
Future policy benefits	55,692		58,117		60,259	63,590		62,503
Policyholders’ account balances	75,606		77,105		78,599	84,812		86,199
Reinsurance payables	1,556		1,593		1,552	1,396		1,377
Securities sold under agreements to repurchase	5,146		5,683		5,281	3,727		4,307
Cash collateral for loaned securities	4,497		5,017		3,041	2,761		2,808
Income taxes	2,746		2,826		3,402	3,575		2,798
Senior short-term debt	11,533		12,619		14,514	13,788		12,955
Senior long-term debt	9,401		9,771		12,351	13,302		13,856
Junior subordinated long-term debt	—		—		—	—		1,398
Other liabilities	14,590		15,440		15,279	16,233		18,575
Separate account liabilities	187,403		195,324		195,583	181,902		179,323
Total liabilities	368,170		383,495		389,861	385,086		386,099


Attributed Equity:
Accumulated other comprehensive income (loss)	(117	)	(300	)	459	(473	)	(1,231	)
Other attributed equity	21,835		22,051		21,711	21,957		21,733

Total attributed equity	21,718		21,751		22,170	21,484		20,502


Total liabilities and attributed equity	389,888		405,246		412,031	406,570		406,601

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended June 30, 2008
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,961		1,089		138		1,736		(2	)
Policy charges and fee income	809		687		46		82		(6	)
Net investment income	2,146		517		982		504		143
Asset management fees, commissions and other income	978		223		641		161		(47	)

Total revenues	6,894		2,516		1,807		2,483		88


Benefits and Expenses (1):
Insurance and annuity benefits	2,944		1,226		340		1,360		18
Interest credited to policyholders’ account balances	803		225		523		101		(46	)
Interest expense	234		65		37		4		128
Deferral of acquisition costs	(588	)	(277	)	(28	)	(299	)	16
Amortization of acquisition costs	315		163		8		152		(8	)
General and administrative expenses	2,021		777		573		686		(15	)

Total benefits and expenses	5,729		2,179		1,453		2,004		93


Adjusted operating income (loss) before income taxes	1,165		337		354		479		(5	)


	Quarter Ended June 30, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,684		1,083		71		1,531		(1	)
Policy charges and fee income	783		672		44		73		(6	)
Net investment income	2,033		475		972		405		181
Asset management fees, commissions and other income	1,169		242		747		215		(35	)

Total revenues	6,669		2,472		1,834		2,224		139


Benefits and Expenses (1):
Insurance and annuity benefits	2,683		1,182		276		1,219		6
Interest credited to policyholders’ account balances	762		205		508		79		(30	)
Interest expense	276		53		64		3		156
Deferral of acquisition costs	(556	)	(287	)	(25	)	(259	)	15
Amortization of acquisition costs	265		140		11		126		(12	)
General and administrative expenses	2,027		789		623		603		12

Total benefits and expenses	5,457		2,082		1,457		1,771		147


Adjusted operating income (loss) before income taxes	1,212		390		377		453		(8	)

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Six Months Ended June 30, 2008
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	6,063		2,223		338		3,508		(6	)
Policy charges and fee income	1,633		1,382		89		169		(7	)
Net investment income	4,257		1,021		1,946		966		324
Asset management fees, commissions and other income	1,917		400		1,300		341		(124	)

Total revenues	13,870		5,026		3,673		4,984		187


Benefits and Expenses (1):
Insurance and annuity benefits	6,026		2,481		732		2,773		40
Interest credited to policyholders’ account balances	1,609		441		1,056		201		(89	)
Interest expense	517		131		89		6		291
Deferral of acquisition costs	(1,176	)	(557	)	(57	)	(593	)	31
Amortization of acquisition costs	653		341		18		312		(18	)
General and administrative expenses	4,084		1,551		1,194		1,367		(28	)

Total benefits and expenses	11,713		4,388		3,032		4,066		227


Adjusted operating income (loss) before income taxes	2,157		638		641		918		(40	)


	Six Months Ended June 30, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	5,404		2,156		167		3,084		(3	)
Policy charges and fee income	1,567		1,339		88		145		(5	)
Net investment income	4,028		945		1,906		791		386
Asset management fees, commissions and other income	2,318		472		1,492		434		(80	)

Total revenues	13,317		4,912		3,653		4,454		298


Benefits and Expenses (1):
Insurance and annuity benefits	5,446		2,412		578		2,438		18
Interest credited to policyholders’ account balances	1,507		407		1,000		156		(56	)
Interest expense	550		106		123		5		316
Deferral of acquisition costs	(1,095	)	(557	)	(44	)	(520	)	26
Amortization of acquisition costs	537		293		20		254		(30	)
General and administrative expenses	3,939		1,543		1,179		1,194		23

Total benefits and expenses	10,884		4,204		2,856		3,527		297


Adjusted operating income before income taxes	2,433		708		797		927		1

(1)

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

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of June 30, 2008
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Assets:
Total investments	179,800		39,611		70,408		60,590		9,191
Deferred policy acquisition costs	12,203		6,493		279		5,617		(186	)
Other assets	35,275		5,320		9,375		13,212		7,368
Separate account assets	179,323		89,520		90,965		286		(1,448	)

Total assets	406,601		140,944		171,027		79,705		14,925


Liabilities:
Future policy benefits	62,503		9,128		13,823		39,118		434
Policyholders’ account balances	86,199		24,673		45,572		19,343		(3,389	)
Debt	28,209		5,686		4,450		1,367		16,706
Other liabilities	29,865		5,432		9,275		12,883		2,275
Separate account liabilities	179,323		89,520		90,965		286		(1,448	)

Total liabilities	386,099		134,439		164,085		72,997		14,578


Attributed Equity:
Accumulated other comprehensive loss	(1,231	)	(296	)	(562	)	(168	)	(205	)
Other attributed equity	21,733		6,801		7,504		6,876		552

Total attributed equity	20,502		6,505		6,942		6,708		347


Total liabilities and attributed equity	406,601		140,944		171,027		79,705		14,925


	As of December 31, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Assets:
Total investments	174,059		34,355		69,185		58,324		12,195
Deferred policy acquisition costs	11,396		6,152		233		5,187		(176	)
Other assets	30,993		5,502		8,052		9,319		8,120
Separate account assets	195,583		99,713		97,030		268		(1,428	)

Total assets	412,031		145,722		174,500		73,098		18,711


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		3,814		1,218		16,917
Other liabilities	28,555		5,320		9,962		10,037		3,236
Separate account liabilities	195,583		99,713		97,030		268		(1,428	)

Total liabilities	389,861		139,054		168,475		66,000		16,332


Attributed Equity:
Accumulated other comprehensive income (loss)	459		59		(194	)	702		(108	)
Other attributed equity	21,711		6,609		6,219		6,396		2,487

Total attributed equity	22,170		6,668		6,025		7,098		2,379


Total liabilities and attributed equity	412,031		145,722		174,500		73,098		18,711

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of June 30, 2008					As of December 31, 2007
	Senior debt		Junior Subordinated Long-term Debt	Total Debt		Senior debt		Junior Subordinated Long-term Debt	Total Debt
	Short-term Debt	Long-term Debt	Junior Subordinated Long-term Debt	Total Debt		Short-term Debt	Long-term Debt	Junior Subordinated Long-term Debt	Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt	845	4,229	1,398	6,472		1,506	3,275	—	4,781
Investment related	6,194	8,166	—	14,360		8,116	7,120	—	15,236
Securities business related	4,903	219	—	5,122		3,405	1,371	—	4,776
Specified other businesses	706	981	—	1,687		1,179	381	—	1,560
Limited recourse and non-recourse borrowing	307	261	—	568		308	204	—	512

