1

Investor Day 12.04.08

Prudential Financial, Inc.

Investor Day

December 4, 2008

Prudential Financial, Inc.

Investor Day

December 4, 2008

Exhibit 99.1

Investor Day

December 4, 2008

Investor Day

December 4, 2008

Eric Durant

Senior Vice President

Investor Relations

Eric Durant

Senior Vice President

Investor Relations

3

Investor Day 12.04.08

Certain

of

the

statements

included

in

this

presentation

constitute

forward-looking

statements

within

the

meaning

of

the

U.S.

Private

Securities

Litigation

Reform

Act

of

1995.

It

is

possible

that

actual

results

may

differ

materially

from

any

expectations

or

predictions

expressed

in

this

presentation.

Words

such

as

“expects,”

“believes,”

“anticipates,”

“includes,”

“plans,”

“assumes,”

“estimates,”

“projects,”

“intends,”

“should,”

“will,”

“shall,”

or

variations

of

such

words

are

generally

part

of

forward-looking

statements.

Forward-looking

statements

are

made

based

on

management’s

current

expectations

and

beliefs

concerning

future

developments

and

their

potential

effects

upon

Prudential

Financial,

Inc.

and

its

subsidiaries.

There

can

be

no

assurance

that

future

developments

affecting

Prudential

Financial,

Inc.

and

its

subsidiaries

will

be

those

anticipated

by

management.

These

forward-looking

statements

are

not

a

guarantee

of

future

performance

and

involve

risks

and

uncertainties,

and

there

are

certain

important

factors

that

could

cause

actual

results

to

differ,

possibly

materially,

from

expectations

or

estimates

reflected

in

such

forward-looking

statements,

including,

among

others:

(1)

general

economic,

market

and

political

conditions,

including

the

performance

and

fluctuations

of

fixed

income,

equity,

real

estate,

and

other

financial

markets,

particularly

in

light

of

the

stress

experienced

by

the

global

financial

markets

that

began

in

the

second

half

of

2007

and

substantially

increased

in

the

third

quarter

of

2008;

(2)

the

availability

and

cost

of

external

financing

for

our

operations,

which

has

been

affected

by

the

stress

experienced

by

the

global

financial

markets

;

(3)

interest

rate

fluctuations;

(4)

reestimates

of

our

reserves

for

future

policy

benefits

and

claims;

(5)

differences

between

actual

experience

regarding

mortality,

morbidity,

persistency,

surrender

experience,

interest

rates

or

market

returns

and

the

assumptions

we

use

in

pricing

our

products,

establishing

liabilities

and

reserves

or

for

other

purposes;

(6)

changes

in

our

assumptions

related

to

deferred

policy

acquisition

costs,

valuation

of

business

acquired

or

goodwill;

(7)

changes

in

our

claims-paying

or

credit

ratings;

(8)

investment

losses

and

defaults;

(9)

competition

in

our

product

lines

and

for

personnel;

(10)

changes

in

tax

law;

(11)

economic,

political,

currency

and

other

risks

relating

to

our

international

operations;

(12)

fluctuations

in

foreign

currency

exchange

rates

and

foreign

securities

markets;

(13)

regulatory

or

legislative

changes,

including

government

actions

in

response

to

the

stress

experienced

by

the

global

financial

markets;

(14)

changes

in

our

claims

paying

or

financial

strength

ratings;

(15)

adverse

determinations

in

litigation

or

regulatory

matters

and

our

exposure

to

contingent

liabilities,

including

in

connection

with

our

divestiture

or

winding

down

of

businesses;

(16)

domestic

or

international

military

actions,

natural

or

man-made

disasters

including

terrorist

activities

or

pandemic

disease,

or

other

events

resulting

in

catastrophic

loss

of

life;

(17)

ineffectiveness

of

risk

management

policies

and

procedures

in

identifying,

monitoring

and

managing

risks;

(18)

effects

of

acquisitions,

divestitures

and

restructurings,

including

possible

difficulties

in

integrating

and

realizing

the

projected

results

of

acquisitions;

(19)

changes

in

statutory

or

U.S.

GAAP

accounting

principles,

practices

or

policies;

(20)

changes

in

assumptions

for

retirement

expense;

(21)

Prudential

Financial,

Inc.’s

primary

reliance,

as

a

holding

company,

on

dividends

or

distributions

from

its

subsidiaries

to

meet

debt

payment

obligations

and

the

ability

of

the

subsidiaries

to

pay

such

dividends

or

distributions

in

light

of

our

ratings

objectives

and/or

applicable

regulatory

restrictions;

and

(22)

risks

due

to

the

lack

of

legal

separation

between

our

Financial

Services

Businesses

and

our

Closed

Block

Business.

Prudential

Financial,

Inc.

does

not

intend,

and

is

under

no

obligation,

to

update

any

particular

forward-looking

statement

included

in

this

presentation.

Prudential

Financial,

Inc.

of

the

United

States

is

not

affiliated

with

Prudential

PLC

which

is

headquartered

in

the

United

Kingdom.

Forward-Looking Statements

4

Investor Day 12.04.08

This presentation

includes

references

to

“adjusted

operating

income.”

Adjusted

operating

income

is

a

non-GAAP

measure

of

performance

of

our Financial

Services

Businesses.

Adjusted

operating

income

excludes

“Realized

investment

gains

(losses),

net,”

as

adjusted,

and

related

charges and

adjustments.

A

significant

element

of

realized

investment

gains

and

losses

are

impairments

and

credit-related

and

interest

rate-related gains

and

losses.

Impairments

and

losses

from

sales

of

credit-impaired

securities,

the

timing

of

which

depends

largely

on

market credit

cycles,

can

vary

considerably

across

periods.

The

timing

of

other

sales

that

would

result

in

gains

or

losses,

such

as

interest

rate-related gains

or

losses,

is

largely

subject

to

our

discretion

and

influenced

by

market

opportunities

as

well

as

our

tax

profile.

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

related

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

also

excludes

investment

gains

and

losses on

trading

account

assets

supporting

insurance

liabilities

and

changes

in

experience-rated

contractholder

liabilities

due

to

asset

value

changes,

because

these

recorded

changes

in

asset

and

liability

values

will

ultimately

accrue

to

contractholders.

Trends

in

the

underlying

profitability

of

our

businesses

can

be

more

clearly

identified

without

the

fluctuating

effects

of

these

transactions.

In

addition,

adjusted

operating income

excludes

the

results

of

divested

businesses,

which

are

not

relevant

to

our

ongoing

operations.

Discontinued

operations,

which

is

presented

as

a

separate

component

of

net

income

under

GAAP,

is

also

excluded

from

adjusted

operating

income.

We

believe

that

the presentation

of

adjusted

operating

income

as

we

measure

it

for

management

purposes

enhances

understanding

of

the

results

of

operations of

the

Financial

Services

Businesses

by

highlighting

the

results

from

ongoing

operations

and

the

underlying

profitability

of

our

businesses.

However,

adjusted

operating

income

is

not

a

substitute

for

income

determined

in

accordance

with

GAAP,

and

the

excluded

items are

important

to

an

understanding

of

our

overall

results

of

operations.

The

schedules

on

the

following

pages

provide

a

reconciliation

of

adjusted operating

income

to

income

from

continuing

operations

in

accordance

with

GAAP.

Return on

equity

(“ROE”)

based

on

adjusted

operating

income

is

determined

by

dividing

adjusted

operating

income

after-tax

(giving

effect

to

the direct

equity

adjustment

for

earnings

per

share

calculation),

annualized

for

interim

periods,

by

average

attributed

equity

for

the

Financial

Services Businesses

excluding

accumulated

other

comprehensive

income

related

to

unrealized

gains

and

losses

on

investments

and

accumulated other

comprehensive

income

related

to

pension

and

postretirement

benefits.

Our expectations

of

Common

Stock

earnings

per

share

and

ROE

are

based

on

after-tax

adjusted

operating

income.

