May 6, 2009 - QUARTERLY FINANCIAL SUPPLEMENT - 8-K: Current report

Exhibit 99.1

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FIRST QUARTER 2009

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.

May 6, 2009

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

CONTENTS


		Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4

FINANCIAL SERVICES BUSINESSES
Combined Statements of Operations		5
Combined Balance Sheets		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		33-36

KEY DEFINITIONS AND FORMULAS		37-39

RATINGS AND INVESTOR INFORMATION		40

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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

Effective January 1, 2009, the company adopted the following accounting pronouncements:

FSP APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).” This guidance requires bifurcation of certain convertible debt instruments, including those issued by the company in 2006 and 2007, into a debt component and an equity component. The retroactive implementation of this guidance, as required by FASB, resulted in increases in interest expense within Corporate and Other results, for all historical periods presented. The adoption of this guidance also resulted in decreases in reported short-term debt of the Financial Services Businesses, with corresponding increases in additional paid-in capital, for all historical periods presented.

SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements” - This guidance changes the accounting for minority interests, which have been recharacterized as noncontrolling interests and classified as a component of equity. The income or loss attributable to noncontrolling interest is now captured as a separate line on the GAAP income statement. These changes have been made for all historical periods presented. This change does not impact adjusted operating income.

FSP EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities” - This guidance requires unvested share-based payment awards that contain nonforfeitable rights to dividends to be included as participating securities in the computation of earnings per share pursuant to the two-class method. This guidance has been applied to all historical periods presented.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date				% Change		2008								2009
2009		2008		% Change		1Q		2Q		3Q		4Q		1Q

					*Financial Services Businesses:*
					Pre-tax adjusted operating income (loss) by division:
175		358		-51%	U.S. Retirement Solutions and Investment Management Division	358		485		(182	)	(975	)	175
133		186		-28%	U.S. Individual Life and Group Insurance Division	186		183		339		78		133
435		439		-1%	International Insurance and Investments Division	439		479		497		(13	)	435
(166	)	(51	)	-225%	Corporate and other operations	(51	)	(20	)	(38	)	(288	)	(166	)

577		932		-38%	Total pre-tax adjusted operating income (loss)	932		1,127		616		(1,198	)	577
141		240		-41%	Income taxes, applicable to adjusted operating income	240		282		186		(304	)	141

436		692		-37%	Financial Services Businesses after-tax adjusted operating income (loss)	692		845		430		(894	)	436


					Reconciling items:
(666	)	(678	)	2%	Realized investment losses, net, and related charges and adjustments	(678	)	(486	)	(547	)	(511	)	(666	)
145		(262	)	155%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(262	)	(123	)	(534	)	(815	)	145
(45	)	200		-123%	Change in experience-rated contractholder liabilities due to asset value changes	200		94		388		481		(45	)
(32	)	(67	)	52%	Divested businesses	(67	)	10		(219	)	(230	)	(32	)
3		(36	)	108%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(36	)	(32	)	213		509		3

(595	)	(843	)	29%	Total reconciling items, before income taxes	(843	)	(537	)	(699	)	(566	)	(595	)
(148	)	(199	)	26%	Income taxes, not applicable to adjusted operating income	(199	)	(245	)	(280	)	(160	)	(148	)

(447	)	(644	)	31%	Total reconciling items, after income taxes	(644	)	(292	)	(419	)	(406	)	(447	)

(11	)	48		-123%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	48		553		11		(1,300	)	(11	)
5		19		-74%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests	19		16		(134	)	(384	)	5

(6	)	67			Income (loss) from continuing operations attributable to Prudential Financial, Inc.	67		569		(123	)	(1,684	)	(6	)
(11	)	24			Earnings attributable to noncontrolling interests	24		8		5		(1	)	(11	)

(17	)	91		-119%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses	91		577		(118	)	(1,685	)	(17	)
1		1		0%	Income (loss) from discontinued operations, net of taxes	1		(3	)	5		28		1

(16	)	92		-117%	Net income (loss) of Financial Services Businesses	92		574		(113	)	(1,657	)	(16	)
(11	)	24			Less: Income (loss) attributable to noncontrolling interests	24		8		5		(1	)	(11	)

(5	)	68			Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.	68		566		(118	)	(1,656	)	(5	)


8.89%		12.35%			Operating Return on Average Equity (based on adjusted operating income)	12.35%		15.32%		8.02%		-16.89%		8.89%

					*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
(5	)	68			Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)	68		566		(118	)	(1,656	)	(5	)
19		(8	)		Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.	(8	)	15		(58	)	74		19

14		60			Consolidated net income (loss) attributable to Prudential Financial, Inc.	60		581		(176	)	(1,582	)	14

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date				% Change		2008								2009
2009		2008		% Change		1Q		2Q		3Q		4Q		1Q

					Earnings per share of Common Stock (diluted) (1)(2):
1.05		1.57			Financial Services Businesses after-tax adjusted operating income (loss)	1.57		1.96		1.02		(2.08	)	1.05

					Reconciling items:
(1.57	)	(1.52	)		Realized investment losses, net, and related charges and adjustments	(1.52	)	(1.11	)	(1.28	)	(1.21	)	(1.57	)
0.34		(0.59	)		Investment gains (losses) on trading account assets supporting insurance liabilities, net	(0.59	)	(0.28	)	(1.25	)	(1.93	)	0.34
(0.11	)	0.45			Change in experience-rated contractholder liabilities due to asset value changes	0.45		0.22		0.91		1.14		(0.11	)
(0.08	)	(0.15	)		Divested businesses	(0.15	)	0.02		(0.51	)	(0.55	)	(0.08	)
0.01		0.01			Difference in earnings allocated to participating unvested share-based payment awards	0.01		0.00		0.00		0.00		0.01

(1.41	)	(1.80	)		Total reconciling items, before income taxes	(1.80	)	(1.15	)	(2.13	)	(2.55	)	(1.41	)
(0.37	)	(0.41	)		Income taxes, not applicable to adjusted operating income	(0.41	)	(0.52	)	(0.84	)	(0.68	)	(0.37	)

(1.04	)	(1.39	)		Total reconciling items, after income taxes	(1.39	)	(0.63	)	(1.29	)	(1.87	)	(1.04	)

0.01		0.18			Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.	0.18		1.33		(0.27	)	(3.95	)	0.01
0.00		0.00			Income (loss) from discontinued operations, net of taxes	0.00		(0.01	)	0.02		0.06		0.00

0.01		0.18			Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.	0.18		1.32		(0.25	)	(3.89	)	0.01


422.1		442.1			Weighted average number of outstanding Common shares (basic)	442.1		431.9		423.8		421.3		422.1

423.2		446.9			Weighted average number of outstanding Common shares (diluted)	446.9		436.5		428.0		423.0		423.2

11		12			Direct equity adjustments for earnings per share calculation	12		14		10		19		11

					*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation (2)*
4		4			Financial Services Businesses after-tax adjusted operating income	4		5		3		1		4
0		0			Income from continuing operations (after-tax) of Financial Services Businesses	0		4		0		1		0

(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 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 the 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.

(2)

Under new guidance effective January 1, 2009, U.S. GAAP requires unvested share-based payment awards that contain nonforfeitable rights to dividends to be included as participating securities in the computation of earnings per share pursuant to the two-class method. Under this method, earnings of the Financial Services Businesses are allocated between Common Stock and the participating awards, as if the awards were a second class of stock.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2008				2009
2009	2008		1Q	2Q	3Q	4Q	1Q

		*Financial Services Businesses Capitalization Data (1):*
		Senior Debt:
		Short-term debt	13,713	12,895	13,744	10,092	6,651
		Long-term debt	13,302	13,856	14,602	17,022	17,394
		Junior Subordinated Long-Term Debt	—	1,398	1,518	1,518	1,518

		Attributed Equity:
		Including accumulated other comprehensive income	21,532	20,541	18,780	14,292	14,349
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	22,547	22,321	21,553	19,899	20,337
		Excluding total accumulated other comprehensive income	22,005	21,772	21,343	19,529	20,238

		Total Capitalization:
		Including accumulated other comprehensive income	34,834	35,795	34,900	32,832	33,261
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	35,849	37,575	37,673	38,439	39,249
		Excluding total accumulated other comprehensive income	35,307	37,026	37,463	38,069	39,150

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	48.56	47.67	43.92	33.69	33.83
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	50.85	51.80	50.40	46.91	47.95
		Excluding total accumulated other comprehensive income	49.63	50.53	49.91	46.04	47.72
		Number of diluted shares at end of period	443.4	430.9	427.6	424.2	424.1
		*Common Stock Price Range (based on closing price):*
25.11	91.36	High	91.36	82.21	86.25	64.80	25.11
11.29	67.36	Low	67.36	59.74	56.07	13.73	11.29
19.02	78.25	Close	78.25	59.74	72.00	30.26	19.02

		*Common Stock market capitalization (1)*	34,230	25,465	30,362	12,749	8,042

(1)	As of end of period.