Total debt - Financial Services Businesses	12,955	13,856	1,398	28,209		14,514	12,351	—	26,865

Ratio of long-term and short-term capital debt to capitalization (1)				18.9	%				17.8	%

Closed Block Business
Investment related	821	—	—	821		1,143	—	—	1,143
Limited recourse and non-recourse borrowing	—	1,750	—	1,750		—	1,750	—	1,750

Total debt	821	1,750	—	2,571		1,143	1,750	—	2,893



	As of June 30, 2008				As of December 31, 2007
	Prudential Financial, Inc.	The Prudential Insurance Co. of America (2)(3)	Other Affiliates	Total	Prudential Financial, Inc.	The Prudential Insurance Co. of America (2)(3)	Other Affiliates	Total
Financial Services Businesses
*Borrowings by sources:*
Capital Debt	5,883	589	—	6,472	3,661	1,120	—	4,781
Investment related	8,117	3,787	2,456	14,360	9,423	3,863	1,950	15,236
Securities business related	3,421	1,448	253	5,122	3,235	1,445	96	4,776
Specified other businesses	1,002	685	—	1,687	393	1,167	—	1,560
Limited recourse and non-recourse borrowing	—	—	568	568	—	—	512	512

Total debt - Financial Services Businesses	18,423	6,509	3,277	28,209	16,712	7,595	2,558	26,865

(1)	For the purposes of calculating the ratio of capital debt to capitalization, Junior Subordinated Notes are considered 25% debt and 75% equity.

(2)	Includes Prudential Funding, LLC.

(3)	Capital debt at Prudential Insurance Co. of America includes $444 million of Surplus Notes for June 30, 2008 and December 31, 2007.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year-to-date				%			2007						2008
2008		2007		Change			2Q		3Q		4Q		1Q		2Q


						Revenues (1):
2,223		2,156		3	%	Premiums	1,083		1,073		1,053		1,134		1,089
1,382		1,339		3	%	Policy charges and fee income	672		632		715		695		687
1,021		945		8	%	Net investment income	475		479		483		504		517
400		472		-15	%	Asset management fees, commissions and other income	242		324		233		177		223

5,026		4,912		2	%	Total revenues	2,472		2,508		2,484		2,510		2,516


						Benefits and Expenses (1):
2,481		2,412		3	%	Insurance and annuity benefits	1,182		1,161		1,165		1,255		1,226
441		407		8	%	Interest credited to policyholders’ account balances	205		201		209		216		225
131		106		24	%	Interest expense	53		59		67		66		65
(557	)	(557	)	0	%	Deferral of acquisition costs	(287	)	(290	)	(304	)	(280	)	(277	)
341		293		16	%	Amortization of acquisition costs	140		1		164		178		163
1,551		1,543		1	%	General and administrative expenses	789		820		817		774		777

4,388		4,204		4	%	Total benefits and expenses	2,082		1,952		2,118		2,209		2,179


638		708		-10	%	Adjusted operating income before income taxes	390		556		366		301		337

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

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Six Months Ended June 30, 2008								Quarter Ended June 30, 2008
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance		Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	2,223		296		32		1,895		1,089		148		13		928
Policy charges and fee income	1,382		558		611		213		687		273		307		107
Net investment income	1,021		362		335		324		517		182		174		161
Asset management fees, commissions and other income	400		140		217		43		223		73		128		22

Total revenues	5,026		1,356		1,195		2,475		2,516		676		622		1,218


Benefits and Expenses (1):
Insurance and annuity benefits	2,481		488		129		1,864		1,226		249		58		919
Interest credited to policyholders’ account balances	441		112		214		115		225		57		112		56
Interest expense	131		101		29		1		65		49		15		1
Deferral of acquisition costs	(557	)	(221	)	(318	)	(18	)	(277	)	(113	)	(155	)	(9	)
Amortization of acquisition costs	341		194		139		8		163		83		76		4
General and administrative expenses (2)	1,551		483		733		335		777		248		362		167

Total benefits and expenses	4,388		1,157		926		2,305		2,179		573		468		1,138


Adjusted operating income before income taxes	638		199		269		170		337		103		154		80


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

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


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

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


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

(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 $54 million for the six months ended June 30, 2008 and $66 million for the six months ended June 30, 2007, $24 million for the quarter ended June 30, 2008 and $34 million for the quarter ended June 30, 2007 for the amortization, net of interest, of value of business acquired (VOBA).

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

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

(in millions)


Year-to-date					2007						2008
2008		2007			2Q		3Q		4Q		1Q		2Q


				SALES:
				Excluding corporate-owned life insurance:
40		67		Variable life	19		19		20		16		24
95		89		Universal life	45		40		47		40		55
103		103		Term life	54		54		55		51		52

238		259		Total excluding corporate-owned life insurance	118		113		122		107		131
1		8		Corporate-owned life insurance	3		1		2		—		1

239		267		Total	121		114		124		107		132


				SALES BY DISTRIBUTION CHANNEL:
				Excluding corporate-owned life insurance:
78		84		Prudential Agents	42		44		46		40		38
160		175		Third party distribution	76		69		76		67		93
1		8		Corporate-owned life insurance	3		1		2		—		1

239		267		Total	121		114		124		107		132


				ACCOUNT VALUE ACTIVITY:
				*Policyholders’ Account Balances (1):*
6,582		6,165		Beginning balance	6,253		6,385		6,489		6,582		6,676
779		670		Premiums and deposits	345		299		329		370		409
(449	)	(499	)	Surrenders and withdrawals	(263	)	(257	)	(239	)	(238	)	(211	)

330		171		Net sales	82		42		90		132		198
(77	)	(86	)	Benefit payments	(40	)	(29	)	(37	)	(39	)	(38	)

253		85		Net flows	42		13		53		93		160
139		138		Interest credited and other	92		93		38		9		130
122		130		Net transfers from separate account	65		70		70		63		59
(148	)	(133	)	Policy charges	(67	)	(72	)	(68	)	(71	)	(77	)

6,948		6,385		Ending balance	6,385		6,489		6,582		6,676		6,948


				*Separate Account Liabilities:*
18,585		17,586		Beginning balance	17,748		18,517		18,876		18,585		17,276
615		630		Premiums and deposits	314		360		292		304		311
(377	)	(322	)	Surrenders and withdrawals	(156	)	(184	)	(174	)	(162	)	(215	)

238		308		Net sales	158		176		118		142		96
(32	)	(33	)	Benefit payments	(5	)	(13	)	(16	)	(10	)	(22	)

206		275		Net flows	153		163		102		132		74
(895	)	1,183		Change in market value, interest credited and other	880		461		(121	)	(1,183	)	288
(122	)	(130	)	Net transfers to general account	(65	)	(70	)	(70	)	(63	)	(59	)
(387	)	(397	)	Policy charges	(199	)	(195	)	(202	)	(195	)	(192	)

17,387		18,517		Ending balance	18,517		18,876		18,585		17,276		17,387


				FACE AMOUNT IN FORCE (2):
				Variable life	139,280		138,872		137,889		135,519		134,691
				Universal life	23,696		24,424		25,416		26,201		27,091
				Term life	282,434		300,056		316,969		331,139		345,467

				Total	445,410		463,352		480,274		492,859		507,249

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

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

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

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INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