Because

we

do

not

predict future

realized

investment

gains

/

losses

or

recorded

changes

in

asset

and

liability

values

that

will

ultimately

accrue

to

contractholders,

we

cannot

provide

a

measure

of

our

Common

Stock

earnings

per

share

or

ROE

expectations

based

on

income

from

continuing operations

of

the

Financial

Services

Businesses,

which

is

the

GAAP

measure

most

comparable

to

adjusted

operating

income.

For additional

information

about

adjusted

operating

income

and

the

comparable

GAAP

measure

please

refer

to

our

Annual

Report

on

Form

10-K for

the

year

ended

December

31,

2007,

our

Current

Report

on

Form

8-K

dated

May

16,

2008

to

retrospectively

adjust

portions

of

the

Company’s Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

2007,

and

our

Quarterly

Report

on

Form

10-Q

and

10-Q/A

for

the

quarter ended

September

30,

2008

located

on

the

Investor

Relations

Web

site

at

www.investor.prudential.com.

Additional

historical

information relating

to

the

Company’s

financial

performance,

including

its

third

quarter

2008

Quarterly

Financial

Supplement,

is

also

located

on the

Investor

Relations

website.

The information

referred

to

above

and

on

the

prior

page,

as

well

as

the

risks

of

our

businesses

described

in

our

Annual

Report

on

Form

10-K

for the

year

ended

December

31,

2007,

and

our

Quarterly

Report

on

Form

10-Q

and

10-Q/A

for

the

quarter

ended

September

30,

2008,

should be

considered

by

readers

when

reviewing

forward-looking

statements

contained

in

this

presentation.

Non–GAAP Measure

5

Investor Day 12.04.08

Nine months ended

(in millions, except per share data)

September 30, 2008

Financial Services Businesses:

Pre-tax adjusted operating income (loss) by division:

Insurance Division

Investment Division

International Insurance and Investments Division

Corporate and other operations

Total pre-tax adjusted operating income

Income taxes, applicable to adjusted operating income

Financial Services Businesses after-tax adjusted operating income

Reconciling items:

Realized investment losses, net, and related charges and adjustments

Investment gains (losses) on trading account assets supporting insurance liabilities, net

Change

in

experience-rated

contractholder

liabilities

due

to

asset

value

changes

Divested businesses

Equity in earnings of operating joint ventures

Total reconciling items, before income taxes

Income taxes, not applicable to adjusted operating income

Total reconciling items, after income taxes

Income from continuing operations (after-tax) of Financial Services Businesses

before equity in earnings of operating joint ventures

Equity in earnings of operating joint ventures, net of taxes

Income (loss) from continuing operations (after-tax) of Financial Services Businesses

Income (loss) from discontinued operations, net of taxes

Net income (loss) of Financial Services Businesses

Earnings per share of Common Stock (diluted):

Financial Services Businesses after-tax adjusted operating income

Reconciling items:

Realized investment losses, net, and related charges and adjustments

Investment gains (losses) on trading account assets supporting insurance liabilities, net

Change

in

experience-rated

contractholder

liabilities

due

to

asset

value

changes

Divested businesses

Equity in earnings of operating joint ventures

Total reconciling items, before income taxes

Income taxes, not applicable to adjusted operating income

Total reconciling items, after income taxes

Income from continuing operations (after-tax) of Financial Services Businesses

before equity in earnings of operating joint ventures

Equity in earnings of operating joint ventures, net of taxes

Income (loss) from continuing operations (after-tax) of Financial Services Businesses

Income (loss) from discontinued operations, net of taxes

Net income (loss) of Financial Services Businesses

Weighted average number of outstanding Common shares (diluted)

Reconciliation to Consolidated Net Income of Prudential Financial, Inc:

Net income (loss) of Financial Services Businesses (above)

Net income (loss) of Closed Block Business

Consolidated net income (loss)

Direct equity adjustments for earnings per share calculations

Reconciliation between adjusted operating income

and the comparable GAAP measure

670

$                        

697

1,415

(61)

2,721

717

2,004

(1,711)

(919)

682

(276)

108

(2,116)

(715)

(1,401)

603

(62)

541

3

544

$                        

4.65

$                       

(3.90)

(2.10)

1.55

(0.62)

0.25

(4.82)

(1.63)

(3.19)

1.46

(0.14)

1.32

0.00

1.32

$                       

438.6

544

$                        

(51)

493

$                        

36

$                          

6

Investor Day 12.04.08

Nine months ended

(in millions)

September 30, 2008

Revenues (1):

  Premiums

8,861

$                      

  Policy charges and fee income

2,342

                        

  Net investment income

6,332

                        

  Asset management fees, commissions and other income

2,608

                        

     Total revenues

20,143

                      

Benefits and Expenses (1):

  Insurance and annuity benefits

9,066

                        

  Interest credited to policyholders' account balances

2,462

                        

  Interest expense

787

                           

  Deferral of acquisition costs

(1,735)

                       

  Amortization of acquisition costs

891

                           

  General and administrative expenses

5,951

                        

    Total benefits and expenses

17,422

                      

Adjusted operating income before income taxes

2,721

                        

Reconciling items:

    Realized investment gains (losses), net, and related adjustments

(1,756)

                       

    Related charges

45

                             

      Total realized investment gains (losses), net, and related charges and adjustments

(1,711)

                       

   Investment gains (losses) on trading account assets supporting insurance liabilities, net

(919)

                          

   Change in experience-rated contractholder liabilities due to asset value changes

682

                           

   Divested businesses

(276)

                          

   Equity in earnings of operating joint ventures

108

                           

      Total reconciling items, before income taxes

(2,116)

                       

Income from continuing operations before income taxes and equity in earnings

   of operating joint ventures

605

                           

Income tax expense

2

                               

Income from continuing operations before equity in earnings of operating joint ventures

603

$                         

(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.

Reconciliation between adjusted operating income

and the comparable GAAP measure (continued)

Prudential Financial, Inc.

Prudential Financial, Inc.

John Strangfeld

CEO and Chairman

John Strangfeld

CEO and Chairman

8

Investor Day 12.04.08

Where We Are Today

•

Balanced portfolio of businesses and risks

•

High quality businesses

–

Attractive value propositions

–

Strong underlying fundamentals

–

Diversified distribution channels

–

Strong growth prospects in International, U.S. Retirement

and Annuities

•

Strong balance sheet

–

Capital to meet “AA”

standards for insurance subsidiaries

–

Diversified high quality investment portfolio

•

Robust sources of liquidity provide financial flexibility

•

Acquisition and integration track record

9

Investor Day 12.04.08

Wachovia Joint Venture

•

Formed in 2003; created third largest retail securities firm

•

Viewed as a financial investment versus strategic investment

•

Wachovia management has operating control; Prudential

has put rights

•

“Lookback”

option selected as consequence of

A.G. Edwards transaction

•

We intend to exercise our lookback put

–

Current counterparty is Wachovia; will be Wells Fargo by year-end

–

Valuation established based on value of the pre-A.G. Edwards

business at January 1, 2008; approximate value is $5 billion pre-tax;

in excess of $3.7 billion after-tax

–

Timing of proceeds –

January 2010

•

We will record Financial Advisory as a divested business beginning

in the fourth quarter of 2008

10

Investor Day 12.04.08

Attributed Equity of Operating Businesses

Attributed

Attributed

equity

equity

$21.5

$21.5

billion

billion

(1)

(1)

INTERNATIONAL BUSINESSES

INTERNATIONAL BUSINESSES

•

•

Life Planner model

Life Planner model

•

•

Gibraltar Life

Gibraltar Life

•

•

International Investments

International Investments

RETIREMENT & ACCUMULATION

RETIREMENT & ACCUMULATION

•

•

Retirement

Retirement

•

•

Individual Annuities

Individual Annuities

•

•

Asset Management

Asset Management

DOMESTIC INSURANCE

DOMESTIC INSURANCE

•

•

Individual Life

Individual Life

•

•

Group Insurance

Group Insurance

CORPORATE AND OTHER

CORPORATE AND OTHER

(2)

(2)

1)

As of September 30, 2008 for the FSB; excludes accumulated other comprehensive income related to unrealized

gains and losses on investments and pension/postretirement benefits

2)

Includes investment in Wachovia retail securities brokerage joint venture

$3.4

$8.8

$7.2

$2.1

11

Investor Day 12.04.08

Capital To Meet “AA”

Standards

For Insurance Subsidiaries

Prudential Insurance

Prudential Insurance

Other Businesses:

Other Businesses:

Attributed equity $5.8 billion

Attributed equity $5.8 billion

(1) (3)

Regulated Businesses:

Regulated Businesses:

Attributed equity $15.7 billion

Attributed equity $15.7 billion

(1) (2)

Prudential Retirement Insurance

Prudential Retirement Insurance

& Annuity Co.

