October 29, 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

THIRD 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.

October 29, 2008


Prudential Financial, Inc.
Quarterly Financial Supplement
Third 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

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2007 AND 2008 ACTUARIAL UPDATES		34

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2007 AND 2008 ACTUARIAL UPDATES		35

KEY DEFINITIONS AND FORMULAS		36-38

RATINGS AND INVESTOR INFORMATION		39

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

					*Financial Services Businesses:*
					Pre-tax adjusted operating income (loss) by division:
670		1,264		-47%	Insurance Division		556		366		301		337		32
549		1,108		-50%	Investment Division		311		372		287		354		(92	)
1,415		1,464		-3%	International Insurance and Investments Division		537		393		439		479		497
(61	)	(11	)	-455%	Corporate and other operations		(12	)	(51	)	(35	)	(5	)	(21	)

2,573		3,825		-33%	Total pre-tax adjusted operating income		1,392		1,080		992		1,165		416
668		1,132		-41%	Income taxes, applicable to adjusted operating income		416		268		263		297		108

1,905		2,693		-29%	Financial Services Businesses after-tax adjusted operating income		976		812		729		868		308


					Reconciling items:
(1,711	)	(5	)	-34120%	Realized investment losses, net, and related charges and adjustments		(180	)	(91	)	(678	)	(486	)	(547	)
(919	)	10		-9290%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		36		(10	)	(262	)	(123	)	(534	)
682		4		16950%	Change in experience-rated contractholder liabilities due to asset value changes		(6	)	9		200		94		388
(128	)	19		-774%	Divested businesses		(27	)	(45	)	(112	)	(13	)	(3	)
108		(323	)	133%	Equity in earnings of operating joint ventures		(103	)	(77	)	(60	)	(40	)	208

(1,968	)	(295	)	-567%	Total reconciling items, before income taxes		(280	)	(214	)	(912	)	(568	)	(488	)
(666	)	(118	)	-464%	Income taxes, not applicable to adjusted operating income		(101	)	(137	)	(216	)	(254	)	(196	)

(1,302	)	(177	)	-636%	Total reconciling items, after income taxes		(179	)	(77	)	(696	)	(314	)	(292	)

603		2,516		-76%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		797		735		33		554		16
(62	)	200		-131%	Equity in earnings of operating joint ventures, net of taxes		67		46		43		24		(129	)

541		2,716		-80%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses		864		781		76		578		(113	)
3		4		-25%	Income (loss) from discontinued operations, net of taxes		(4	)	11		1		(3	)	5

544		2,720		-80%	Net income (loss) of Financial Services Businesses		860		792		77		575		(108	)

					Earnings per share of Common Stock (diluted):
4.43		5.80			Financial Services Businesses after-tax adjusted operating income		2.13		1.79		1.65		2.02		0.74

					Reconciling items:
(3.90	)	(0.01	)		Realized investment losses, net, and related charges and adjustments		(0.39	)	(0.20	)	(1.51	)	(1.11	)	(1.27	)
(2.10	)	0.02			Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.08		(0.02	)	(0.58	)	(0.28	)	(1.24	)
1.55		0.01			Change in experience-rated contractholder liabilities due to asset value changes		(0.01	)	0.02		0.44		0.21		0.90
(0.29	)	0.04			Divested businesses		(0.06	)	(0.10	)	(0.25	)	(0.03	)	(0.01	)
0.25		(0.69	)		Equity in earnings of operating joint ventures		(0.22	)	(0.17	)	(0.13	)	(0.09	)	0.48

(4.49	)	(0.63	)		Total reconciling items, before income taxes		(0.60	)	(0.47	)	(2.03	)	(1.30	)	(1.14	)
(1.52	)	(0.25	)		Income taxes, not applicable to adjusted operating income		(0.21	)	(0.31	)	(0.48	)	(0.58	)	(0.46	)

(2.97	)	(0.38	)		Total reconciling items, after income taxes		(0.39	)	(0.16	)	(1.55	)	(0.72	)	(0.68	)

1.46		5.42			Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures (1)		1.74		1.63		0.10		1.30		0.06
(0.14	)	0.43			Equity in earnings of operating joint ventures, net of taxes		0.15		0.10		0.10		0.05		(0.30	)

1.32		5.85			Income (loss) from continuing operations (after-tax) of Financial Services Businesses (1)		1.89		1.73		0.20		1.35		(0.24	)
0.00		0.01			Income (loss) from discontinued operations, net of taxes		(0.01	)	0.02		0.00		0.00		0.01

1.32		5.86			Net income (loss) of Financial Services Businesses (1)		1.88		1.75		0.20		1.35		(0.23	)


432.6		463.0			Weighted average number of outstanding Common shares (basic)		457.0		450.4		442.1		431.9		423.8

438.6		471.6			Weighted average number of outstanding Common shares (diluted)		464.9		458.5		448.6		437.7		429.5

11.59%		16.77%			Operating Return on Average Equity (based on adjusted operating income)		17.97%		14.88%		13.03%		15.76%		5.81%

					*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
544		2,720			Net income (loss) of Financial Services Businesses (above)		860		792		77		575		(108	)
(51	)	113			Net income (loss) of Closed Block Business		7		79		(8	)	15		(58	)

493		2,833			Consolidated net income (loss)		867		871		69		590		(166	)

36		42			Direct equity adjustments for earnings per share calculations		13		11		12		14		10

(1)

Diluted share count used in the diluted earnings per share calculation for GAAP measures is equal to weighted average basic common shares for the three months ended September 30, 2008 as all potential common shares are anti-dilutive due to the loss from continuing operations available to holders of Common Stock after direct equity adjustment.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

		*Financial Services Businesses Capitalization Data (1):*
		Senior Debt:
		Short-term debt	12,619	14,514	13,788	12,955	13,788
		Long-term debt	9,771	12,351	13,302	13,856	14,602
		Junior Subordinated Long-Term Debt	—	—	—	1,398	1,518

		Attributed Equity:
		Including accumulated other comprehensive income	21,751	22,170	21,484	20,502	18,751
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	22,244	22,009	22,499	22,282	21,524
		Excluding total accumulated other comprehensive income	22,051	21,711	21,957	21,733	21,314

		Total Capitalization:
		Including accumulated other comprehensive income	31,522	34,521	34,786	35,756	34,871
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	32,015	34,360	35,801	37,536	37,644
		Excluding total accumulated other comprehensive income	31,822	34,062	35,259	36,987	37,434

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	47.08	48.73	48.45	47.58	43.85
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	48.15	48.37	50.74	51.71	50.34
		Excluding total accumulated other comprehensive income	47.73	47.72	49.52	50.44	49.85

		Number of diluted shares at end of period	462.0	455.0	443.4	430.9	427.6

		*Common Stock Price Range (based on closing price):*
91.36	103.17	High	98.71	101.09	91.36	82.21	86.25
56.07	84.28	Low	84.28	89.46	67.36	59.74	56.07
72.00	97.58	Close	97.58	93.04	78.25	59.74	72.00

		*Common Stock market capitalization (1)*	44,309	41,623	34,230	25,465	30,362

(1)	As of end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

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OPERATIONS HIGHLIGHTS


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

		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management:
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Institutional customers	170.1	176.4	174.2	179.3	170.9
		Retail customers	88.5	86.6	81.8	84.6	75.4
		General account	171.6	175.5	177.9	175.0	175.2

		Total Investment Management and Advisory Services	430.2	438.5	433.9	438.9	421.5
		Non-proprietary assets under management	57.0	59.7	54.7	60.1	54.4

		Total managed by Investment Division	487.2	498.2	488.6	499.0	475.9
		Managed by International Insurance and Investments Division (3):	71.5	69.2	71.0	69.4	69.9
		Managed by Insurance Division	78.2	80.3	71.5	69.5	56.5

		Total assets under management	636.9	647.7	631.1	637.9	602.3
		Client assets under administration	131.4	136.3	129.4	125.0	112.1

		Total assets under management and administration	768.3	784.0	760.5	762.9	714.4

		Assets managed or administered for customers outside of the United States at end of period	119.6	117.0	117.4	116.0	115.6

		*Distribution Representatives (1):*
		Prudential Agents	2,552	2,425	2,436	2,446	2,482
		International Life Planners	6,038	6,166	6,138	6,179	6,267
		Gibraltar Life Advisors	5,944	6,264	6,035	5,899	6,057

54	53	*Prudential Agent productivity ($ thousands)*	54	85	50	58	55

(1)	As of end of period.