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

OPERATIONS HIGHLIGHTS


Year-to-date			2008				2009
2009	2008		1Q	2Q	3Q	4Q	1Q

		*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	174.2	179.3	170.9	161.2	152.7
		Retail customers	81.8	84.6	75.4	61.6	61.3
		General account	177.9	175.0	175.2	172.6	172.3

		Total Investment Management and Advisory Services	433.9	438.9	421.5	395.4	386.3
		Non-proprietary assets under management	111.5	115.3	97.6	80.5	75.1

		Total managed by U.S. Retirement Solutions and Investment Management Division	545.4	554.2	519.1	475.9	461.4
		Managed by U.S. Individual Life and Group Insurance Division	14.7	14.3	13.3	12.4	11.9
		Managed by International Insurance and Investments Division:	71.0	69.4	69.9	69.9	68.4

		Total assets under management	631.1	637.9	602.3	558.2	541.7
		Client assets under administration	129.4	125.0	112.1	101.1	98.8

		Total assets under management and administration	760.5	762.9	714.4	659.3	640.5


		Assets managed or administered for customers outside of the United States at end of period	120.3	120.0	115.6	112.6	110.4
		*Distribution Representatives (1):*
		Prudential Agents	2,436	2,446	2,482	2,360	2,389
		International Life Planners	6,138	6,179	6,267	6,365	6,397
		Gibraltar Life Advisors	6,035	5,899	6,057	6,330	6,170

41	50	*Prudential Agent productivity ($ thousands)*	50	58	55	70	41

(1)	As of end of period.

(2)	At fair market value.

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Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date				% Change		2008								2009
2009		2008		% Change		1Q		2Q		3Q		4Q		1Q

					Revenues (1):
3,261		3,102		5%	Premiums	3,102		2,961		2,798		2,997		3,261
734		824		-11%	Policy charges and fee income	824		809		709		781		734
2,064		2,111		-2%	Net investment income	2,111		2,145		2,076		2,100		2,064
1,949		887		120%	Asset management fees, commissions and other income	887		945		776		14		1,949

8,008		6,924		16%	Total revenues	6,924		6,860		6,359		5,892		8,008


					Benefits and Expenses (1):
3,464		3,082		12%	Insurance and annuity benefits	3,082		2,944		3,040		3,472		3,464
1,086		806		35%	Interest credited to policyholders’ account balances	806		803		853		881		1,086
247		298		-17%	Interest expense	298		248		287		303		247
(578	)	(588	)	2%	Deferral of acquisition costs	(588	)	(588	)	(559	)	(567	)	(578	)
1,205		338		257%	Amortization of acquisition costs	338		315		238		512		1,205
2,007		2,056		-2%	General and administrative expenses	2,056		2,011		1,884		2,489		2,007

7,431		5,992		24%	Total benefits and expenses	5,992		5,733		5,743		7,090		7,431

577		932		-38%	Adjusted operating income (loss) before income taxes	932		1,127		616		(1,198	)	577


					Reconciling items:
(710	)	(665	)	-7%	Realized investment losses, net, and related adjustments	(665	)	(527	)	(564	)	(511	)	(710	)
44		(13	)	438%	Related charges	(13	)	41		17		—		44

(666	)	(678	)	2%	Total realized investment losses, net, and related charges and adjustments	(678	)	(486	)	(547	)	(511	)	(666	)

145		(262	)	155%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(262	)	(123	)	(534	)	(815	)	145
(45	)	200		-123%	Change in experience-rated contractholder liabilities due to asset value changes	200		94		388		481		(45	)
(32	)	(67	)	52%	Divested businesses	(67	)	10		(219	)	(230	)	(32	)
3		(36	)	108%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(36	)	(32	)	213		509		3

(595	)	(843	)	29%	Total reconciling items, before income taxes	(843	)	(537	)	(699	)	(566	)	(595	)


(18	)	89		-120%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures	89		590		(83	)	(1,764	)	(18	)
(7	)	41		-117%	Income tax expense (benefit)	41		37		(94	)	(464	)	(7	)

(11	)	48		-123%	Income (loss) from continuing operations before equity in earnings of operating joint ventures	48		553		11		(1,300	)	(11	)

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on trading account assets supporting insurance liabilities, and revenues of divested businesses, and include revenues representing equity in earnings of operating joint ventures 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

First Quarter 2009

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	3/31/2008		6/30/2008		9/30/2008		12/31/2008		3/31/2009

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $117,893; $116,193; $118,111; $125,753; $123,589)	117,914		114,541		114,626		119,153		116,094
Fixed maturities, held to maturity, at amortized cost (fair value $3,741; $3,490; $3,410; $3,832; $4,629)	3,735		3,572		3,481		3,808		4,661
Trading account assets supporting insurance liabilities, at fair value	14,644		14,624		14,392		13,875		13,973
Other trading account assets, at fair value	2,684		2,984		3,240		4,216		4,445
Equity securities, available for sale, at fair value (cost $4,786; $4,686; $4,634; $4,273; $3,893)	4,551		4,567		4,258		3,665		3,425
Commercial mortgage and other loans	23,444		23,837		24,173		24,366		24,069
Policy loans	4,147		4,207		3,822		4,280		4,230
Securities purchased under agreements to resell	178		184		171		480		—
Other long-term investments	5,266		5,683		5,255		5,383		4,247
Short-term investments	4,176		5,601		6,621		4,092		3,458

Total investments	180,739		179,800		180,039		183,318		178,602
Cash and cash equivalents	8,133		8,762		9,907		13,054		12,748
Accrued investment income	1,540		1,531		1,551		1,603		1,610
Deferred policy acquisition costs	11,924		12,203		12,472		13,127		12,223
Deferred income taxes, net	—		—		—		(533	)	(462	)
Other assets	22,332		24,982		24,446		21,962		18,452
Separate account assets	181,902		179,323		165,148		147,095		139,638

Total assets	406,570		406,601		393,563		379,626		362,811


Liabilities:
Future policy benefits	63,536		62,449		62,027		70,221		67,417
Policyholders’ account balances	84,949		86,337		90,871		93,991		95,033
Securities sold under agreements to repurchase	3,727		4,307		4,209		4,288		3,743
Cash collateral for loaned securities	2,761		2,808		2,231		2,684		1,966
Income taxes	3,602		2,819		1,315		364		773
Senior short-term debt	13,713		12,895		13,744		10,092		6,651
Senior long-term debt	13,302		13,856		14,602		17,022		17,394
Junior subordinated long-term debt	—		1,398		1,518		1,518		1,518
Other liabilities	17,205		19,575		18,817		17,708		13,753
Separate account liabilities	181,902		179,323		165,148		147,095		139,638

Total liabilities	384,697		385,767		374,482		364,983		347,886


Attributed Equity:
Accumulated other comprehensive loss	(473	)	(1,231	)	(2,563	)	(5,237	)	(5,889	)
Other attributed equity	22,005		21,772		21,343		19,529		20,238

Total attributed equity	21,532		20,541		18,780		14,292		14,349

Noncontrolling Interest	341		293		301		351		576

Total Equity	21,873		20,834		19,081		14,643		14,925

Total liabilities and equity	406,570		406,601		393,563		379,626		362,811

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Three Months Ended March 31, 2009
	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	3,261		175		1,190		1,899		(3	)
Policy charges and fee income	734		249		393		99		(7	)
Net investment income	2,064		1,146		353		534		31
Asset management fees, commissions and other income	1,949		1,793		77		110		(31	)

Total revenues	8,008		3,363		2,013		2,642		(10	)


Benefits and Expenses (1):
Insurance and annuity benefits	3,464		642		1,276		1,501		45
Interest credited to policyholders’ account balances	1,086		895		119		119		(47	)
Interest expense	247		25		51		1		170
Deferral of acquisition costs	(578	)	(149	)	(125	)	(309	)	5
Amortization of acquisition costs	1,205		878		136		202		(11	)
General and administrative expenses	2,007		897		423		693		(6	)

Total benefits and expenses	7,431		3,188		1,880		2,207		156


Adjusted operating income (loss) before income taxes	577		175		133		435		(166	)


	Three Months Ended March 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	3,102		219		1,115		1,772		(4	)
Policy charges and fee income	824		347		391		87		(1	)
Net investment income	2,111		1,125		343		462		181
Asset management fees, commissions and other income	887		697		88		180		(78	)

Total revenues	6,924		2,388		1,937		2,501		98


Benefits and Expenses (1):
Insurance and annuity benefits	3,082		463		1,184		1,413		22
Interest credited to policyholders’ account balances	806		635		114		100		(43	)
Interest expense	298		66		52		2		178
Deferral of acquisition costs	(588	)	(192	)	(117	)	(294	)	15
Amortization of acquisition costs	338		73		115		160		(10	)
General and administrative expenses	2,056		985		403		681		(13	)

Total benefits and expenses	5,992		2,030		1,751		2,062		149


Adjusted operating income (loss) before income taxes	932		358		186		439		(51	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of March 31, 2009
	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	178,602		84,981		23,667		63,704		6,250
Deferred policy acquisition costs	12,223		1,889		4,619		5,864		(149	)
Other assets	32,348		9,136		2,993		9,712		10,507
Separate account assets	139,638		108,233		32,425		274		(1,294	)

Total assets	362,811		204,239		63,704		79,554		15,314


Liabilities:
Future policy benefits	67,417		16,884		8,444		41,651		438
Policyholders’ account balances	95,033		62,616		13,883		20,976		(2,442	)
Debt	25,563		2,812		5,446		602		16,703
Other liabilities	20,235		6,603		1,721		9,536		2,375
Separate account liabilities	139,638		108,233		32,425		274		(1,294	)