& Annuity Co.

Prudential Annuities

Prudential Annuities

Life Assurance  Co.

Life Assurance  Co.

Prudential of Japan

Prudential of Japan

Gibraltar Life

Gibraltar Life

Wachovia Retail Securities

Wachovia Retail Securities

Brokerage Joint Venture

Brokerage Joint Venture

Asset Management Businesses

Asset Management Businesses

International Investment

International Investment

Businesses

Businesses

Real Estate and Relocation

Real Estate and Relocation

1)

For the Financial Services Businesses; as of September 30, 2008

2)

Represents attributed equity for businesses primarily conducted through regulated insurance entities

3)

Represents attributed equity for businesses primarily conducted through unregulated entities

12

Investor Day 12.04.08

Robust Sources of Liquidity Provide

Flexibility in Challenging Financial Markets

Prudential

Prudential

Insurance

Insurance

(1)

(1)

•

Commercial Paper Program

Commercial Paper Program

qualifies for Federal facility up

qualifies for Federal facility up

to $9.8 billion

to $9.8 billion

•

Federal Home Loan Bank of

Federal Home Loan Bank of

New York borrowing facility

New York borrowing facility

•

$10 billion readily

$10 billion readily

“lendable”

“lendable”

securities

securities

(2)(3)

(2)(3)

•

Strong cash flows from

Strong cash flows from

insurance operations

insurance operations

Parent Company

Parent Company

•

•

$3.8 billion cash and short-term

$3.8 billion cash and short-term

investments on balance sheet

investments on balance sheet

(2)

(2)

•

•

Commercial Paper Program

Commercial Paper Program

qualifies for Federal facility up

qualifies for Federal facility up

to $1.3 billion 

to $1.3 billion 

•

•

Inter-company liquidity facility

Inter-company liquidity facility

•

•

Inter-company debt

Inter-company debt

$4.4

$4.4

billion

billion

committed

committed

lines

lines

of

of

credit

credit

(2)(4)

(2)(4)

1)

Including wholly-owned subsidiary, Prudential Funding, LLC

2)

As of September 30, 2008

3)

For the Financial Services Businesses

4)

Excluding $500 million facility expiring December 2008

13

Investor Day 12.04.08

Diversified High Quality Investment Portfolio

•

Prudential is a credit shop

•

Seasoned skills in multiple asset classes enhance

risk diversification

•

Market leading capabilities: private fixed income,

commercial mortgages and real estate

•

Defensively positioned portfolio

•

Third-party Institutional flows: the best indicator

of competitiveness

14

Investor Day 12.04.08

Attractive Value Proposition in

Markets Focused on Retirement Security

•

Insurance-based retirement

income products attractive to

Life Planner and Gibraltar clients

•

U.S. dollar denominated fixed

annuities offer alternative to

volatile financial markets

International

International

Businesses

Businesses

•

“Highest Daily”

Annuity Products:

self-hedging feature protects

customer account value, reduces

company’s risk profile

•

Retirement stable value products

highly attractive in volatile

financial markets

United States

United States

Businesses

Businesses

Insurance

Protection

Products

Offer

Fundamental

Financial

Security

Reputation: “Over 130 Years of Making and Keeping Promises”

Reputation: “Over 130 Years of Making and Keeping Promises”

15

Investor Day 12.04.08

Prudential’s Management Team

John Strangfeld

CEO and Chairman

Mark Grier

Vice Chairman

Rich Carbone

Chief Financial Officer

Bernard Winograd

U.S. Businesses

Ed Baird

International Businesses

•

Jim Avery

Individual Life

•

Steve Pelletier

Individual Annuities

•

Lori High

Group Insurance

•

Christine Marcks

Retirement

•

Charles Lowrey

Asset Management

•

Kazuo Maeda

Insurance –

Japan

•

Tim Feige

Insurance –

Other Countries

•

Chris Cooper

International Investments

Office

of the

Chairman

Prudential Financial, Inc.

Prudential Financial, Inc.

Mark Grier

Vice Chairman

Mark Grier

Vice Chairman

17

Investor Day 12.04.08

Financial Strength and Flexibility in

Challenging Markets

•

Internal resources

available

to

support

“AA”

ratings

objectives

for insurance entities

•

Robust liquidity sources for parent company and operating units

•

Asset management is a key Prudential capability

•

Asset selection reflects liability characteristics

•

Highly diversified and defensively positioned

investment portfolio

•

Concentration limits around investment portfolio

–

Asset class

–

Single issuer

–

Credit quality and industry

–

Geographic

18

Investor Day 12.04.08

Insurance Entities

Managing to “AA”

Standards

•

Credit migration

•

Business growth

Required Capital:

$2 Billion

Targeted to

meet “AA”

standards

•

Statutory operating

results

•

Annuity reserves

•

Credit impairments

•

Unrealized gains

and losses

•

Dividends to parent

Total Adjusted

Capital:

$11 Billion

RBC at

RBC at

December 31,

December 31,

2008

2008

2008 Developments

2008 Developments

Risk Based Capital

Risk Based Capital

at December 31,

at December 31,

2007

2007

(1)

(1)

•

Possible 

contribution

of financial

assets

•

Possible

adjustment of

policyholder

dividend

scale to

reflect results

1)

As

reported

by

Prudential

Insurance

to

Insurance

regulators.

“Required

Capital”

represents

authorized

control level risk-based capital multiplied by 2; in Billions.

19

Investor Day 12.04.08

Statutory Accounting: Responsible Approach

Supports Quality of Recorded Capital

•

Asset Valuation Reserve: $2.1

billion

(1)

–

historically maintained at or near maximum levels

•

Asset Adequacy Testing: reserves based on

projected cash flows under adverse scenarios,

not heroic assumptions

•

Structured securities: GAAP market values applied

in impairments, ahead of new standards

1)

For Prudential Insurance, as of September 30, 2008

20

Investor Day 12.04.08

Prudential Financial, Inc. (Parent)

Robust Sources of Liquidity

Inter-company

Debt

Enterprise

Liquidity Facility

Lines

of Credit

Commercial

Paper

Prudential Insurance

“Lendable”

Securities

Cash Flows from

Operations

Lines

of Credit

Federal Home Loan Bank

of New York

Prudential Funding, LLC

Lines

of Credit

Commercial

Paper

•

Asset

Management

Businesses

•

International

Businesses

Funding Arm of

Prudential

Insurance

Cash and Short

Term Investments

21

Investor Day 12.04.08

Asset Selection

Focus on Liability Characteristics

Public fixed maturities

Long-term Japanese

government bonds;

equities support “tail”

Private placement

bonds, commercial

mortgages

Representative

Representative

Asset Types

Asset Types

Long duration,

variable crediting rates;

floor guarantees

Domestic Universal Life

Extremely long duration

(30 years +);

fixed rate guarantees

Japanese Life Planner

Protection Products

Predictable

withdrawals, crediting

rates experience-based

Retirement –

Full Service Stable Value

Liability

Liability

Characteristics

Characteristics

Products

Products

22

Investor Day 12.04.08

US Government

(3)

4%

Foreign

Government

26%

Other Asset-

Backed

9%

Commercial

Mortgage-Backed

7%

Residential MBS-

Agency

passthroughs

9%

Corporate

45%

9%

13%

12%

56%

Broad Investment Expertise

Supports Risk Diversification

1)