Year-to-date					2007						2008
2008		2007			2Q		3Q		4Q		1Q		2Q

				Individual Life Insurance:
				Policy Surrender Experience:
374		342		Cash value of surrenders	175		223		187		178		196
3.2	%	3.0	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.1	%	3.8	%	3.2	%	3.1	%	3.5	%

				Death benefits per $1,000 of in force (1):
3.83		3.36		Variable and universal life	3.04		4.00		3.13		3.62		4.14
1.56		2.34		Term life	1.62		1.99		0.91		1.59		1.53
2.98		3.14		Total, Individual Life Insurance	2.68		3.38		2.36		2.92		3.08

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

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

(in millions)


Year-to-date					2007						2008
2008		2007			2Q		3Q		4Q		1Q		2Q


				SALES AND ACCOUNT VALUES:
				Variable Annuities:
80,330		74,555		Beginning total account value	75,591		78,968		81,173		80,330		74,977
5,569		5,812		Sales	3,033		2,825		3,041		2,829		2,740
(4,358	)	(4,825	)	Surrenders and withdrawals	(2,515	)	(2,328	)	(2,415	)	(2,173	)	(2,185	)

1,211		987		Net sales	518		497		626		656		555
(556	)	(605	)	Benefit payments	(299	)	(265	)	(261	)	(294	)	(262	)

655		382		Net flows	219		232		365		362		293
(5,655	)	4,646		Change in market value, interest credited, and other	3,478		2,295		(865	)	(5,409	)	(246	)
(623	)	(615	)	Policy charges	(320	)	(322	)	(343	)	(306	)	(317	)

74,707		78,968		Ending total account value	78,968		81,173		80,330		74,977		74,707

				Fixed Annuities:
3,488		3,748		Beginning total account value	3,679		3,608		3,546		3,488		3,440
41		41		Sales	20		16		16		17		24
(114	)	(155	)	Surrenders and withdrawals	(74	)	(69	)	(62	)	(53	)	(61	)

(73	)	(114	)	Net redemptions	(54	)	(53	)	(46	)	(36	)	(37	)
(83	)	(88	)	Benefit payments	(45	)	(41	)	(38	)	(43	)	(40	)

(156	)	(202	)	Net flows	(99	)	(94	)	(84	)	(79	)	(77	)
63		64		Interest credited and other	29		33		27		32		31
(1	)	(2	)	Policy charges	(1	)	(1	)	(1	)	(1	)	—

3,394		3,608		Ending total account value	3,608		3,546		3,488		3,440		3,394


				SALES BY DISTRIBUTION CHANNEL:
				Variable and Fixed Annuities (1):

1,319		1,249		Insurance Agents	660		607		713		646		673
681		753		Wirehouses	407		385		428		344		337
3,610		3,851		Independent Financial Planners (2)	1,986		1,849		1,916		1,856		1,754

5,610		5,853		Total	3,053		2,841		3,057		2,846		2,764


				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (3):
				Return of net deposits:
				Account value	40,762		42,708		42,995		40,817		41,272
				Net amount at risk	1,268		1,171		1,204		1,631		1,750

				Minimum return, anniversary contract value, or maximum contract value:
				Account value	32,925		33,184		32,194		29,401		28,717
				Net amount at risk	2,108		1,978		2,255		3,823		4,032

				Variable Annuity Account Values with Living Benefit Features (3):
				Guaranteed minimum accumulation benefits	11,335		11,757		11,724		10,933		10,867
				Guaranteed minimum withdrawal benefits	2,229		2,274		2,234		2,006		1,902
				Guaranteed minimum income benefits	7,386		7,320		6,948		6,233		5,958
				Guaranteed minimum withdrawal & income benefits	12,448		14,659		16,260		16,863		18,372

				Total	33,398		36,010		37,166		36,035		37,099

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

(3)	At end of period.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

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INSURANCE DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date					2007						2008
2008		2007			2Q		3Q		4Q		1Q		2Q

				INDIVIDUAL ANNUITIES:
				Account Values in General Account (1):
8,644		9,527		Beginning balance	9,246		8,784		8,647		8,644		12,013
124		162		Premiums and deposits	79		62		68		73		51
(505	)	(640	)	Surrenders and withdrawals	(307	)	(263	)	(253	)	(251	)	(254	)

(381	)	(478	)	Net redemptions	(228	)	(201	)	(185	)	(178	)	(203	)
(183	)	(207	)	Benefit payments	(105	)	(96	)	(89	)	(103	)	(80	)

(564	)	(685	)	Net flows	(333	)	(297	)	(274	)	(281	)	(283	)
204		169		Interest credited and other	84		89		84		99		105
3,999		(225	)	Net transfers (to) from separate account	(212	)	72		188		3,552		447
(1	)	(2	)	Policy charges	(1	)	(1	)	(1	)	(1	)	—

12,282		8,784		Ending balance	8,784		8,647		8,644		12,013		12,282


				Account Values in Separate Account:
75,174		68,776		Beginning balance	70,024		73,792		76,072		75,174		66,404
5,486		5,691		Premiums and deposits	2,974		2,779		2,989		2,773		2,713
(3,967	)	(4,340	)	Surrenders and withdrawals	(2,282	)	(2,134	)	(2,224	)	(1,975	)	(1,992	)

1,519		1,351		Net sales	692		645		765		798		721
(456	)	(486	)	Benefit payments	(239	)	(210	)	(210	)	(234	)	(222	)

1,063		865		Net flows	453		435		555		564		499
(5,796	)	4,541		Change in market value, interest credited and other	3,423		2,239		(922	)	(5,476	)	(320	)
(3,999	)	225		Net transfers (to) from general account	212		(72	)	(188	)	(3,552	)	(447	)
(623	)	(615	)	Policy charges	(320	)	(322	)	(343	)	(306	)	(317	)


65,819		73,792		Ending balance	73,792		76,072		75,174		66,404		65,819

(1)

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

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


Year-to-date					2007						2008
2008		2007			2Q		3Q		4Q		1Q		2Q


				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
142		129		Group life	26		33		35		112		30
131		118		Group disability (1)	26		21		16		114		17

273		247		Total	52		54		51		226		47


				Future Policy Benefits (2):
				Group life	2,105		2,032		2,240		2,099		2,100
				Group disability (1)	614		640		662		774		810

				Total	2,719		2,672		2,902		2,873		2,910


				Policyholders’ Account Balances (2):
				Group life	5,521		5,610		5,734		5,824		6,005
				Group disability (1)	124		132		148		137		149

				Total	5,645		5,742		5,882		5,961		6,154


				Separate Account Liabilities (2):
				Group life	17,293		19,462		19,992		19,363		17,941
				Group disability (1)	—		—		—		—		—

				Total	17,293		19,462		19,992		19,363		17,941


				Group Life Insurance:
1,861		1,692		Gross premiums, policy charges and fee income (3)	860		841		889		949		912
1,603		1,621		Earned premiums, policy charges and fee income	810		784		773		793		810
88.3	%	91.3	%	Benefits ratio	91.1	%	88.4	%	90.4	%	87.1	%	89.4	%
8.2	%	9.5	%	Administrative operating expense ratio	9.3	%	9.8	%	8.4	%	8.2	%	8.2	%
				Persistency ratio	95.3	%	94.2	%	93.6	%	94.7	%	94.0	%

				Group Disability Insurance (1):
526		442		Gross premiums, policy charges and fee income (3)	225		233		227		288		238
505		427		Earned premiums, policy charges and fee income	216		223		217		280		225
88.9	%	87.8	%	Benefits ratio	84.7	%	82.1	%	88.9	%	91.1	%	86.2	%
19.6	%	21.0	%	Administrative operating expense ratio	20.0	%	20.6	%	21.2	%	17.4	%	22.3	%
				Persistency ratio	91.1	%	88.9	%	88.0	%	91.4	%	90.4	%

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

(2)	As of end of period.