Total liabilities	347,886		197,148		61,919		73,039		15,780


Attributed Equity:
Accumulated other comprehensive loss	(5,889	)	(2,646	)	(1,528	)	(821	)	(894	)
Other attributed equity	20,238		9,204		3,313		7,299		422

Total attributed equity	14,349		6,558		1,785		6,478		(472	)

Noncontrolling Interest	576		533		—		37		6

Total Equity	14,925		7,091		1,785		6,515		(466	)


Total liabilities and equity	362,811		204,239		63,704		79,554		15,314


	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	28,632		4,137		5,448		620		18,427
Other liabilities	25,044		8,039		1,904		12,912		2,189
Separate account liabilities	147,095		115,791		32,277		270		(1,243	)

Total liabilities	364,983		208,503		61,369		78,793		16,318


Attributed Equity:
Accumulated other comprehensive loss	(5,237	)	(2,422	)	(1,278	)	(562	)	(975	)
Other attributed equity	19,529		9,255		3,347		6,808		119

Total attributed equity	14,292		6,833		2,069		6,246		(856	)

Noncontrolling Interest	351		306		—		39		6

Total Equity	14,643		7,139		2,069		6,285		(850	)


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

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of March 31, 2009					As of December 31, 2008
	Senior debt		Junior Subordinated	Total Debt		Senior debt		Junior Subordinated	Total Debt
	Short-term Debt	Long-term Debt	Long-term Debt	Total Debt		Short-term Debt	Long-term Debt	Long-term Debt	Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt	222	6,237	1,518	7,977		925	5,092	1,518	7,535
Investment related	4,423	8,552	—	12,975		6,245	9,792	—	16,037
Securities business related	1,454	1,610	—	3,064		1,806	1,550	—	3,356
Specified other businesses	462	259	—	721		778	264	—	1,042
Limited recourse and non-recourse borrowing	90	736	—	826		338	324	—	662

Total debt - Financial Services Businesses	6,651	17,394	1,518	25,563		10,092	17,022	1,518	28,632

Ratio of long-term and short-term capital debt to capitalization (1)				23.9	%				23.3	%

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

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


	As of March 31, 2009					As of December 31, 2008
	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	6,792	976	209	7,977		6,837	462	236	7,535
Investment related	7,253	2,465	3,257	12,975		8,819	3,991	3,227	16,037
Securities business related	520	2,388	156	3,064		694	2,430	232	3,356
Specified other businesses	277	444	—	721		290	752	—	1,042
Limited recourse and non-recourse borrowing	—	—	826	826		—	—	662	662

Total debt - Financial Services Businesses	14,842	6,273	4,448	25,563		16,640	7,635	4,357	28,632

(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 $441 million of Surplus Notes for March 31, 2009 and $444 million for December 31, 2008.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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

(in millions)


Year-to-date			% Change		2008								2009
2009	2008		% Change		1Q		2Q		3Q		4Q		1Q

				Revenues (1):
175	219		-20%	Premiums	219		151		75		209		175
249	347		-28%	Policy charges and fee income	347		353		331		256		249
1,146	1,125		2%	Net investment income	1,125		1,155		1,068		1,101		1,146
1,793	697		157%	Asset management fees, commissions and other income	697		734		517		191		1,793

3,363	2,388		41%	Total revenues	2,388		2,393		1,991		1,757		3,363


				Benefits and Expenses (1):
642	463		39%	Insurance and annuity benefits	463		398		593		814		642
895	635		41%	Interest credited to policyholders’ account balances	635		635		679		707		895
25	66		-62%	Interest expense	66		51		54		54		25
(149)	(192	)	22%	Deferral of acquisition costs	(192	)	(183	)	(166	)	(148	)	(149	)
878	73		1103%	Amortization of acquisition costs	73		84		140		126		878
897	985		-9%	General and administrative expenses	985		923		873		1,179		897

3,188	2,030		57%	Total benefits and expenses	2,030		1,908		2,173		2,732		3,188


175	358		-51%	Adjusted operating income (loss) before income taxes	358		485		(182	)	(975	)	175

(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

First Quarter 2009

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

(in millions)


	Three Months Ended March 31, 2009
	Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management
Revenues (1):
Premiums	175		17		158		—
Policy charges and fee income	249		200		49		—
Net investment income	1,146		274		861		11
Asset management fees, commissions and other income	1,793		1,401		140		252

Total revenues	3,363		1,892		1,208		263


Benefits and Expenses (1):
Insurance and annuity benefits	642		304		338		—
Interest credited to policyholders’ account balances	895		407		488		—
Interest expense	25		4		12		9
Deferral of acquisition costs	(149	)	(132	)	(14	)	(3	)
Amortization of acquisition costs	878		862		12		4
General and administrative expenses (2)	897		430		213		254

Total benefits and expenses	3,188		1,875		1,049		264

Adjusted operating income (loss) before income taxes	175		17		159		(1	)


	Three Months Ended March 31, 2008
	Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management
Revenues (1):
Premiums	219		19		200		—
Policy charges and fee income	347		304		43		—
Net investment income	1,125		161		893		71
Asset management fees, commissions and other income	697		89		131		477

Total revenues	2,388		573		1,267		548


Benefits and Expenses (1):
Insurance and annuity benefits	463		71		392		—
Interest credited to policyholders’ account balances	635		102		533		—
Interest expense	66		14		30		22
Deferral of acquisition costs	(192	)	(163	)	(25	)	(4	)
Amortization of acquisition costs	73		63		5		5
General and administrative expenses (2)	985		371		208		406

Total benefits and expenses	2,030		458		1,143		429


Adjusted operating income before income taxes	358		115		124		119

(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.

(2)	General and administrative expenses for Individual Annuities include $150 million for the three months ended March 31, 2009 and $30 million for the three months ended March 31, 2008, for the amortization, net of interest, of value of business acquired (VOBA).

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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

(in millions)


Year-to-date					2008								2009
2009		2008			1Q		2Q		3Q		4Q		1Q

				SALES AND ACCOUNT VALUES:

				Variable Annuities:
60,007		80,330		Beginning total account value	80,330		74,977		74,707		67,968		60,007
2,108		2,829		Sales	2,829		2,740		2,507		2,132		2,108
(1,443	)	(2,173	)	Surrenders and withdrawals	(2,173	)	(2,185	)	(1,988	)	(1,654	)	(1,443	)

665		656		Net sales	656		555		519		478		665
(256	)	(294	)	Benefit payments	(294	)	(262	)	(259	)	(242	)	(256	)

409		362		Net flows	362		293		260		236		409
(2,269	)	(5,409	)	Change in market value, interest credited, and other	(5,409	)	(246	)	(6,712	)	(7,986	)	(2,269	)
(205	)	(306	)	Policy charges	(306	)	(317	)	(287	)	(211	)	(205	)

57,942		74,977		Ending total account value	74,977		74,707		67,968		60,007		57,942


				Fixed Annuities:
3,295		3,488		Beginning total account value	3,488		3,440		3,394		3,349		3,295
55		17		Sales	17		24		33		47		55
(77	)	(53	)	Surrenders and withdrawals	(53	)	(61	)	(71	)	(91	)	(77	)

(22	)	(36	)	Net redemptions	(36	)	(37	)	(38	)	(44	)	(22	)
(43	)	(43	)	Benefit payments	(43	)	(40	)	(37	)	(40	)	(43	)

(65	)	(79	)	Net flows	(79	)	(77	)	(75	)	(84	)	(65	)
33		32		Interest credited and other	32		31		32		32		33
—		(1	)	Policy charges	(1	)	—		(2	)	(2	)	—

3,263		3,440		Ending total account value	3,440		3,394		3,349		3,295		3,263


				SALES BY DISTRIBUTION CHANNEL: (1)

				Variable and Fixed Annuities (2):
465		646		Insurance Agents	646		673		589		540		465
344		323		Wirehouses	323		324		340		264		344
1,353		1,878		Independent Financial Planners (3)	1,878		1,767		1,611		1,375		1,353

2,163		2,846		Total	2,846		2,764		2,540		2,179		2,163


				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (4):

				Return of net deposits:
				Account value	40,817		41,272		38,285		34,892		34,313
				Net amount at risk	1,631		1,750		3,572		6,462		7,433
				Minimum return, anniversary contract value, or maximum contract value:
				Account value	29,401		28,717		25,469		21,494		20,208
				Net amount at risk	3,823		4,032		6,431		9,640		10,503

				Variable Annuity Account Values with Living Benefit Features (4):
				Guaranteed minimum accumulation benefits	10,933		10,867		10,221		9,891		9,793
				Guaranteed minimum withdrawal benefits	2,006		1,902		1,646		1,326		1,198
				Guaranteed minimum income benefits	6,233		5,958		5,149		4,114		3,750
				Guaranteed minimum withdrawal & income benefits	16,863		18,372		18,153		17,723		18,470

				Total	36,035		37,099		35,169		33,054		33,211

(1)	Production of certain firms have been reclassified between channels for earlier periods to conform to current reporting classification.

(2)	Amounts represent gross sales.

(3)	Including bank distribution.

