February 4, 2009 - QUARTERLY FINANCIAL SUPPLEMENT - 8-K: Current report

Exhibit 99.1

Prudential Financial, Inc. (PRU)

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Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FOURTH 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.

February 4, 2009


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth 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

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
Combined Statements of Operations		10
Combining Statements of Operations		11
Individual Annuities Sales Results, Account Values and Minimum Guarantees		12
Individual Annuities Account Value Activity		13
Retirement Segment Sales Results and Account Values		14
Supplementary Revenue And Assets Under Management Information for Asset Management Segment		15
Supplementary Assets Under Management and Assets Under Administration Information for Asset Management Segment		16

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		17
Combining Statements of Operations		18
Individual Life Sales, Account Value Activity, and Face Amount in Force		19
Supplementary Information for Individual Life Insurance		20
Supplementary Information for Group Insurance		21

DEFERRED POLICY ACQUISITION COSTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE		22

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations		23
Combining Statements of Operations		24
International Insurance Segment - Supplementary Income Statement Information		25
Sales Results and Supplementary Information		26-27

INVESTMENT PORTFOLIO
Investment Portfolio Composition		28
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		29
Financial Services Businesses Investment Results		30
Financial Services Businesses Investment Results - Japanese Insurance Operations		31
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		32

RECLASSIFIED STATEMENTS OF OPERATION AND SUPPLEMENTAL INFORMATION		33-39

KEY DEFINITIONS AND FORMULAS		40-42

RATINGS AND INVESTOR INFORMATION		43

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

This Quarterly Financial Supplement reflects the following for all periods presented herein:

Results of the company’s former Financial Advisory segment, primarily reflecting the company’s investment in the Wachovia Securities retail securities brokerage joint venture, have been classified as a “divested business” and excluded from adjusted operating income as a result of the company’s decision to exercise the lookback put option under the joint venture agreement.

In addition, the company has realigned certain of its remaining business segments into the following Division structure:

The U.S. Retirement Solutions and Investment Management Division consists of the following segments:

Individual Annuities segment

Retirement segment

Asset Management segment

The U.S. Individual Life and Group Insurance Division consists of the following segments:

Individual Life segment

Group Insurance segment

There were no changes to the International Insurance and Investments Division. Corporate and Other Operations reflect the impact of the reclassification of results of the former Financial Advisory segment as a divested business as discussed above.

The Individual Life Sales measure has been modified, for all periods presented, to reflect Annualized New Business Premiums which represent annualized scheduled premiums plus 10% of excess (unscheduled) and single premiums from new sales. The company believes this new measure provides a more meaningful presentation of sales results and trends than the former measure, which included 100% of excess (unscheduled) or single premiums.

Assets and liabilities, and certain statistical information reported herein reflect reclassifications to conform to current reporting practices.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

				*Financial Services Businesses:*
				Pre-tax adjusted operating income (loss) by division:
(314)	1,905		-116%	U.S. Retirement Solutions and Investment Management Division	500		358		485		(182	)	(975	)
786	908		-13%	U.S. Individual Life and Group Insurance Division	195		186		183		339		78
1,402	1,857		-25%	International Insurance and Investments Division	393		439		479		497		(13	)
(327)	(65	)	-403%	Corporate and other operations	(52	)	(36	)	(5	)	(22	)	(264	)

1,547	4,605		-66%	Total pre-tax adjusted operating income (loss)	1,036		947		1,142		632		(1,174	)
430	1,283		-66%	Income taxes, applicable to adjusted operating income	249		246		288		192		(296	)

1,117	3,322		-66%	Financial Services Businesses after-tax adjusted operating income (loss)	787		701		854		440		(878	)


				Reconciling items:
(2,222)	(96	)	-2215%	Realized investment losses, net, and related charges and adjustments	(91	)	(678	)	(486	)	(547	)	(511	)
(1,734)	—		—	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(10	)	(262	)	(123	)	(534	)	(815	)
1,163	13		8846%	Change in experience-rated contractholder liabilities due to asset value changes	9		200		94		388		481
(506)	274		-285%	Divested businesses	(1	)	(67	)	10		(219	)	(230	)
618	(400	)	-255%	Equity in earnings of operating joint ventures	(77	)	(60	)	(40	)	208		510

(2,681)	(209	)	-1183%	Total reconciling items, before income taxes	(170	)	(867	)	(545	)	(704	)	(565	)
(884)	(138	)	-541%	Income taxes, not applicable to adjusted operating income	(118	)	(199	)	(245	)	(280	)	(160	)

(1,797)	(71	)	-2431%	Total reconciling items, after income taxes	(52	)	(668	)	(300	)	(424	)	(405	)

(680)	3,251		-121%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	735		33		554		16		(1,283	)
(447)	246		-282%	Equity in earnings of operating joint ventures, net of taxes	46		43		24		(129	)	(385	)

(1,127)	3,497		-132%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses	781		76		578		(113	)	(1,668	)
31	15		107%	Income (loss) from discontinued operations, net of taxes	11		1		(3	)	5		28

(1,096)	3,512		-131%	Net income (loss) of Financial Services Businesses	792		77		575		(108	)	(1,640	)

				Earnings per share of Common Stock (diluted) (1):
2.69	7.21			Financial Services Businesses after-tax adjusted operating income (loss)	1.74		1.59		1.98		1.05		(2.04	)

				Reconciling items:
(5.11)	(0.20	)		Realized investment losses, net, and related charges and adjustments	(0.20	)	(1.51	)	(1.11	)	(1.27	)	(1.21	)
(3.99)	—			Investment gains (losses) on trading account assets supporting insurance liabilities, net	(0.02	)	(0.58	)	(0.28	)	(1.24	)	(1.93	)
2.67	0.03			Change in experience-rated contractholder liabilities due to asset value changes	0.02		0.44		0.21		0.90		1.14
(1.16)	0.59			Divested businesses	—		(0.15	)	0.02		(0.51	)	(0.55	)
1.42	(0.85	)		Equity in earnings of operating joint ventures	(0.17	)	(0.13	)	(0.09	)	0.48		1.21

(6.17)	(0.43	)		Total reconciling items, before income taxes	(0.37	)	(1.93	)	(1.25	)	(1.64	)	(1.34	)
(2.03)	(0.27	)		Income taxes, not applicable to adjusted operating income	(0.26	)	(0.44	)	(0.57	)	(0.65	)	(0.38	)

(4.14)	(0.16	)		Total reconciling items, after income taxes	(0.11	)	(1.49	)	(0.68	)	(0.99	)	(0.96	)
(1.45)	7.05			Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	1.63		0.10		1.30		0.06		(3.00	)
(1.04)	0.53			Equity in earnings of operating joint ventures, net of taxes	0.10		0.10		0.05		(0.30	)	(0.91	)

(2.49)	7.58			Income (loss) from continuing operations (after-tax) of Financial Services Businesses	1.73		0.20		1.35		(0.24	)	(3.91	)
0.07	0.03			Income from discontinued operations, net of taxes	0.02		—		—		0.01		0.06

(2.42)	7.61			Net income (loss) of Financial Services Businesses	1.75		0.20		1.35		(0.23	)	(3.85	)


429.7	459.8			Weighted average number of outstanding Common shares (basic)	450.4		442.1		431.9		423.8		421.3

435.0	468.3			Weighted average number of outstanding Common shares (diluted)	458.5		448.6		437.7		429.5		424.3

5.37%	15.48%			Operating Return on Average Equity (based on adjusted operating income)	14.43%		12.54%		15.51%		8.22%		-16.60%

				*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
(1,096)	3,512			Net income (loss) of Financial Services Businesses (above)	792		77		575		(108	)	(1,640	)
23	192			Net income (loss) of Closed Block Business	79		(8	)	15		(58	)	74

(1,073)	3,704			Consolidated net income (loss)	871		69		590		(166	)	(1,566	)

55	53			Direct equity adjustments for earnings per share calculations	11		12		14		10		19

(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 and for the three and twelve months ended December 31, 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. Diluted share count used in diluted earnings per share calculation for non-GAAP measures is equal to weighted average basic common shares for the three months ended December 31, 2008 as all potential common shares are anti-dilutive due to the adjusted operating loss available to holders of Common Stock after direct equity adjustment.

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

		*Financial Services Businesses Capitalization Data (1):*
		Senior Debt:
		Short-term debt	14,514	13,788	12,955	13,788	10,112
		Long-term debt	12,351	13,302	13,856	14,602	17,022
		Junior Subordinated Long-Term Debt	—	—	1,398	1,518	1,518

		Attributed Equity:
		Including accumulated other comprehensive income	22,170	21,484	20,502	18,751	14,279
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	22,009	22,499	22,282	21,524	19,886
		Excluding total accumulated other comprehensive income	21,711	21,957	21,733	21,314	19,516

		Total Capitalization:
		Including accumulated other comprehensive income	34,521	34,786	35,756	34,871	32,819
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	34,360	35,801	37,536	37,644	38,426
		Excluding total accumulated other comprehensive income	34,062	35,259	36,987	37,434	38,056

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	48.73	48.45	47.58	43.85	33.66
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	48.37	50.74	51.71	50.34	46.88
		Excluding total accumulated other comprehensive income	47.72	49.52	50.44	49.85	46.01

		Number of diluted shares at end of period	455.0	443.4	430.9	427.6	424.2

		*Common Stock Price Range (based on closing price):*
91.36	103.17	High	101.09	91.36	82.21	86.25	64.80
13.73	84.28	Low	89.46	67.36	59.74	56.07	13.73
30.26	93.04	Close	93.04	78.25	59.74	72.00	30.26

		*Common Stock market capitalization (1)*	41,623	34,230	25,465	30,362	12,749

(1)	As of end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

OPERATIONS HIGHLIGHTS


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

		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management:
		Managed by U.S. Retirement Solutions and Investment Management Division:
		Asset Management Segment - Investment Management & Advisory Services
		Institutional customers	176.4	174.2	179.3	170.9	161.2
		Retail customers	86.6	81.8	84.6	75.4	61.6
		General account	175.5	177.9	175.0	175.2	172.6

		Total Investment Management and Advisory Services	438.5	433.9	438.9	421.5	395.4
		Non-proprietary assets under management	124.9	111.5	115.3	97.6	80.5

		Total managed by U.S. Retirement Solutions and Investment Management Division	563.4	545.4	554.2	519.1	475.9
		Managed by U.S. Individual Life and Group Insurance Division	15.1	14.7	14.3	13.3	12.4
		Managed by International Insurance and Investments Division:	69.2	71.0	69.4	69.9	69.9

		Total assets under management	647.7	631.1	637.9	602.3	558.2
		Client assets under administration	136.3	129.4	125.0	112.1	101.1

		Total assets under management and administration	784.0	760.5	762.9	714.4	659.3

		Assets managed or administered for customers outside of the United States at end of period	116.1	120.3	120.0	115.6	112.6

		*Distribution Representatives (1):*
		Prudential Agents	2,425	2,436	2,446	2,482	2,360
		International Life Planners	6,166	6,138	6,179	6,267	6,365
		Gibraltar Life Advisors	6,264	6,035	5,899	6,057	6,330

58	61	*Prudential Agent productivity ($ thousands)*	85	50	58	55	70

(1)	As of end of period.