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

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


Year-to-date					2007						2008
2008		2007			2Q		3Q		4Q		1Q		2Q


				INDIVIDUAL LIFE INSURANCE:
3,855		3,550		Beginning balance	3,570		3,678		3,841		3,855		3,805
221		218		Capitalization	115		115		119		108		113
(194	)	(142	)	Amortization - operating results	(64	)	68		(90	)	(111	)	(83	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
81		52		Impact of unrealized (gains) or losses on AFS securities	57		(20	)	(15	)	(47	)	128

3,963		3,678		Ending balance	3,678		3,841		3,855		3,805		3,963


				INDIVIDUAL ANNUITIES:
1,976		1,613		Beginning balance	1,671		1,791		1,876		1,976		2,093
318		322		Capitalization	168		158		173		163		155
(139	)	(149	)	Amortization - operating results	(75	)	(66	)	(70	)	(63	)	(76	)
10		—		Amortization - realized investment gains and losses	(1	)	5		2		15		(5	)
34		18		Impact of unrealized (gains) or losses on AFS securities	28		(12	)	(5	)	2		32
—		(13	)	Other (1)	—		—		—		—		—

2,199		1,791		Ending balance	1,791		1,876		1,976		2,093		2,199


				GROUP INSURANCE:
321		284		Beginning balance	296		299		313		321		326
18		17		Capitalization	4		17		12		9		9
(8	)	(2	)	Amortization - operating results	(1	)	(3	)	(4	)	(4	)	(4	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

331		299		Ending balance	299		313		321		326		331


				TOTAL INSURANCE DIVISION:
6,152		5,447		Beginning balance	5,537		5,768		6,030		6,152		6,224
557		557		Capitalization	287		290		304		280		277
(341	)	(293	)	Amortization - operating results	(140	)	(1	)	(164	)	(178	)	(163	)
10		—		Amortization - realized investment gains and losses	(1	)	5		2		15		(5	)
115		70		Impact of unrealized (gains) or losses on AFS securities	85		(32	)	(20	)	(45	)	160
—		(13	)	Other (1)	—		—		—		—		—

6,493		5,768		Ending balance	5,768		6,030		6,152		6,224		6,493

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

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date				% Change			2007						2008
2008		2007		% Change			2Q		3Q		4Q		1Q		2Q


						Revenues (1):
338		167		102	%	Premiums	71		88		74		200		138
89		88		1	%	Policy charges and fee income	44		40		44		43		46
1,946		1,906		2	%	Net investment income	972		979		1,010		964		982
1,300		1,492		-13	%	Asset management fees, commissions and other income	747		744		768		659		641

3,673		3,653		1	%	Total revenues	1,834		1,851		1,896		1,866		1,807


						Benefits and Expenses (1):
732		578		27	%	Insurance and annuity benefits	276		290		277		392		340
1,056		1,000		6	%	Interest credited to policyholders’ account balances	508		528		545		533		523
89		123		-28	%	Interest expense	64		76		75		52		37
(57	)	(44	)	-30	%	Deferral of acquisition costs	(25	)	(19	)	(28	)	(29	)	(28	)
18		20		-10	%	Amortization of acquisition costs	11		11		7		10		8
1,194		1,179		1	%	General and administrative expenses	623		654		648		621		573

3,032		2,856		6	%	Total benefits and expenses	1,457		1,540		1,524		1,579		1,453


641		797		-20	%	Adjusted operating income before income taxes	377		311		372		287		354

(1)

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

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Six Months Ended June 30, 2008							Quarter Ended June 30, 2008
	Total Investment Division		Asset Management		Financial Advisory	Retirement		Total Investment Division		Asset Management		Financial Advisory	Retirement
Revenues (1):
Premiums	338		—		—	338		138		—		—	138
Policy charges and fee income	89		—		—	89		46		—		—	46
Net investment income	1,946		167		1	1,778		982		96		1	885
Asset management fees, commissions and other income	1,300		945		86	269		641		468		35	138

Total revenues	3,673		1,112		87	2,474		1,807		564		36	1,207


Benefits and Expenses (1):
Insurance and annuity benefits	732		—		—	732		340		—		—	340
Interest credited to policyholders’ account balances	1,056		—		—	1,056		523		—		—	523
Interest expense	89		39		1	49		37		17		1	19
Deferral of acquisition costs	(57	)	(9	)	—	(48	)	(28	)	(5	)	—	(23	)
Amortization of acquisition costs	18		9		—	9		8		4		—	4
General and administrative expenses	1,194		764		19	411		573		358		12	203

Total benefits and expenses	3,032		803		20	2,209		1,453		374		13	1,066


Adjusted operating income before income taxes	641		309		67	265		354		190		23	141


	Six Months Ended June 30, 2007							Quarter Ended June 30, 2007
	Total Investment Division		Asset Management		Financial Advisory	Retirement		Total Investment Division		Asset Management		Financial Advisory	Retirement
Revenues (1):
Premiums	167		—		—	167		71		—		—	71
Policy charges and fee income	88		—		—	88		44		—		—	44
Net investment income	1,906		102		1	1,803		972		62		1	909
Asset management fees, commissions and other income	1,492		1,033		204	255		747		528		93	126

Total revenues	3,653		1,135		205	2,313		1,834		590		94	1,150


Benefits and Expenses (1):
Insurance and annuity benefits	578		—		—	578		276		—		—	276
Interest credited to policyholders’ account balances	1,000		—		—	1,000		508		—		—	508
Interest expense	123		24		—	99		64		14		—	50
Deferral of acquisition costs	(44	)	(8	)	—	(36	)	(25	)	(4	)	—	(21	)
Amortization of acquisition costs	20		11		—	9		11		5		—	6
General and administrative expenses	1,179		766		36	377		623		408		22	193

Total benefits and expenses	2,856		793		36	2,027		1,457		423		22	1,012


Adjusted operating income before income taxes	797		342		169	286		377		167		72	138

(1)

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION FOR

ASSET MANAGEMENT SEGMENT


		% Change	Supplementary Revenue Information (in millions):
Year-to-date				2007			2008
2008	2007			2Q	3Q	4Q	1Q	2Q


			Analysis of revenues by type:
569	533	7%	Asset management fees	271	265	283	281	288
240	290	-17%	Incentive, transaction, principal investing and capital markets revenues (1)	159	133	137	88	152
303	312	-3%	Service, distribution and other revenues	160	160	206	179	124

1,112	1,135	-2%	Total Asset Management segment revenues	590	558	626	548	564


			Analysis of asset management fees by source:
269	240	12%	Institutional customers	123	118	130	133	136
166	171	-3%	Retail customers	87	87	89	81	85
134	122	10%	General account	61	60	64	67	67

569	533	7%	Total asset management fees	271	265	283	281	288


Supplementary Assets Under Management Information (in billions):

	June 30, 2008
	Equity	Fixed Income	Real Estate	Total
Institutional customers	55.0	95.3	29.0	179.3
Retail customers	62.8	19.6	2.2	84.6
General account	4.3	169.8	0.9	175.0

Total	122.1	284.7	32.1	438.9


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

Total	125.3	267.4	27.6	420.3

(1)	For the three months ended March 31, 2008, $13 million has been reclassified from “Incentive, transaction, principal investing and capital markets revenues” to “Service, distribution and other revenues” to conform to current reporting practices.