(4)	At end of period.

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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

(in millions)


Year-to-date					2008								2009
2009		2008			1Q		2Q		3Q		4Q		1Q

				INDIVIDUAL ANNUITIES:

				Account Values in General Account (1):
18,110		8,644		Beginning balance	8,644		12,013		12,282		17,051		18,110
83		73		Premiums and deposits	73		51		70		81		83
(386	)	(251	)	Surrenders and withdrawals	(251	)	(254	)	(296	)	(433	)	(386	)

(303	)	(178	)	Net redemptions	(178	)	(203	)	(226	)	(352	)	(303	)
(93	)	(103	)	Benefit payments	(103	)	(80	)	(87	)	(92	)	(93	)

(396	)	(281	)	Net flows	(281	)	(283	)	(313	)	(444	)	(396	)
156		99		Interest credited and other	99		105		121		159		156
338		3,552		Net transfers from separate account	3,552		447		4,963		1,346		338
—		(1	)	Policy charges	(1	)	—		(2	)	(2	)	—

18,208		12,013		Ending balance	12,013		12,282		17,051		18,110		18,208


				Account Values in Separate Account:
45,192		75,174		Beginning balance	75,174		66,404		65,819		54,266		45,192
2,080		2,773		Premiums and deposits	2,773		2,713		2,470		2,098		2,080
(1,134	)	(1,975	)	Surrenders and withdrawals	(1,975	)	(1,992	)	(1,763	)	(1,312	)	(1,134	)

946		798		Net sales	798		721		707		786		946
(206	)	(234	)	Benefit payments	(234	)	(222	)	(209	)	(190	)	(206	)

740		564		Net flows	564		499		498		596		740
(2,392	)	(5,476	)	Change in market value, interest credited and other	(5,476	)	(320	)	(6,801	)	(8,113	)	(2,392	)
(338	)	(3,552	)	Net transfers to general account	(3,552	)	(447	)	(4,963	)	(1,346	)	(338	)
(205	)	(306	)	Policy charges	(306	)	(317	)	(287	)	(211	)	(205	)


42,997		66,404		Ending balance	66,404		65,819		54,266		45,192		42,997

(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

First Quarter 2009

LOGO

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

(in millions)


Year-to-date					2008								2009
2009		2008			1Q		2Q		3Q		4Q		1Q

				RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

				Full Service:
99,738		112,192		Beginning total account value	112,192		107,060		106,917		100,463		99,738
10,489		4,586		Deposits and sales	4,586		4,530		3,276		6,549		10,489
(4,231	)	(3,933	)	Withdrawals and benefits	(3,933	)	(4,366	)	(2,883	)	(3,869	)	(4,231	)
(3,837	)	(5,785	)	Change in market value, interest credited and interest income	(5,785	)	(307	)	(6,847	)	(12,320	)	(3,837	)
—		—		Acquisition (1)	—		—		—		8,915		—

102,159		107,060		Ending total account value	107,060		106,917		100,463		99,738		102,159

6,258		653		Net additions	653		164		393		2,680		6,258

				Stable value account values included above	33,279		33,883		34,570		35,346		36,601

				Institutional Investment Products:
50,491		51,591		Beginning total account value	51,591		51,667		51,513		50,041		50,491
627		1,810		Additions (2)	1,810		1,606		1,052		1,270		627
(2,037	)	(1,702	)	Withdrawals and benefits	(1,702	)	(1,944	)	(2,114	)	(1,632	)	(2,037	)
(152	)	561		Change in market value, interest credited and interest income	561		241		153		1,243		(152	)
101		(593	)	Other (3)	(593	)	(57	)	(563	)	(431	)	101

49,030		51,667		Ending total account value	51,667		51,513		50,041		50,491		49,030


(1,410	)	108		Net additions (withdrawals)	108		(338	)	(1,062	)	(362	)	(1,410	)

(1)	On October 10, 2008, the company acquired MullinTBG Insurance Agency Services, LLC and related entities.

(2)	Includes $700 million for the three 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.

(3)

“Other” activity includes transfers from (to) the Asset Management segment of $(206) million, $115 million, $(20) million and $543 million for the first, second, third and fourth quarters of 2008, respectively. “Other” activity also includes $(700) million for the three months ended December 31, 2008 related to transfers discussed above in note 2. For the three months ended March 31, 2009, Other includes $1,500 million representing collateralized funding agreements issued to the Federal Home Loan Bank of New York (FHLBNY) and $(1,015) million representing terminations of affiliated funding agreements utilizing proceeds from the issuances to FHLBNY. The remainder of “other” activity primarily represents changes in asset balances for externally managed accounts.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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			%		2008						2009
2009		2008	Change		1Q	2Q	3Q		4Q		1Q

				Analysis of revenues by type:
239		281	-15%	Asset management fees	281	288	289		257		239
(35	)	88	-140%	Incentive, transaction, principal investing and commercial mortgage revenues	88	152	(49	)	(141	)	(35	)
59		179	-67%	Service, distribution and other revenues	179	124	105		113		59

263		548	-52%	Total Asset Management segment revenues	548	564	345		229		263


				Analysis of asset management fees by source:
119		133	-11%	Institutional customers	133	136	138		133		119
56		81	-31%	Retail customers	81	85	83		58		56
64		67	-4%	General account	67	67	68		66		64

239		281	-15%	Total asset management fees	281	288	289		257		239


Supplementary Assets Under Management Information (in billions):
	March 31, 2009
	Equity	Fixed Income	Real Estate	Total
Institutional customers	35.2	94.6	22.9	152.7
Retail customers	36.5	23.2	1.6	61.3
General account	2.9	168.6	0.8	172.3

Total	74.6	286.4	25.3	386.3


	March 31, 2008
	Equity	Fixed Income	Real Estate	Total
Institutional customers	52.1	93.3	28.8	174.2
Retail customers	60.2	20.0	1.6	81.8
General account	4.2	172.8	0.9	177.9

Total	116.5	286.1	31.3	433.9

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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

(in billions)


Year-to-date					2008								2009
2009		2008			1Q		2Q		3Q		4Q		1Q

				Institutional Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
128.5		141.7		Beginning assets under management	141.7		140.1		145.8		138.6		128.5
4.9		6.3		Additions	6.3		10.9		6.3		6.1		4.9
(4.6	)	(4.3	)	Withdrawals	(4.3	)	(4.5	)	(4.8	)	(5.9	)	(4.6	)
(7.3	)	(2.8	)	Change in market value	(2.8	)	(0.5	)	(8.4	)	(10.7	)	(7.3	)
(0.9	)	(1.0	)	Net money market flows	(1.0	)	(0.1	)	(0.3	)	0.9		(0.9	)
—		0.2		Other (1)	0.2		(0.1	)	—		(0.5	)	—

120.6		140.1		Ending assets under management	140.1		145.8		138.6		128.5		120.6
32.1		34.1		Affiliated institutional assets under management	34.1		33.5		32.3		32.7		32.1

152.7		174.2		Total assets managed for institutional customers at end of period	174.2		179.3		170.9		161.2		152.7


0.3		2.0		Net institutional additions, excluding money market and other activity (1)	2.0		6.4		1.5		0.2		0.3


				Retail Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
33.4		50.9		Beginning assets under management	50.9		48.2		50.7		43.4		33.4
3.5		3.5		Additions	3.5		3.8		4.4		3.4		3.5
(3.3	)	(2.5	)	Withdrawals	(2.5	)	(2.9	)	(4.3	)	(5.0	)	(3.3	)
(0.7	)	(4.0	)	Change in market value	(4.0	)	1.9		(7.5	)	(8.4	)	(0.7	)
0.7		0.3		Net money market flows	0.3		(0.3	)	0.1		—		0.7
—		—		Other	—		—		—		—		—

33.5		48.2		Ending assets under management	48.2		50.7		43.4		33.4		33.5
27.8		33.6		Affiliated retail assets under management	33.6		33.9		32.0		28.2		27.8

61.3		81.8		Total assets managed for retail customers at end of period	81.8		84.6		75.4		61.6		61.3


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

(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.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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

(in millions)


Year-to-date				%		2008								2009
2009		2008		Change		1Q		2Q		3Q		4Q		1Q

					Revenues (1):
1,190		1,115		7%	Premiums	1,115		1,076		1,099		1,091		1,190
393		391		1%	Policy charges and fee income	391		380		313		441		393
353		343		3%	Net investment income	343		343		353		357		353
77		88		-13%	Asset management fees, commissions and other income	88		95		149		80		77

2,013		1,937		4%	Total revenues	1,937		1,894		1,914		1,969		2,013


					Benefits and Expenses (1):
1,276		1,184		8%	Insurance and annuity benefits	1,184		1,168		1,136		1,210		1,276
119		114		4%	Interest credited to policyholders’ account balances	114		113		119		117		119
51		52		-2%	Interest expense	52		50		51		62		51
(125	)	(117	)	-7%	Deferral of acquisition costs	(117	)	(122	)	(121	)	(126	)	(125	)
136		115		18%	Amortization of acquisition costs	115		87		(37	)	222		136
423		403		5%	General and administrative expenses	403		415		427		406		423

1,880		1,751		7%	Total benefits and expenses	1,751		1,711		1,575		1,891		1,880


133		186		-28%	Adjusted operating income before income taxes	186		183		339		78		133