As of September 30, 2008 at balance sheet carrying amount; excludes invested assets of securities brokerage,

securities trading,

banking

and

asset

management

operations,

and

real

estate

and

relocation

services

2)

Trading account assets supporting insurance liabilities (investment results ultimately accrue to contract-holders)

3)

Includes state and municipal securities

FSB Fixed Maturities

FSB Fixed Maturities

$116 billion

$116 billion

(1)

(1)

FSB General Account

FSB General Account

$169 billion

$169 billion

(1)

(1)

Public

Private

Commercial Loans

“TAASIL”

(2)

Fixed

Maturities

Equities 3%

Other long-term 1%

Policy loans,

Short-term, other 6%

23

Investor Day 12.04.08

Asset Selection

Focus on Quality

1)

In billions; at fair value. Excludes invested assets of securities brokerage, securities trading,

banking and asset management operations, and real estate and relocation services

FSB Fixed Maturity Portfolio

FSB Fixed Maturity Portfolio

(1)

(1)

$81.9

$87.4

$104.7

$107.9

$114.6

$114.8

6.2

6.2

6.2

6.2

5.9

5.9

6.2

6.2

7.4

7.4

7.5

7.5

Investment

grade

Non-investment

grade

12/31/02

12/31/03

12/31/04

12/31/05

12/31/06

12/31/07

$116.1

9/30/08

7.6

7.6

24

Investor Day 12.04.08

Prudential’s Credit Exposure

Corporate Credits

Corporate Credits

Total FSB -

Total FSB -

General Account

General Account

$55.4 billion

$55.4 billion

(1)

(1)

60%

7%

27%

6%

Public Corporates

Investment Grade

Public Corporates

High Yield

Private Corporates

Investment Grade

Private Corporates

High Yield

1)

Financial Services Businesses General Account; as of September 30, 2008; amortized cost

25

Investor Day 12.04.08

Prudential’s Credit Exposure

(1)

Note: Universe derived from Lehman Corporate Credit and High Yield Indices in proportions consistent with our

actual Investment Grade/Non Investment Grade mix.

1)

For the Financial Services Businesses General Account as of September 30, 2008 based on market value

-8%

-4%

0%

4%

8%

12%

Prudential         Over/Under Weight vs. Lehman

26

Investor Day 12.04.08

Private Fixed Income

$21.7 Billion

(1)

1)

Financial Services Businesses General Account; as of September 30, 2008; amortized cost

Private Placement Debt Market

Private Placement Debt Market

•

Often well-suited to fund

insurance liability cash flows

•

Terms and covenants offer

investors protection from

“event risks”

•

Attractive long-term capital

source for middle market

companies

•

Higher credit spreads or coupons

relative to like-quality public securities

Prudential Positioning

Prudential Positioning

•

Prudential general account is

preferred customer

•

Not a “price taker”

–

direct

access to issuers allows

negotiation of terms

and covenants

•

Relatively favorable credit

experience

•

“Reliable partner”: proprietary

direct origination network built

on relationships

•

Over 60 years experience

27

Investor Day 12.04.08

Sub-Prime Asset-Backed Securities

(1)

50%

91%

41%

$4,696

$5,872

$409

$590

$887

$2,086

$1,900

Fair

Value

TOTAL

BB &

below

BBB

A

AA

AAA

Amortized Cost at Lowest Rating Agency Rating

Amortized Cost at Lowest Rating Agency Rating

68%

Enhanced Short-Term Portfolio

(2)

Credit Subordination:

20% or more

30% or more

1)

For the Financial Services Businesses General Account; in millions; as of September 30, 2008

2)

Remaining average expected life of two years or less when acquired

28

Investor Day 12.04.08

1.55x

69%

75%

91%

$7,844

$8,420

$153

$183

$56

$107

$7,921

Fair

Value

TOTAL

BB &

below

BBB

A

AA

AAA

Amortized Cost at Lowest Rating Agency Rating

Amortized Cost at Lowest Rating Agency Rating

94%

1)

For the Financial Services Businesses General Account; in millions; as of September 30, 2008

Commercial Mortgage-Backed Securities

(1)

Credit Subordination:

20% or more

30% or more

Weighted Average:

Loan-to-Value Ratio

Debt Service Coverage Ratio

29

Investor Day 12.04.08

Commercial Mortgages

(1) (2)

0.3%

Percentage Delinquent

or in foreclosure

1.91x

•

Debt Service Coverage Ratio

57%

Weighted Average

•

Loan-to-Value Ratio

$22 billion

Carrying Value

1)

For the Financial Services Businesses General Account; in millions; as of September 30, 2008

2)

Includes

$1.2

billion

uncollateralized

loans,

primarily

corporate

loans

not

meeting

definition

of

“security”

under

GAAP.

30

Investor Day 12.04.08

Financial Strength and Flexibility

•

Insurance entities managed to “AA”

standards;

supported by internal capital resources

•

Broad investment expertise and asset-liability

management skills drive portfolio selection

•

Asset selection reflects liability characteristics; focus

on cash flows, not fluctuating market values

•

Concentration limits mitigate risk

Prudential Financial, Inc.

Prudential Financial, Inc.

Rich Carbone

Chief Financial Officer

Rich Carbone

Chief Financial Officer

32

Investor Day 12.04.08

Prudential’s View on Capital

•

Required Equity

–

The amount of equity capital necessary to support business risk at

an A rating at PFI and AA rating at Prudential’s insurance

subsidiaries (e.g. Prudential Insurance).

–

Equity attribution methodology that is unbiased, based on risk,

regulatory capital requirements, and common sense.

•

Capital Capacity

–

Net Balance Sheet Excess Capital

•

Off Balance Sheet Capacity

–

Wachovia Joint Venture

–

Hybrids

–

Surplus Notes

33

Investor Day 12.04.08

2008 Capital Capacity

(1)

$   1,700

Unrecognized Wachovia Gain (after-tax)

$   28,000

$  24,400

Required Equity

23%

18%

Debt to Capital Ratio

450%

551%

Prudential Insurance RBC

(3)

$    1,550

$    7,041

Capital Capacity (A) + (B)

1,100

4,651

Total Unused Leverage Capacity (B)

1,100

4,192

Unused Hybrid Capacity

-

459

Unused Debt Capacity

450

2,390

Net on Balance Sheet Excess Capital (A)

28,450

26,790

Total Capital Outstanding

1,500

-

Hybrids Outstanding

6,250

4,781

Capital Debt Outstanding

20,700

22,009

Attributed Equity

(2)

S&P 900

S&P 900

Actual

Actual

Capital Capacity

Capital Capacity

($ in millions)

12/31/2007

12/31/2008 Projected

1)

For the Financial Services Businesses

2)

Excludes accumulated other comprehensive income related to unrealized gains and losses on investments and

pension/postretirement benefits.

3)

The inclusion of RBC measures is intended solely for the information of investors and is not intended for the purpose

of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.

34

Investor Day 12.04.08

2008 Capital Capacity

(1)

$    1,700

$    1,700

$    1,700

Unrecognized Wachovia Gain (after-tax)

$   29,600

$ 28,800

$  28,000

$  24,400

Required Equity

25%

370%

$  (1,050)

350

350

-

(1,400)

28,200

1,500

6,700

20,000

S&P 700

S&P 700

24%

420%

$      350

800

800

-

(450)

28,350

1,500     

6,450

20,400

S&P 800

S&P 800

23%

18%

Debt to Capital Ratio

450%

551%

Prudential Insurance RBC

(3)

$    1,550

$    7,041

Capital Capacity (A) + (B)

1,100

4,651

Total Unused Leverage Capacity (B)

1,100

4,192

Unused Hybrid Capacity

-

459

Unused Debt Capacity

450

2,390

Net on Balance Sheet Excess Capital (A)

28,450

26,790

Total Capital Outstanding

1,500

-

Hybrids Outstanding

6,250

4,781

Capital Debt Outstanding

20,700

22,009

Attributed Equity

(2)

S&P 900

S&P 900

Actual

Actual

Capital Capacity

Capital Capacity

($ in millions)

12/31/2007

12/31/2008 Projected

1)

For the Financial Services Businesses

2)

Excludes accumulated other comprehensive income related to unrealized gains and losses on investments and

pension/postretirement benefits.