(2)	At fair market value.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

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COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

					Revenues (1):
8,861		8,077		10%	Premiums	2,673		2,717		3,102		2,961		2,798
2,342		2,294		2%	Policy charges and fee income	727		828		824		809		709
6,333		6,098		4%	Net investment income	2,070		2,106		2,111		2,146		2,076
2,480		3,619		-31%	Asset management fees, commissions and other income	1,301		1,121		939		978		563

20,016		20,088		0%	Total revenues	6,771		6,772		6,976		6,894		6,146


					Benefits and Expenses (1):
9,066		8,104		12%	Insurance and annuity benefits	2,658		2,725		3,082		2,944		3,040
2,462		2,286		8%	Interest credited to policyholders’ account balances	779		808		806		803		853
788		831		-5%	Interest expense	281		289		283		234		271
(1,735	)	(1,649	)	-5%	Deferral of acquisition costs	(554	)	(599	)	(588	)	(588	)	(559	)
891		645		38%	Amortization of acquisition costs	108		290		338		315		238
5,971		6,046		-1%	General and administrative expenses	2,107		2,179		2,063		2,021		1,887

17,443		16,263		7%	Total benefits and expenses	5,379		5,692		5,984		5,729		5,730

2,573		3,825		-33%	Adjusted operating income before income taxes	1,392		1,080		992		1,165		416


					Reconciling items:
(1,756	)	10		-17660%	Realized investment gains (losses), net, and related adjustments	(178	)	(51	)	(665	)	(527	)	(564	)
45		(15	)	400%	Related charges	(2	)	(40	)	(13	)	41		17

(1,711	)	(5	)	-34120%	Total realized investment losses, net, and related charges and adjustments	(180	)	(91	)	(678	)	(486	)	(547	)

(919	)	10		-9290%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	36		(10	)	(262	)	(123	)	(534	)
682		4		16950%	Change in experience-rated contractholder liabilities due to asset value changes	(6	)	9		200		94		388
(128	)	19		-774%	Divested businesses	(27	)	(45	)	(112	)	(13	)	(3	)
108		(323	)	133%	Equity in earnings of operating joint ventures	(103	)	(77	)	(60	)	(40	)	208

(1,968	)	(295	)	-567%	Total reconciling items, before income taxes	(280	)	(214	)	(912	)	(568	)	(488	)


605		3,530		-83%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures	1,112		866		80		597		(72	)
2		1,014		-100%	Income tax expense (benefit)	315		131		47		43		(88	)

603		2,516		-76%	Income from continuing operations before equity in earnings of operating joint ventures	797		735		33		554		16

(1)

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $111,668; $111,405; $117,893; $116,193; $118,111)	112,956		112,748	117,914		114,541		114,626
Fixed maturities, held to maturity, at amortized cost (fair value $3,411; $3,543; $3,741; $3,490; $3,410)	3,473		3,548	3,735		3,572		3,481
Trading account assets supporting insurance liabilities, at fair value	14,612		14,473	14,644		14,624		14,392
Other trading account assets, at fair value	3,354		3,471	2,684		2,984		3,240
Equity securities, available for sale, at fair value (cost $4,385; $4,497; $4,786; $4,686; $4,634)	4,683		4,640	4,551		4,567		4,258
Commercial loans	20,756		22,093	23,444		23,837		24,173
Policy loans	3,815		3,942	4,147		4,207		3,822
Securities purchased under agreements to resell	111		129	178		184		171
Other long-term investments	4,449		5,163	5,266		5,683		5,255
Short-term investments	3,183		3,852	4,176		5,601		6,621

Total investments	171,392		174,059	180,739		179,800		180,039
Cash and cash equivalents	7,687		9,624	8,133		8,762		9,907
Accrued investment income	1,519		1,496	1,540		1,531		1,551
Reinsurance recoverables	2,149		2,119	1,975		1,961		1,838
Deferred policy acquisition costs	11,032		11,396	11,924		12,203		12,472
Other assets	16,143		17,754	20,357		23,021		22,608
Separate account assets	195,324		195,583	181,902		179,323		165,148

Total assets	405,246		412,031	406,570		406,601		393,563


Liabilities:
Future policy benefits	58,117		60,259	63,590		62,503		62,080
Policyholders’ account balances	77,105		78,599	84,812		86,199		90,727
Reinsurance payables	1,593		1,552	1,396		1,377		1,228
Securities sold under agreements to repurchase	5,683		5,281	3,727		4,307		4,209
Cash collateral for loaned securities	5,017		3,041	2,761		2,808		2,231
Income taxes	2,826		3,402	3,575		2,798		1,300
Senior short-term debt	12,619		14,514	13,788		12,955		13,788
Senior long-term debt	9,771		12,351	13,302		13,856		14,602
Junior subordinated long-term debt	—		—	—		1,398		1,518
Other liabilities	15,440		15,279	16,233		18,575		17,981
Separate account liabilities	195,324		195,583	181,902		179,323		165,148

Total liabilities	383,495		389,861	385,086		386,099		374,812


Attributed Equity:
Accumulated other comprehensive income (loss)	(300	)	459	(473	)	(1,231	)	(2,563	)
Other attributed equity	22,051		21,711	21,957		21,733		21,314

Total attributed equity	21,751		22,170	21,484		20,502		18,751


Total liabilities and attributed equity	405,246		412,031	406,570		406,601		393,563

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended September 30, 2008
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,798		1,117		57		1,627		(3	)
Policy charges and fee income	709		599		45		83		(18	)
Net investment income	2,076		553		868		514		141
Asset management fees, commissions and other income	563		173		279		159		(48	)

Total revenues	6,146		2,442		1,249		2,383		72


Benefits and Expenses (1):
Insurance and annuity benefits	3,040		1,480		249		1,279		32
Interest credited to policyholders’ account balances	853		260		538		106		(51	)
Interest expense	271		66		39		1		165
Deferral of acquisition costs	(559	)	(270	)	(17	)	(281	)	9
Amortization of acquisition costs	238		84		19		144		(9	)
General and administrative expenses	1,887		790		513		637		(53	)

Total benefits and expenses	5,730		2,410		1,341		1,886		93


Adjusted operating income (loss) before income taxes	416		32		(92	)	497		(21	)


	Quarter Ended September 30, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,673		1,073		88		1,518		(6	)
Policy charges and fee income	727		632		40		72		(17	)
Net investment income	2,070		479		979		419		193
Asset management fees, commissions and other income	1,301		324		744		282		(49	)

Total revenues	6,771		2,508		1,851		2,291		121


Benefits and Expenses (1):
Insurance and annuity benefits	2,658		1,161		290		1,194		13
Interest credited to policyholders’ account balances	779		201		528		84		(34	)
Interest expense	281		59		76		8		138
Deferral of acquisition costs	(554	)	(290	)	(19	)	(253	)	8
Amortization of acquisition costs	108		1		11		103		(7	)
General and administrative expenses	2,107		820		654		618		15

Total benefits and expenses	5,379		1,952		1,540		1,754		133


Adjusted operating income (loss) before income taxes	1,392		556		311		537		(12	)

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Nine Months Ended September 30, 2008
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	8,861		3,340		395		5,135		(9	)
Policy charges and fee income	2,342		1,981		134		252		(25	)
Net investment income	6,333		1,574		2,814		1,480		465
Asset management fees, commissions and other income	2,480		573		1,579		500		(172	)

Total revenues	20,016		7,468		4,922		7,367		259


Benefits and Expenses (1):
Insurance and annuity benefits	9,066		3,961		981		4,052		72
Interest credited to policyholders’ account balances	2,462		701		1,594		307		(140	)
Interest expense	788		197		128		7		456
Deferral of acquisition costs	(1,735	)	(827	)	(74	)	(874	)	40
Amortization of acquisition costs	891		425		37		456		(27	)
General and administrative expenses	5,971		2,341		1,707		2,004		(81	)

Total benefits and expenses	17,443		6,798		4,373		5,952		320


Adjusted operating income (loss) before income taxes	2,573		670		549		1,415		(61	)


	Nine Months Ended September 30, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	8,077		3,229		255		4,602		(9	)
Policy charges and fee income	2,294		1,971		128		217		(22	)
Net investment income	6,098		1,424		2,885		1,210		579
Asset management fees, commissions and other income	3,619		796		2,236		716		(129	)