(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

First Quarter 2009

LOGO

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

(in millions)


	Three Months Ended March 31, 2009
	Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance
Revenues (1):
Premiums	1,190		160		1,030
Policy charges and fee income	393		276		117
Net investment income	353		197		156
Asset management fees, commissions and other income	77		47		30

Total revenues	2,013		680		1,333


Benefits and Expenses (1):
Insurance and annuity benefits	1,276		272		1,004
Interest credited to policyholders’ account balances	119		62		57
Interest expense	51		51		—
Deferral of acquisition costs	(125	)	(115	)	(10	)
Amortization of acquisition costs	136		128		8
General and administrative expenses	423		242		181

Total benefits and expenses	1,880		640		1,240


Adjusted operating income before income taxes	133		40		93


	Three Months Ended March 31, 2008
	Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance
Revenues (1):
Premiums	1,115		148		967
Policy charges and fee income	391		285		106
Net investment income	343		180		163
Asset management fees, commissions and other income	88		67		21

Total revenues	1,937		680		1,257


Benefits and Expenses (1):
Insurance and annuity benefits	1,184		239		945
Interest credited to policyholders’ account balances	114		55		59
Interest expense	52		52		—
Deferral of acquisition costs	(117	)	(108	)	(9	)
Amortization of acquisition costs	115		111		4
General and administrative expenses	403		235		168

Total benefits and expenses	1,751		584		1,167


Adjusted operating income before income taxes	186		96		90

(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

First Quarter 2009

LOGO

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					2008								2009
2009		2008			1Q		2Q		3Q		4Q		1Q

				ANNUALIZED NEW BUSINESS PREMIUMS:

				Excluding corporate-owned life insurance:
4		11		Variable life	11		10		8		10		4
28		17		Universal life	17		22		21		23		28
52		51		Term life	51		52		53		53		52

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

84		79		Total	79		84		82		86		84


				ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL:

				Excluding corporate-owned life insurance:
22		28		Prudential Agents	28		29		26		26		22
62		51		Third party distribution	51		55		56		60		62
—		—		Corporate-owned life insurance	—		—		—		—		—

84		79		Total	79		84		82		86		84


				ACCOUNT VALUE ACTIVITY:

				*Policyholders’ Account Balances (1):*
7,397		6,582		Beginning balance	6,582		6,676		6,948		7,212		7,397
570		370		Premiums and deposits	370		409		372		462		570
(278	)	(238	)	Surrenders and withdrawals	(238	)	(211	)	(248	)	(303	)	(278	)

292		132		Net sales	132		198		124		159		292
(34	)	(39	)	Benefit payments	(39	)	(38	)	(41	)	(41	)	(34	)

258		93		Net flows	93		160		83		118		258
81		9		Interest credited and other	9		130		180		78		81
45		63		Net transfers from separate account	63		59		75		70		45
(90	)	(71	)	Policy charges	(71	)	(77	)	(74	)	(81	)	(90	)

7,691		6,676		Ending balance	6,676		6,948		7,212		7,397		7,691


				*Separate Account Liabilities:*
12,848		18,585		Beginning balance	18,585		17,276		17,387		15,476		12,848
315		304		Premiums and deposits	304		311		386		409		315
(328	)	(162	)	Surrenders and withdrawals	(162	)	(215	)	(173	)	(277	)	(328	)

(13	)	142		Net sales (redemptions)	142		96		213		132		(13	)
(2	)	(10	)	Benefit payments	(10	)	(22	)	(6	)	17		(2	)

(15	)	132		Net flows	132		74		207		149		(15	)
(500	)	(1,183	)	Change in market value, interest credited and other	(1,183	)	288		(1,849	)	(2,524	)	(500	)
(45	)	(63	)	Net transfers to general account	(63	)	(59	)	(75	)	(70	)	(45	)
(178	)	(195	)	Policy charges	(195	)	(192	)	(194	)	(183	)	(178	)

12,110		17,276		Ending balance	17,276		17,387		15,476		12,848		12,110


				FACE AMOUNT IN FORCE (2):

				Variable life	135,519		134,691		131,608		127,503		124,600
				Universal life	26,201		27,091		27,999		29,070		30,537
				Term life	331,139		345,467		359,887		373,927		386,218

				Total	492,859		507,249		519,494		530,500		541,354

(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

First Quarter 2009

LOGO

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

(dollar amounts in millions)


Year-to-date			2008				2009
2009	2008		1Q	2Q	3Q	4Q	1Q

		Individual Life Insurance:
		Policy Surrender Experience:
256	178	Cash value of surrenders	178	196	188	240	256
5.5%	3.1%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.1%	3.5%	3.5%	4.8%	5.5%

		Death benefits per $1,000 of in force (1):
4.71	3.62	Variable and universal life	3.62	4.14	3.23	3.58	4.71
1.14	1.59	Term life	1.59	1.53	1.46	0.97	1.14
3.14	2.92	Total, Individual Life Insurance	2.92	3.08	2.51	2.43	3.14

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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

(dollar amounts in millions)


Year-to-date			2008								2009
2009	2008		1Q		2Q		3Q		4Q		1Q

		GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
210	112	Group life	112		30		70		76		210
134	114	Group disability (1)	114		17		47		26		134

344	226	Total	226		47		117		102		344


		Future Policy Benefits (2):
		Group life (3)	2,044		2,046		2,015		2,227		2,169
		Group disability (1)	774		810		865		898		1,015

		Total	2,818		2,856		2,880		3,125		3,184


		Policyholders’ Account Balances (2):
		Group life (3)	5,961		6,143		5,785		5,958		6,033
		Group disability (1)	137		149		152		172		159

		Total	6,098		6,292		5,937		6,130		6,192


		Separate Account Liabilities (2):
		Group life	19,363		17,941		19,943		19,429		20,315
		Group disability (1)	—		—		—		—		—

		Total	19,363		17,941		19,943		19,429		20,315


		Group Life Insurance:
920	949	Gross premiums, policy charges and fee income (4)	949		912		840		922		920
857	793	Earned premiums, policy charges and fee income	793		810		789		840		857
88.0%	87.1%	Benefits ratio	87.1	%	89.4	%	88.1	%	89.9	%	88.0	%
8.8%	8.2%	Administrative operating expense ratio	8.2	%	8.2	%	9.4	%	8.7	%	8.8	%
		Persistency ratio	94.7	%	94.0	%	93.6	%	93.3	%	95.8	%

		Group Disability Insurance (1):
297	288	Gross premiums, policy charges and fee income (4)	288		238		265		241		297
290	280	Earned premiums, policy charges and fee income	280		225		259		231		290
86.2%	91.1%	Benefits ratio	91.1	%	86.2	%	81.5	%	90.0	%	86.2	%
17.9%	17.4%	Administrative operating expense ratio	17.4	%	22.3	%	19.3	%	20.8	%	17.9	%
		Persistency ratio	91.4	%	90.4	%	86.7	%	85.6	%	94.5	%

(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

First Quarter 2009

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

(in millions)


Year-to-date					2008								2009
2009		2008			1Q		2Q		3Q		4Q		1Q

				INDIVIDUAL ANNUITIES:
2,329		1,976		Beginning balance	1,976		2,093		2,199		2,294		2,329
132		163		Capitalization	163		155		149		130		132
(862	)	(63	)	Amortization - operating results	(63	)	(76	)	(121	)	(119	)	(862	)
2		15		Amortization - realized investment gains and losses	15		(5	)	10		(10	)	2
(21	)	2		Impact of unrealized (gains) or losses on AFS securities	2		32		57		34		(21	)
1,580		2,093		Ending balance	2,093		2,199		2,294		2,329		1,580


				INDIVIDUAL LIFE INSURANCE:
4,226		3,855		Beginning balance	3,855		3,805		3,963		4,207		4,226
115		108		Capitalization	108		113		111		113		115
(128	)	(111	)	Amortization - operating results	(111	)	(83	)	40		(218	)	(128	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
57		(47	)	Impact of unrealized (gains) or losses on AFS securities	(47	)	128		93		124		57
4,270		3,805		Ending balance	3,805		3,963		4,207		4,226		4,270


				GROUP INSURANCE:
347		321		Beginning balance	321		326		331		338		347
10		9		Capitalization	9		9		10		13		10
(8	)	(4	)	Amortization - operating results	(4	)	(4	)	(3	)	(4	)	(8	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

349		326		Ending balance	326		331		338		347		349

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date				% Change		2008								2009
2009		2008		% Change		1Q		2Q		3Q		4Q		1Q

					Revenues (1):
1,899		1,772		7%	Premiums	1,772		1,736		1,627		1,698		1,899
99		87		14%	Policy charges and fee income	87		82		83		90		99
534		462		16%	Net investment income	462		504		514		528		534
110		180		-39%	Asset management fees, commissions and other income	180		161		159		(213	)	110

2,642		2,501		6%	Total revenues	2,501		2,483		2,383		2,103		2,642


					Benefits and Expenses (1):
1,501		1,413		6%	Insurance and annuity benefits	1,413		1,360		1,279		1,325		1,501
119		100		19%	Interest credited to policyholders' account balances	100		101		106		109		119
1		2		-50%	Interest expense	2		4		1		2		1
(309	)	(294	)	-5%	Deferral of acquisition costs	(294	)	(299	)	(281	)	(299	)	(309	)
202		160		26%	Amortization of acquisition costs	160		152		144		182		202
693		681		2%	General and administrative expenses	681		686		637		797		693