3)

The inclusion of RBC measures is intended solely for the information of investors and is not intended for the purpose

of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.

35

Investor Day 12.04.08

PFI Projected Sources & Uses of Cash (S&P 700)

$         301

$     2,598

$     2,535

Net Balance, excluding CP / other financing

$    (3,264)

$   (1,181)

$   (3,320)

Total Uses of Cash

(239)

(281)

(1,197)

Other Cash Outflows

-

-

(240)

Shareholder Dividends

$      (3,025)

$        (900)

$    ( 1,883)

Maturing Debt

Uses of Cash

$      3,565

$     3,779

$     5,855

Total On Balance Sheet Sources of Cash

967

1,244

3,466

Cash inflows

$        2,598

$       2,535

$       2,389

Cash on hand

2Q09

2Q09

1Q09

1Q09

4Q08

4Q08

On Balance Sheet Sources of Cash

On Balance Sheet Sources of Cash

$          250

$          800

$          800

Affiliate Borrowing Capacity

4,440

Credit Lines

TBD

TBD

N/A

Debt Markets

TBD

TBD

TBD

Wachovia JV Put –

Early Exit or Potential Financing

-

1,300

1,300

Federal Commercial Paper Funding Facility

Additional Sources of Liquidity

Additional Sources of Liquidity

Note: $ in millions

36

Investor Day 12.04.08

Sources

of

Prudential

Insurance

Liquidity

(1)

•

Unused Securities Lending Capacity

$10.0  billion

(2)

•

Federal Home Loan Bank of NY Total Capacity

$  6.7  billion

•

Federal Commercial Paper Funding Facility

$  9.8  billion

•

Credit Lines (shared with holding company)

$  4.4  billion

(3)

1)

As of September 30, 2008; includes Prudential Funding

2)

For the Financial Services Businesses

3)

Excludes $0.5 billion, maturing in December 2008

U.S. Businesses

Growing and Protecting Wealth

in the Domestic Market

U.S. Businesses

Growing and Protecting Wealth

in the Domestic Market

Bernard Winograd

Chief Operating Officer

United States Businesses

Bernard Winograd

Chief Operating Officer

United States Businesses

38

Investor Day 12.04.08

15%

30%

27%

10%

18%

1)

As of September 30, 2008; Insurance and Investment Divisions of Financial Services Businesses;

excludes Financial Advisory segment.

Attributed

Equity

of

U.S.

Businesses

(1)

Growing Wealth

Individual

Annuities

$3.3

billion

Protecting Wealth

Retirement

$3.7

billion

Asset

Management

$1.8

billion

Individual Life          $2.2 billion

Group Insurance      $1.2 billion

Attributed Equity

Attributed Equity

$12.2 billion

$12.2 billion

39

Investor Day 12.04.08

Balanced Mix of Business Risks

Attributed Equity

Attributed Equity

$12.2 billion

$12.2 billion

(1)

(1)

Primary Business Risks

27%

28%

30%

15%

Fixed income and

equity markets

Equity markets, interest

rates, longevity

Mortality, morbidity

Commercial real estate,

debt, equity markets

Annuities

Retirement

Individual Life,

Group Insurance

Asset

Management

1)

As of September 30, 2008; Insurance and Investment Divisions of Financial Services Businesses;

excludes Financial Advisory segment.

40

Investor Day 12.04.08

Retirement and Annuities

Competitive Advantages

•

Unique positioning:

–

Market leading annuity provider

–

Full Service retirement provider

–

DB asset manager

•

Awarded “Best Living Benefits”

by Boomer Market

Advisor Magazine for fourth consecutive year

•

Access to Prudential’s risk management

and asset management expertise

•

Proven product innovation capabilities

•

Distribution breadth, supported by strong branding

•

Scale allows competitive pricing and broad

service capabilities

41

Investor Day 12.04.08

A Leading Provider in the U.S.

Retirement and Savings Market

$0

$50

$100

$150

$200

$250

$300

Retirement

Annuities

12/31/02

12/31/03

12/31/04

12/31/05

12/31/06

1)

Includes acquired businesses from dates of acquisitions

$226

$191

$183

$120

$82

12/31/07

$248

9/30/08

$222

42

Investor Day 12.04.08

1)

Source: VARDS 3Q08 and Company data; Advisor-sold market excludes group contracts and contracts

that are primarily sold in employer-sponsored markets

Prudential Annuities is ranked #3 in advisor-sold VA account values

Prudential Annuities is ranked #3 in advisor-sold VA account values

(1)

(1)

($ billions)

#3 

#3 

92.3

77.6

66.7

55.2

50.2

49.0

47.5

46.9

45.7

36.8

Prudential Annuities

Top 10 Variable Annuity Company

Hartford

Met Life

Prudential Financial

AXA

Lincoln

Ameriprise

John Hancock

Pacific Life

ING

Nationwide

43

Investor Day 12.04.08

Variable Annuity Market Trends

•

Current market conditions: lower sales, account

values, and earnings across the industry

•

Heightened customer interest in downside protection

and retirement income security

•

Risk management strategies tested in current

market environment

•

Increased costs for hedging instruments

•

Higher DAC amortization and GMDB reserves

44

Investor Day 12.04.08

Managing Through

Challenging Financial Markets

•

47% of account values with living

benefits essentially “self hedging”

for

equity market risk

(2)

•

Long-dated hedging instruments limit

exposure to hedge cost volatility

Increased cost of

hedging instruments

•

Attractive product features drive

strong persistency; positive net sales

$2.4 billion for 12 months ended 3Q08

•

Asset allocation requirements and

auto-rebalancing limit equity market

exposure on popular current

products

Equity market declines

lowering variable annuity

account values

•

Opportunity to demonstrate value of

unique “Highest Daily”

Guarantees;

Take Rate 61%

(1)

Heightened customer interest

in downside protection and

retirement income security

Prudential Positioning

Impact of Financial

Market Conditions

1)

Based on initial premiums; for the nine months ended September 30, 2008

2)

As of September 30, 2008

45

Investor Day 12.04.08

Prudential Annuities

Active Management of Product Risks

•

•

Current

Current Living Benefit (HD) product design minimizes Prudential’s

risk while meeting customers’

needs

–

Highest Daily +7% annual return

–

Automatic rebalancing narrows the range of possible

investment outcomes

–

As of September 30, 2008, 52% of variable annuity account values

had living benefits and 47% of living benefits had the automatic

rebalancing feature

46

Investor Day 12.04.08

Highest Daily Lifetime Seven

•

Introduced January 2008

•

Withdrawal

benefit:

5%

-

8%

of

Protected

Value

for

Life

(based on age at first withdrawal)

•

Initial Protected Value:

–

Greatest 7% roll-up based on each daily account value

(10 years or until first withdrawal); or

–

Account value at first withdrawal, if greater

•

Equity Risk Management:

“Self-Hedging”

feature automatically rebalances

customer funds to investment grade bond fund

•

Cost: 60 basis points x protected withdrawal value (individual);

75 basis points x protected withdrawal value (spousal)

47

Investor Day 12.04.08

$5

$10

$15

$20

$25

$30

$35

$40

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

$7.8

Equity

Risk Self

Hedged;

Int. Rate

Risk

Hedged

$13.6

Hedged

$8.7

Equity

& Int.