Total revenues	20,088		7,420		5,504		6,745		419


Benefits and Expenses (1):
Insurance and annuity benefits	8,104		3,573		868		3,632		31
Interest credited to policyholders’ account balances	2,286		608		1,528		240		(90	)
Interest expense	831		165		199		13		454
Deferral of acquisition costs	(1,649	)	(847	)	(63	)	(773	)	34
Amortization of acquisition costs	645		294		31		357		(37	)
General and administrative expenses	6,046		2,363		1,833		1,812		38

Total benefits and expenses	16,263		6,156		4,396		5,281		430


Adjusted operating income (loss) before income taxes	3,825		1,264		1,108		1,464		(11	)

(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

Third Quarter 2008

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of September 30, 2008
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Assets:
Total investments	180,039		42,049		68,928		59,698		9,364
Deferred policy acquisition costs	12,472		6,839		309		5,513		(189	)
Other assets	35,904		7,405		9,217		12,672		6,610
Separate account assets	165,148		79,781		86,540		271		(1,444	)

Total assets	393,563		136,074		164,994		78,154		14,341


Liabilities:
Future policy benefits	62,080		9,953		13,283		38,421		423
Policyholders’ account balances	90,727		29,354		45,568		19,337		(3,532	)
Debt	29,908		6,356		4,827		1,023		17,702
Other liabilities	26,949		4,822		8,307		12,119		1,701
Separate account liabilities	165,148		79,781		86,540		271		(1,444	)

Total liabilities	374,812		130,266		158,525		71,171		14,850


Attributed Equity:
Accumulated other comprehensive loss	(2,563	)	(935	)	(1,215	)	(212	)	(201	)
Other attributed equity	21,314		6,743		7,684		7,195		(308	)

Total attributed equity	18,751		5,808		6,469		6,983		(509	)


Total liabilities and attributed equity	393,563		136,074		164,994		78,154		14,341


	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

Third Quarter 2008

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of September 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	1,062	4,251	1,518	6,831		1,506	3,275	—	4,781
Investment related	6,936	8,870	—	15,806		8,116	7,120	—	15,236
Securities business related	4,533	220	—	4,753		3,405	1,371	—	4,776
Specified other businesses	746	981	—	1,727		1,179	381	—	1,560
Limited recourse and non-recourse borrowing	511	280	—	791		308	204	—	512

Total debt - Financial Services Businesses	13,788	14,602	1,518	29,908		14,514	12,351	—	26,865

Ratio of long-term and short-term capital debt to capitalization (1)				20.1	%				17.8	%

Closed Block Business
Investment related	751	—	—	751		1,143	—	—	1,143
Limited recourse and non-recourse borrowing	—	1,750	—	1,750		—	1,750	—	1,750

Total debt	751	1,750	—	2,501		1,143	1,750	—	2,893


	As of September 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	6,202	629	—	6,831		3,661	1,120	—	4,781
Investment related	8,411	4,339	3,056	15,806		9,423	3,863	1,950	15,236
Securities business related	3,197	1,353	203	4,753		3,235	1,445	96	4,776
Specified other businesses	1,012	715	—	1,727		393	1,167	—	1,560
Limited recourse and non-recourse borrowing	—	100	691	791		—	—	512	512

Total debt - Financial Services Businesses	18,822	7,136	3,950	29,908		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 September 30, 2008 and December 31, 2007.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


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

				Revenues (1):
3,340	3,229		3%	Premiums	1,073		1,053		1,134		1,089		1,117
1,981	1,971		1%	Policy charges and fee income	632		715		695		687		599
1,574	1,424		11%	Net investment income	479		483		504		517		553
573	796		-28%	Asset management fees, commissions and other income	324		233		177		223		173

7,468	7,420		1%	Total revenues	2,508		2,484		2,510		2,516		2,442


				Benefits and Expenses (1):
3,961	3,573		11%	Insurance and annuity benefits	1,161		1,165		1,255		1,226		1,480
701	608		15%	Interest credited to policyholders’ account balances	201		209		216		225		260
197	165		19%	Interest expense	59		67		66		65		66
(827)	(847	)	2%	Deferral of acquisition costs	(290	)	(304	)	(280	)	(277	)	(270	)
425	294		45%	Amortization of acquisition costs	1		164		178		163		84
2,341	2,363		-1%	General and administrative expenses	820		817		774		777		790

6,798	6,156		10%	Total benefits and expenses	1,952		2,118		2,209		2,179		2,410


670	1,264		-47%	Adjusted operating income before income taxes	556		366		301		337		32

(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

Third Quarter 2008

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Nine Months Ended September 30, 2008								Quarter Ended September 30, 2008
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance		Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	3,340		451		50		2,839		1,117		155		18		944
Policy charges and fee income	1,981		767		897		317		599		209		286		104
Net investment income	1,574		553		535		486		553		191		200		162
Asset management fees, commissions and other income	573		267		241		65		173		127		24		22

Total revenues	7,468		2,038		1,723		3,707		2,442		682		528		1,232


Benefits and Expenses (1):
Insurance and annuity benefits	3,961		718		473		2,770		1,480		230		344		906
Interest credited to policyholders’ account balances	701		171		355		175		260		59		141		60
Interest expense	197		152		44		1		66		51		15		—
Deferral of acquisition costs	(827	)	(332	)	(467	)	(28	)	(270	)	(111	)	(149	)	(10	)
Amortization of acquisition costs	425		154		260		11		84		(40	)	121		3
General and administrative expenses (2)	2,341		738		1,096		507		790		255		363		172

Total benefits and expenses	6,798		1,601		1,761		3,436		2,410		444		835		1,131


Adjusted operating income (loss) before income taxes	670		437		(38	)	271		32		238		(307	)	101


	Nine Months Ended September 30, 2007								Quarter Ended September 30, 2007
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance		Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	3,229		389		53		2,787		1,073		137		13		923
Policy charges and fee income	1,971		762		941		268		632		226		322		84
Net investment income	1,424		481		443		500		479		165		144		170
Asset management fees, commissions and other income	796		300		432		64		324		144		154		26

Total revenues	7,420		1,932		1,869		3,619		2,508		672		633		1,203


Benefits and Expenses (1):
Insurance and annuity benefits	3,573		693		149		2,731		1,161		254		31		876
Interest credited to policyholders’ account balances	608		162		269		177		201		54		87		60
Interest expense	165		116		43		6		59		41		16		2
Deferral of acquisition costs	(847	)	(333	)	(480	)	(34	)	(290	)	(115	)	(158	)	(17	)
Amortization of acquisition costs	294		74		215		5		1		(68	)	66		3
General and administrative expenses (2)	2,363		727		1,122		514		820		255		386		179

Total benefits and expenses	6,156		1,439		1,318		3,399		1,952		421		428		1,103


Adjusted operating income before income taxes	1,264		493		551		220		556		251		205		100

(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 $99 million for the nine months ended September 30, 2008 and $109 million for the nine months ended September 30, 2007, $45 million for the quarter ended September 30, 2008 and $43 million for the quarter ended September 30, 2007 for the amortization, net of interest, of value of business acquired (VOBA).

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

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

(in millions)


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

			SALES:
			Excluding corporate-owned life insurance:
52	86		Variable life	19		20		16		24		12
147	129		Universal life	40		47		40		55		52
156	157		Term life	54		55		51		52		53

355	372		Total excluding corporate-owned life insurance	113		122		107		131		117
1	9		Corporate-owned life insurance	1		2		—		1		—

356	381		Total	114		124		107		132		117


			SALES BY DISTRIBUTION CHANNEL:
			Excluding corporate-owned life insurance:
113	128		Prudential Agents	44		46		40		38		35
242	244		Third party distribution	69		76		67		93		82
1	9		Corporate-owned life insurance	1		2		—		1		—

356	381		Total	114		124		107		132		117


			ACCOUNT VALUE ACTIVITY:
			*Policyholders’ Account Balances (1):*
6,582	6,165		Beginning balance	6,385		6,489		6,582		6,676		6,948
1,151	969		Premiums and deposits	299		329		370		409		372
(697)	(756	)	Surrenders and withdrawals	(257	)	(239	)	(238	)	(211	)	(248	)

454	213		Net sales	42		90		132		198		124
(118)	(115	)	Benefit payments	(29	)	(37	)	(39	)	(38	)	(41	)

336	98		Net flows	13		53		93		160		83
319	231		Interest credited and other	93		38		9		130		180
197	200		Net transfers from separate account	70		70		63		59		75
(222)	(205	)	Policy charges	(72	)	(68	)	(71	)	(77	)	(74	)