(2)	At fair market value.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

					Revenues (1):
11,858		10,794		10%	Premiums	2,717		3,102		2,961		2,798		2,997
3,123		3,122		0%	Policy charges and fee income	828		824		809		709		781
8,432		8,202		3%	Net investment income	2,106		2,111		2,145		2,076		2,100
2,631		4,370		-40%	Asset management fees, commissions and other income	1,051		887		945		776		23

26,044		26,488		-2%	Total revenues	6,702		6,924		6,860		6,359		5,901


					Benefits and Expenses (1):
12,538		10,829		16%	Insurance and annuity benefits	2,725		3,082		2,944		3,040		3,472
3,343		3,094		8%	Interest credited to policyholders’ account balances	808		806		803		853		881
1,075		1,120		-4%	Interest expense	289		283		233		271		288
(2,302	)	(2,248	)	-2%	Deferral of acquisition costs	(599	)	(588	)	(588	)	(559	)	(567	)
1,403		935		50%	Amortization of acquisition costs	290		338		315		238		512
8,440		8,153		4%	General and administrative expenses	2,153		2,056		2,011		1,884		2,489

24,497		21,883		12%	Total benefits and expenses	5,666		5,977		5,718		5,727		7,075

1,547		4,605		-66%	Adjusted operating income (loss) before income taxes	1,036		947		1,142		632		(1,174	)


					Reconciling items:
(2,267	)	(41	)	-5429%	Realized investment losses, net, and related adjustments	(51	)	(665	)	(527	)	(564	)	(511	)
45		(55	)	182%	Related charges	(40	)	(13	)	41		17		—

(2,222	)	(96	)	-2215%	Total realized investment losses, net, and related charges and adjustments	(91	)	(678	)	(486	)	(547	)	(511	)

(1,734	)	—		—	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(10	)	(262	)	(123	)	(534	)	(815	)
1,163		13		8846%	Change in experience-rated contractholder liabilities due to asset value changes	9		200		94		388		481
(506	)	274		-285%	Divested businesses	(1	)	(67	)	10		(219	)	(230	)
618		(400	)	255%	Equity in earnings of operating joint ventures	(77	)	(60	)	(40	)	208		510

(2,681	)	(209	)	-1183%	Total reconciling items, before income taxes	(170	)	(867	)	(545	)	(704	)	(565	)


(1,134	)	4,396		-126%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures	866		80		597		(72	)	(1,739	)
(454	)	1,145		-140%	Income tax expense (benefit)	131		47		43		(88	)	(456	)

(680	)	3,251		-121%	Income (loss) from continuing operations before equity in earnings of operating joint ventures	735		33		554		16		(1,283	)

(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 other than those classified as divested businesses. 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

Fourth Quarter 2008

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $111,405; $117,893; $116,193; $118,111; $125,753)	112,748	117,914		114,541		114,626		119,153
Fixed maturities, held to maturity, at amortized cost (fair value $3,543; $3,741; $3,490; $3,410; $3,832)	3,548	3,735		3,572		3,481		3,808
Trading account assets supporting insurance liabilities, at fair value	14,473	14,644		14,624		14,392		13,875
Other trading account assets, at fair value	3,471	2,684		2,984		3,240		4,216
Equity securities, available for sale, at fair value (cost $4,497; $4,786; $4,686; $4,634; $4,273)	4,640	4,551		4,567		4,258		3,665
Commercial mortgage and other loans	22,093	23,444		23,837		24,173		24,366
Policy loans	3,942	4,147		4,207		3,822		4,280
Securities purchased under agreements to resell	129	178		184		171		480
Other long-term investments	5,163	5,266		5,683		5,255		5,383
Short-term investments	3,852	4,176		5,601		6,621		4,092

Total investments	174,059	180,739		179,800		180,039		183,318
Cash and cash equivalents	9,624	8,133		8,762		9,907		13,054
Accrued investment income	1,496	1,540		1,531		1,551		1,603
Deferred policy acquisition costs	11,396	11,924		12,203		12,472		13,127
Other assets	19,873	22,332		24,982		24,446		21,429
Separate account assets	195,583	181,902		179,323		165,148		147,095

Total assets	412,031	406,570		406,601		393,563		379,626


Liabilities:
Future policy benefits	60,200	63,536		62,449		62,027		70,221
Policyholders’ account balances	78,767	84,949		86,337		90,871		93,991
Securities sold under agreements to repurchase	5,281	3,727		4,307		4,209		4,288
Cash collateral for loaned securities	3,041	2,761		2,808		2,231		2,684
Income taxes	3,402	3,575		2,798		1,300		357
Senior short-term debt	14,514	13,788		12,955		13,788		10,112
Senior long-term debt	12,351	13,302		13,856		14,602		17,022
Junior subordinated long-term debt	—	—		1,398		1,518		1,518
Other liabilities	16,722	17,546		19,868		19,118		18,059
Separate account liabilities	195,583	181,902		179,323		165,148		147,095

Total liabilities	389,861	385,086		386,099		374,812		365,347


Attributed Equity:
Accumulated other comprehensive income (loss)	459	(473	)	(1,231	)	(2,563	)	(5,237	)
Other attributed equity	21,711	21,957		21,733		21,314		19,516

Total attributed equity	22,170	21,484		20,502		18,751		14,279


Total liabilities and attributed equity	412,031	406,570		406,601		393,563		379,626

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended December 31, 2008
	Total Financial Services Businesses		U.S Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,997		209		1,091		1,698		(1	)
Policy charges and fee income	781		256		441		90		(6	)
Net investment income	2,100		1,101		357		528		114
Asset management fees, commissions and other income	23		191		80		(213	)	(35	)

Total revenues	5,901		1,757		1,969		2,103		72


Benefits and Expenses (1):
Insurance and annuity benefits	3,472		814		1,210		1,325		123
Interest credited to policyholders’ account balances	881		707		117		109		(52	)
Interest expense	288		54		62		2		170
Deferral of acquisition costs	(567	)	(148	)	(126	)	(299	)	6
Amortization of acquisition costs	512		126		222		182		(18	)
General and administrative expenses	2,489		1,179		406		797		107

Total benefits and expenses	7,075		2,732		1,891		2,116		336


Adjusted operating income (loss) before income taxes	(1,174	)	(975	)	78		(13	)	(264	)


	Quarter Ended December 31, 2007
	Total Financial Services Businesses		U.S Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,717		91		1,036		1,590		—
Policy charges and fee income	828		383		376		76		(7	)
Net investment income	2,106		1,146		346		434		180
Asset management fees, commissions and other income	1,051		840		92		182		(63	)

Total revenues	6,702		2,460		1,850		2,282		110


Benefits and Expenses (1):
Insurance and annuity benefits	2,725		339		1,103		1,275		8
Interest credited to policyholders’ account balances	808		635		119		90		(36	)
Interest expense	289		91		51		6		141
Deferral of acquisition costs	(599	)	(201	)	(131	)	(284	)	17
Amortization of acquisition costs	290		77		94		129		(10	)
General and administrative expenses	2,153		1,019		419		673		42

Total benefits and expenses	5,666		1,960		1,655		1,889		162


Adjusted operating income (loss) before income taxes	1,036		500		195		393		(52	)

(1)

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Twelve Months Ended December 31, 2008
	Total Financial Services Businesses		U.S Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	11,858		654		4,381		6,833		(10	)
Policy charges and fee income	3,123		1,287		1,525		342		(31	)
Net investment income	8,432		4,449		1,396		2,008		579
Asset management fees, commissions and other income	2,631		2,139		412		287		(207	)

Total revenues	26,044		8,529		7,714		9,470		331


Benefits and Expenses (1):
Insurance and annuity benefits	12,538		2,268		4,698		5,377		195
Interest credited to policyholders’ account balances	3,343		2,656		463		416		(192	)
Interest expense	1,075		225		215		9		626
Deferral of acquisition costs	(2,302	)	(689	)	(486	)	(1,173	)	46
Amortization of acquisition costs	1,403		423		387		638		(45	)
General and administrative expenses	8,440		3,960		1,651		2,801		28

Total benefits and expenses	24,497		8,843		6,928		8,068		658


Adjusted operating income (loss) before income taxes	1,547		(314	)	786		1,402		(327	)


	Twelve Months Ended December 31, 2007
	Total Financial Services Businesses		U.S Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	10,794		399		4,212		6,192		(9	)
Policy charges and fee income	3,122		1,452		1,406		293		(29	)
Net investment income	8,202		4,472		1,327		1,644		759
Asset management fees, commissions and other income	4,370		3,207		456		898		(191	)

Total revenues	26,488		9,530		7,401		9,027		530


Benefits and Expenses (1):
Insurance and annuity benefits	10,829		1,356		4,527		4,907		39
Interest credited to policyholders’ account balances	3,094		2,432		458		330		(126	)
Interest expense	1,120		333		173		19		595
Deferral of acquisition costs	(2,248	)	(744	)	(498	)	(1,057	)	51
Amortization of acquisition costs	935		323		173		486		(47	)
General and administrative expenses	8,153		3,925		1,660		2,485		83

Total benefits and expenses	21,883		7,625		6,493		7,170		595


Adjusted operating income (loss) before income taxes	4,605		1,905		908		1,857		(65	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of December 31, 2008
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Assets:
Total investments	183,318		87,244		23,560		65,891		6,623
Deferred policy acquisition costs	13,127		2,683		4,573		6,051		(180	)
Other assets	36,086		9,924		3,028		12,866		10,268
Separate account assets	147,095		115,791		32,277		270		(1,243	)

Total assets	379,626		215,642		63,438		85,078		15,468


Liabilities:
Future policy benefits	70,221		18,251		8,213		43,317		440
Policyholders’ account balances	93,991		62,285		13,527		21,674		(3,495	)
Debt	28,652		4,137		5,448		620		18,447
Other liabilities	25,388		8,345		1,904		12,951		2,188
Separate account liabilities	147,095		115,791		32,277		270		(1,243	)