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

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

(in billions)


Year-to-date					2007						2008
2008		2007			2Q		3Q		4Q		1Q		2Q

				Institutional Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
141.7		122.9		Beginning assets under management	127.0		132.0		135.0		141.7		140.1
17.4		11.4		Additions (1)	6.3		5.4		11.1		6.5		10.9
(8.9	)	(8.5	)	Withdrawals (2)	(4.6	)	(6.0	)	(6.4	)	(4.3	)	(4.6	)
(3.3	)	6.0		Change in market value	3.5		3.7		1.2		(2.8	)	(0.5	)
(1.1	)	0.2		Net money market flows	(0.2	)	(0.1	)	0.8		(1.0	)	(0.1	)

145.8		132.0		Ending assets under management	132.0		135.0		141.7		140.1		145.8
33.5		34.2		Affiliated institutional assets under management	34.2		35.1		34.7		34.1		33.5

179.3		166.2		Total assets managed for institutional customers at end of period	166.2		170.1		176.4		174.2		179.3


8.5		2.9		Net institutional additions (withdrawals) other than money market	1.7		(0.6	)	4.7		2.2		6.3


				Retail Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
50.9		43.4		Beginning assets under management	47.7		49.3		51.3		50.9		48.2
7.3		5.2		Additions	2.3		2.7		2.6		3.5		3.8
(5.4	)	(5.6	)	Withdrawals	(3.0	)	(2.4	)	(2.4	)	(2.5	)	(2.9	)
(2.1	)	3.4		Change in market value	2.3		1.7		(0.2	)	(4.0	)	1.9
—		0.1		Net money market flows	—		—		(0.6	)	0.3		(0.3	)
—		2.8		Other (3)	—		—		0.2		—		—

50.7		49.3		Ending assets under management	49.3		51.3		50.9		48.2		50.7
33.9		37.8		Affiliated retail assets under management	37.8		37.2		35.7		33.6		33.9

84.6		87.1		Total assets managed for retail customers at end of period	87.1		88.5		86.6		81.8		84.6


1.9		(0.4	)	Net retail additions (withdrawals) other than money market	(0.7	)	0.3		0.2		1.0		0.9


				Wrap-fee Product Assets Under Administration:
81.7		69.1		Beginning total wrap-fee product assets	72.3		78.7		82.1		81.7		75.9
9.4		11.5		Additions (4)	5.7		3.6		4.0		4.7		4.7
(10.1	)	(7.7	)	Withdrawals	(3.9	)	(3.6	)	(4.2	)	(5.4	)	(4.7	)
(4.5	)	5.8		Change in market value	4.6		3.4		(0.2	)	(5.1	)	0.6

76.5		78.7		Ending total wrap-fee product assets	78.7		82.1		81.7		75.9		76.5


(0.7	)	3.8		Net wrap-fee product additions (withdrawals)	1.8		—		(0.2	)	(0.7	)	—

(1)	Additions include $0.2 billion for the three months ended March 31, 2008, $0.2 billion for the six months ended June 30, 2008 and $0.3 billion for the three and six months ended June 30, 2007 for assets transferred from the Retirement segment.

(2)

Withdrawals include $(0.1) billion for the three months ended June 30, 2008, $(0.1) billion for the three months ended December 31, 2007, $(0.4) billion for the three months ended September 30, 2007 and $(0.1) billion for the six months ended June 30, 2008 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 provided for a substantially fixed annual fee. This arrangement expired with respect to most services provided, as of July 1, 2008.

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)


Year-to-date				2007						2008
2008	2007			2Q		3Q		4Q		1Q		2Q

			Information pertaining to Wachovia Securities Financial Holdings, LLC:

			Revenues:
174	156		Net investment income	77		75		75		95		79
1,690	1,048		Commissions	519		484		511		844		846
1,919	1,196		Fees	608		644		668		981		938
240	159		Other non-interest revenues (1)	84		62		194		123		117

4,023	2,559		Total revenues	1,288		1,265		1,448		2,043		1,980
3,706	2,021		Expenses (1)	1,043		1,009		1,265		1,863		1,843
3,331	2,021		Expenses before transition costs	1,043		1,009		1,238		1,677		1,654
375	—		Transition costs	—		—		27		186		189

3,706	2,021		Total expenses	1,043		1,009		1,265		1,863		1,843

317	538		Income before income taxes	245		256		183		180		137

79	205		Prudential Financial, Inc’s. share of Wachovia Securities Financial Holdings, LLC (2)	94		97		69		44		35
7	(1	)	Purchase accounting and related adjustments	(1	)	—		—		7		—

86	204		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	93		97		69		51		35

			Recurring revenue as a percentage of total revenue (3)	55.2	%	56.6	%	58.6	%	59.1	%	58.5	%
			Total client assets ($ in billions) (4)	791.4		802.4		799.2		1,149.2		1,147.2
			Distribution representatives (4):
			Series 7 Financial Advisors	8,193		8,272		8,343		14,456		14,484
			Series 6 Financial Representatives	2,531		2,996		3,296		4,059		4,308
			Customer debit balances ($ in billions) (4)	4.6		4.6		5.1		6.4		6.6

67	169		Prudential Financial, Inc. income from investment in Wachovia Securities Financial Holdings, LLC, including share of results, costs incurred at Prudential level, and purchase accounting adjustments (2)	72		85		43		44		23

(1)

In the fourth quarter of 2007, Wachovia Securities changed its presentation of certain revenues that were 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 had 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 4Q 2007 activity.

(2)

On January 1, 2008, Wachovia Corporation combined the retail securities brokerage business of Wachovia Securities with the acquired A.G. Edwards business. The Company has elected the “lookback” option under the terms of the agreements relating to the joint venture. The “lookback” option permits the Company to delay for two years following the combination of the A.G. Edwards business with Wachovia Securities the Company’s decision to make or not to make an additional capital contribution to the joint venture or other payments to avoid or limit dilution of its ownership interest in the joint venture. During this “lookback” period, the Company’s share in the earnings of the joint venture and transition costs associated with the combination of the A.G. Edwards business with Wachovia Securities is based on a diluted ownership level. The ownership level applied is based on the Company’s estimate for purposes of reporting results. The ownership level, and consequently the Company’s share in earnings and transition costs, may be subsequently adjusted as a result of completion of definitive valuation of the business and possible modification of existing agreements relating to the joint venture. The company does not anticipate any such adjustment to have a material effect on its reported results of operations.

(3)	Calculated on a YTD annualized basis.

(4)	As of end of period.