7,212	6,489		Ending balance	6,489		6,582		6,676		6,948		7,212


			*Separate Account Liabilities:*
18,585	17,586		Beginning balance	18,517		18,876		18,585		17,276		17,387
1,001	990		Premiums and deposits	360		292		304		311		386
(550)	(506	)	Surrenders and withdrawals	(184	)	(174	)	(162	)	(215	)	(173	)

451	484		Net sales	176		118		142		96		213
(38)	(46	)	Benefit payments	(13	)	(16	)	(10	)	(22	)	(6	)

413	438		Net flows	163		102		132		74		207
(2,744)	1,644		Change in market value, interest credited and other	461		(121	)	(1,183	)	288		(1,849	)
(197)	(200	)	Net transfers to general account	(70	)	(70	)	(63	)	(59	)	(75	)
(581)	(592	)	Policy charges	(195	)	(202	)	(195	)	(192	)	(194	)

15,476	18,876		Ending balance	18,876		18,585		17,276		17,387		15,476


			FACE AMOUNT IN FORCE (2):
			Variable life	138,872		137,889		135,519		134,691		131,608
			Universal life	24,424		25,416		26,201		27,091		27,999
			Term life	300,056		316,969		331,139		345,467		359,887

			Total	463,352		480,274		492,859		507,249		519,494

(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

Third Quarter 2008

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


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

				Individual Life Insurance:
				Policy Surrender Experience:
562		565		Cash value of surrenders	223		187		178		196		188
3.4	%	3.3	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.8	%	3.2	%	3.1	%	3.5	%	3.5	%

				Death benefits per $1,000 of in force (1):
3.67		3.58		Variable and universal life	4.00		3.13		3.62		4.14		3.23
1.52		2.17		Term life	1.99		0.91		1.59		1.53		1.46
2.84		3.20		Total, Individual Life Insurance	3.38		2.36		2.92		3.08		2.51

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

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

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

(in millions)


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

				SALES AND ACCOUNT VALUES:
				Variable Annuities:
80,330		74,555		Beginning total account value	78,968		81,173		80,330		74,977		74,707
8,076		8,637		Sales	2,825		3,041		2,829		2,740		2,507
(6,346	)	(7,153	)	Surrenders and withdrawals	(2,328	)	(2,415	)	(2,173	)	(2,185	)	(1,988	)

1,730		1,484		Net sales	497		626		656		555		519
(815	)	(870	)	Benefit payments	(265	)	(261	)	(294	)	(262	)	(259	)

915		614		Net flows	232		365		362		293		260
(12,367	)	6,941		Change in market value, interest credited, and other	2,295		(865	)	(5,409	)	(246	)	(6,712	)
(910	)	(937	)	Policy charges	(322	)	(343	)	(306	)	(317	)	(287	)

67,968		81,173		Ending total account value	81,173		80,330		74,977		74,707		67,968

				Fixed Annuities:
3,488		3,748		Beginning total account value	3,608		3,546		3,488		3,440		3,394
74		57		Sales	16		16		17		24		33
(185	)	(224	)	Surrenders and withdrawals	(69	)	(62	)	(53	)	(61	)	(71	)

(111	)	(167	)	Net redemptions	(53	)	(46	)	(36	)	(37	)	(38	)
(120	)	(129	)	Benefit payments	(41	)	(38	)	(43	)	(40	)	(37	)

(231	)	(296	)	Net flows	(94	)	(84	)	(79	)	(77	)	(75	)
95		97		Interest credited and other	33		27		32		31		32
(3	)	(3	)	Policy charges	(1	)	(1	)	(1	)	—		(2	)

3,349		3,546		Ending total account value	3,546		3,488		3,440		3,394		3,349


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

1,908		1,856		Insurance Agents	607		713		646		673		589
1,031		1,138		Wirehouses	385		428		344		337		350
5,211		5,700		Independent Financial Planners (2)	1,849		1,916		1,856		1,754		1,601

8,150		8,694		Total	2,841		3,057		2,846		2,764		2,540


				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (3):
				Return of net deposits:
				Account value	42,708		42,995		40,817		41,272		38,285
				Net amount at risk	1,171		1,204		1,631		1,750		3,572
				Minimum return, anniversary contract value, or maximum contract value:
				Account value	33,184		32,194		29,401		28,717		25,469
				Net amount at risk	1,978		2,255		3,823		4,032		6,431

				Variable Annuity Account Values with Living Benefit Features (3):
				Guaranteed minimum accumulation benefits	11,757		11,724		10,933		10,867		10,221
				Guaranteed minimum withdrawal benefits	2,274		2,234		2,006		1,902		1,646
				Guaranteed minimum income benefits	7,320		6,948		6,233		5,958		5,149
				Guaranteed minimum withdrawal & income benefits	14,659		16,260		16,863		18,372		18,153

				Total	36,010		37,166		36,035		37,099		35,169

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

(3)	At end of period.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

INSURANCE DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


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

				INDIVIDUAL ANNUITIES:
				Account Values in General Account (1):
8,644		9,527		Beginning balance	8,784		8,647		8,644		12,013		12,282
194		224		Premiums and deposits	62		68		73		51		70
(801	)	(903	)	Surrenders and withdrawals	(263	)	(253	)	(251	)	(254	)	(296	)

(607	)	(679	)	Net redemptions	(201	)	(185	)	(178	)	(203	)	(226	)
(270	)	(303	)	Benefit payments	(96	)	(89	)	(103	)	(80	)	(87	)

(877	)	(982	)	Net flows	(297	)	(274	)	(281	)	(283	)	(313	)
325		258		Interest credited and other	89		84		99		105		121
8,962		(153	)	Net transfers (to) from separate account	72		188		3,552		447		4,963
(3	)	(3	)	Policy charges	(1	)	(1	)	(1	)	—		(2	)

17,051		8,647		Ending balance	8,647		8,644		12,013		12,282		17,051


				Account Values in Separate Account:
75,174		68,776		Beginning balance	73,792		76,072		75,174		66,404		65,819
7,956		8,470		Premiums and deposits	2,779		2,989		2,773		2,713		2,470
(5,730	)	(6,474	)	Surrenders and withdrawals	(2,134	)	(2,224	)	(1,975	)	(1,992	)	(1,763	)

2,226		1,996		Net sales	645		765		798		721		707
(665	)	(696	)	Benefit payments	(210	)	(210	)	(234	)	(222	)	(209	)

1,561		1,300		Net flows	435		555		564		499		498
(12,597	)	6,780		Change in market value, interest credited and other	2,239		(922	)	(5,476	)	(320	)	(6,801	)
(8,962	)	153		Net transfers (to) from general account	(72	)	(188	)	(3,552	)	(447	)	(4,963	)
(910	)	(937	)	Policy charges	(322	)	(343	)	(306	)	(317	)	(287	)


54,266		76,072		Ending balance	76,072		75,174		66,404		65,819		54,266

(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

Third Quarter 2008

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


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

				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
212		162		Group life	33		35		112		30		70
178		139		Group disability (1)	21		16		114		17		47

390		301		Total	54		51		226		47		117


				Future Policy Benefits (2):
				Group life	2,032		2,240		2,099		2,100		2,068
				Group disability (1)	640		662		774		810		865

				Total	2,672		2,902		2,873		2,910		2,933


				Policyholders’ Account Balances (2):
				Group life	5,610		5,734		5,824		6,005		5,641
				Group disability (1)	132		148		137		149		152

				Total	5,742		5,882		5,961		6,154		5,793


				Separate Account Liabilities (2):
				Group life	19,462		19,992		19,363		17,941		19,943
				Group disability (1)	—		—		—		—		—

				Total	19,462		19,992		19,363		17,941		19,943


				Group Life Insurance:
2,701		2,533		Gross premiums, policy charges and fee income (3)	841		889		949		912		840
2,392		2,405		Earned premiums, policy charges and fee income	784		773		793		810		789
88.2	%	90.4	%	Benefits ratio	88.4	%	90.4	%	87.1	%	89.4	%	88.1	%
8.6	%	9.6	%	Administrative operating expense ratio	9.8	%	8.4	%	8.2	%	8.2	%	9.4	%
				Persistency ratio	94.2	%	93.6	%	94.7	%	94.0	%	93.6	%

				Group Disability Insurance (1):
791		675		Gross premiums, policy charges and fee income (3)	233		227		288		238		265
764		650		Earned premiums, policy charges and fee income	223		217		280		225		259
86.4	%	85.9	%	Benefits ratio	82.1	%	88.9	%	91.1	%	86.2	%	81.5	%
19.5	%	20.9	%	Administrative operating expense ratio	20.6	%	21.2	%	17.4	%	22.3	%	19.3	%
				Persistency ratio	88.9	%	88.0	%	91.4	%	90.4	%	86.7	%

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

(2)	As of end of period.