Total liabilities	365,347		208,809		61,369		78,832		16,337


Attributed Equity:
Accumulated other comprehensive loss	(5,237	)	(2,422	)	(1,278	)	(562	)	(975	)
Other attributed equity	19,516		9,255		3,347		6,808		106

Total attributed equity	14,279		6,833		2,069		6,246		(869	)


Total liabilities and attributed equity	379,626		215,642		63,438		85,078		15,468


	As of December 31, 2007
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Assets:
Total investments	174,059		80,161		23,325		58,324		12,249
Deferred policy acquisition costs	11,396		2,209		4,176		5,187		(176	)
Other assets	30,993		9,355		2,959		9,319		9,360
Separate account assets	195,583		158,166		38,577		268		(1,428	)

Total assets	412,031		249,891		69,037		73,098		20,005


Liabilities:
Future policy benefits	60,200		15,464		7,505		36,773		458
Policyholders’ account balances	78,767		51,281		12,633		17,704		(2,851	)
Debt	26,865		4,874		3,856		1,218		16,917
Other liabilities	28,446		12,228		2,891		10,037		3,290
Separate account liabilities	195,583		158,166		38,577		268		(1,428	)

Total liabilities	389,861		242,013		65,462		66,000		16,386


Attributed Equity:
Accumulated other comprehensive income (loss)	459		(151	)	16		702		(108	)
Other attributed equity	21,711		8,029		3,559		6,396		3,727

Total attributed equity	22,170		7,878		3,575		7,098		3,619


Total liabilities and attributed equity	412,031		249,891		69,037		73,098		20,005

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of December 31, 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	925	5,092	1,518	7,535		1,506	3,275	—	4,781
Investment related	6,265	9,792	—	16,057		8,116	7,120	—	15,236
Securities business related	1,806	1,550	—	3,356		3,405	1,371	—	4,776
Specified other businesses	778	264	—	1,042		1,179	381	—	1,560
Limited recourse and non-recourse borrowing	338	324	—	662		308	204	—	512

Total debt - Financial Services Businesses	10,112	17,022	1,518	28,652		14,514	12,351	—	26,865

Ratio of long-term and short-term capital debt to capitalization (1)				23.3	%				17.8	%

Closed Block Business
Investment related	443	—	—	443		1,143	—	—	1,143
Limited recourse and non-recourse borrowing	—	1,750	—	1,750		—	1,750	—	1,750

Total debt	443	1,750	—	2,193		1,143	1,750	—	2,893


	As of December 31, 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	6,837	462	236	7,535		3,661	1,120	—	4,781
Investment related	8,839	3,991	3,227	16,057		9,423	3,863	1,950	15,236
Securities business related	694	2,430	232	3,356		3,235	1,445	96	4,776
Specified other businesses	290	752	—	1,042		393	1,167	—	1,560
Limited recourse and non-recourse borrowing	—	—	662	662		—	—	512	512

Total debt - Financial Services Businesses	16,660	7,635	4,357	28,652		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 December 31, 2008 and December 31, 2007.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

COMBINED STATEMENTS OF OPERATIONS - U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION

(in millions)


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

				Revenues (1):
654	399		64%	Premiums	91		219		151		75		209
1,287	1,452		-11%	Policy charges and fee income	383		347		353		331		256
4,449	4,472		-1%	Net investment income	1,146		1,125		1,155		1,068		1,101
2,139	3,207		-33%	Asset management fees, commissions and other income	840		697		734		517		191

8,529	9,530		-11%	Total revenues	2,460		2,388		2,393		1,991		1,757


				Benefits and Expenses (1):
2,268	1,356		67%	Insurance and annuity benefits	339		463		398		593		814
2,656	2,432		9%	Interest credited to policyholders’ account balances	635		635		635		679		707
225	333		-32%	Interest expense	91		66		51		54		54
(689)	(744	)	7%	Deferral of acquisition costs	(201	)	(192	)	(183	)	(166	)	(148	)
423	323		31%	Amortization of acquisition costs	77		73		84		140		126
3,960	3,925		1%	General and administrative expenses	1,019		985		923		873		1,179

8,843	7,625		16%	Total benefits and expenses	1,960		2,030		1,908		2,173		2,732


(314)	1,905		-116%	Adjusted operating income (loss) before income taxes	500		358		485		(182	)	(975	)

(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. 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 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

COMBINING STATEMENTS OF OPERATIONS - U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION

(in millions)


	Twelve Months Ended December 31, 2008								Quarter Ended December 31, 2008
	Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management		Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management
Revenues (1):
Premiums	654		64		590		—		209		14		195		—
Policy charges and fee income	1,287		1,107		180		—		256		210		46		—
Net investment income	4,449		800		3,564		85		1,101		265		903		(67	)
Asset management fees, commissions and other income	2,139		28		510		1,601		191		(213	)	108		296

Total revenues	8,529		1,999		4,844		1,686		1,757		276		1,252		229


Benefits and Expenses (1):
Insurance and annuity benefits	2,268		947		1,321		—		814		474		340		—
Interest credited to policyholders’ account balances	2,656		512		2,144		—		707		157		550		—
Interest expense	225		58		89		78		54		14		21		19
Deferral of acquisition costs	(689	)	(597	)	(78	)	(14	)	(148	)	(130	)	(16	)	(2	)
Amortization of acquisition costs	423		379		24		20		126		119		2		5
General and administrative expenses (2)	3,960		1,777		813		1,370		1,179		681		222		276

Total benefits and expenses	8,843		3,076		4,313		1,454		2,732		1,315		1,119		298

Adjusted operating income (loss) before income taxes	(314	)	(1,077	)	531		232		(975	)	(1,039	)	133		(69	)


	Twelve Months Ended December 31, 2007								Quarter Ended December 31, 2007
	Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management		Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management
Revenues (1):
Premiums	399		70		329		—		91		17		74		—
Policy charges and fee income	1,452		1,280		172		—		383		339		44		—
Net investment income	4,472		580		3,676		216		1,146		137		939		70
Asset management fees, commissions and other income	3,207		573		531		2,103		840		141		143		556

Total revenues	9,530		2,503		4,708		2,319		2,460		634		1,200		626


Benefits and Expenses (1):
Insurance and annuity benefits	1,356		211		1,145		—		339		62		277		—
Interest credited to policyholders’ account balances	2,432		359		2,073		—		635		90		545		—
Interest expense	333		59		212		62		91		16		56		19
Deferral of acquisition costs	(744	)	(653	)	(75	)	(16	)	(201	)	(173	)	(24	)	(4	)
Amortization of acquisition costs	323		285		18		20		77		70		2		5
General and administrative expenses (2)	3,925		1,520		853		1,552		1,019		398		213		408

Total benefits and expenses	7,625		1,781		4,226		1,618		1,960		463		1,069		428


Adjusted operating income before income taxes	1,905		722		482		701		500		171		131		198

(1)

(2)

General and administrative expenses for Individual Annuities include $395 million for the twelve months ended December 31, 2008 and $143 million for the twelve months ended December 31, 2007, $296 million for the quarter ended December 31, 2008 and $34 million for the quarter ended December 31, 2007 for the amortization, net of interest, of value of business acquired (VOBA).

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES SALES RESULTS, ACCOUNT VALUES AND MINIMUM GUARANTEES

(in millions)


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

				SALES AND ACCOUNT VALUES:
				Variable Annuities:
80,330		74,555		Beginning total account value	81,173		80,330		74,977		74,707		67,968
10,208		11,678		Sales	3,041		2,829		2,740		2,507		2,132
(8,000	)	(9,568	)	Surrenders and withdrawals	(2,415	)	(2,173	)	(2,185	)	(1,988	)	(1,654	)

2,208		2,110		Net sales	626		656		555		519		478
(1,057	)	(1,131	)	Benefit payments	(261	)	(294	)	(262	)	(259	)	(242	)

1,151		979		Net flows	365		362		293		260		236
(20,353	)	6,076		Change in market value, interest credited, and other	(865	)	(5,409	)	(246	)	(6,712	)	(7,986	)
(1,121	)	(1,280	)	Policy charges	(343	)	(306	)	(317	)	(287	)	(211	)

60,007		80,330		Ending total account value	80,330		74,977		74,707		67,968		60,007

				Fixed Annuities:
3,488		3,748		Beginning total account value	3,546		3,488		3,440		3,394		3,349
121		73		Sales	16		17		24		33		47
(276	)	(286	)	Surrenders and withdrawals	(62	)	(53	)	(61	)	(71	)	(91	)

(155	)	(213	)	Net redemptions	(46	)	(36	)	(37	)	(38	)	(44	)
(160	)	(167	)	Benefit payments	(38	)	(43	)	(40	)	(37	)	(40	)

(315	)	(380	)	Net flows	(84	)	(79	)	(77	)	(75	)	(84	)
127		124		Interest credited and other	27		32		31		32		32
(5	)	(4	)	Policy charges	(1	)	(1	)	—		(2	)	(2	)

3,295		3,488		Ending total account value	3,488		3,440		3,394		3,349		3,295


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

2,448		2,569		Insurance Agents	713		646		673		589		540
1,304		1,566		Wirehouses	428		344		337		350		273
6,577		7,616		Independent Financial Planners (2)	1,916		1,856		1,754		1,601		1,366

10,329		11,751		Total	3,057		2,846		2,764		2,540		2,179


				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (3):
				Return of net deposits:
				Account value	42,995		40,817		41,272		38,285		34,892
				Net amount at risk	1,204		1,631		1,750		3,572		6,462
				Minimum return, anniversary contract value, or maximum contract value:
				Account value	32,194		29,401		28,717		25,469		21,494
				Net amount at risk	2,255		3,823		4,032		6,431		9,640

				Variable Annuity Account Values with Living Benefit Features (3):
				Guaranteed minimum accumulation benefits	11,724		10,933		10,867		10,221		9,891
				Guaranteed minimum withdrawal benefits	2,234		2,006		1,902		1,646		1,326
				Guaranteed minimum income benefits	6,948		6,233		5,958		5,149		4,114
				Guaranteed minimum withdrawal & income benefits	16,260		16,863		18,372		18,153		17,723

				Total	37,166		36,035		37,099		35,169		33,054

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

(3)	At end of period.