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


Year-to-date					2007						2008
2008		2007			2Q		3Q		4Q		1Q		2Q

				RETIREMENT SALES AND ACCOUNT VALUES

				Full Service:
112,192		97,430		Beginning total account value	99,558		104,033		105,601		112,192		107,060
9,116		7,215		Deposits and sales	3,212		3,219		4,258		4,586		4,530
(8,299	)	(6,636	)	Withdrawals and benefits	(3,203	)	(3,309	)	(3,804	)	(3,933	)	(4,366	)
(6,092	)	6,024		Change in market value, interest credited and interest income (1)	4,466		1,658		(1,119	)	(5,785	)	(307	)
—		—		Acquisition (2)	—		—		7,256		—		—

106,917		104,033		Ending total account value	104,033		105,601		112,192		107,060		106,917

817		579		Net additions (withdrawals)	9		(90	)	454		653		164

				Stable value account values included above	31,274		31,578		32,314		33,279		33,883

				Institutional Investment Products:
51,591		50,269		Beginning total account value	50,661		50,926		51,627		51,591		51,667
3,416		3,130		Additions	1,597		545		1,298		1,810		1,606
(3,646	)	(2,810	)	Withdrawals and benefits	(1,067	)	(1,193	)	(1,863	)	(1,702	)	(1,944	)
802		932		Change in market value, interest credited and interest income	325		933		900		561		241
(650	)	(595	)	Other (3)	(590	)	416		(371	)	(593	)	(57	)

51,513		50,926		Ending total account value	50,926		51,627		51,591		51,667		51,513


(230	)	320		Net additions (withdrawals)	530		(648	)	(565	)	108		(338	)

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

(2)	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 $(206) million, $115 million, $(332) million, $407 million and $110 million for the first and second quarters of 2008 and the second, third and fourth quarters of 2007, respectively; and $(91) million and $(332) million for the six months ended June 30, 2008 and 2007, respectively. “Other” activity also includes $(511) million for the quarter and six months ended June 30, 2007 representing a transfer within the Retirement segment from Institutional Investment Products to Full Service as a result of one client’s change in contract form. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date				% Change			2007						2008
2008		2007		% Change			2Q		3Q		4Q		1Q		2Q


						Revenues (1):
3,508		3,084		14	%	Premiums	1,531		1,518		1,590		1,772		1,736
169		145		17	%	Policy charges and fee income	73		72		76		87		82
966		791		22	%	Net investment income	405		419		434		462		504
341		434		-21	%	Asset management fees, commissions and other income	215		282		182		180		161

4,984		4,454		12	%	Total revenues	2,224		2,291		2,282		2,501		2,483


						Benefits and Expenses (1):
2,773		2,438		14	%	Insurance and annuity benefits	1,219		1,194		1,275		1,413		1,360
201		156		29	%	Interest credited to policyholders’ account balances	79		84		90		100		101
6		5		20	%	Interest expense	3		8		6		2		4
(593	)	(520	)	-14	%	Deferral of acquisition costs	(259	)	(253	)	(284	)	(294	)	(299	)
312		254		23	%	Amortization of acquisition costs	126		103		129		160		152
1,367		1,194		14	%	General and administrative expenses	603		618		673		681		686

4,066		3,527		15	%	Total benefits and expenses	1,771		1,754		1,889		2,062		2,004


918		927		-1	%	Adjusted operating income before income taxes	453		537		393		439		479

(1)

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Six Months Ended June 30, 2008							Quarter Ended June 30, 2008
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	3,508		2,423		1,085		—	1,736		1,161		575		—
Policy charges and fee income	169		134		35		—	82		64		18		—
Net investment income	966		466		474		26	504		234		258		12
Asset management fees, commissions and other income	341		43		(6	)	304	161		30		(11	)	142

Total revenues	4,984		3,066		1,588		330	2,483		1,489		840		154


Benefits and Expenses (1):
Insurance and annuity benefits	2,773		1,917		856		—	1,360		916		444		—
Interest credited to policyholders’ account balances	201		83		118		—	101		40		61		—
Interest expense	6		7		(4	)	3	4		4		(2	)	2
Deferral of acquisition costs	(593	)	(424	)	(169	)	—	(299	)	(203	)	(96	)	—
Amortization of acquisition costs	312		226		86		—	152		105		47		—
General and administrative expenses	1,367		686		406		275	686		341		219		126

Total benefits and expenses	4,066		2,495		1,293		278	2,004		1,203		673		128


Adjusted operating income before income taxes	918		571		295		52	479		286		167		26


	Six Months Ended June 30, 2007							Quarter Ended June 30, 2007
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	3,084		2,110		974		—	1,531		1,024		507		—
Policy charges and fee income	145		113		32		—	73		57		16		—
Net investment income	791		375		399		17	405		188		208		9
Asset management fees, commissions and other income	434		69		36		329	215		39		16		160

Total revenues	4,454		2,667		1,441		346	2,224		1,308		747		169


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

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


Adjusted operating income before income taxes	927		522		300		105	453		253		157		43

(1)

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2007						2008
2008		2007			2Q		3Q		4Q		1Q		2Q

				Japanese Yen Basis Results:
				Revenues (1):
¥	225,207	¥	213,877	Japanese insurance operations excluding Gibraltar Life	¥	103,721	¥	103,633	¥	103,043	¥	117,421	¥	107,786
	168,214		166,893	Gibraltar Life		86,405		82,645		79,042		82,122		86,092

	393,421		380,770	Total revenues, Japan, yen basis		190,126		186,278		182,085		199,543		193,878


				Benefits and Expenses (1):
	176,024		167,202	Japanese insurance operations excluding Gibraltar Life		80,649		79,125		83,597		92,701		83,323
	136,749		135,332	Gibraltar Life		70,199		66,148		64,992		68,126		68,623

	312,773		302,534	Total benefits and expenses, Japan, yen basis		150,848		145,273		148,589		160,827		151,946


				Adjusted operating income (2):
	49,183		46,675	Japanese insurance operations excluding Gibraltar Life		23,072		24,508		19,446		24,720		24,463
	31,465		31,561	Gibraltar Life		16,206		16,497		14,050		13,996		17,469

¥	80,648	¥	78,236	Total adjusted operating income, Japan, yen basis	¥	39,278	¥	41,005	¥	33,496	¥	38,716	¥	41,932


				U.S. Dollar adjusted operating income (3):
$	467	$	430	Japanese insurance operations excluding Gibraltar Life	$	212	$	224	$	186	$	231	$	236
	295		300	Gibraltar Life		157		157		121		128		167

	762		730	Total adjusted operating income, Japan, U.S. dollar basis		369		381		307		359		403
	104		92	All other countries (4)		41		42		46		54		50

$	866	$	822	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	410	$	423	$	353	$	413	$	453

(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

Second Quarter 2008

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date			2007			2008
2008	2007		2Q	3Q	4Q	1Q	2Q

		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
1,812	1,506	Japan, excluding Gibraltar Life	719	731	765	953	859
1,120	1,006	Gibraltar Life	523	472	501	527	593
745	717	All other countries	362	387	400	379	366

3,677	3,229	Total	1,604	1,590	1,666	1,859	1,818

		Annualized new business premiums:
288	262	Japan, excluding Gibraltar Life	109	103	126	163	125
242	163	Gibraltar Life	90	86	93	94	148
135	139	All other countries	69	75	83	72	63

665	564	Total	268	264	302	329	336

		Annualized new business premiums by distribution channel:
423	401	Life Planners	178	178	209	235	188
215	152	Gibraltar Life Advisors	85	82	86	88	127
27	11	Banks (2)	5	4	7	6	21

665	564	Total	268	264	302	329	336


		Constant exchange rate basis (3):

		Net premiums, policy charges and fee income:
1,794	1,648	Japan, excluding Gibraltar Life	790	792	801	944	850
1,117	1,131	Gibraltar Life	587	537	538	542	575
756	717	All other countries	360	382	390	379	377

3,667	3,496	Total	1,737	1,711	1,729	1,865	1,802

		Annualized new business premiums:
285	283	Japan, excluding Gibraltar Life	118	111	131	161	124
243	176	Gibraltar Life	97	93	96	96	147
136	141	All other countries	70	75	80	72	64

664	600	Total	285	279	307	329	335

		Annualized new business premiums by distribution channel:
421	424	Life Planners	188	186	211	233	188
215	165	Gibraltar Life Advisors	92	89	90	90	125
28	11	Banks (2)	5	4	6	6	22

664	600	Total	285	279	307	329	335

(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 denominated activity 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. U.S. dominated activity is included based on the amounts as transacted in U.S. dollars.