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

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


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

			INDIVIDUAL LIFE INSURANCE:
3,855	3,550		Beginning balance	3,678		3,841		3,855		3,805		3,963
332	333		Capitalization	115		119		108		113		111
(154)	(74	)	Amortization - operating results	68		(90	)	(111	)	(83	)	40
—	—		Amortization - realized investment gains and losses	—		—		—		—		—
174	32		Impact of unrealized (gains) or losses on AFS securities	(20	)	(15	)	(47	)	128		93

4,207	3,841		Ending balance	3,841		3,855		3,805		3,963		4,207


			INDIVIDUAL ANNUITIES:
1,976	1,613		Beginning balance	1,791		1,876		1,976		2,093		2,199
467	480		Capitalization	158		173		163		155		149
(260)	(215	)	Amortization - operating results	(66	)	(70	)	(63	)	(76	)	(121	)
20	5		Amortization - realized investment gains and losses	5		2		15		(5	)	10
91	6		Impact of unrealized (gains) or losses on AFS securities	(12	)	(5	)	2		32		57
—	(13	)	Other (1)	—		—		—		—		—

2,294	1,876		Ending balance	1,876		1,976		2,093		2,199		2,294


			GROUP INSURANCE:
321	284		Beginning balance	299		313		321		326		331
28	34		Capitalization	17		12		9		9		10
(11)	(5	)	Amortization - operating results	(3	)	(4	)	(4	)	(4	)	(3	)
—	—		Amortization - realized investment gains and losses	—		—		—		—		—
—	—		Impact of unrealized losses on AFS securities	—		—		—		—		—

338	313		Ending balance	313		321		326		331		338


			TOTAL INSURANCE DIVISION:
6,152	5,447		Beginning balance	5,768		6,030		6,152		6,224		6,493
827	847		Capitalization	290		304		280		277		270
(425)	(294	)	Amortization - operating results	(1	)	(164	)	(178	)	(163	)	(84	)
20	5		Amortization - realized investment gains and losses	5		2		15		(5	)	10
265	38		Impact of unrealized (gains) or losses on AFS securities	(32	)	(20	)	(45	)	160		150
—	(13	)	Other (1)	—		—		—		—		—

6,839	6,030		Ending balance	6,030		6,152		6,224		6,493		6,839

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

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


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

				Revenues (1):
395	255		55%	Premiums	88		74		200		138		57
134	128		5%	Policy charges and fee income	40		44		43		46		45
2,814	2,885		-2%	Net investment income	979		1,010		964		982		868
1,579	2,236		-29%	Asset management fees, commissions and other income	744		768		659		641		279

4,922	5,504		-11%	Total revenues	1,851		1,896		1,866		1,807		1,249


				Benefits and Expenses (1):
981	868		13%	Insurance and annuity benefits	290		277		392		340		249
1,594	1,528		4%	Interest credited to policyholders’ account balances	528		545		533		523		538
128	199		-36%	Interest expense	76		75		52		37		39
(74)	(63	)	-17%	Deferral of acquisition costs	(19	)	(28	)	(29	)	(28	)	(17	)
37	31		19%	Amortization of acquisition costs	11		7		10		8		19
1,707	1,833		-7%	General and administrative expenses	654		648		621		573		513

4,373	4,396		-1%	Total benefits and expenses	1,540		1,524		1,579		1,453		1,341


549	1,108		-50%	Adjusted operating income (loss) before income taxes	311		372		287		354		(92	)

(1)

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

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

LOGO

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Nine Months Ended September 30, 2008								Quarter Ended September 30, 2008
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	395		—		—		395		57		—		—		57
Policy charges and fee income	134		—		—		134		45		—		—		45
Net investment income	2,814		152		1		2,661		868		(15	)	—		883
Asset management fees, commissions and other income	1,579		1,305		(128	)	402		279		360		(214	)	133

Total revenues	4,922		1,457		(127	)	3,592		1,249		345		(214	)	1,118


Benefits and Expenses (1):
Insurance and annuity benefits	981		—		—		981		249		—		—		249
Interest credited to policyholders’ account balances	1,594		—		—		1,594		538		—		—		538
Interest expense	128		59		1		68		39		20		—		19
Deferral of acquisition costs	(74	)	(12	)	—		(62	)	(17	)	(3	)	—		(14	)
Amortization of acquisition costs	37		15		—		22		19		6		—		13
General and administrative expenses	1,707		1,094		22		591		513		330		3		180

Total benefits and expenses	4,373		1,156		23		3,194		1,341		353		3		985


Adjusted operating income (loss) before income taxes	549		301		(150	)	398		(92	)	(8	)	(217	)	133


	Nine Months Ended September 30, 2007								Quarter Ended September 30, 2007
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	255		—		—		255		88		—		—		88
Policy charges and fee income	128		—		—		128		40		—		—		40
Net investment income	2,885		146		2		2,737		979		44		1		934
Asset management fees, commissions and other income	2,236		1,547		301		388		744		514		97		133

Total revenues	5,504		1,693		303		3,508		1,851		558		98		1,195


Benefits and Expenses (1):
Insurance and annuity benefits	868		—		—		868		290		—		—		290
Interest credited to policyholders’ account balances	1,528		—		—		1,528		528		—		—		528
Interest expense	199		43		—		156		76		19		—		57
Deferral of acquisition costs	(63	)	(12	)	—		(51	)	(19	)	(4	)	—		(15	)
Amortization of acquisition costs	31		15		—		16		11		4		—		7
General and administrative expenses	1,833		1,144		49		640		654		378		13		263

Total benefits and expenses	4,396		1,190		49		3,157		1,540		397		13		1,130


Adjusted operating income before income taxes	1,108		503		254		351		311		161		85		65

(1)

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION FOR

ASSET MANAGEMENT SEGMENT


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

			Analysis of revenues by type:
858	798	8%	Asset management fees	265	283	281	288	289
191	423	-55%	Incentive, transaction, principal investing and capital markets revenues	133	137	88	152	(49	)
408	472	-14%	Service, distribution and other revenues	160	206	179	124	105

1,457	1,693	-14%	Total Asset Management segment revenues	558	626	548	564	345


			Analysis of asset management fees by source:
407	358	14%	Institutional customers	118	130	133	136	138
249	258	-3%	Retail customers	87	89	81	85	83
202	182	11%	General account	60	64	67	67	68

858	798	8%	Total asset management fees	265	283	281	288	289


Supplementary Assets Under Management Information (in billions):

	September 30, 2008
	Equity	Fixed Income	Real Estate	Total
Institutional customers	49.3	92.6	29.0	170.9
Retail customers	51.6	21.6	2.2	75.4
General account	3.9	170.4	0.9	175.2

Total	104.8	284.6	32.1	421.5


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

Total	128.2	273.7	28.3	430.2

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

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

(in billions)


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

				Institutional Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
141.7		122.9		Beginning assets under management	132.0		135.0		141.7		140.1		145.8
23.7		16.8		Additions (1)	5.4		11.1		6.5		10.9		6.3
(13.7	)	(14.5	)	Withdrawals (2)	(6.0	)	(6.4	)	(4.3	)	(4.6	)	(4.8	)
(11.7	)	9.7		Change in market value	3.7		1.2		(2.8	)	(0.5	)	(8.4	)
(1.4)		0.1		Net money market flows	(0.1	)	0.8		(1.0	)	(0.1	)	(0.3	)

138.6		135.0		Ending assets under management	135.0		141.7		140.1		145.8		138.6
32.3		35.1		Affiliated institutional assets under management	35.1		34.7		34.1		33.5		32.3

170.9		170.1		Total assets managed for institutional customers at end of period	170.1		176.4		174.2		179.3		170.9


10.0		2.3		Net institutional additions (withdrawals) other than money market	(0.6	)	4.7		2.2		6.3		1.5


				Retail Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
50.9		43.4		Beginning assets under management	49.3		51.3		50.9		48.2		50.7
11.7		7.9		Additions	2.7		2.6		3.5		3.8		4.4
(9.7	)	(8.0	)	Withdrawals	(2.4	)	(2.4	)	(2.5	)	(2.9	)	(4.3	)
(9.6	)	5.1		Change in market value	1.7		(0.2	)	(4.0	)	1.9		(7.5	)
0.1		0.1		Net money market flows	—		(0.6	)	0.3		(0.3	)	0.1
—		2.8		Other (3)	—		0.2		—		—		—

43.4		51.3		Ending assets under management	51.3		50.9		48.2		50.7		43.4
32.0		37.2		Affiliated retail assets under management	37.2		35.7		33.6		33.9		32.0

75.4		88.5		Total assets managed for retail customers at end of period	88.5		86.6		81.8		84.6		75.4


2.0		(0.1	)	Net retail additions (withdrawals) other than money market	0.3		0.2		1.0		0.9		0.1

(1)	Additions include $0.2 billion for the three months ended March 31, 2008, $0.2 billion for the nine months ended September 30, 2008 and $0.3 billion for the nine months ended September 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, 2008, $(0.1) billion for the nine months ended September 30, 2008 and $(0.4) billion for the nine months ended September 30, 2007 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).