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


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

				INDIVIDUAL ANNUITIES:
				Account Values in General Account (1):
8,644		9,527		Beginning balance	8,647		8,644		12,013		12,282		17,051
275		292		Premiums and deposits	68		73		51		70		81
(1,234	)	(1,156	)	Surrenders and withdrawals	(253	)	(251	)	(254	)	(296	)	(433	)

(959	)	(864	)	Net redemptions	(185	)	(178	)	(203	)	(226	)	(352	)
(362	)	(392	)	Benefit payments	(89	)	(103	)	(80	)	(87	)	(92	)

(1,321	)	(1,256	)	Net flows	(274	)	(281	)	(283	)	(313	)	(444	)
484		342		Interest credited and other	84		99		105		121		159
10,308		35		Net transfers from separate account	188		3,552		447		4,963		1,346
(5	)	(4	)	Policy charges	(1	)	(1	)	—		(2	)	(2	)

18,110		8,644		Ending balance	8,644		12,013		12,282		17,051		18,110


				Account Values in Separate Account:
75,174		68,776		Beginning balance	76,072		75,174		66,404		65,819		54,266
10,054		11,459		Premiums and deposits	2,989		2,773		2,713		2,470		2,098
(7,042	)	(8,698	)	Surrenders and withdrawals	(2,224	)	(1,975	)	(1,992	)	(1,763	)	(1,312	)

3,012		2,761		Net sales	765		798		721		707		786
(855	)	(906	)	Benefit payments	(210	)	(234	)	(222	)	(209	)	(190	)

2,157		1,855		Net flows	555		564		499		498		596
(20,710	)	5,858		Change in market value, interest credited and other	(922	)	(5,476	)	(320	)	(6,801	)	(8,113	)
(10,308	)	(35	)	Net transfers to general account	(188	)	(3,552	)	(447	)	(4,963	)	(1,346	)
(1,121	)	(1,280	)	Policy charges	(343	)	(306	)	(317	)	(287	)	(211	)


45,192		75,174		Ending balance	75,174		66,404		65,819		54,266		45,192

(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 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - RETIREMENT SEGMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


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

				RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

				Full Service:
112,192		97,430		Beginning total account value	105,601		112,192		107,060		106,917		100,463
18,941		14,692		Deposits and sales	4,258		4,586		4,530		3,276		6,549
(15,051	)	(13,749	)	Withdrawals and benefits	(3,804	)	(3,933	)	(4,366	)	(2,883	)	(3,869	)
(25,259	)	6,563		Change in market value, interest credited and interest income (1)	(1,119	)	(5,785	)	(307	)	(6,847	)	(12,320	)
8,915		7,256		Acquisition (2)	7,256		—		—		—		8,915

99,738		112,192		Ending total account value	112,192		107,060		106,917		100,463		99,738

3,890		943		Net additions	454		653		164		393		2,680

				Stable value account values included above	32,314		33,279		33,883		34,570		35,346

				Institutional Investment Products:
51,591		50,269		Beginning total account value	51,627		51,591		51,667		51,513		50,041
5,738		4,973		Additions (3)	1,298		1,810		1,606		1,052		1,270
(7,392	)	(5,866	)	Withdrawals and benefits	(1,863	)	(1,702	)	(1,944	)	(2,114	)	(1,632	)
2,198		2,765		Change in market value, interest credited and interest income	900		561		241		153		1,243
(1,644	)	(550	)	Other (4)	(371	)	(593	)	(57	)	(563	)	(431	)

50,491		51,591		Ending total account value	51,591		51,667		51,513		50,041		50,491


(1,654	)	(893	)	Net additions (withdrawals)	(565	)	108		(338	)	(1,062	)	(362	)

(1)	Includes $511 million for twelve months ended December 31, 2007 representing a transfer within the Retirement segment from Institutional Investment Products to Full Service as a result of one client’s change in contract form.

(2)	On December 31, 2007, the company acquired a portion of the Union Bank of California, N.A.’s retirement business. On October 10, 2008, the company acquired MullinTBG Insurance Agency Services, LLC and related entities.

(3)	Includes $700 million for the three and twelve months ended December 31, 2008 representing transfers of externally managed client balances to accounts managed by the company. This addition is offset within the other category as there is no net impact on ending account values for this transfer.

(4)

“Other” activity includes transfers from (to) the Asset Management segment of $(206) million, $115 million, $(20) million, $543 million and $110 million for the first, second, third and fourth quarters of 2008 and the fourth quarter of 2007, respectively; and $432 million and $185 million for the twelve months ended December 31, 2008 and 2007, respectively. “Other” activity also includes $(511) million for the twelve months ended December 31, 2007 representing a transfer within the Retirement segment from Institutional Investment Products to Full Service as a result of one client’s change in contract form as well as $(700) million for the three and twelve months ended December 31, 2008 related to transfers discussed above in note 3. The remainder of “other” activity primarily represents changes in asset balances for externally managed accounts.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT 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		4Q	1Q	2Q	3Q		4Q

			Analysis of revenues by type:
1,115	1,081	3%	Asset management fees	283	281	288	289		257
50	560	-91%	Incentive, transaction, principal investing and commercial mortgage revenues	137	88	152	(49	)	(141	)
521	678	-23%	Service, distribution and other revenues	206	179	124	105		113

1,686	2,319	-27%	Total Asset Management segment revenues	626	548	564	345		229


			Analysis of asset management fees by source:
540	488	11%	Institutional customers	130	133	136	138		133
307	347	-12%	Retail customers	89	81	85	83		58
268	246	9%	General account	64	67	67	68		66

1,115	1,081	3%	Total asset management fees	283	281	288	289		257


Supplementary Assets Under Management Information (in billions):

	December 31, 2008
	Equity	Fixed Income	Real Estate	Total
Institutional customers	38.6	96.8	25.8	161.2
Retail customers	38.3	21.5	1.8	61.6
General account	3.2	168.6	0.8	172.6

Total	80.1	286.9	28.4	395.4


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

Total	127.1	281.5	29.9	438.5

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - SUPPLEMENTARY ASSETS UNDER MANAGEMENT AND ADMINISTRATION INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in billions)


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

				Institutional Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
141.7		122.9		Beginning assets under management	135.0		141.7		140.1		145.8		138.6
29.6		27.6		Additions	11.1		6.3		10.9		6.3		6.1
(19.5	)	(20.4	)	Withdrawals	(6.3	)	(4.3	)	(4.5	)	(4.8	)	(5.9	)
(22.4	)	10.9		Change in market value	1.2		(2.8	)	(0.5	)	(8.4	)	(10.7	)
(0.5	)	0.9		Net money market flows	0.8		(1.0	)	(0.1	)	(0.3	)	0.9
(0.4	)	(0.2	)	Other (1)	(0.1	)	0.2		(0.1	)	—		(0.5	)

128.5		141.7		Ending assets under management	141.7		140.1		145.8		138.6		128.5
32.7		34.7		Affiliated institutional assets under management	34.7		34.1		33.5		32.3		32.7

161.2		176.4		Total assets managed for institutional customers at end of period	176.4		174.2		179.3		170.9		161.2


10.1		7.2		Net institutional additions, excluding money market and other activity (1)	4.8		2.0		6.4		1.5		0.2


				Retail Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
50.9		43.4		Beginning assets under management	51.3		50.9		48.2		50.7		43.4
15.1		10.5		Additions	2.6		3.5		3.8		4.4		3.4
(14.7	)	(10.4	)	Withdrawals	(2.4	)	(2.5	)	(2.9	)	(4.3	)	(5.0	)
(18.0	)	4.9		Change in market value	(0.2	)	(4.0	)	1.9		(7.5	)	(8.4	)
0.1		(0.5	)	Net money market flows	(0.6	)	0.3		(0.3	)	0.1		—
—		3.0		Other (2)	0.2		—		—		—		—

33.4		50.9		Ending assets under management	50.9		48.2		50.7		43.4		33.4
28.2		35.7		Affiliated retail assets under management	35.7		33.6		33.9		32.0		28.2

61.6		86.6		Total assets managed for retail customers at end of period	86.6		81.8		84.6		75.4		61.6


0.4		0.1		Net retail additions (withdrawals), excluding money market activity	0.2		1.0		0.9		0.1		(1.6	)

(1)	Other activity represents transfers from (to) the Retirement Segment as a result of a change in client contract form. These assets continue to be managed by the segment and are included in Affiliated institutional assets under management above.

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

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

COMBINED STATEMENTS OF OPERATIONS - U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION

(in millions)


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

				Revenues (1):
4,381	4,212		4%	Premiums	1,036		1,115		1,076		1,099		1,091
1,525	1,406		8%	Policy charges and fee income	376		391		380		313		441
1,396	1,327		5%	Net investment income	346		343		343		353		357
412	456		-10%	Asset management fees, commissions and other income	92		88		95		149		80

7,714	7,401		4%	Total revenues	1,850		1,937		1,894		1,914		1,969


				Benefits and Expenses (1):
4,698	4,527		4%	Insurance and annuity benefits	1,103		1,184		1,168		1,136		1,210
463	458		1%	Interest credited to policyholders’ account balances	119		114		113		119		117
215	173		24%	Interest expense	51		52		50		51		62
(486)	(498	)	2%	Deferral of acquisition costs	(131	)	(117	)	(122	)	(121	)	(126	)
387	173		124%	Amortization of acquisition costs	94		115		87		(37	)	222
1,651	1,660		-1%	General and administrative expenses	419		403		415		427		406

6,928	6,493		7%	Total benefits and expenses	1,655		1,751		1,711		1,575		1,891


786	908		-13%	Adjusted operating income before income taxes	195		186		183		339		78

(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 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

COMBINING STATEMENTS OF OPERATIONS - U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION

(in millions)


	Twelve Months Ended December 31, 2008						Quarter Ended December 31, 2008
	Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance		Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance
Revenues (1):
Premiums	4,381		613		3,768		1,091		162		929
Policy charges and fee income	1,525		1,066		459		441		299		142
Net investment income	1,396		749		647		357		196		161
Asset management fees, commissions and other income	412		326		86		80		59		21

Total revenues	7,714		2,754		4,960		1,969		716		1,253


Benefits and Expenses (1):
Insurance and annuity benefits	4,698		965		3,733		1,210		247		963
Interest credited to policyholders’ account balances	463		231		232		117		60		57
Interest expense	215		214		1		62		62		—
Deferral of acquisition costs	(486	)	(445	)	(41	)	(126	)	(113	)	(13	)
Amortization of acquisition costs	387		372		15		222		218		4
General and administrative expenses (2)	1,651		971		680		406		233		173