Rate Risk

Self Hedged

$5.1

Retain

Risk

Account Values ($ billions)

Living Benefit Product Profile

1)

For the nine months ended September 30, 2008

2)

Includes

Prudential

and

Allstate

business;

no

significant

recent

sales

3)

Includes LT5, SLT5, GMWB, and Allstate GMAB

4)

Includes “GRO”

products other than HD GRO

5)

Includes HD5, HD7, SHD7, and HD GRO

$0

HD

Products

-

61%

election

rate

(1)(5)

“GRO”

-

7% election rate

(1)(4)

Legacy GMWB and GMAB’s -

16% election rate

(1) (3)

Run-off GMIB

(2)

48

Investor Day 12.04.08

Impact of Variable Annuity Risk Management

on Statutory Capital and Reserves

Lower tail risk since modeling

accounts for rebalancing under

adverse scenarios

C3 Phase II:

Capital based on tail risk derived

from stochastic modeling

Statutory Capital

Requirements

More favorable reserve credit at

given level of equity market decline

due to operation of rebalancing

Account values less sensitive to

equity market declines as

rebalancing occurs; virtually all in

fixed income

at

35%

-

40%

equity

market decline

“CARVM”

reserve credit based on

highest potential cash flows

to policyholder

GMDB reserve based on “shock”

of account values for specified

asset value declines, followed by

recovery at specified rate

Statutory Reserve

Requirements

$16.5 billion (47%) of $35 billion

total account values with living

benefit features

Account values

subject to

requirements at

September 30, 2008

Impact of Automatic

Rebalancing

Measure

49

Investor Day 12.04.08

4.1%

5.4%

5.5%

6.6%

7.9%

7.3%

7.0%

7.2%

4.7%

5.5%

5.8%

5.8%

5.0%

5.0%

6.5%

6.8%

6.8%

7.8%

7.4%

7.7%

7.9%

8.1%

8.0%

Sales Market Share

Source:  VARDS.  Excludes Group/Retirement Plan Contracts

June 2006: Allstate

Transaction Closes

March 2005: Lifetime

Five Launch

May 2003: American

Skandia Acquisition

Nov. 2006 : Highest Daily

Lifetime Five Launch

Jan. 2008: Highest Daily

Lifetime Seven Launch

Innovative Features

Drive Market Share Growth

Oct. 2004: American Skandia

Systems Conversion

50

Investor Day 12.04.08

Prudential Retirement

Emphasis on Full Service Retirement

1)

Includes business acquired from CIGNA from April 1, 2004 acquisition date

$0

$25

$50

$75

$100

$125

$150

$175

12/31/03

12/31/04

12/31/05

12/31/06

12/31/07

09/30/07

09/30/08

Institutional Investment Products

Full Service

$151

$157

$148

$136

$132

$72

$164

51

Investor Day 12.04.08

Full Service Retirement

112,192

943

$ 14,692

2007

100,463

1,210

$12,392

2008

105,601

97,430

88,385

Account Values

(1)

489

$ 10,434 

2007

167

$ 16,156

2006

2005

(912)

Net Additions

(withdrawals)

$ 13,006

Gross Deposits

and Sales

1)

As of end of period

2)

For the nine months ended September 30, 2008

95% Persistency

95% Persistency

(2)

(2)

Nine months ended        

September 30

Year Ended December 31

($ millions)

52

Investor Day 12.04.08

Emphasis on Mid/Large Case and

Tax Exempt Markets

1,000,000

1,839,000

Participants

(2)

$ 33,000

$ 64,100

Account Values

(1) (2)

Specialized consultants

-

Fee based consultants

-

Commission based advisors

-

Third party administrators

-

Direct

Distribution

Channels

Primary Products

Tax Exempt Market

Corporate Markets

-

DC plans

-

DB plans

-

Total Retirement Services

-

Non-qualified plans

-

Investment only products

1)

In millions

2)

As of September 30, 2008; excludes $3.3 billion retail account values for approximately

64,500 participants

Emphasis on

Emphasis on

mid/large

mid/large

case market

case market

53

Investor Day 12.04.08

0

5

10

15

20

25

30

35

40

12/31/05

12/31/06

12/31/07

09/30/08

Full Service Stable Value

$31.3

$30.8

$32.3

•

Plan sponsor terminations generally

require 3-6 months notice for market value,

or 3-6 years for book value cash-out

$34.6

54

Investor Day 12.04.08

Full Service Stable Value Products

Attractive Value Proposition in Volatile Financial Markets

•

•

Principal guarantee feature attractive to

security-minded pre-retirees

•

Low risk profile –

substantially all balances

experience-rated, with clients sharing investment risk

•

Rate resets annually on most products

•

Future crediting rates typically reflect prior experience

•

Low interest rate floors; competitive conditions main

factor in rate setting

55

Investor Day 12.04.08

$29.0

$12.3

$5.2

$3.5

Institutional Investment Products

Account values $50 billion

Account values $50 billion

(1)

(1)

1)

As of September 30, 2008

Structured

Settlements

Group

Annuities,

Close-out

Pensions

Funding Agreements,

GIC’s, other products

Retail Notes

•

Supported by cash-flow

matched investments

•

Unscheduled withdrawals

generally not permitted

Virtually no exposure to “putable”

GIC’s; $240 million redeemable with

one year notice

56

Investor Day 12.04.08

Prudential Investment Management

Competitive Advantages

Scale

Scale

Scale

Brand and

Reputation

Brand and

Brand and

Reputation

Reputation

Experience and

Track Record

Experience and

Experience and

Track Record

Track Record

Breadth and

Depth of

Capabilities

Breadth and

Breadth and

Depth of

Depth of

Capabilities

Capabilities

Access to Capital

and Co-investing

Access to Capital

Access to Capital

and Co-investing

and Co-investing

Institutional

Institutional

Clients

Clients

•

•

$139 billion third

$139 billion third

party institutional

party institutional

AUM

AUM

(1)

(1)

•

•

18% AUM CAGR

18% AUM CAGR

(2002 –

(2002 –

2007)

2007)

Manager Continuity

Manager Continuity

•

•

188 portfolio

188 portfolio

managers

managers

(1)

(1)

•

•

Average tenure

Average tenure

14 years

14 years

1)

As of September 30, 2008; AUM excludes affiliated institutional assets under management

57

Investor Day 12.04.08

28%

29%

18%

12%

13%

AUM by Asset Type

AUM

by

Client

Type

Equity

Institutional

Customers

General

Account

Retail

Customers

CB

Total AUM $602 billion

Total AUM $602 billion

(1)

(1)

1)

As of September 30, 2008

Non-

proprietary

insurance,

annuity &

other

International

Prudential Financial’s AUM

Significant Scale and Breadth

Asset

Management

Business

$422 billion

47%

18%

12%

5%

18%

Non-

proprietary

insurance,

annuity &

other

Real

Estate

International

Fixed Income

58

Investor Day 12.04.08

Public

Equity

24%

Public

Fixed

Income

50%

11%

Private

Fixed

Income

7%

Commercial

Mortgages

8% 

Real

Estate

Assets Under Management

Assets Under Management

$422 Billion

$422 Billion

(1)

(1)

Public

Equity

(3)

19%

Public

Fixed

Income

28%

Private

Fixed

Income 7%

Commercial

Mortgages

8%

Asset Management Revenue

Asset Management Revenue

$1.8 Billion

$1.8 Billion

(2)

(2)

Real

Estate

38%

1)

As of September 30, 2008

2)

For the year ended December 31, 2007; excludes mutual fund distribution revenues

3)

Includes revenue from management of public fixed income securities by Jennison Associates

Fixed

Income

Broad Asset Class Capabilities

59

Investor Day 12.04.08

Equity

Fixed Income

Real Estate

Total

2005

2006

2007

YTD3Q2008

Third Party Institutional Flows

are the Best Indicator of Competitiveness

Percent

of

Beginning

of

Period

Assets

(2)

10%

4%

8%

9%

10%

5%

10%

13%

1%

9%

8%

5%

4%

2%

6%

Institutional

Institutional

Net

Net

Flows

Flows

($

($

billions)

billions)

(1)

(1)

1)

Excludes money market funds and the effects of certain nonrecurring transfer and disposition events.

Includes assets transferred from the Retirement segment.

2)

Third party institutional net flows as a percentage of total institutional assets under management.