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2007						2008
	2Q		3Q		4Q		1Q		2Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	233		236		238		242		244
Gibraltar Life	186		186		186		185		184
All other countries	104		105		106		108		108

Total	523		527		530		535		536


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	2,144		2,167		2,194		2,232		2,258
Gibraltar Life	3,816		3,815		3,817		3,804		3,782
All other countries	1,246		1,270		1,296		1,311		1,323

Total	7,206		7,252		7,307		7,347		7,363


International life insurance policy persistency:

Excluding Gibraltar Life:
13 months	92.7	%	92.6	%	92.4	%	92.4	%	92.0	%
25 months	86.9	%	86.5	%	85.9	%	85.9	%	85.3	%

Gibraltar Life:
13 months	93.5	%	92.6	%	91.7	%	91.2	%	90.8	%
25 months	87.9	%	88.0	%	87.9	%	87.2	%	86.4	%

Number of Life Planners at end of period:
Japan	3,012		3,030		3,068		3,108		3,079
All other countries	2,989		3,008		3,098		3,030		3,100

Total life planners	6,001		6,038		6,166		6,138		6,179


Gibraltar Life Advisors	5,815		5,944		6,264		6,035		5,899

(1)	Foreign denominated activity 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. U.S. dominated activity is included based on the amounts as transacted in U.S. dollars.

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

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2008					December 31, 2007
	Consolidated Portfolio	Closed Block Business	Financial Services Businesses			Consolidated Portfolio	Closed Block Business	Financial Services Businesses
	Consolidated Portfolio	Closed Block Business	Amount	% of Total		Consolidated Portfolio	Closed Block Business	Amount	% of Total
Fixed maturities:
Public, available for sale, at fair value	124,681	31,791	92,890	54.9	%	128,130	37,168	90,962	55.8	%
Public, held to maturity, at amortized cost	2,862	—	2,862	1.7	%	2,879	—	2,879	1.8	%
Private, available for sale, at fair value	31,967	11,915	20,052	11.8	%	32,559	12,246	20,313	12.5	%
Private, held to maturity, at amortized cost	710	—	710	0.4	%	669	—	669	0.4	%
Trading account assets supporting insurance liabilities, at fair value	14,624	—	14,624	8.6	%	14,473	—	14,473	8.9	%
Other trading account assets, at fair value	1,038	145	893	0.5	%	346	142	204	0.1	%
Equity securities, available for sale, at fair value	8,087	3,528	4,559	2.7	%	8,569	3,940	4,629	2.8	%
Commercial loans	30,303	8,627	21,676	12.8	%	27,557	7,954	19,603	12.0	%
Policy loans	9,587	5,380	4,207	2.5	%	9,337	5,395	3,942	2.4	%
Other long-term investments (1)	4,109	1,248	2,861	1.7	%	3,992	1,268	2,724	1.7	%
Short-term investments (2)	5,186	1,217	3,969	2.4	%	3,983	1,385	2,598	1.6	%

Subtotal (3)	233,154	63,851	169,303	100.0	%	232,494	69,498	162,996	100.0	%

Invested assets of other entities and operations (4)	10,497	—	10,497			11,063	—	11,063

Total investments	243,651	63,851	179,800			243,557	69,498	174,059

Fixed Maturities by Credit Quality (3):


		June 30, 2008						December 31, 2007
		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	77,600	1,299	2,129	76,770	80.3	%	74,678	2,036	1,184	75,530	80.5	%
2	Baa	15,108	321	788	14,641	15.3	%	13,573	490	351	13,712	14.6	%

Subtotal Investment Grade		92,708	1,620	2,917	91,411	95.6	%	88,251	2,526	1,535	89,242	95.1	%

3	Ba	2,823	38	164	2,697	2.8	%	2,830	68	102	2,796	3.1	%
4	B	1,519	20	109	1,430	1.5	%	1,681	38	82	1,637	1.7	%
5	C and lower	114	5	11	108	0.1	%	115	5	6	114	0.1	%
6	In or near default	31	3	4	30	0.0	%	34	5	1	38	0.0	%

Subtotal Below Investment Grade		4,487	66	288	4,265	4.4	%	4,660	116	191	4,585	4.9	%

Total		97,195	1,686	3,205	95,676	100.0	%	92,911	2,642	1,726	93,827	100.0	%


Private Fixed Maturities:
NAIC Rating (5)	Rating Agency Equivalent
1	Aaa, Aa, A	6,628	137	184	6,581	31.7	%	7,139	230	84	7,285	34.7	%
2	Baa	11,210	233	370	11,073	53.3	%	10,595	344	118	10,821	51.6	%

Subtotal Investment Grade		17,838	370	554	17,654	85.0	%	17,734	574	202	18,106	86.3	%

3	Ba	1,951	46	53	1,944	9.4	%	1,637	49	26	1,660	7.9	%
4	B	797	15	24	788	3.8	%	738	6	12	732	3.5	%
5	C and lower	200	4	5	199	1.0	%	319	8	4	323	1.5	%
6	In or near default	170	15	13	172	0.8	%	147	23	—	170	0.8	%

Subtotal Below Investment Grade		3,118	80	95	3,103	15.0	%	2,841	86	42	2,885	13.7	%

Total		20,956	450	649	20,757	100.0	%	20,575	660	244	20,991	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 June 30, 2008 and December 31, 2007, respectively, 245 securities with amortized cost of $3,140 million (fair value $3,062 million) and 196 securities with amortized cost of $2,306 million (fair value, $2,319 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2008			December 31, 2007
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	36,613	68.6	%	34,752	68.5	%
Public, held to maturity, at amortized cost	2,862	5.4	%	2,879	5.7	%
Private, available for sale, at fair value	3,150	5.9	%	3,467	6.8	%
Private, held to maturity, at amortized cost	710	1.3	%	668	1.3	%
Trading account assets supporting insurance liabilities, at fair value	1,142	2.1	%	1,132	2.2	%
Other trading account assets, at fair value	740	1.4	%	48	0.1	%
Equity securities, available for sale, at fair value	2,518	4.7	%	2,550	5.0	%
Commercial loans	3,113	5.8	%	2,881	5.7	%
Policy loans	1,267	2.4	%	1,133	2.2	%
Other long-term investments (1)	1,022	1.9	%	993	2.0	%
Short-term investments	246	0.5	%	239	0.5	%

Total	53,383	100.0	%	50,742	100.0	%


	June 30, 2008			December 31, 2007
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value	56,277	48.5	%	56,210	50.1	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	16,902	14.6	%	16,846	15.0	%
Private, held to maturity, at amortized cost	—	0.0	%	1	0.0	%
Trading account assets supporting insurance liabilities, at fair value	13,482	11.6	%	13,341	11.9	%
Other trading account assets, at fair value	153	0.1	%	156	0.1	%
Equity securities, available for sale, at fair value	2,041	1.8	%	2,079	1.9	%
Commercial loans	18,563	16.0	%	16,722	14.9	%
Policy loans	2,940	2.6	%	2,809	2.5	%
Other long-term investments (1)	1,839	1.6	%	1,731	1.5	%
Short-term investments	3,723	3.2	%	2,359	2.1	%

Total	115,920	100.0	%	112,254	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