Total benefits and expenses	6,928		2,308		4,620		1,891		707		1,184


Adjusted operating income before income taxes	786		446		340		78		9		69


	Twelve Months Ended December 31, 2007						Quarter Ended December 31, 2007
	Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance		Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance
Revenues (1):
Premiums	4,212		533		3,679		1,036		144		892
Policy charges and fee income	1,406		1,040		366		376		278		98
Net investment income	1,327		656		671		346		175		171
Asset management fees, commissions and other income	456		373		83		92		73		19

Total revenues	7,401		2,602		4,799		1,850		670		1,180


Benefits and Expenses (1):
Insurance and annuity benefits	4,527		904		3,623		1,103		211		892
Interest credited to policyholders’ account balances	458		218		240		119		56		63
Interest expense	173		165		8		51		49		2
Deferral of acquisition costs	(498	)	(452	)	(46	)	(131	)	(119	)	(12	)
Amortization of acquisition costs	173		164		9		94		90		4
General and administrative expenses (2)	1,660		981		679		419		254		165

Total benefits and expenses	6,493		1,980		4,513		1,655		541		1,114


Adjusted operating income before income taxes	908		622		286		195		129		66

(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 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - INDIVIDUAL LIFE ANNUALIZED NEW BUSINESS PREMIUMS, ACCOUNT VALUE ACTIVITY, AND FACE AMOUNT IN FORCE

(in millions)


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

			ANNUALIZED NEW BUSINESS PREMIUMS:
			Excluding corporate-owned life insurance:
39	54		Variable life	13		11		10		8		10
83	87		Universal life	21		17		22		21		23
209	212		Term life	55		51		52		53		53

331	353		Total excluding corporate-owned life insurance	89		79		84		82		86
—	—		Corporate-owned life insurance	—		—		—		—		—

331	353		Total	89		79		84		82		86


			ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL:
			Excluding corporate-owned life insurance:
109	126		Prudential Agents	33		28		29		26		26
222	227		Third party distribution	56		51		55		56		60
—	—		Corporate-owned life insurance	—		—		—		—		—

331	353		Total	89		79		84		82		86


			ACCOUNT VALUE ACTIVITY:
			*Policyholders’ Account Balances (1):*
6,582	6,165		Beginning balance	6,489		6,582		6,676		6,948		7,212
1,613	1,298		Premiums and deposits	329		370		409		372		462
(1,000)	(995	)	Surrenders and withdrawals	(239	)	(238	)	(211	)	(248	)	(303	)

613	303		Net sales	90		132		198		124		159
(159)	(152	)	Benefit payments	(37	)	(39	)	(38	)	(41	)	(41	)

454	151		Net flows	53		93		160		83		118
397	269		Interest credited and other	38		9		130		180		78
267	270		Net transfers from separate account	70		63		59		75		70
(303)	(273	)	Policy charges	(68	)	(71	)	(77	)	(74	)	(81	)

7,397	6,582		Ending balance	6,582		6,676		6,948		7,212		7,397


			*Separate Account Liabilities:*
18,585	17,586		Beginning balance	18,876		18,585		17,276		17,387		15,476
1,410	1,282		Premiums and deposits	292		304		311		386		409
(827)	(680	)	Surrenders and withdrawals	(174	)	(162	)	(215	)	(173	)	(277	)

583	602		Net sales	118		142		96		213		132
(21)	(62	)	Benefit payments	(16	)	(10	)	(22	)	(6	)	17

562	540		Net flows	102		132		74		207		149
(5,268)	1,523		Change in market value, interest credited and other	(121	)	(1,183	)	288		(1,849	)	(2,524	)
(267)	(270	)	Net transfers to general account	(70	)	(63	)	(59	)	(75	)	(70	)
(764)	(794	)	Policy charges	(202	)	(195	)	(192	)	(194	)	(183	)

12,848	18,585		Ending balance	18,585		17,276		17,387		15,476		12,848


			FACE AMOUNT IN FORCE (2):
			Variable life	137,889		135,519		134,691		131,608		127,503
			Universal life	25,416		26,201		27,091		27,999		29,070
			Term life	316,969		331,139		345,467		359,887		373,927

			Total	480,274		492,859		507,249		519,494		530,500

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

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

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


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

		Individual Life Insurance:
		Policy Surrender Experience:
802	752	Cash value of surrenders	187		178		196		188		240
3.8%	3.3%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.2	%	3.1	%	3.5	%	3.5	%	4.8	%

		Death benefits per $1,000 of in force (1):
3.68	3.46	Variable and universal life	3.13		3.62		4.14		3.23		3.58
1.37	1.79	Term life	0.91		1.59		1.53		1.46		0.97
2.74	2.97	Total, Individual Life Insurance	2.36		2.92		3.08		2.51		2.43

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


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

		GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
288	197	Group life	35		112		30		70		76
204	155	Group disability (1)	16		114		17		47		26

492	352	Total	51		226		47		117		102


		Future Policy Benefits (2):
		Group life (3)	2,181		2,044		2,046		2,015		2,227
		Group disability (1)	662		774		810		865		898

		Total	2,843		2,818		2,856		2,880		3,125


		Policyholders’ Account Balances (2):
		Group life (3)	5,902		5,961		6,143		5,785		5,958
		Group disability (1)	148		137		149		152		172

		Total	6,050		6,098		6,292		5,937		6,130


		Separate Account Liabilities (2):
		Group life	19,992		19,363		17,941		19,943		19,429
		Group disability (1)	—		—		—		—		—

		Total	19,992		19,363		17,941		19,943		19,429


		Group Life Insurance:
3,623	3,422	Gross premiums, policy charges and fee income (4)	889		949		912		840		922
3,232	3,178	Earned premiums, policy charges and fee income	773		793		810		789		840
88.6%	90.4%	Benefits ratio	90.4	%	87.1	%	89.4	%	88.1	%	89.9	%
8.6%	9.3%	Administrative operating expense ratio	8.4	%	8.2	%	8.2	%	9.4	%	8.7	%
		Persistency ratio	93.6	%	94.7	%	94.0	%	93.6	%	93.3	%

		Group Disability Insurance (1):
1,032	902	Gross premiums, policy charges and fee income (4)	227		288		238		265		241
995	867	Earned premiums, policy charges and fee income	217		280		225		259		231
87.2%	86.6%	Benefits ratio	88.9	%	91.1	%	86.2	%	81.5	%	90.0	%
19.8%	21.0%	Administrative operating expense ratio	21.2	%	17.4	%	22.3	%	19.3	%	20.8	%
		Persistency ratio	88.0	%	91.4	%	90.4	%	86.7	%	85.6	%

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

(2)	As of end of period.

(3)	Amounts as reported herein reflect certain reclassifications to conform to current reporting practices.

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

LOGO

DEFERRED POLICY ACQUISITION COSTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE

(in millions)


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

			INDIVIDUAL ANNUITIES:
1,976	1,613		Beginning balance	1,876		1,976		2,093		2,199		2,294
597	653		Capitalization	173		163		155		149		130
(379)	(285	)	Amortization - operating results	(70	)	(63	)	(76	)	(121	)	(119	)
10	7		Amortization - realized investment gains and losses	2		15		(5	)	10		(10	)
125	1		Impact of unrealized (gains) or losses on AFS securities	(5	)	2		32		57		34

2,329	1,976		Ending balance	1,976		2,093		2,199		2,294		2,329


			INDIVIDUAL LIFE INSURANCE:
3,855	3,550		Beginning balance	3,841		3,855		3,805		3,963		4,207
445	452		Capitalization	119		108		113		111		113
(372)	(164	)	Amortization - operating results	(90	)	(111	)	(83	)	40		(218	)
—	—		Amortization - realized investment gains and losses	—		—		—		—		—
298	17		Impact of unrealized (gains) or losses on AFS securities	(15	)	(47	)	128		93		124
—	—		Other (1)	—		—		—		—		—

4,226	3,855		Ending balance	3,855		3,805		3,963		4,207		4,226


			GROUP INSURANCE:
321	284		Beginning balance	313		321		326		331		338
41	46		Capitalization	12		9		9		10		13
(15)	(9	)	Amortization - operating results	(4	)	(4	)	(4	)	(3	)	(4	)
—	—		Amortization - realized investment gains and losses	—		—		—		—		—
—	—		Impact of unrealized losses on AFS securities	—		—		—		—		—

347	321		Ending balance	321		326		331		338		347

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


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

			Revenues (1):
6,833	6,192	10%	Premiums	1,590		1,772		1,736		1,627		1,698
342	293	17%	Policy charges and fee income	76		87		82		83		90
2,008	1,644	22%	Net investment income	434		462		504		514		528
287	898	-68%	Asset management fees, commissions and other income	182		180		161		159		(213	)

9,470	9,027	5%	Total revenues	2,282		2,501		2,483		2,383		2,103


			Benefits and Expenses (1):
5,377	4,907	10%	Insurance and annuity benefits	1,275		1,413		1,360		1,279		1,325
416	330	26%	Interest credited to policyholders’ account balances	90		100		101		106		109
9	19	-53%	Interest expense	6		2		4		1		2
(1,173)	(1,057)	-11%	Deferral of acquisition costs	(284	)	(294	)	(299	)	(281	)	(299	)
638	486	31%	Amortization of acquisition costs	129		160		152		144		182
2,801	2,485	13%	General and administrative expenses	673		681		686		637		797

8,068	7,170	13%	Total benefits and expenses	1,889		2,062		2,004		1,886		2,116


1,402	1,857	-25%	Adjusted operating income (loss) before income taxes	393		439		479		497		(13	)

(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 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Twelve Months Ended December 31, 2008								Quarter Ended December 31, 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	6,833		4,710		2,123		—		1,698		1,158		540		—
Policy charges and fee income	342		271		71		—		90		71		19		—
Net investment income	2,008		962		995		51		528		249		266		13
Asset management fees, commissions and other income	287		79		(26	)	234		(213	)	16		(14	)	(215	)

Total revenues	9,470		6,022		3,163		285		2,103		1,494		811		(202	)


Benefits and Expenses (1):
Insurance and annuity benefits	5,377		3,738		1,639		—		1,325		921		404		—
Interest credited to policyholders’ account balances	416		167		249		—		109		42		67		—
Interest expense	9		13		(8	)	4		2		4		(2	)	—
Deferral of acquisition costs	(1,173	)	(837	)	(336	)	—		(299	)	(213	)	(86	)	—
Amortization of acquisition costs	638		455		183		—		182		129		53		—
General and administrative expenses	2,801		1,361		814		626		797		350		215		232

Total benefits and expenses	8,068		4,897		2,541		630		2,116		1,233		651		232


Adjusted operating income (loss) before income taxes	1,402		1,125		622		(345	)	(13	)	261		160		(434	)