10%

$5.4

$4.3

$1.4

$11.1

$2.3

$1.8

$6.7

$10.8

$6.5

$0.2

$6.1

$0.2

$10.0

$0.6

$5.4

$4.0

60

Investor Day 12.04.08

$    701

127

574

1,541

$ 2,115

2007

$    301

$    550

Adjusted Operating Income

(62)

112

Proprietary Investment Results

363

438

1,081

1,398

Expenses

$ 1,444

Nine months

ended

September

30, 2008

$ 1,836

2006

($ in millions, pre-tax)

Revenues

Adjusted Operating Income

Adjusted Operating Income

Before Proprietary Investments:

Before Proprietary Investments:

Asset Management Financial Results

61

Investor Day 12.04.08

Asset Management

Adjusted Operating Income by Business

$301

$701

$550

TOTAL

34

71

35

177

112

$272

2007

10

21

Prudential Investments

29

48

Prudential Mortgage Capital

Company

29

38

Prudential Capital Group

21

101

Public Fixed Income

47

$165

Nine months

ended

September

30, 2008

74

$268

2006

($ in millions, pre-tax)

Equity

Prudential Real Estate Investors

62

Investor Day 12.04.08

Domestic Protection Businesses

•

Maintain market position:

#2 in Group Life

(1)

•

Focus on returns: case

selection; appropriate

pricing

•

Generate strong cash flows

•

Optional life purchases

contribute to growth

prospects

Group

Group

Insurance

Insurance

•

Focus on returns through

capital management, cost-

effective distribution

•

Expanded third party

distribution is growth

opportunity

•

Deliver stable earnings and

strong cash flows

•

Mature, low-growth

industry

•

Overcapacity

•

Commodity products

Individual

Individual

Life

Life

Prudential Strategies

Protection Marketplace

1)

Based on A.M. Best ranking of statutory premiums for the year ended December 31, 2007

63

Investor Day 12.04.08

$0

$100

$200

$300

$400

$500

$600

2005

2006

2007

3mo 07

3mo 08

Individual Life Sales

(1)

1)

Scheduled premiums from new sales on an annualized basis and first year excess premiums

and deposits on a cash-received basis, excluding COLI

$419

$430

$372

$355

Nine

Months

ended

9/30/07

Nine

Months

ended

9/30/08

2006

2005

$494

2007

Universal Life

Variable Life

Term Life

64

Investor Day 12.04.08

Group Insurance

•

Primarily Group Life business

•

Controlled growth, with focus on margins

•

High persistency of quality business

•

Voluntary life opportunity

65

Investor Day 12.04.08

Group Insurance Sales

(1)

1)

New annualized premiums; group disability amounts include long-term care products

$0

$100

$200

$300

$400

$500

$600

2005

2006

2007

9 mos

07

9 mos

08

Group Disability

Group Life

Nine

Months

ended

9/30/07

Nine

Months

ended

9/30/08

2006

2005

2007

$524

$504

$352

$301

$390

66

Investor Day 12.04.08

U.S. Businesses Financial Performance

$1,369

$1,369

$2,813

$2,813

$2,420

$2,420

$2,153

$2,153

U.S. Businesses Total

U.S. Businesses Total

Adjusted operating income

Adjusted operating income

pre-tax:

271

271

286

286

229

229

224

224

Group Insurance

Group Insurance

437

437

622

622

545

545

498

498

Individual Life

Individual Life

398

398

482

482

510

510

498

498

Retirement

Retirement

301

301

701

701

550

550

427

427

Asset Management

Asset Management

$   (38)

$   (38)

$   722

$   722

$   586

$   586

$   506

$   506

Individual Annuities

Individual Annuities

Nine months

ended

Sept 30, 2008

2007

2006

2005

($ in millions)

Year Ended December 31,

67

Investor Day 12.04.08

U.S. Businesses

•

Balanced mix of business risks

•

Leading provider in retirement and savings market

•

Competitive advantages: product innovation, risk

management, asset management, distribution

•

Domestic protection businesses contribute to earnings

and cash flows

International Businesses

Protecting Wealth and Providing

Retirement Security Over A Lifetime

International Businesses

Protecting Wealth and Providing

Retirement Security Over A Lifetime

Edward P. Baird

Chief Operating Officer

International Businesses

Edward P. Baird

Chief Operating Officer

International Businesses

69

Investor Day 12.04.08

Where We Are Today

•

Leadership positions in life planning

•

Gibraltar generates high ROE’s and cash flows

•

Growing asset management platforms

•

Profitability dominated by Japan and Korea

•

Expanding retirement businesses

•

Developing multi-channel capabilities

•

Acquisitions potentially additive

70

Investor Day 12.04.08

•

Grow organically and through complementary

distribution channels and opportunistic acquisitions

•

Increasing emphasis on meeting retirement needs

Key Elements of Our International Strategy

•

Needs-based selling

•

Continue building proprietary distribution:

recruiting and selection

•

Historical focus on life insurance

•

Concentrate on a limited number of attractive countries

•

Target the affluent and mass affluent consumer

•

Expanding asset management business

71

Investor Day 12.04.08

International Division Today

Italy

Poland

Brazil

Argentina

China

India

Mexico

Taiwan

Korea

Life Planning

Insurance

Japan

International

Investments

Traditional

Insurance

72

Investor Day 12.04.08

1,598

1,428

1,321

917

819

757

$0

$500

$1,000

$1,500

$2,000

2002

2003

2004

2005

2006

2007

Life Planner Ops

Gibraltar Life

1,326

1,245

$0

$500

$1,000

$1,500

$2,000

3Q 07

3Q 08

$ millions

YTD

International Insurance

Pre-Tax AOI

73

Investor Day 12.04.08

Drivers of Sustainable

Financial Performance

•

•

Favorable mortality margins drive

Favorable mortality margins drive

strong returns

strong returns

•

•

High ROE products generate substantial

High ROE products generate substantial

excess capital

excess capital

•

•

Capital management opportunities

Capital management opportunities

enhance overall returns

enhance overall returns

•

•

Duration lengthening supported by long-term

Duration lengthening supported by long-term

nature of liabilities contributes to returns

nature of liabilities contributes to returns

•

•

U.S. dollar investing: Natural hedge for

U.S. dollar investing: Natural hedge for

Prudential, enhancing portfolio returns

Prudential, enhancing portfolio returns

•

•

Strong persistency drives revenue growth

Strong persistency drives revenue growth

•

•

Margins earned throughout in-force period

Margins earned throughout in-force period

•

•

Business growth increases scale benefits

Business growth increases scale benefits

Needs-Based Selling

Needs-Based Selling

Capital Management

Capital Management

Emphasis on Protection Products

Emphasis on Protection Products

Investment Portfolio Strategies

Investment Portfolio Strategies

74

Investor Day 12.04.08

Competitive Advantage

Life Planning Insurance

•

•

Life Planner profile similar to

Life Planner profile similar to

customer profile

customer profile

•

•

Life Planner maintains contact with  

Life Planner maintains contact with  

client, as trusted professional

client, as trusted professional

•

•

Identify protection needs before

Identify protection needs before

discussing products

discussing products

•

•

Protection life insurance purchased 

Protection life insurance purchased 

as a solution to identified need

as a solution to identified need

•

•

Variable compensation structure

Variable compensation structure

•

•

Rewards productivity

Rewards productivity

and persistency

and persistency

Life Planners

•

Very selective recruiting

•

Highly trained career professional

Needs Based Selling

•

Financial planning approach

•

Emphasis on protection products

Compensation structure

•

Aligns customer/agent/company

interest

75

Investor Day 12.04.08

In-force Annualized Premium Mix

as of September 30, 2008

(1)

New Business Annualized Premium Mix

9 months ended September 30, 2008

(1)

20%

20%

49%

49%

16%

16%

15%

15%

33%

33%

38%

38%

13%

13%

16%

16%

1)

Includes single premium business at 10%

2)

Primarily whole life and term

3)

Primarily whole life and retirement income

4)

Cancer, medical, accident and sickness; primarily riders

5)

Primarily endowment

Life Planner Business

Emphasis on Protection Products

Prudential of Japan

Yen-based protection

products

(2)

Yen-based savings

and retirement

income products

(5)

Other than Yen-

based insurance

products

(3)

Third Sector

(4)