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)


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

			Information pertaining to Wachovia Securities Financial Holdings, LLC:

			Revenues:
252	231		Net investment income	75		75		95		79		78
2,405	1,532		Commissions	484		511		844		846		715
2,860	1,840		Fees	644		668		981		938		941
272	221		Other non-interest revenues (1)	62		194		123		117		32

5,789	3,824		Total revenues	1,265		1,448		2,043		1,980		1,766
			Expenses (1)
5,814	3,030		Expenses before transition costs	1,009		1,238		1,677		1,654		2,481
524	—		Transition costs	—		27		186		189		150

6,338	3,030		Total expenses	1,009		1,265		1,863		1,843		2,631

(548)	794		Income (loss) before income taxes	256		183		180		137		(865	)

(136)	302		Prudential Financial, Inc’s. share of Wachovia Securities Financial Holdings, LLC (2)	97		69		44		35		(215	)
7	(1	)	Purchase accounting and related adjustments	—		—		7		—		—

(129)	301		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	97		69		51		35		(215	)

			Recurring revenue as a percentage of total revenue (3)	56.6	%	58.6	%	59.1	%	58.5	%	59.4	%
			Total client assets ($ in billions) (4)	802.4		799.2		1,149.2		1,147.2		1,037.6
			Distribution representatives (4):
			Series 7 Financial Advisors	8,272		8,343		14,456		14,484		14,481
			Series 6 Financial Representatives	2,996		3,296		4,059		3,927		4,038
			Customer debit balances ($ in billions) (4)	4.6		5.1		6.4		6.6		6.5

(150)	254		Prudential Financial, Inc. income (loss) from investment in Wachovia Securities Financial Holdings, LLC, including share of results, costs incurred at Prudential level, and purchase accounting adjustments (2)	85		43		44		23		(217	)

(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 a period of two years ending on January 1, 2010, whether or not to make 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 one-time costs associated with the combination of the A.G. Edwards business with Wachovia Securities is based on a diluted ownership level, which is in the process of being determined. 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 one-time costs, may be subsequently adjusted as a result of completion of definitive valuation of the business and possible modifications to the terms 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

Third Quarter 2008

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


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

			RETIREMENT SALES AND ACCOUNT VALUES

			Full Service:
112,192	97,430		Beginning total account value	104,033		105,601		112,192		107,060		106,917
12,392	10,434		Deposits and sales	3,219		4,258		4,586		4,530		3,276
(11,182)	(9,945	)	Withdrawals and benefits	(3,309	)	(3,804	)	(3,933	)	(4,366	)	(2,883	)
(12,939)	7,682		Change in market value, interest credited and interest income (1)	1,658		(1,119	)	(5,785	)	(307	)	(6,847	)
—	—		Acquisition (2)	—		7,256		—		—		—

100,463	105,601		Ending total account value	105,601		112,192		107,060		106,917		100,463

1,210	489		Net additions (withdrawals)	(90	)	454		653		164		393

			Stable value account values included above	31,578		32,314		33,279		33,883		34,570

			Institutional Investment Products:
51,591	50,269		Beginning total account value	50,926		51,627		51,591		51,667		51,513
4,468	3,675		Additions	545		1,298		1,810		1,606		1,052
(5,760)	(4,003	)	Withdrawals and benefits	(1,193	)	(1,863	)	(1,702	)	(1,944	)	(2,114	)
955	1,865		Change in market value, interest credited and interest income	933		900		561		241		153
(1,213)	(179	)	Other (3)	416		(371	)	(593	)	(57	)	(563	)

50,041	51,627		Ending total account value	51,627		51,591		51,667		51,513		50,041


(1,292)	(328	)	Net additions (withdrawals)	(648	)	(565	)	108		(338	)	(1,062	)

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

(2)	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, $(20) million, $407 million and $110 million for the first, second and third quarters of 2008 and the third and fourth quarters of 2007, respectively; and $(111) million and $75 million for the nine months ended September 30, 2008 and 2007, respectively. “Other” activity also includes $(511) million for the nine months ended September 30, 2007 representing a transfer within the Retirement segment from Institutional Investment Products to Full Service as a result of one client’s change in contract form. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


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

				Revenues (1):
5,135	4,602		12%	Premiums	1,518		1,590		1,772		1,736		1,627
252	217		16%	Policy charges and fee income	72		76		87		82		83
1,480	1,210		22%	Net investment income	419		434		462		504		514
500	716		-30%	Asset management fees, commissions and other income	282		182		180		161		159

7,367	6,745		9%	Total revenues	2,291		2,282		2,501		2,483		2,383


				Benefits and Expenses (1):
4,052	3,632		12%	Insurance and annuity benefits	1,194		1,275		1,413		1,360		1,279
307	240		28%	Interest credited to policyholders’ account balances	84		90		100		101		106
7	13		-46%	Interest expense	8		6		2		4		1
(874)	(773	)	-13%	Deferral of acquisition costs	(253	)	(284	)	(294	)	(299	)	(281	)
456	357		28%	Amortization of acquisition costs	103		129		160		152		144
2,004	1,812		11%	General and administrative expenses	618		673		681		686		637

5,952	5,281		13%	Total benefits and expenses	1,754		1,889		2,062		2,004		1,886


1,415	1,464		-3%	Adjusted operating income before income taxes	537		393		439		479		497

(1)

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Nine Months Ended September 30, 2008							Quarter Ended September 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	5,135		3,552		1,583		—	1,627		1,129		498		—
Policy charges and fee income	252		200		52		—	83		66		17		—
Net investment income	1,480		713		729		38	514		247		255		12
Asset management fees, commissions and other income	500		63		(12	)	449	159		20		(6	)	145

Total revenues	7,367		4,528		2,352		487	2,383		1,462		764		157


Benefits and Expenses (1):
Insurance and annuity benefits	4,052		2,817		1,235		—	1,279		900		379		—
Interest credited to policyholders’ account balances	307		125		182		—	106		42		64		—
Interest expense	7		9		(6	)	4	1		2		(2	)	1
Deferral of acquisition costs	(874	)	(624	)	(250	)	—	(281	)	(200	)	(81	)	—
Amortization of acquisition costs	456		326		130		—	144		100		44		—
General and administrative expenses	2,004		1,011		599		394	637		325		193		119

Total benefits and expenses	5,952		3,664		1,890		398	1,886		1,169		597		120


Adjusted operating income before income taxes	1,415		864		462		89	497		293		167		37


	Nine Months Ended September 30, 2007							Quarter Ended September 30, 2007
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	4,602		3,170		1,432		—	1,518		1,060		458		—
Policy charges and fee income	217		171		46		—	72		58		14		—
Net investment income	1,210		582		600		28	419		207		201		11
Asset management fees, commissions and other income	716		88		59		569	282		19		23		240

Total revenues	6,745		4,011		2,137		597	2,291		1,344		696		251


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

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


Adjusted operating income before income taxes	1,464		788		457		219	537		266		157		114

(1)

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


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

				Japanese Yen Basis Results:
				Revenues (1):
¥	335,729	¥	317,510	Japanese insurance operations excluding Gibraltar Life	¥	103,633	¥	103,043	¥	117,421	¥	107,786	¥	110,522
	252,784		249,538	Gibraltar Life		82,645		79,042		82,122		86,092		84,570

	588,513		567,048	Total revenues, Japan, yen basis		186,278		182,085		199,543		193,878		195,092