2,207		2,062		7%	Total benefits and expenses	2,062		2,004		1,886		2,116		2,207


435		439		-1%	Adjusted operating income (loss) before income taxes	439		479		497		(13	)	435

(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

First Quarter 2009

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Three Months Ended March 31, 2009
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	1,899		1,285		614		—
Policy charges and fee income	99		78		21		—
Net investment income	534		254		272		8
Asset management fees, commissions and other income	110		25		(12	)	97

Total revenues	2,642		1,642		895		105


Benefits and Expenses (1):
Insurance and annuity benefits	1,501		1,018		483		—
Interest credited to policyholders’ account balances	119		48		71		—
Interest expense	1		3		(2	)	—
Deferral of acquisition costs	(309	)	(219	)	(90	)	—
Amortization of acquisition costs	202		138		64		—
General and administrative expenses	693		360		238		95

Total benefits and expenses	2,207		1,348		764		95


Adjusted operating income before income taxes	435		294		131		10


	Three Months Ended March 31, 2008
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	1,772		1,262		510		—
Policy charges and fee income	87		70		17		—
Net investment income	462		232		216		14
Asset management fees, commissions and other income	180		13		5		162

Total revenues	2,501		1,577		748		176


Benefits and Expenses (1):
Insurance and annuity benefits	1,413		1,001		412		—
Interest credited to policyholders’ account balances	100		43		57		—
Interest expense	2		3		(2	)	1
Deferral of acquisition costs	(294	)	(221	)	(73	)	—
Amortization of acquisition costs	160		121		39		—
General and administrative expenses	681		345		187		149

Total benefits and expenses	2,062		1,292		620		150


Adjusted operating income before income taxes	439		285		128		26

(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

First Quarter 2009

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2008								2009
2009		2008			1Q		2Q		3Q		4Q		1Q

				Japanese Yen Basis Results:
				Revenues (1):
¥	124,975	¥	117,421	Japanese insurance operations excluding Gibraltar Life	¥	117,421	¥	107,786	¥	110,522	¥	110,212	¥	124,975
	84,867		82,122	Gibraltar Life		82,122		86,092		84,570		83,070		84,867

	209,842		199,543	Total revenues, Japan, yen basis		199,543		193,878		195,092		193,282		209,842

				Benefits and Expenses (1):
	101,197		92,701	Japanese insurance operations excluding Gibraltar Life		92,701		83,323		83,006		86,952		101,197
	70,551		68,126	Gibraltar Life		68,126		68,623		65,640		66,538		70,551

	171,748		160,827	Total benefits and expenses, Japan, yen basis		160,827		151,946		148,646		153,490		171,748

				Adjusted operating income (2):
	23,778		24,720	Japanese insurance operations excluding Gibraltar Life		24,720		24,463		27,516		23,260		23,778
	14,316		13,996	Gibraltar Life		13,996		17,469		18,930		16,532		14,316

¥	38,094	¥	38,716	Total adjusted operating income, Japan, yen basis	¥	38,716	¥	41,932	¥	46,446	¥	39,792	¥	38,094


				U.S. Dollar adjusted operating income (3):
$	237	$	231	Japanese insurance operations excluding Gibraltar Life	$	231	$	236	$	252	$	224	$	237
	131		128	Gibraltar Life		128		167		167		160		131

	368		359	Total adjusted operating income, Japan, U.S. dollar basis		359		403		419		384		368
	57		54	All other countries (4)		54		50		41		37		57

$	425	$	413	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	413	$	453	$	460	$	421	$	425

(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

First Quarter 2009

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date			2008				2009
2009	2008		1Q	2Q	3Q	4Q	1Q

		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
1,084	953	Japan, excluding Gibraltar Life	953	859	839	924	1,084
635	527	Gibraltar Life	527	593	515	559	635
279	379	All other countries	379	366	356	305	279

1,998	1,859	Total	1,859	1,818	1,710	1,788	1,998

		Annualized new business premiums:
173	163	Japan, excluding Gibraltar Life	163	125	120	123	173
113	94	Gibraltar Life	94	148	111	101	113
47	72	All other countries	72	63	55	54	47

333	329	Total	329	336	286	278	333

		Annualized new business premiums by distribution channel:
220	235	Life Planners	235	188	175	177	220
92	88	Gibraltar Life Advisors	88	127	96	89	92
21	6	Banks	6	21	15	12	21

333	329	Total	329	336	286	278	333


		Constant exchange rate basis (2):

		Net premiums, policy charges and fee income:
995	944	Japan, excluding Gibraltar Life	944	850	850	860	995
546	542	Gibraltar Life	542	575	522	534	546
383	375	All other countries	375	374	380	400	383

1,924	1,861	Total	1,861	1,799	1,752	1,794	1,924

		Annualized new business premiums:
161	161	Japan, excluding Gibraltar Life	161	124	122	115	161
105	96	Gibraltar Life	96	147	112	99	105
63	72	All other countries	72	64	56	68	63

329	329	Total	329	335	290	282	329

		Annualized new business premiums by distribution channel:
224	233	Life Planners	233	188	178	183	224
84	90	Gibraltar Life Advisors	90	125	97	87	84
21	6	Banks	6	22	15	12	21

329	329	Total	329	335	290	282	329

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

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2008								2009
	1Q		2Q		3Q		4Q		1Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	242		244		246		248		250
Gibraltar Life	185		184		184		183		182
All other countries	107		108		108		108		108

Total	534		536		538		539		540


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	2,232		2,258		2,288		2,313		2,353
Gibraltar Life	3,804		3,782		3,788		3,796		3,787
All other countries	1,311		1,323		1,333		1,348		1,359

Total	7,347		7,363		7,409		7,457		7,499


International life insurance policy persistency:

Excluding Gibraltar Life:
13 months	92.4	%	92.0	%	92.1	%	92.6	%	92.2	%
25 months	85.9	%	85.3	%	85.5	%	86.2	%	85.0	%

Gibraltar Life:
13 months	91.2	%	90.8	%	91.1	%	91.1	%	91.2	%
25 months	87.2	%	86.4	%	85.3	%	84.0	%	83.4	%

Number of Life Planners at end of period:
Japan	3,108		3,079		3,084		3,071		3,078
All other countries	3,030		3,100		3,183		3,294		3,319

Total life planners	6,138		6,179		6,267		6,365		6,397


Gibraltar Life Advisors	6,035		5,899		6,057		6,330		6,170

(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

First Quarter 2009

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2009					December 31, 2008
	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	122,634	26,789	95,845	56.7	%	126,149	27,424	98,725	57.5	%
Public, held to maturity, at amortized cost	3,798	—	3,798	2.2	%	3,002	—	3,002	1.7	%
Private, available for sale, at fair value	30,102	11,657	18,445	10.9	%	30,047	11,479	18,568	10.8	%
Private, held to maturity, at amortized cost	863	—	863	0.5	%	806	—	806	0.5	%
Trading account assets supporting insurance liabilities, at fair value	13,973	—	13,973	8.3	%	13,875	—	13,875	8.1	%
Other trading account assets, at fair value (1)	1,638	133	1,505	0.9	%	848	120	728	0.4	%
Equity securities, available for sale, at fair value	5,538	2,126	3,412	2.0	%	6,059	2,400	3,659	2.1	%
Commercial loans	30,622	8,669	21,953	13.0	%	30,840	8,748	22,092	12.9	%
Policy loans	9,681	5,451	4,230	2.5	%	9,703	5,423	4,280	2.5	%
Other long-term investments (2)	4,552	1,786	2,766	1.6	%	4,664	1,629	3,035	1.8	%
Short-term investments (3)	3,554	1,214	2,340	1.4	%	4,358	1,484	2,874	1.7	%

Subtotal (4)	226,955	57,825	169,130	100.0	%	230,351	58,707	171,644	100.0	%

Invested assets of other entities and operations (5)	9,472	—	9,472			11,674	—	11,674

Total investments	236,427	57,825	178,602			242,025	58,707	183,318

Fixed Maturities by Credit Quality (4):


		March 31, 2009						December 31, 2008
		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 (6) Rating Agency Equivalent
1	Aaa, Aa, A	83,691	3,361	4,100	82,952	83.3	%	85,474	4,228	4,425	85,277	83.8	%
2	Baa	15,156	113	2,774	12,495	12.5	%	15,573	163	2,893	12,843	12.6	%

Subtotal Investment Grade		98,847	3,474	6,874	95,447	95.8	%	101,047	4,391	7,318	98,120	96.4	%

3	Ba	3,288	18	797	2,509	2.5	%	3,009	16	800	2,225	2.2	%
4	B	1,864	2	679	1,187	1.2	%	1,639	2	565	1,076	1.1	%
5	C and lower	726	1	399	328	0.3	%	379	14	123	270	0.3	%
6	In or near default	326	3	197	132	0.2	%	36	4	4	36	0.0	%

Subtotal Below Investment Grade		6,204	24	2,072	4,156	4.2	%	5,063	36	1,492	3,607	3.6	%