76

Investor Day 12.04.08

1,820

1,956

2,074

1,348

1,538

1,690

1,838

1,037

1,180

2,194

500

1,500

2,500

2002

2003

2004

2005

2006

2007

Total POJ

POJ excluding Aoba business

In thousands

Prudential of Japan

Number of Individual Policies In-force

(1)

YTD

1)

Individual Life and Annuities

2,167

2,288

1,803

1,950

500

1,500

2,500

3Q 07

3Q 08

77

Investor Day 12.04.08

Yen-based protection

products

(2)

Yen-based savings

and retirement

income

products

(2)

Other than Yen-

based insurance

products

In-force Annualized Premium Mix

as of

September

30,

2008

(1)

New Business Annualized Premium Mix

9 months

ended

September

30,

2008

(1)

U.S. Dollar

fixed annuities

3%

3%

73%

73%

10%

10%

14%

14%

21%

21%

40%

40%

31%

31%

8%

8%

1)

Includes single premium business at 10%

2)

Includes third sector products

Gibraltar Life

Emphasis on Protection Products

Gibraltar Life

78

Investor Day 12.04.08

Gibraltar Life                                                  

Beyond the Life Advisor Channel

•

Strengthening bank channel distribution by transferring

Life Planners to bank branch based sales

•

Banks now commencing sales of life insurance in

addition to annuity products

•

Well-established relationship with Teachers Association

positions Gibraltar Life to meet the needs of teachers,

including retirement planning

•

New product development opportunities

79

Investor Day 12.04.08

Positioned for International

Market Developments

Prudential Positioning

Prudential Positioning

Market Development

Market Development

Growing Demand for

Retirement Accumulation

Products

Lifetime client relationships

Well-established in Retirement

Market through Associations

Innovative, successful U.S.

dollar retirement products

80

Investor Day 12.04.08

Current Population:

127 Million People

% of 65+ Age Group:

22% in 2008

30% in 2030

(1)

36% in 2050

(1)

Japan’s Demographic Change

14%

14%

11%

11%

11%

11%

64%

64%

59%

59%

53%

53%

22%

22%

30%

30%

36%

36%

0%

25%

50%

75%

100%

2008

2030

2050

Age 0-14

Age 15-64

Age 65+

1)

Source: Population Projections from Japan’s National Institute of Population and Social Security Research

Rapidly growing

pre-Retirement/

Retirement

Markets

81

Investor Day 12.04.08

Needs-Based Selling Over a Lifetime

82

Investor Day 12.04.08

$0

$50

$100

$150

$200

$250

2003

2004

2005

2006

2007

Life Planners

Serving Client Needs Through a Lifetime

Prudential of Japan

Second Sales to Existing Customers

(1)

1)

Translated based on constant exchange rate of 106 Japanese yen per U.S. dollar for all periods presented

Annualized

New Business

Premiums

($ millions)

39% of Annualized

39% of Annualized

New Business

New Business

Premiums

Premiums

83

Investor Day 12.04.08

U.S. Dollar Retirement Products

Attractive Value Proposition in a Growing Market

43%

23%

Rates offered reflect yields on U.S. dollar investments; compare

favorably to Japanese yen-based products

U.S.$ Fixed

U.S.$ Fixed

Annuity

Annuity

U.S.$ Denominated

U.S.$ Denominated

Retirement Income

Retirement Income

Prudential of Japan

Prudential of Japan

U.S.$ Denominated

U.S.$ Denominated

Retirement Income

Retirement Income

Gibraltar Life

% of September 2008

% of September 2008

YTD Sales

YTD Sales

(1)

(1)

Attractive Yields for

Attractive Yields for

Japanese Market

Japanese Market

Flexibility

Flexibility

Retirement

Retirement

Accumulation

Accumulation

Death Protection

Death Protection

Benefits

Benefits

1)

Based on annualized new business premiums; translation of Japanese yen-based sales at 106

Japanese yen per U.S. dollar

84

Investor Day 12.04.08

Mortality

Expense

Investment

Retirement Accumulation Products

Contribute to High Product Portfolio ROE Potential

Targeted 20+% ROE Portfolio

Targeted 20+% ROE Portfolio

USD

Whole Life

Term

USD

Annuity

USD

Retirement

Income

85

Investor Day 12.04.08

Positioned for International

Market Developments

Greater Regulatory

Standards Govern

Product Distribution

Full-time, college-educated

Life Planner force

Proven training for all channels

Superior agent retention

Prudential Positioning

Prudential Positioning

Market Development

Market Development

Growing Demand for

Retirement

Accumulation Products

Lifetime client relationships

Well-established in Retirement

Market through Associations

Innovative, successful U.S.

dollar retirement products

86

Investor Day 12.04.08

Positioned for International

Market Developments

Expanding Distribution

Channels

Established bank distribution

relationships

Gibraltar distributors

“seconded”

to Bank Channel

Greater Regulatory

Standards Govern

Product Distribution

Full-time, college-educated

Life Planner force

Proven training for all channels

Superior agent retention

Prudential Positioning

Prudential Positioning

Market Development

Market Development

Growing Demand for

Retirement

Accumulation Products

Lifetime client relationships

Well-established in Retirement

Market through Associations

Innovative, successful U.S.

dollar retirement products

87

Investor Day 12.04.08

Enhancing Returns Through Proven Strategies

Investment Portfolio

•

U.S. dollar investments

•

Extending duration

•

Asset class diversification

Access to Prudential Resources

•

Product and distribution channel skills

•

Experience in the U.S. Retirement business

Opportunities for Expense Synergies

•

Shared management resources

•

System integration

•

Common back office platforms

88

Investor Day 12.04.08

Investment Portfolio Opportunities

Access to Prudential skill sets –

commercial mortgages,

corporate credit

Equities support portion of

long-dated risks

Asset Class

Diversification

Extending asset duration reduces

risk profile relative to long-dated

liabilities while increasing yield

Duration

Lengthening

“Natural hedge”

for GAAP equity

Additional U.S. dollar exposure

related to economic value

U.S. Dollar

Investment Exposure

89

Investor Day 12.04.08

8%

6%

4%

0%

2%

4%

2%

1%

47%

24%

2%

Government/Government related

(primarily Japanese Gov't Bonds)

Investment Grade Corporate

Bonds (Aaa, Aa, A)

Investment Grade Corporate

Bonds (Baa or BBB)

Commercial Loans

Below Investment Grade

Corporate Bonds

Real Estate

Equity Securities

Short-Term

Policy Loans

U.S. Treasury Bonds

Other (2)

21%

9%

7%

3%

2%

2%

0%

3%

2%

50%

1%

Prudential International Insurance

Japan Portfolios

(1)

1)

Includes U.S. dollar reinsurance activity

2)

“Other”

category includes Trading Account Assets and Other Long-term Investments

Yen Portfolio Duration: 8 years

Yen Portfolio Duration: 11 years

December 31, 2004

September 30, 2008

90

Investor Day 12.04.08

2007

Nine months  

ended       

Sept 30, 2008

International Division Financial Performance

1)

Based on annualized after-tax adjusted operating income for the nine months ended September 30, 2008

Adjusted operating income pre-tax:

Life Planner Business

Gibraltar Life

International Insurance

International Investments

International Division

$515

402

917

77

$994

$821

500

1,321

106

$1,427

$938

490

1,428

143

$1,571

$1,020

578

1,598

259

$1,857

$864

462

1,326

89

$1,415

Year Ended December 31,

2004

2005

2006

($ millions)

24% ROE

(1)

91

Investor Day 12.04.08

Prudential International Insurance

Capital Redeployment

$ millions

419

273

541

151

1,104

414

505

552

672

905

1,142

1,021

3,268

5,778

$0

$500

$1,000

$1,500

2002

2003

2004

2005

2006

2007

After Tax Adjusted Operating income

Capital Redeployment

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Cumulative

2002 -

09/30/08

92

Investor Day 12.04.08

•

Sustainable AOI growth at solid double-digit rates

•

Sustainable 20% ROE’s

•

Strong free cash flow

•

Complementary group of International businesses

with short and long-term growth potential

International Divisional Goals