				Benefits and Expenses (1):
	259,030		246,327	Japanese insurance operations excluding Gibraltar Life		79,125		83,597		92,701		83,323		83,006
	202,389		201,480	Gibraltar Life		66,148		64,992		68,126		68,623		65,640

	461,419		447,807	Total benefits and expenses, Japan, yen basis		145,273		148,589		160,827		151,946		148,646


				Adjusted operating income (2):
	76,699		71,183	Japanese insurance operations excluding Gibraltar Life		24,508		19,446		24,720		24,463		27,516
	50,395		48,058	Gibraltar Life		16,497		14,050		13,996		17,469		18,930

¥	127,094	¥	119,241	Total adjusted operating income, Japan, yen basis	¥	41,005	¥	33,496	¥	38,716	¥	41,932	¥	46,446


				U.S. Dollar adjusted operating income (3):
$	719	$	654	Japanese insurance operations excluding Gibraltar Life	$	224	$	186	$	231	$	236	$	252
	462		457	Gibraltar Life		157		121		128		167		167

	1,181		1,111	Total adjusted operating income, Japan, U.S. dollar basis		381		307		359		403		419
	145		134	All other countries (4)		42		46		54		50		41

$	1,326	$	1,245	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	423	$	353	$	413	$	453	$	460

(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

Third Quarter 2008

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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

		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
2,651	2,237	Japan, excluding Gibraltar Life	731	765	953	859	839
1,635	1,478	Gibraltar Life	472	501	527	593	515
1,101	1,104	All other countries	387	400	379	366	356

5,387	4,819	Total	1,590	1,666	1,859	1,818	1,710

		Annualized new business premiums:
408	365	Japan, excluding Gibraltar Life	103	126	163	125	120
353	249	Gibraltar Life	86	93	94	148	111
190	214	All other countries	75	83	72	63	55

951	828	Total	264	302	329	336	286

		Annualized new business premiums by distribution channel:
598	579	Life Planners	178	209	235	188	175
311	234	Gibraltar Life Advisors	82	86	88	127	96
42	15	Banks (2)	4	7	6	21	15

951	828	Total	264	302	329	336	286


		Constant exchange rate basis (3):

		Net premiums, policy charges and fee income:
2,644	2,440	Japan, excluding Gibraltar Life	792	801	944	850	850
1,639	1,668	Gibraltar Life	537	538	542	575	522
1,140	1,099	All other countries	382	390	379	377	384

5,423	5,207	Total	1,711	1,729	1,865	1,802	1,756

		Annualized new business premiums:
407	394	Japan, excluding Gibraltar Life	111	131	161	124	122
355	269	Gibraltar Life	93	96	96	147	112
194	216	All other countries	75	80	72	64	58

956	879	Total	279	307	329	335	292

		Annualized new business premiums by distribution channel:
601	610	Life Planners	186	211	233	188	180
312	254	Gibraltar Life Advisors	89	90	90	125	97
43	15	Banks (2)	4	6	6	22	15

956	879	Total	279	307	329	335	292

(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

Third Quarter 2008

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


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

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	236		238		242		244		246
Gibraltar Life	186		186		185		184		184
All other countries	105		106		108		108		108

Total	527		530		535		536		538


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	2,167		2,194		2,232		2,258		2,288
Gibraltar Life	3,815		3,817		3,804		3,782		3,788
All other countries	1,270		1,296		1,311		1,323		1,333

Total	7,252		7,307		7,347		7,363		7,409


International life insurance policy persistency:

Excluding Gibraltar Life:
13 months	92.6	%	92.4	%	92.4	%	92.0	%	92.1	%
25 months	86.5	%	85.9	%	85.9	%	85.3	%	85.5	%

Gibraltar Life:
13 months	92.6	%	91.7	%	91.2	%	90.8	%	91.1	%
25 months	88.0	%	87.9	%	87.2	%	86.4	%	85.3	%

Number of Life Planners at end of period:
Japan	3,030		3,068		3,108		3,079		3,084
All other countries	3,008		3,098		3,030		3,100		3,183

Total life planners	6,038		6,166		6,138		6,179		6,267


Gibraltar Life Advisors	5,944		6,264		6,035		5,899		6,057

(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

Third Quarter 2008

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 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	121,816	29,283	92,533	54.8	%	128,130	37,168	90,962	55.8	%
Public, held to maturity, at amortized cost	2,774	—	2,774	1.6	%	2,879	—	2,879	1.8	%
Private, available for sale, at fair value	31,866	11,695	20,171	11.9	%	32,559	12,246	20,313	12.5	%
Private, held to maturity, at amortized cost	707	—	707	0.4	%	669	—	669	0.4	%
Trading account assets supporting insurance liabilities, at fair value	14,392	—	14,392	8.5	%	14,473	—	14,473	8.9	%
Other trading account assets, at fair value	984	128	856	0.5	%	346	142	204	0.1	%
Equity securities, available for sale, at fair value	7,375	3,131	4,244	2.5	%	8,569	3,940	4,629	2.8	%
Commercial loans	30,392	8,563	21,829	12.9	%	27,557	7,954	19,603	12.0	%
Policy loans	9,211	5,389	3,822	2.3	%	9,337	5,395	3,942	2.4	%
Other long-term investments (1)	3,924	1,416	2,508	1.5	%	3,992	1,268	2,724	1.7	%
Short-term investments (2)	6,447	1,263	5,184	3.1	%	3,983	1,385	2,598	1.6	%

Subtotal (3)	229,888	60,868	169,020	100.0	%	232,494	69,498	162,996	100.0	%

Invested assets of other entities and operations (4)	11,019	—	11,019			11,063	—	11,063

Total investments	240,907	60,868	180,039			243,557	69,498	174,059


Fixed Maturities by Credit Quality (3):


		September 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	79,416	1,789	3,046	78,159	82.1	%	74,678	2,036	1,184	75,530	80.5	%
2	Baa	14,139	187	1,184	13,142	13.8	%	13,573	490	351	13,712	14.6	%

Subtotal Investment Grade		93,555	1,976	4,230	91,301	95.9	%	88,251	2,526	1,535	89,242	95.1	%

3	Ba	2,844	30	332	2,542	2.7	%	2,830	68	102	2,796	3.1	%
4	B	1,392	3	178	1,217	1.3	%	1,681	38	82	1,637	1.7	%
5	C and lower	150	14	30	134	0.1	%	115	5	6	114	0.1	%
6	In or near default	32	3	5	30	0.0	%	34	5	1	38	0.0	%

Subtotal Below Investment Grade		4,418	50	545	3,923	4.1	%	4,660	116	191	4,585	4.9	%

Total		97,973	2,026	4,775	95,224	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	6,709	121	283	6,547	31.3	%	7,139	230	84	7,285	34.7	%
2	Baa	11,165	128	586	10,707	51.3	%	10,595	344	118	10,821	51.6	%

Subtotal Investment Grade		17,874	249	869	17,254	82.6	%	17,734	574	202	18,106	86.3	%

3	Ba	2,512	32	134	2,410	11.5	%	1,637	49	26	1,660	7.9	%
4	B	847	4	60	791	3.8	%	738	6	12	732	3.5	%
5	C and lower	235	4	10	229	1.1	%	319	8	4	323	1.5	%
6	In or near default	195	13	2	206	1.0	%	147	23	—	170	0.8	%

Subtotal Below Investment Grade		3,789	53	206	3,636	17.4	%	2,841	86	42	2,885	13.7	%

Total		21,663	302	1,075	20,890	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 September 30, 2008 and December 31, 2007, respectively, 213 securities with amortized cost of $2,692 million (fair value $2,530 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

Third Quarter 2008

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2008			December 31, 2007
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	36,886	69.2	%	34,752	68.5	%
Public, held to maturity, at amortized cost	2,774	5.2	%	2,879	5.7	%
Private, available for sale, at fair value	3,144	5.9	%	3,467	6.8	%
Private, held to maturity, at amortized cost	707	1.3	%	668	1.3	%
Trading account assets supporting insurance liabilities, at fair value	1,042	2.0	%	1,132	2.2	%
Other trading account assets, at fair value	669	1.3	%	48	0.1	%
Equity securities, available for sale, at fair value	2,355	4.4	%	2,550	5.0	%
Commercial loans	3,108	5.8	%	2,881	5.7	%
Policy loans	1,293	2.4	%	1,133	2.2	%
Other long-term investments (1)	1,171	2.2	%	993	2.0	%
Short-term investments	147	0.3	%	239	0.5	%