Total		105,051	3,498	8,946	99,603	100.0	%	106,110	4,427	8,810	101,727	100.0	%


Private Fixed Maturities:
NAIC Rating (6) Rating Agency Equivalent
1	Aaa, Aa, A	6,482	111	387	6,206	32.1	%	6,284	112	408	5,988	30.9	%
2	Baa	10,852	96	1,201	9,747	50.5	%	11,341	92	1,310	10,123	52.2	%

Subtotal Investment Grade		17,334	207	1,588	15,953	82.6	%	17,625	204	1,718	16,111	83.1	%

3	Ba	2,466	18	358	2,126	10.9	%	2,405	24	381	2,048	10.5	%
4	B	994	—	224	770	4.0	%	1,037	14	244	807	4.2	%
5	C and lower	327	4	87	244	1.3	%	283	7	59	231	1.2	%
6	In or near default	261	7	45	223	1.2	%	232	8	39	201	1.0	%

Subtotal Below Investment Grade		4,048	29	714	3,363	17.4	%	3,957	53	723	3,287	16.9	%

Total		21,382	236	2,302	19,316	100.0	%	21,582	257	2,441	19,398	100.0	%

(1)	Other trading account assets, at fair value includes $786 million of asset-backed securities purchased under the Federal Reserve’s Term Asset-Backed Securities Loan Facility, which are predominately financed by non-recourse borrowings under the program.

(2)

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.

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

(4)

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.

(5)

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.

(6)

Reflects equivalent ratings for investments of international insurance operations that are not rated by United States insurance regulatory authorities. Includes, as of March 31, 2009 and December 31, 2008, respectively, 142 securities with amortized cost of $5,094 million (fair value $4,875 million) and 142 securities with amortized cost of $1,214 million (fair value, $1,054 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2009			December 31, 2008
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	40,350	69.9	%	42,223	70.6	%
Public, held to maturity, at amortized cost	3,798	6.6	%	3,002	5.0	%
Private, available for sale, at fair value	2,781	4.8	%	2,803	4.7	%
Private, held to maturity, at amortized cost	863	1.5	%	806	1.3	%
Trading account assets supporting insurance liabilities, at fair value	1,007	1.7	%	1,077	1.8	%
Other trading account assets, at fair value	429	0.7	%	519	0.9	%
Equity securities, available for sale, at fair value	1,730	3.0	%	2,071	3.5	%
Commercial loans	3,389	5.9	%	3,373	5.6	%
Policy loans	1,474	2.6	%	1,547	2.6	%
Other long-term investments (1)	1,631	2.8	%	2,143	3.6	%
Short-term investments	308	0.5	%	266	0.4	%

Total	57,760	100.0	%	59,830	100.0	%


	March 31, 2009			December 31, 2008
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value	55,495	49.8	%	56,502	50.5	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	15,664	14.1	%	15,765	14.1	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	12,966	11.6	%	12,798	11.5	%
Other trading account assets, at fair value	1,076	1.0	%	209	0.2	%
Equity securities, available for sale, at fair value	1,682	1.5	%	1,588	1.4	%
Commercial loans	18,564	16.7	%	18,719	16.7	%
Policy loans	2,756	2.5	%	2,733	2.5	%
Other long-term investments (1)	1,135	1.0	%	892	0.8	%
Short-term investments	2,032	1.8	%	2,608	2.3	%

Total	111,370	100.0	%	111,814	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

First Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Three Months Ended March 31
	2009						2008
	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	4.65	%	1,456		(236	)	4.77	%	1,380		(385	)
Equity securities	5.61	%	57		(265	)	4.01	%	46		(56	)
Commercial loans	5.64	%	242		(49	)	5.82	%	231		1
Policy loans	4.99	%	53		—		5.05	%	51		—
Short-term investments and cash equivalents	0.98	%	29		—		4.18	%	99		—
Other investments	4.61	%	46		1,175		4.99	%	36		(345	)

Gross investment income before investment expenses	4.54	%	1,883		625		4.84	%	1,843		(785	)
Investment expenses	-0.16	%	(54	)	—		-0.15	%	(80	)	—

Subtotal	4.38	%	1,829		625		4.69	%	1,763		(785	)

Investment results of other entities and operations (2)			239		(45	)			358		(17	)
Less, investment income relating to divested businesses			(4	)					(10	)

Total			2,064		580				2,111		(802	)

(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

First Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2009						2008
	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	3.07	%	379		(15	)	2.78	%	300		(49	)
Equity securities	3.06	%	18		(174	)	2.20	%	14		(51	)
Commercial loans	4.87	%	41		2		4.54	%	33		3
Policy loans	3.95	%	15		—		3.84	%	12		—
Short-term investments and cash equivalents	1.01	%	4		—		1.55	%	3		—
Other investments	4.55	%	26		(214	)	9.12	%	23		(22	)

Gross investment income before investment expenses	3.19	%	483		(401	)	2.98	%	385		(119	)
Investment expenses	-0.18	%	(29	)	—		-0.18	%	(23	)	—

Total	3.01	%	454		(401	)	2.80	%	362		(119	)

(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

First Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2009						2008
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount		Realized Gains / (Losses)		Yield (2)		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	5.68	%	1,077		(221	)	6.00	%	1,080		(336	)
Equity securities	9.01	%	39		(91	)	6.36	%	32		(5	)
Commercial loans	5.82	%	201		(51	)	6.11	%	198		(2	)
Policy loans	5.56	%	38		—		5.57	%	39		—
Short-term investments and cash equivalents	0.97	%	25		—		4.45	%	96		—
Other investments	4.68	%	20		1,389		2.82	%	13		(323	)

Gross investment income before investment expenses	5.32	%	1,400		1,026		5.83	%	1,458		(666	)
Investment expenses	-0.15	%	(25	)	—		-0.13	%	(57	)	—

Total	5.17	%	1,375		1,026		5.70	%	1,401		(666	)

(1)

(2)

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

LOGO

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

				*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	)	(975	)
774		722		U.S. Individual Life and Group Insurance Division	152		210		351		195		186		183		339		78
1,571		1,427		International Insurance and Investments Division	474		453		537		393		439		479		497		(13	)
(14	)	179		Corporate and other operations	(17	)	(27	)	(24	)	(64	)	(51	)	(20	)	(38	)	(288	)

3,977		3,759		Total pre-tax adjusted operating income (loss)	1,098		1,121		1,295		1,024		932		1,127		616		(1,198	)
1,079		1,139		Income taxes, applicable to adjusted operating income	314		321		379		244		240		282		186		(304	)

2,898		2,620		Financial Services Businesses after-tax adjusted operating income (loss)	784		800		916		780		692		845		430		(894	)


				Reconciling items:
83		549		Realized investment losses, net, and related charges and adjustments	141		37		(179	)	(91	)	(678	)	(486	)	(547	)	(511	)
35		(33	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	82		(108	)	36		(10	)	(262	)	(123	)	(534	)	(815	)
11		(44	)	Change in experience-rated contractholder liabilities due to asset value changes	(62	)	72		(6	)	9		200		94		388		481
151		(232	)	Divested businesses	127		90		58		(1	)	(67	)	10		(219	)	(230	)
(297	)	(193	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(91	)	(96	)	(82	)	(68	)	(36	)	(32	)	213		509

(17	)	47		Total reconciling items, before income taxes	197		(5	)	(173	)	(161	)	(843	)	(537	)	(699	)	(566	)
27		(499	)	Income taxes, not applicable to adjusted operating income	56		(8	)	(68	)	(118	)	(199	)	(245	)	(280	)	(160	)

(44	)	546		Total reconciling items, after income taxes	141		3		(105	)	(43	)	(644	)	(292	)	(419	)	(406	)

2,854		3,166		Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	925		803		811		737		48		553		11		(1,300	)
183		121		Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests	48		49		45		37		19		16		(134	)	(384	)

3,037		3,287		Income (loss) from continuing operations attributable to Prudential Financial, Inc.	973		852		856		774		67		569		(123	)	(1,684	)
25		21		Earnings attributable to noncontrolling interests	29		7		22		9		24		8		5		(1	)

3,062		3,308		Income (loss) from continuing operations (after-tax) of Financial Services Businesses	1,002		859		878		783		91		577		(118	)	(1,685	)
71		(73	)	Income (loss) from discontinued operations, net of taxes	37		(29	)	(4	)	11		1		(3	)	5		28

3,133		3,235		Net income (loss) of Financial Services Businesses	1,039		830		874		794		92		574		(113	)	(1,657	)
25		21		Less: Income (loss) attributable to noncontrolling interests	29		7		22		9		24		8		5		(1	)

3,108		3,214		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.	1,010		823		852		785		68		566		(118	)	(1,656	)


14.17	%	13.24	%	Operating Return on Average Equity (based on adjusted operating income)	14.86	%	14.97	%	16.87	%	14.28	%	12.35	%	15.32	%	8.02	%	-16.89	%

				*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
3,108		3,214		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)	1,010		823		852		785		68		566		(118	)	(1,656	)
284		321		Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.	95		11		7		79		(8	)	15		(58	)	74

3,392		3,535		Consolidated net income (loss) attributable to Prudential Financial, Inc.	1,105		834		859		864		60		581		(176	)	(1,582	)