	Twelve Months Ended December 31, 2007								Quarter Ended December 31, 2007
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments		Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	6,192		4,276		1,916		—		1,590		1,106		484		—
Policy charges and fee income	293		230		63		—		76		59		17		—
Net investment income	1,644		799		809		36		434		217		209		8
Asset management fees, commissions and other income	898		109		56		733		182		21		(3	)	164

Total revenues	9,027		5,414		2,844		769		2,282		1,403		707		172


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

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


Adjusted operating income before income taxes	1,857		1,020		578		259		393		232		121		40

(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 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


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

				Japanese Yen Basis Results:
				Revenues (1):
¥	445,941	¥	420,553	Japanese insurance operations excluding Gibraltar Life	¥	103,043	¥	117,421	¥	107,786	¥	110,522	¥	110,212
	335,854		328,580	Gibraltar Life		79,042		82,122		86,092		84,570		83,070

	781,795		749,133	Total revenues, Japan, yen basis		182,085		199,543		193,878		195,092		193,282

				Benefits and Expenses (1):
	345,982		329,924	Japanese insurance operations excluding Gibraltar Life		83,597		92,701		83,323		83,006		86,952
	268,927		266,472	Gibraltar Life		64,992		68,126		68,623		65,640		66,538

	614,909		596,396	Total benefits and expenses, Japan, yen basis		148,589		160,827		151,946		148,646		153,490

				Adjusted operating income (2):
	99,959		90,629	Japanese insurance operations excluding Gibraltar Life		19,446		24,720		24,463		27,516		23,260
	66,927		62,108	Gibraltar Life		14,050		13,996		17,469		18,930		16,532

¥	166,886	¥	152,737	Total adjusted operating income, Japan, yen basis	¥	33,496	¥	38,716	¥	41,932	¥	46,446	¥	39,792


				U.S. Dollar adjusted operating income (3):
$	943	$	840	Japanese insurance operations excluding Gibraltar Life	$	186	$	231	$	236	$	252	$	224
	622		578	Gibraltar Life		121		128		167		167		160

	1,565		1,418	Total adjusted operating income, Japan, U.S. dollar basis		307		359		403		419		384
	182		180	All other countries (4)		46		54		50		41		37

$	1,747	$	1,598	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	353	$	413	$	453	$	460	$	421

(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.

(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 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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

		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
3,575	3,002	Japan, excluding Gibraltar Life	765	953	859	839	924
2,194	1,979	Gibraltar Life	501	527	593	515	559
1,406	1,504	All other countries	400	379	366	356	305

7,175	6,485	Total	1,666	1,859	1,818	1,710	1,788

		Annualized new business premiums:
531	491	Japan, excluding Gibraltar Life	126	163	125	120	123
454	342	Gibraltar Life	93	94	148	111	101
244	297	All other countries	83	72	63	55	54

1,229	1,130	Total	302	329	336	286	278

		Annualized new business premiums by distribution channel:
775	788	Life Planners	209	235	188	175	177
400	320	Gibraltar Life Advisors	86	88	127	96	89
54	22	Banks	7	6	21	15	12

1,229	1,130	Total	302	329	336	286	278


		Constant exchange rate basis (2):

		Net premiums, policy charges and fee income:
3,504	3,241	Japan, excluding Gibraltar Life	801	944	850	850	860
2,173	2,206	Gibraltar Life	538	542	575	522	534
1,529	1,478	All other countries	388	375	374	380	400

7,206	6,925	Total	1,727	1,861	1,799	1,752	1,794

		Annualized new business premiums:
522	525	Japan, excluding Gibraltar Life	131	161	124	122	115
454	365	Gibraltar Life	96	96	147	112	99
260	295	All other countries	79	72	64	56	68

1,236	1,185	Total	306	329	335	290	282

		Annualized new business premiums by distribution channel:
782	820	Life Planners	210	233	188	178	183
399	344	Gibraltar Life Advisors	90	90	125	97	87
55	21	Banks	6	6	22	15	12

1,236	1,185	Total	306	329	335	290	282

(1)	Translated based on applicable average exchange rates for the period shown.

(2)	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 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


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

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	238		242		244		246		248
Gibraltar Life	186		185		184		184		183
All other countries	106		107		108		108		108

Total	530		534		536		538		539


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	2,194		2,232		2,258		2,288		2,313
Gibraltar Life	3,817		3,804		3,782		3,788		3,796
All other countries	1,296		1,311		1,323		1,333		1,348

Total	7,307		7,347		7,363		7,409		7,457


International life insurance policy persistency:

Excluding Gibraltar Life:
13 months	92.4	%	92.4	%	92.0	%	92.1	%	92.6	%
25 months	85.9	%	85.9	%	85.3	%	85.5	%	86.2	%

Gibraltar Life:
13 months	91.7	%	91.2	%	90.8	%	91.1	%	91.1	%
25 months	87.9	%	87.2	%	86.4	%	85.3	%	84.0	%

Number of Life Planners at end of period:
Japan	3,068		3,108		3,079		3,084		3,071
All other countries	3,098		3,030		3,100		3,183		3,294

Total life planners	6,166		6,138		6,179		6,267		6,365


Gibraltar Life Advisors	6,264		6,035		5,899		6,057		6,330

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

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 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	126,149	27,424	98,725	57.5	%	128,130	37,168	90,962	55.8	%
Public, held to maturity, at amortized cost	3,002	—	3,002	1.7	%	2,879	—	2,879	1.8	%
Private, available for sale, at fair value	30,047	11,479	18,568	10.8	%	32,559	12,246	20,313	12.5	%
Private, held to maturity, at amortized cost	806	—	806	0.5	%	669	—	669	0.4	%
Trading account assets supporting insurance liabilities, at fair value	13,875	—	13,875	8.1	%	14,473	—	14,473	8.9	%
Other trading account assets, at fair value	848	120	728	0.4	%	346	142	204	0.1	%
Equity securities, available for sale, at fair value	6,059	2,400	3,659	2.1	%	8,569	3,940	4,629	2.8	%
Commercial loans	30,840	8,748	22,092	12.9	%	27,557	7,954	19,603	12.0	%
Policy loans	9,703	5,423	4,280	2.5	%	9,337	5,395	3,942	2.4	%
Other long-term investments (1)	4,664	1,629	3,035	1.8	%	3,992	1,268	2,724	1.7	%
Short-term investments (2)	4,358	1,484	2,874	1.7	%	3,983	1,385	2,598	1.6	%

Subtotal (3)	230,351	58,707	171,644	100.0	%	232,494	69,498	162,996	100.0	%

Invested assets of other entities and operations (4)	11,674	—	11,674			11,063	—	11,063

Total investments	242,025	58,707	183,318			243,557	69,498	174,059


Fixed Maturities by Credit Quality (3):


		December 31, 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	85,474	4,228	4,425	85,277	83.8	%	74,678	2,036	1,184	75,530	80.5	%
2	Baa	15,573	163	2,893	12,843	12.6	%	13,573	490	351	13,712	14.6	%

Subtotal Investment Grade		101,047	4,391	7,318	98,120	96.4	%	88,251	2,526	1,535	89,242	95.1	%

3	Ba	3,009	16	800	2,225	2.2	%	2,830	68	102	2,796	3.1	%
4	B	1,639	2	565	1,076	1.1	%	1,681	38	82	1,637	1.7	%
5	C and lower	379	14	123	270	0.3	%	115	5	6	114	0.1	%
6	In or near default	36	4	4	36	0.0	%	34	5	1	38	0.0	%

Subtotal Below Investment Grade		5,063	36	1,492	3,607	3.6	%	4,660	116	191	4,585	4.9	%

Total		106,110	4,427	8,810	101,727	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	6,284	112	408	5,988	30.9	%	7,139	230	84	7,285	34.7	%
2	Baa	11,341	92	1,310	10,123	52.2	%	10,595	344	118	10,821	51.6	%

Subtotal Investment Grade		17,625	204	1,718	16,111	83.1	%	17,734	574	202	18,106	86.3	%

3	Ba	2,405	24	381	2,048	10.5	%	1,637	49	26	1,660	7.9	%
4	B	1,037	14	244	807	4.2	%	738	6	12	732	3.5	%
5	C and lower	283	7	59	231	1.2	%	319	8	4	323	1.5	%
6	In or near default	232	8	39	201	1.0	%	147	23	—	170	0.8	%

Subtotal Below Investment Grade		3,957	53	723	3,287	16.9	%	2,841	86	42	2,885	13.7	%

Total		21,582	257	2,441	19,398	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 December 31, 2008 and December 31, 2007, respectively, 142 securities with amortized cost of $1,214 million (fair value $1,054 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 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2008			December 31, 2007
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	42,223	70.6	%	34,752	68.5	%
Public, held to maturity, at amortized cost	3,002	5.0	%	2,879	5.7	%
Private, available for sale, at fair value	2,803	4.7	%	3,467	6.8	%
Private, held to maturity, at amortized cost	806	1.3	%	668	1.3	%
Trading account assets supporting insurance liabilities, at fair value	1,077	1.8	%	1,132	2.2	%
Other trading account assets, at fair value	519	0.9	%	48	0.1	%
Equity securities, available for sale, at fair value	2,071	3.5	%	2,550	5.0	%
Commercial loans	3,373	5.6	%	2,881	5.7	%
Policy loans	1,547	2.6	%	1,133	2.2	%
Other long-term investments (1)	2,143	3.6	%	993	2.0	%
Short-term investments	266	0.4	%	239	0.5	%

Total	59,830	100.0	%	50,742	100.0	%


	December 31, 2008			December 31, 2007
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value	56,502	50.5	%	56,210	50.1	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	15,765	14.1	%	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	12,798	11.5	%	13,341	11.9	%
Other trading account assets, at fair value	209	0.2	%	156	0.1	%
Equity securities, available for sale, at fair value	1,588	1.4	%	2,079	1.9	%
Commercial loans	18,719	16.7	%	16,722	14.9	%
Policy loans	2,733	2.5	%	2,809	2.5	%
Other long-term investments (1)	892	0.8	%	1,731	1.5	%
Short-term investments	2,608	2.3	%	2,359	2.1	%

Total	111,814	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 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended December 31
	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	4.96	%	1,511		(353	)	5.04	%	1,436		(15	)
Equity securities	4.81	%	53		(685	)	4.48	%	49		(27	)
Commercial loans	5.83	%	250		(34	)	5.99	%	221		3
Policy loans	5.05	%	51		—		5.35	%	52		—
Short-term investments and cash equivalents	2.32	%	66		4		4.08	%	103		—
Other investments	0.58	%	5		245		2.33	%	18		(60	)