Total	53,296	100.0	%	50,742	100.0	%


	September 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	55,647	48.1	%	56,210	50.1	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	17,027	14.7	%	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	13,350	11.5	%	13,341	11.9	%
Other trading account assets, at fair value	187	0.2	%	156	0.1	%
Equity securities, available for sale, at fair value	1,889	1.6	%	2,079	1.9	%
Commercial loans	18,721	16.2	%	16,722	14.9	%
Policy loans	2,529	2.2	%	2,809	2.5	%
Other long-term investments (1)	1,337	1.2	%	1,731	1.5	%
Short-term investments	5,037	4.3	%	2,359	2.1	%

Total	115,724	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

Third Quarter 2008

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended September 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	4.80	%	1,413		(376	)	5.01	%	1,426		(74	)
Equity securities	5.51	%	64		(104	)	5.82	%	60		118
Commercial loans	5.83	%	246		1		6.26	%	219		10
Policy loans	5.48	%	54		—		5.08	%	47		—
Short-term investments and cash equivalents	2.39	%	72		—		5.11	%	93		—
Other investments	3.49	%	33		(18	)	3.55	%	26		(211	)

Gross investment income before investment expenses	4.77	%	1,882		(497	)	5.14	%	1,871		(157	)
Investment expenses	-0.15	%	(81	)	—		-0.15	%	(128	)	—

Subtotal	4.62	%	1,801		(497	)	4.99	%	1,743		(157	)

Investment results of other entities and operations (2)			282		105				330		(40	)
Less, investment income relating to divested businesses			(7	)					(3	)

Total			2,076		(392	)			2,070		(197	)


	Nine Months Ended September 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	4.85	%	4,191		(1,244	)	5.06	%	4,264		(33	)
Equity securities	4.96	%	170		(256	)	5.04	%	149		323
Commercial loans	5.98	%	724		(3	)	6.24	%	629		3
Policy loans	5.31	%	157		—		5.11	%	136		—
Short-term investments and cash equivalents	2.96	%	238		—		4.99	%	275		(7	)
Other investments	3.92	%	95		(284	)	5.60	%	118		(170	)

Gross investment income before investment expenses	4.85	%	5,575		(1,787	)	5.19	%	5,571		116
Investment expenses	-0.15	%	(241	)	—		-0.16	%	(402	)	—

Subtotal	4.70	%	5,334		(1,787	)	5.03	%	5,169		116

Investment results of other entities and operations (2)			1,025		43				947		25
Less, investment income relating to divested businesses			(26	)					(18	)

Total			6,333		(1,744	)			6,098		141

(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

Third Quarter 2008

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 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	3.11	%	339		2		2.72	%	263		12
Equity securities	3.82	%	25		(78	)	3.66	%	20		107
Commercial loans	4.66	%	36		14		4.53	%	31		5
Policy loans	3.82	%	12		—		3.81	%	10		—
Short-term investments and cash equivalents	1.39	%	3		—		3.45	%	9		—
Other investments	5.58	%	25		139		10.17	%	21		(32	)

Gross investment income before investment expenses	3.30	%	440		77		3.04	%	354		92
Investment expenses	-0.18	%	(24	)	—		-0.18	%	(22	)	—

Total	3.12	%	416		77		2.86	%	332		92


	Nine Months Ended September 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	3.01	%	980		(106	)	2.70	%	777		53
Equity securities	2.96	%	57		(233	)	2.82	%	44		283
Commercial loans	4.75	%	106		16		4.49	%	92		12
Policy loans	3.86	%	36		—		3.78	%	29		—
Short-term investments and cash equivalents	2.46	%	15		—		2.91	%	18		(1	)
Other investments	7.42	%	76		(3	)	12.76	%	83		(110	)

Gross investment income before investment expenses	3.23	%	1,270		(326	)	3.03	%	1,043		237
Investment expenses	-0.19	%	(79	)	—		-0.18	%	(70	)	—

Total	3.04	%	1,191		(326	)	2.85	%	973		237

(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

Third Quarter 2008

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 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	5.82	%	1,074		(378	)	6.30	%	1,163		(86	)
Equity securities	7.53	%	39		(26	)	8.25	%	40		11
Commercial loans	6.10	%	210		(13	)	6.68	%	188		5
Policy loans	6.26	%	42		—		5.58	%	37		—
Short-term investments and cash equivalents	2.49	%	69		—		5.49	%	84		—
Other investments	1.37	%	8		(157	)	0.86	%	5		(179	)

Gross investment income before investment expenses	5.54	%	1,442		(574	)	6.20	%	1,517		(249	)
Investment expenses	-0.13	%	(57	)	—		-0.13	%	(106	)	—

Total	5.41	%	1,385		(574	)	6.07	%	1,411		(249	)


	Nine Months Ended September 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	5.97	%	3,211		(1,138	)	6.39	%	3,487		(86	)
Equity securities	7.49	%	113		(23	)	7.55	%	105		40
Commercial loans	6.26	%	618		(19	)	6.69	%	537		(9	)
Policy loans	5.97	%	121		—		5.65	%	107		—
Short-term investments and cash equivalents	3.01	%	223		—		5.39	%	257		(6	)
Other investments	1.31	%	19		(281	)	2.43	%	35		(60	)

Gross investment income before investment expenses	5.71	%	4,305		(1,461	)	6.29	%	4,528		(121	)
Investment expenses	-0.14	%	(162	)	—		-0.15	%	(332	)	—

Total	5.57	%	4,143		(1,461	)	6.14	%	4,196		(121	)

(1)

(2)

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2007 AND 2008 ACTUARIAL UPDATES

(in millions)


	Policy Charges and Fee Income (1)				Insurance and Annuity Benefits (2)			Amortization of Deferred Policy Acquisition Costs				Pre-Tax Adjusted Operating Income
	Third Quarter 2007		Third Quarter 2008		Third Quarter 2007	Third Quarter 2008		Third Quarter 2007		Third Quarter 2008		Third Quarter 2007	Third Quarter 2008
Actuarial Item:

Annual review of assumptions for mortality, persistency, premium payment pattern, and other elements of expected gross profits, and guaranteed minimum death benefits
	(45	)	(81	)	12	(8	)	(135	)	(152	)	78	79


Reported amount	226		209		254	230		(68	)	(40	)


Amount excluding impact of items indicated above	271		290		242	238		67		112

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

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

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2007 AND 2008 ACTUARIAL UPDATES

(in millions)


	Insurance and Annuity Benefits			Interest Credited to Policyholders’ Account Balances			Amortization of Deferred Policy Acquisition Costs			General and Administrative Expenses		Pre-Tax Adjusted Operating Income
	Third Quarter 2007		Third Quarter 2008	Third Quarter 2007		Third Quarter 2008	Third Quarter 2007		Third Quarter 2008	Third Quarter 2007	Third Quarter 2008	Third Quarter 2007	Third Quarter 2008
Actuarial Item:

Annual review of assumptions including: actual and expected fund performance, persistency, investment margins, costs associated with guaranteed benefits, and other elements of gross profits.
	(24	)	265	(3	)	22	(13	)	68	10	25	30	(380	)


Reported amount	31		344	87		141	66		121	386	363


Amount excluding impact of items indicated above	55		79	90		119	79		53	376	338

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

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, as well as counterparty credit losses on derivative positions experienced during the third quarter of 2008.

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 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

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 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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 3.67% for the nine months ended September 30, 2008, 16.82% for the nine months ended September 30, 2007, -2.10% for the three months ended September 30, 2008, 16.14% for the three months ended September 30, 2007, 11.28% for the three months ended June 30, 2008, 1.58% for the three months ended March 31, 2008 and 14.43% for the three months ended December 31, 2007.

26. Policy Persistency - Group Insurance:

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

27. Policy Persistency - International Insurance:

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

28. Prudential Agents:

Insurance agents in our insurance operations in the United States.

29. Prudential Agent productivity:

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

30. Ratio of capital debt to total capitalization:

For the purposes of this ratio, we measure “debt” as the sum of senior debt supporting capital needs and 25% of Junior Subordinated Notes supporting capital needs, and we measure “total capitalization” as the sum of senior debt supporting capital needs, 100% of Junior Subordinated Notes supporting capital needs, and attributed equity of the Financial Services Businesses excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits.

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 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2008

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of October 29, 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 October 29, 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.		Dial 877-998-ROCK for additional printed information or inquiries.
751 Broad Street Newark, New Jersey 07102		Web Site:
		www.prudential.com

Common Stock:

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

Page 39

Form: 8-K

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