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

LOGO

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31				2007								2008
2006	2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
			*Earnings per share of Common Stock (diluted) (1)(2):*
5.98	5.16		Financial Services Businesses after-tax adjusted operating income (loss)	1.67		1.72		2.00		1.72		1.57		1.96		1.02		(2.08	)

			Reconciling items:
0.17	1.06		Realized investment losses, net, and related charges and adjustments	0.30		0.08		(0.39	)	(0.20	)	(1.52	)	(1.11	)	(1.28	)	(1.21	)
0.07	(0.06	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	0.17		(0.23	)	0.08		(0.02	)	(0.59	)	(0.28	)	(1.25	)	(1.93	)
0.02	(0.08	)	Change in experience-rated contractholder liabilities due to asset value changes	(0.13	)	0.15		(0.01	)	0.02		0.45		0.22		0.91		1.14
0.31	(0.45	)	Divested businesses	0.27		0.19		0.12		0.00		(0.15	)	0.02		(0.51	)	(0.55	)
0.00	(0.01	)	Difference in earnings allocated to participating unvested share-based payment awards	0.00		0.00		0.00		0.00		0.01		0.00		0.00		0.00

0.57	0.46		Total reconciling items, before income taxes	0.61		0.19		(0.20	)	(0.20	)	(1.80	)	(1.15	)	(2.13	)	(2.55	)
0.28	(0.82	)	Income taxes, not applicable to adjusted operating income	0.21		0.08		(0.07	)	(0.19	)	(0.41	)	(0.52	)	(0.84	)	(0.68	)

0.29	1.28		Total reconciling items, after income taxes	0.40		0.11		(0.13	)	(0.01	)	(1.39	)	(0.63	)	(1.29	)	(1.87	)

6.27	6.44		Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.	2.07		1.83		1.87		1.71		0.18		1.33		(0.27	)	(3.95	)
0.14	(0.14	)	Income (loss) from discontinued operations, net of taxes	0.07		(0.07	)	(0.01	)	0.02		0.00		(0.01	)	0.02		0.06

6.41	6.30		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.	2.14		1.76		1.86		1.73		0.18		1.32		(0.25	)	(3.89	)


484.2	511.8		Weighted average number of outstanding Common shares (basic)	468.4		463.7		457.0		450.4		442.1		431.9		423.8		421.3

491.4	518.3		Weighted average number of outstanding Common shares (diluted)	475.0		471.0		462.9		456.4		446.9		436.5		428.0		423.0

68	82		Direct equity adjustments for earnings per share calculation	15		14		13		11		12		14		10		19

			*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation (2)*
25	25		Financial Services Businesses after-tax adjusted operating income	6		6		5		5		4		5		3		1
26	31		Income from continuing operations (after-tax) of Financial Services Businesses	7		6		5		5		—		4		—		1

(1)

(2)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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		4Q
				Revenues (1):
10,287		10,128		Premiums	2,720		2,684		2,673		2,717		3,102		2,961		2,798		2,997
2,649		2,529		Policy charges and fee income	784		783		727		828		824		809		709		781
7,597		6,845		Net investment income	1,994		2,033		2,069		2,106		2,111		2,145		2,076		2,100
3,666		3,141		Asset management fees, commissions and other income	1,037		1,078		1,204		1,051		887		945		776		14

24,199		22,643		Total revenues	6,535		6,578		6,673		6,702		6,924		6,860		6,359		5,892


				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		3,472
2,790		2,516		Interest credited to policyholders’ account balances	745		762		779		808		806		803		853		881
1,005		622		Interest expense	298		295		293		301		298		248		287		303
(2,037	)	(1,801	)	Deferral of acquisition costs	(539	)	(556	)	(554	)	(599	)	(588	)	(588	)	(559	)	(567	)
670		910		Amortization of acquisition costs	272		265		108		290		338		315		238		512
7,371		6,647		General and administrative expenses	1,898		2,008		2,094		2,153		2,056		2,011		1,884		2,489

20,222		18,884		Total benefits and expenses	5,437		5,457		5,378		5,678		5,992		5,733		5,743		7,090

3,977		3,759		Adjusted operating income (loss) before income taxes	1,098		1,121		1,295		1,024		932		1,127		616		(1,198	)


				Reconciling items:
66		657		Realized investment losses, net, and related adjustments	147		41		(178	)	(51	)	(665	)	(527	)	(564	)	(511	)
17		(108	)	Related charges	(6	)	(4	)	(1	)	(40	)	(13	)	41		17		—

83		549		Total realized investment losses, net, and related charges and adjustments	141		37		(179	)	(91	)	(678	)	(486	)	(547	)	(511	)


35		(33	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	82		(108	)	36		(10	)	(262	)	(123	)	(534	)	(815	)
11		(44	)	Change in experience-rated contractholder liabilities due to asset value changes	(62	)	72		(6	)	9		200		94		388		481
151		(232	)	Divested businesses	127		90		58		(1	)	(67	)	10		(219	)	(230	)
(297	)	(193	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(91	)	(96	)	(82	)	(68	)	(36	)	(32	)	213		509

(17	)	47		Total reconciling items, before income taxes	197		(5	)	(173	)	(161	)	(843	)	(537	)	(699	)	(566	)


3,960		3,806		Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures	1,295		1,116		1,122		863		89		590		(83	)	(1,764	)
1,106		640		Income tax expense (benefit)	370		313		311		126		41		37		(94	)	(464	)

2,854		3,166		Income (loss) from continuing operations before equity in earnings of operating joint ventures	925		803		811		737		48		553		11		(1,300	)

(1)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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		4Q
				Revenues (1):
(19	)	(18	)	Premiums	(2	)	(1	)	(6	)	—		(4	)	(2	)	(3	)	(1	)
(29	)	(21	)	Policy charges and fee income	1		(6	)	(17	)	(7	)	(1	)	(6	)	(18	)	(6	)
790		689		Net investment income	204		182		193		180		181		143		141		114
(111	)	(26	)	Asset management fees, commissions and other income	(46	)	(33	)	(49	)	(63	)	(78	)	(45	)	(49	)	(44	)

631		624		Total revenues	157		142		121		110		98		90		71		63


				Benefits and Expenses (1):
44		63		Insurance and annuity benefits	12		6		13		8		22		18		32		123
(77	)	(39	)	Interest credited to policyholders' account balances	(26	)	(30	)	(34	)	(36	)	(43	)	(46	)	(51	)	(52	)
618		374		Interest expense	184		175		150		153		178		143		181		185
64		60		Deferral of acquisition costs	11		15		8		17		15		16		9		6
(43	)	(79	)	Amortization of acquisition costs	(18	)	(12	)	(7	)	(10	)	(10	)	(8	)	(9	)	(18	)
39		66		General and administrative expenses	11		15		15		42		(13	)	(13	)	(53	)	107

645		445		Total benefits and expenses	174		169		145		174		149		110		109		351


(14	)	179		Adjusted operating income (loss) before income taxes	(17	)	(27	)	(24	)	(64	)	(51	)	(20	)	(38	)	(288	)

(1)

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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; earnings attributable to noncontrolling interests; and the related tax effects thereof. Adjusted operating income includes equity in earnings of operating joint ventures and the related tax effects thereof. Revenues and benefits and expenses shown as components of adjusted operating income, are presented on the same basis as pre-tax adjusted operating income and are adjusted for the items above as well.

Realized investment gains (losses) representing profit or loss of certain of our businesses which primarily originate investments for sale or syndication to unrelated investors, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Realized investment gains and losses from products that are free standing derivatives or contain embedded derivatives, and from associated derivative portfolios that are part of an economic hedging program related to the risk of those products, are included in adjusted operating income. Adjusted operating income excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged, as well as gains and losses on certain investments that are classified as other trading account assets and debt that is carried at fair value.

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 or attributable to noncontrolling interests.

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.

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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.

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.

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

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 attributable to Prudential Financial, Inc. 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 .14% for the three months ended March 31, 2009, -40.28% for the three months ended December 31, 2008, -2.30% for the three months ended September 30, 2008, 11.09% for the three months ended June 30, 2008 and 1.41% for the three months ended March 31, 2008.

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.

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2009

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of May 6, 2009


	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+	AA-	A2	A+
PRUCO Life Insurance Company	A+	AA-	A2	A+
PRUCO Life Insurance Company of New Jersey	A+	AA-	NR *	A+
Prudential Annuities Life Assurance Corporation	A+	AA-	NR	A+
Prudential Retirement Insurance and Annuity Company	A+	AA-	A2	A+
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	NR	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA-	A2	NR

CREDIT RATINGS:
as of May 6, 2009

Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-1	P-2	F2
Long-Term Senior Debt (1)	a-	A	Baa2	BBB
Junior Subordinated Long-Term Debt	bbb	BBB+	Baa3	BBB-

The Prudential Insurance Company of America :
Capital and surplus notes	a	A	Baa1	A-

Prudential Funding, LLC:
Short-Term Debt	AMB-1	A-1+	P-1	F1
Long-Term Senior Debt	a+	AA-	A3	A

PRICOA Global Funding I
Long-Term Senior Debt	aa-	AA-	A2	A+

*	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.

Page 40

Form: 8-K

Documents