Gross investment income before investment expenses	4.78	%	1,936		(823	)	5.03	%	1,879		(99	)
Investment expenses	-0.16	%	(54	)	—		-0.15	%	(119	)	—

Subtotal	4.62	%	1,882		(823	)	4.88	%	1,760		(99	)

Investment results of other entities and operations (2)			221		177				352		(18	)
Less, investment income relating to divested businesses			(3	)					(6	)

Total			2,100		(646	)			2,106		(117	)


	Twelve Months Ended December 31
	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	4.90	%	5,702		(1,597	)	5.10	%	5,700		(48	)
Equity securities	5.00	%	223		(941	)	4.95	%	198		296
Commercial loans	6.01	%	974		(37	)	6.24	%	850		6
Policy loans	5.24	%	208		—		5.23	%	188		—
Short-term investments and cash equivalents	2.82	%	304		4		4.58	%	378		(7	)
Other investments	3.01	%	100		(39	)	4.80	%	136		(230	)

Gross investment income before investment expenses	4.87	%	7,511		(2,610	)	5.19	%	7,450		17
Investment expenses	-0.16	%	(295	)	—		-0.16	%	(521	)	—

Subtotal	4.71	%	7,216		(2,610	)	5.03	%	6,929		17

Investment results of other entities and operations (2)			1,246		220				1,299		7
Less, investment income relating to divested businesses			(30	)					(26	)

Total			8,432		(2,390	)			8,202		24

(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.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	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	3.20	%	374		(23	)	2.75	%	281		(19	)
Equity securities	2.68	%	16		(285	)	2.46	%	15		(44	)
Commercial loans	4.74	%	38		1		4.22	%	30		—
Policy loans	4.15	%	14		—		4.15	%	11		—
Short-term investments and cash equivalents	2.08	%	6		—		5.27	%	14		—
Other investments	4.04	%	23		997		9.37	%	22		47

Gross investment income before investment expenses	3.30	%	471		690		3.03	%	373		(16	)
Investment expenses	-0.19	%	(28	)	—		-0.19	%	(26	)	—

Total	3.11	%	443		690		2.84	%	347		(16	)


	Twelve Months Ended December 31
	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	3.04	%	1,354		(130	)	2.72	%	1,058		34
Equity securities	2.90	%	73		(522	)	2.74	%	59		239
Commercial loans	4.76	%	144		17		4.45	%	122		12
Policy loans	3.92	%	50		—		3.91	%	40		—
Short-term investments and cash equivalents	2.26	%	21		—		3.96	%	32		(1	)
Other investments	6.14	%	99		994		11.95	%	105		(62	)

Gross investment income before investment expenses	3.23	%	1,741		359		3.05	%	1,416		222
Investment expenses	-0.19	%	(107	)	—		-0.18	%	(96	)	—

Total	3.04	%	1,634		359		2.87	%	1,320		222

(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.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	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	6.05	%	1,137		(330	)	6.39	%	1,155		4
Equity securities	7.62	%	37		(400	)	6.94	%	34		17
Commercial loans	6.08	%	212		(35	)	6.41	%	191		3
Policy loans	5.53	%	37		—		5.84	%	41		—
Short-term investments and cash equivalents	2.34	%	60		4		3.87	%	89		—
Other investments	-5.30	%	(18	)	(752	)	-1.11	%	(4	)	(107	)

Gross investment income before investment expenses	5.60	%	1,465		(1,513	)	6.07	%	1,506		(83	)
Investment expenses	-0.15	%	(26	)	—		-0.14	%	(93	)	—

Total	5.45	%	1,439		(1,513	)	5.93	%	1,413		(83	)


	Twelve Months Ended December 31
	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	6.06	%	4,348		(1,467	)	6.47	%	4,642		(82	)
Equity securities	7.73	%	150		(419	)	7.51	%	139		57
Commercial loans	6.30	%	830		(54	)	6.68	%	728		(6	)
Policy loans	5.87	%	158		—		5.76	%	148		—
Short-term investments and cash equivalents	2.89	%	283		4		4.68	%	346		(6	)
Other investments	0.03	%	1		(1,033	)	1.55	%	31		(168	)

Gross investment income before investment expenses	5.75	%	5,770		(2,969	)	6.29	%	6,034		(205	)
Investment expenses	-0.15	%	(188	)	—		-0.15	%	(425	)	—

Total	5.60	%	5,582		(2,969	)	6.14	%	5,609		(205	)

(1)

(2)

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31				2007								2008
2006	2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q

			*Financial Services Businesses:*
			Pre-tax adjusted operating income (loss) by division:
1,646	1,431		U.S. Retirement Solutions and Investment Management Division	489		485		431		500		358		485		(182	)
774	722		U.S. Individual Life and Group Insurance Division	152		210		351		195		186		183		339
1,571	1,427		International Insurance and Investments Division	474		453		537		393		439		479		497
42	186		Corporate and other operations	7		(8	)	(12	)	(52	)	(36	)	(5	)	(22	)

4,033	3,766		Total pre-tax adjusted operating income	1,122		1,140		1,307		1,036		947		1,142		632
1,099	1,141		Income taxes, applicable to adjusted operating income	323		328		383		249		246		288		192

2,934	2,625		Financial Services Businesses after-tax adjusted operating income	799		812		924		787		701		854		440


			Reconciling items:
83	549		Realized investment gains (losses), net, and related charges and adjustments	141		34		(180	)	(91	)	(678	)	(486	)	(547	)
35	(33	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	82		(108	)	36		(10	)	(262	)	(123	)	(534	)
11	(44	)	Change in experience-rated contractholder liabilities due to asset value changes	(62	)	72		(6	)	9		200		94		388
151	(232	)	Divested businesses	127		90		58		(1	)	(67	)	10		(219	)
(322)	(214	)	Equity in earnings of operating joint ventures	(120	)	(100	)	(103	)	(77	)	(60	)	(40	)	208

(42)	26		Total reconciling items, before income taxes	168		(12	)	(195	)	(170	)	(867	)	(545	)	(704	)
27	(499	)	Income taxes, not applicable to adjusted operating income	56		(8	)	(68	)	(118	)	(199	)	(245	)	(280	)

(69)	525		Total reconciling items, after income taxes	112		(4	)	(127	)	(52	)	(668	)	(300	)	(424	)

2,865	3,150		Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	911		808		797		735		33		554		16
208	142		Equity in earnings of operating joint ventures, net of taxes	77		56		67		46		43		24		(129	)

3,073	3,292		Income from continuing operations (after-tax) of Financial Services Businesses	988		864		864		781		76		578		(113	)
71	(73	)	Income (loss) from discontinued operations, net of taxes	37		(29	)	(4	)	11		1		(3	)	5

3,144	3,219		Net income (loss) of Financial Services Businesses	1,025		835		860		792		77		575		(108	)

			Earnings per share of Common Stock (diluted):
6.08	5.20		Financial Services Businesses after-tax adjusted operating income	1.71		1.75		2.02		1.74		1.59		1.98		1.05

			Reconciling items:
0.17	1.05		Realized investment gains (losses), net, and related charges and adjustments	0.30		0.07		(0.39	)	(0.20	)	(1.51	)	(1.11	)	(1.27	)
0.07	(0.06	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	0.17		(0.23	)	0.08		(0.02	)	(0.58	)	(0.28	)	(1.24	)
0.02	(0.08	)	Change in experience-rated contractholder liabilities due to asset value changes	(0.13	)	0.15		(0.01	)	0.02		0.44		0.21		0.90
0.30	(0.45	)	Divested businesses	0.26		0.19		0.12		0.00		(0.15	)	0.02		(0.51	)
(0.65)	(0.41	)	Equity in earnings of operating joint ventures	(0.25	)	(0.21	)	(0.22	)	(0.17	)	(0.13	)	(0.09	)	0.48

(0.09)	0.05		Total reconciling items, before income taxes	0.35		(0.03	)	(0.42	)	(0.37	)	(1.93	)	(1.25	)	(1.64	)
0.05	(0.96	)	Income taxes, not applicable to adjusted operating income	0.12		(0.02	)	(0.14	)	(0.26	)	(0.44	)	(0.57	)	(0.65	)

(0.14)	1.01		Total reconciling items, after income taxes	0.23		(0.01	)	(0.28	)	(0.11	)	(1.49	)	(0.68	)	(0.99	)
5.94	6.21		Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	1.94		1.74		1.74		1.63		0.10		1.30		0.06
0.42	0.27		Equity in earnings of operating joint ventures, net of taxes	0.16		0.12		0.15		0.10		0.10		0.05		(0.30	)

6.36	6.48		Income (loss) from continuing operations (after-tax) of Financial Services Businesses	2.10		1.86		1.89		1.73		0.20		1.35		(0.24	)
0.14	(0.14	)	Income (loss) from discontinued operations, net of taxes	0.08		(0.06	)	(0.01	)	0.02		0.00		0.00		0.01

6.50	6.34		Net income (loss) of Financial Services Businesses	2.18		1.80		1.88		1.75		0.20		1.35		(0.23	)


484.2	512.0		Weighted average number of outstanding Common shares (basic)	468.4		463.7		457.0		450.4		442.1		431.9		423.8

494.0	520.9		Weighted average number of outstanding Common shares (diluted)	477.2		472.8		464.9		458.5		448.6		437.7		429.5

14.37%	13.27%		Operating Return on Average Equity (based on adjusted operating income)	15.16	%	15.21	%	17.02	%	14.43	%	12.54	%	15.51	%	8.22	%

68	82		Direct equity adjustments for earnings per share calculations	15		14		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.