Second Quarter 2008

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended June 30
	2008						2007
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount		Realized Gains / (Losses)		Yield (3)		Amount		Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities	4.74	%	1,398		(483	)	5.05	%	1,423		14
Equity securities	5.09	%	60		(97	)	4.56	%	44		74
Commercial loans	5.93	%	247		(5	)	6.10	%	205		(4	)
Policy loans	5.02	%	52		—		5.10	%	46		—
Short-term investments and cash equivalents	2.52	%	67		—		4.46	%	87		—
Other investments	3.21	%	26		80		6.59	%	46		7

Gross investment income before investment expenses	4.74	%	1,850		(505	)	5.15	%	1,851		91
Investment expenses	-0.16	%	(80	)	—		-0.17	%	(135	)	—

Subtotal	4.58	%	1,770		(505	)	4.98	%	1,716		91

Investment results of other entities and operations (2)			385		(45	)			325		34
Less, investment income relating to divested businesses			(9	)					(8	)

Total			2,146		(550	)			2,033		125


	Six Months Ended June 30
	2008						2007
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount		Realized Gains / (Losses)		Yield (3)		Amount		Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities	4.82	%	2,778		(868	)	5.05	%	2,837		41
Equity securities	4.62	%	106		(152	)	4.63	%	89		205
Commercial loans	5.95	%	478		(4	)	6.16	%	409		(7	)
Policy loans	5.08	%	103		—		5.08	%	89		—
Short-term investments and cash equivalents	3.24	%	166		—		4.92	%	183		(7	)
Other investments	3.95	%	62		(266	)	6.62	%	92		42

Gross investment income before investment expenses	4.83	%	3,693		(1,290	)	5.17	%	3,699		274
Investment expenses	-0.15	%	(160	)	—		-0.17	%	(274	)	—

Subtotal	4.68	%	3,533		(1,290	)	5.00	%	3,425		274

Investment results of other entities and operations (2)			743		(62	)			618		64
Less, investment income relating to divested businesses			(19	)					(15	)

Total			4,257		(1,352	)			4,028		338

(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

Second Quarter 2008

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2008						2007
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount		Realized Gains / (Losses)		Yield (1)		Amount		Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities	3.00	%	341		(59	)	2.75	%	262		16
Equity securities	2.75	%	18		(104	)	2.15	%	11		56
Commercial loans	4.81	%	37		(1	)	4.50	%	31		4
Policy loans	3.71	%	12		—		3.79	%	10		—
Short-term investments and cash equivalents	4.22	%	9		—		3.37	%	5		—
Other investments	8.30	%	28		(120	)	17.25	%	36		(66	)

Gross investment income before investment expenses	3.26	%	445		(284	)	3.13	%	355		10
Investment expenses	-0.20	%	(32	)	—		-0.19	%	(24	)	—

Total	3.06	%	413		(284	)	2.94	%	331		10


	Six Months Ended June 30
	2008						2007
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount		Realized Gains / (Losses)		Yield (1)		Amount		Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities	2.93	%	641		(108	)	2.69	%	515		41
Equity securities	2.52	%	32		(155	)	2.42	%	24		176
Commercial loans	4.72	%	70		2		4.43	%	61		7
Policy loans	3.84	%	24		—		3.78	%	19		—
Short-term investments and cash equivalents	2.94	%	12		—		2.91	%	10		(1	)
Other investments	8.20	%	51		(142	)	14.08	%	61		(77	)

Gross investment income before investment expenses	3.16	%	830		(403	)	3.03	%	690		146
Investment expenses	-0.19	%	(55	)	—		-0.18	%	(48	)	—

Total	2.97	%	775		(403	)	2.85	%	642		146

(1)

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

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2008						2007
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount		Realized Gains / (Losses)		Yield (2)		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	5.83	%	1,057		(424	)	6.31	%	1,161		(2	)
Equity securities	8.08	%	42		7		7.19	%	33		18
Commercial loans	6.19	%	210		(4	)	6.51	%	174		(8	)
Policy loans	5.59	%	40		—		5.61	%	36		—
Short-term investments and cash equivalents	2.32	%	58		—		4.60	%	82		—
Other investments	-0.29	%	(2	)	200		2.00	%	10		73

Gross investment income before investment expenses	5.53	%	1,405		(221	)	6.16	%	1,496		81
Investment expenses	-0.13	%	(48	)	—		-0.17	%	(111	)	—

Total	5.40	%	1,357		(221	)	5.99	%	1,385		81


	Six Months Ended June 30
	2008						2007
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount		Realized Gains / (Losses)		Yield (2)		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	5.98	%	2,137		(760	)	6.34	%	2,322		—
Equity securities	7.29	%	74		3		7.05	%	65		29
Commercial loans	6.23	%	408		(6	)	6.61	%	348		(14	)
Policy loans	5.62	%	79		—		5.60	%	70		—
Short-term investments and cash equivalents	3.27	%	154		—		5.23	%	173		(6	)
Other investments	1.24	%	11		(124	)	3.23	%	31		119

Gross investment income before investment expenses	5.73	%	2,863		(887	)	6.25	%	3,009		128
Investment expenses	-0.13	%	(105	)	—		-0.16	%	(226	)	—

Total	5.60	%	2,758		(887	)	6.09	%	2,783		128

(1)

(2)

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

RECLASSIFIED SUPPLEMENTARY INFORMATION - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	2006				2007				2008
	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
INTERNATIONAL INSURANCE OPERATING DATA:

Constant exchange rate basis (1):
Net premiums, policy charges and fee income:
Japan, excluding Gibraltar Life	790	734	736	737	858	790	792	801	944
Gibraltar Life	618	609	533	536	544	587	537	538	542
All other countries	328	340	340	366	357	360	382	390	379

Total	1,736	1,683	1,609	1,639	1,759	1,737	1,711	1,729	1,865

(1)	Foreign denominated activity 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. U.S. dominated activity is included based on the amounts as transacted in U.S. dollars.

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

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. 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. 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. Adjusted operating income excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged. 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 including our discontinued commercial mortgage conduit related activities.

9. Borrowings - Specified Other Businesses:

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

10. Client Assets:

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

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

KEY DEFINITIONS AND FORMULAS

11. Earned Premiums:

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

12. Earnings Per Share of Common Stock:

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

13. Full Service:

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

14. Full Service Stable Value:

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

15. General Account:

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

16. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

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

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

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

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

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

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

20. Individual Life Insurance Sales:

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

21. Insurance and Annuity Benefits:

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

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

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 6.26% for the six months ended June 30, 2008, 17.19% for the six months ended June 30, 2007, 11.28% for the three months ended June 30, 2008, 15.97% for the three months ended June 30, 2007, 1.58% for the three months ended March 31, 2008, 14.43% for the three months ended December 31, 2007 and 16.14% for the three months ended September 30, 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 the sum of borrowings for general corporate purposes, and 25% of the amount corresponding to Junior Subordinated Notes, and we measure “total capitalization” as the sum of equity excluding unrealized gains and losses on investments and pension / postretirement benefits, and corporate debt, including Junior Subordinated Notes.

31. Separate Accounts:

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

32. Wrap-Fee Products:

Investment products generating asset-based fees in which the funds of the customer are generally invested in other investment products such as mutual funds.

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2008

LOGO

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of July 30, 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 July 30, 2008

Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-1	P-2	F1
Long-Term Senior Debt (2)	a-	A+	A3	A
Junior Subordinated Long-Term Debt	bbb	A-	Baa1	NR

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 38

Form: 8-K

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