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Years ended December 31				2007								2008
2006	2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q
			Revenues (1):
10,287	10,128		Premiums	2,720		2,684		2,673		2,717		3,102		2,961		2,798
2,649	2,529		Policy charges and fee income	784		783		727		828		824		809		709
7,597	6,845		Net investment income	1,994		2,033		2,069		2,106		2,111		2,145		2,076
3,666	3,141		Asset management fees, commissions and other income	1,037		1,078		1,204		1,051		887		945		776

24,199	22,643		Total revenues	6,535		6,578		6,673		6,702		6,924		6,860		6,359


			Benefits and Expenses (1):
10,423	9,990		Insurance and annuity benefits	2,763		2,683		2,658		2,725		3,082		2,944		3,040
2,790	2,516		Interest credited to policyholders’ account balances	745		762		779		808		806		803		853
949	615		Interest expense	274		276		281		289		283		233		271
(2,037)	(1,801	)	Deferral of acquisition costs	(539	)	(556	)	(554	)	(599	)	(588	)	(588	)	(559	)
670	910		Amortization of acquisition costs	272		265		108		290		338		315		238
7,371	6,647		General and administrative expenses	1,898		2,008		2,094		2,153		2,056		2,011		1,884

20,166	18,877		Total benefits and expenses	5,413		5,438		5,366		5,666		5,977		5,718		5,727

4,033	3,766		Adjusted operating income before income taxes	1,122		1,140		1,307		1,036		947		1,142		632


			Reconciling items:
66	657		Realized investment gains (losses), net, and related adjustments	147		41		(178	)	(51	)	(665	)	(527	)	(564	)
17	(108	)	Related charges	(6	)	(7	)	(2	)	(40	)	(13	)	41		17

83	549		Total realized investment gains (losses), net, and related charges and adjustments	141		34		(180	)	(91	)	(678	)	(486	)	(547	)

35	(33	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	82		(108	)	36		(10	)	(262	)	(123	)	(534	)
11	(44	)	Change in experience-rated contractholder liabilities due to asset value changes	(62	)	72		(6	)	9		200		94		388
151	(232	)	Divested businesses	127		90		58		(1	)	(67	)	10		(219	)
(322)	(214	)	Equity in earnings of operating joint ventures	(120	)	(100	)	(103	)	(77	)	(60	)	(40	)	208

(42)	26		Total reconciling items, before income taxes	168		(12	)	(195	)	(170	)	(867	)	(545	)	(704	)


3,991	3,792		Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures	1,290		1,128		1,112		866		80		597		(72	)
1,126	642		Income tax expense (benefit)	379		320		315		131		47		43		(88	)

2,865	3,150		Income from continuing operations before equity in earnings of operating joint ventures	911		808		797		735		33		554		16

(1)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION

(in millions)


Years ended December 31				2007								2008
2006	2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q

			Revenues (1):
375	387		Premiums	117		90		101		91		219		151		75
1,165	900		Policy charges and fee income	343		364		362		383		347		353		331
4,213	3,745		Net investment income	1,085		1,119		1,122		1,146		1,125		1,155		1,068
2,718	2,356		Asset management fees, commissions and other income	767		799		801		840		697		734		517

8,471	7,388		Total revenues	2,312		2,372		2,386		2,460		2,388		2,393		1,991


			Benefits and Expenses (1):
1,337	1,217		Insurance and annuity benefits	361		335		321		339		463		398		593
2,209	1,970		Interest credited to policyholders’ account balances	581		601		615		635		635		635		679
288	145		Interest expense	72		78		92		91		66		51		54
(627)	(482	)	Deferral of acquisition costs	(173	)	(193	)	(177	)	(201	)	(192	)	(183	)	(166	)
255	227		Amortization of acquisition costs	83		86		77		77		73		84		140
3,363	2,880		General and administrative expenses	899		980		1,027		1,019		985		923		873

6,825	5,957		Total benefits and expenses	1,823		1,887		1,955		1,960		2,030		1,908		2,173


1,646	1,431		Adjusted operating income (loss) before income taxes	489		485		431		500		358		485		(182	)

(1)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION

(in millions)


Years ended December 31					2007								2008
2006		2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q

				Revenues (1):
3,985		3,661		Premiums	1,052		1,064		1,060		1,036		1,115		1,076		1,099
1,227		1,386		Policy charges and fee income	368		352		310		376		391		380		313
1,169		1,087		Net investment income	319		327		335		346		343		343		353
391		328		Asset management fees, commissions and other income	97		97		170		92		88		95		149

6,772		6,462		Total revenues	1,836		1,840		1,875		1,850		1,937		1,894		1,914


				Benefits and Expenses (1):
4,360		3,845		Insurance and annuity benefits	1,171		1,123		1,130		1,103		1,184		1,168		1,136
407		378		Interest credited to policyholders’ account balances	113		112		114		119		114		113		119
89		81		Interest expense	40		39		43		51		52		50		51
(467	)	(376	)	Deferral of acquisition costs	(116	)	(119	)	(132	)	(131	)	(117	)	(122	)	(121	)
4		372		Amortization of acquisition costs	79		65		(65	)	94		115		87		(37	)
1,605		1,440		General and administrative expenses	397		410		434		419		403		415		427

5,998		5,740		Total benefits and expenses	1,684		1,630		1,524		1,655		1,751		1,711		1,575


774		722		Adjusted operating income before income taxes	152		210		351		195		186		183		339

(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 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)


Years ended December 31					2007								2008
2006		2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q

				Revenues (1):
(19	)	(18	)	Premiums	(2	)	(1	)	(6	)	—		(4	)	(2	)	(3	)
(29	)	(21	)	Policy charges and fee income	1		(6	)	(17	)	(7	)	(1	)	(6	)	(18	)
790		689		Net investment income	204		182		193		180		181		143		141
(111	)	(26	)	Asset management fees, commissions and other income	(46	)	(33	)	(49	)	(63	)	(78	)	(45	)	(49	)

631		624		Total revenues	157		142		121		110		98		90		71


				Benefits and Expenses (1):
44		63		Insurance and annuity benefits	12		6		13		8		22		18		32
(77	)	(39	)	Interest credited to policyholders’ account balances	(26	)	(30	)	(34	)	(36	)	(43	)	(46	)	(51	)
562		367		Interest expense	160		156		138		141		163		128		165
64		60		Deferral of acquisition costs	11		15		8		17		15		16		9
(43	)	(79	)	Amortization of acquisition costs	(18	)	(12	)	(7	)	(10	)	(10	)	(8	)	(9	)
39		66		General and administrative expenses	11		15		15		42		(13	)	(13	)	(53	)

589		438		Total benefits and expenses	150		150		133		162		134		95		93


42		186		Adjusted operating income (loss) before income taxes	7		(8	)	(12	)	(52	)	(36	)	(5	)	(22	)

(1)

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - INDIVIDUAL LIFE ANNUALIZED NEW BUSINESS PREMIUMS

(in millions)


Year ended December 31		2007				2008
2006		1Q	2Q	3Q	4Q	1Q	2Q	3Q

	ANNUALIZED NEW BUSINESS PREMIUMS:

	Excluding corporate-owned life insurance:
53	Variable life	18	11	12	13	11	10	8
81	Universal life	21	23	22	21	17	22	21
147	Term life	49	54	54	55	51	52	53

281	Total excluding corporate-owned life insurance	88	88	88	89	79	84	82
1	Corporate-owned life insurance	—	—	—	—	—	—	—

282	Total	88	88	88	89	79	84	82


	ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL:

	Excluding corporate-owned life insurance:
125	Prudential Agents	31	31	31	33	28	29	26
156	Third party distribution	57	57	57	56	51	55	56
—	Corporate-owned life insurance	—	—	—	—	—	—	—

281	Total	88	88	88	89	79	84	82

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

RECLASSIFIED SUPPLEMENTAL INFORMATION - INTERNATIONAL INSURANCE SEGMENT

(dollar amounts in millions, unless otherwise noted)


Year ended December 31		2007				2008
2006		1Q	2Q	3Q	4Q	1Q	2Q	3Q

	Constant exchange rate basis (1):

	Net premiums, policy charges and fee income:
2,997	Japan, excluding Gibraltar Life	858	790	792	801	944	850	850
2,296	Gibraltar Life	544	587	537	538	542	575	522
1,366	All other countries	354	358	378	388	375	374	380

6,659	Total	1,756	1,735	1,707	1,727	1,861	1,799	1,752


	Annualized new business premiums:
515	Japan, excluding Gibraltar Life	165	118	111	131	161	124	122
377	Gibraltar Life	79	97	93	96	96	147	112
291	All other countries	71	70	75	79	72	64	56

1,183	Total	315	285	279	306	329	335	290


	Annualized new business premiums by distribution channel:
806	Life Planners	236	188	186	210	233	188	178
328	Gibraltar Life Advisors	73	92	89	90	90	125	97
49	Banks	6	5	4	6	6	22	15

1,183	Total	315	285	279	306	329	335	290


	Face amount of individual policies in force at end of period (in billions) (2):
227	Japan, excluding Gibraltar Life	231	233	236	238	242	244	246
189	Gibraltar Life	188	186	186	186	185	184	184
100	All other countries	102	104	104	106	107	108	108

516	Total	521	523	526	530	534	536	538

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

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

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth 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, investment gains and losses on certain investments supporting insurance liabilities that are classified as other trading account assets, and 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. Annualized New Business Premiums:

Premiums from new sales that are expected to be collected over a one year period. Group insurance annualized new business 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 annualized new business premiums include premiums from the takeover of claim liabilities. Group disability amounts include long-term care products. Excess (unscheduled) and single premium business for the company’s domestic individual life and international insurance operations are included in annualized new business premiums based on a 10% credit.

4. 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).

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. Borrowings - Specified Other Businesses:

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

KEY DEFINITIONS AND FORMULAS

11. 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.

12. 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.

13. Earnings Per Share of Common Stock:

Net income (loss) 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 (loss) of the Financial Services Businesses reflects these adjustments as well. In the periods where there are losses after taxes on either an adjusted operating or continuing operations basis, the diluted share count used in the diluted earnings per share calculation is equal to the weighted average basic common shares as all potential common shares are anti-dilutive.

14. 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.

15. 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.

16. 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.

17. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

18. 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.

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

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

20. 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.

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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

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. 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.

24. 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 -5.46% for the twelve months ended December 31, 2008, 16.20% for the twelve months ended December 31, 2007, -39.94% for the three months ended December 31, 2008, -2.10% for the three months ended September 30, 2008, 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.

25. 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).

26. 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.

27. Prudential Agents:

Insurance agents in our insurance operations in the United States.

28. 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.

29. 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.

30. 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.

31. 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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2008

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of February 4, 2009


	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	A+	AA	NR	AA-
Prudential Retirement Insurance and Annuity Company	A+	AA	Aa3	AA-
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	NR	AA	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA	Aa3	NR

CREDIT RATINGS:
as of February 4, 2009

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

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	A+

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

*	NR indicates not rated.

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

INVESTOR INFORMATION:


Corporate Offices:		Investor Information Hotline:

Prudential Financial, Inc.		Dial 877-998-ROCK for additional printed information or inquiries.
751 Broad Street Newark, New Jersey 07102		Web Site:
		www.prudential.com

Common Stock:

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

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Form: 8-K

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