August 5, 2009 - QUARTERLY FINANCIAL SUPPLEMENT - 8-K: Current report

Exhibit 99.1

Prudential Financial, Inc. (PRU)

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Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

SECOND 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.

August 5, 2009

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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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 (Quarter)		7
Combining Statements of Operations by Division		8
Combining Balance Sheets by Division		9
Short-Term and Long-Term Debt		10

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
Combined Statements of Operations		11
Combining Statements of Operations		12
Individual Annuities Sales Results, Account Values and Minimum Guarantees		13
Individual Annuities Account Value Activity		14
Retirement Segment Sales Results and Account Values		15
Supplementary Revenue And Assets Under Management Information for Asset Management Segment		16
Supplementary Assets Under Management and Assets Under Administration Information for Asset Management Segment		17

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		18
Combining Statements of Operations		19
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force		20
Supplementary Information for Individual Life Insurance		21
Supplementary Information for Group Insurance		22

DEFERRED POLICY ACQUISITION COSTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE		23

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations		24
Combining Statements of Operations		25
International Insurance Segment - Supplementary Income Statement Information		26
Sales Results and Supplementary Information		27-28

INVESTMENT PORTFOLIO
Investment Portfolio Composition		29
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		30
Financial Services Businesses Investment Results		31
Financial Services Businesses Investment Results - Japanese Insurance Operations		32
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		33

RECLASSIFIED STATEMENTS OF OPERATION		34-38

KEY DEFINITIONS AND FORMULAS		39-41

RATINGS AND INVESTOR INFORMATION		42

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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

This Quarterly Financial Supplement reflects the classification of the results for the company’s mutual fund and banking operations in Mexico as discontinued operations, for all periods presented, as a result of an agreement to sell these operations.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

					*Financial Services Businesses:*
					Pre-tax adjusted operating income (loss) by division:
739		843		-12%	U.S. Retirement Solutions and Investment Management Division	485		(182	)	(975	)	175		564
376		369		2%	U.S. Individual Life and Group Insurance Division	183		339		78		133		243
916		917		0%	International Insurance and Investments Division	479		497		1		435		481
(328	)	(71	)	-362%	Corporate and other operations	(20	)	(38	)	(288	)	(166	)	(162	)

1,703		2,058		-17%	Total pre-tax adjusted operating income (loss)	1,127		616		(1,184	)	577		1,126
450		522		-14%	Income taxes, applicable to adjusted operating income	282		186		(305	)	141		309

1,253		1,536		-18%	Financial Services Businesses after-tax adjusted operating income (loss)	845		430		(879	)	436		817


					Reconciling items:
(1,543	)	(1,164	)	-33%	Realized investment losses, net, and related charges and adjustments	(486	)	(547	)	(511	)	(666	)	(877	)
831		(385	)	316%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(123	)	(534	)	(815	)	145		686
(392	)	294		-233%	Change in experience-rated contractholder liabilities due to asset value changes	94		388		481		(45	)	(347	)
(56	)	(57	)	2%	Divested businesses	10		(219	)	(230	)	(32	)	(24	)
17		(68	)	125%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(32	)	213		509		3		14

(1,143	)	(1,380	)	17%	Total reconciling items, before income taxes	(537	)	(699	)	(566	)	(595	)	(548	)
(408	)	(444	)	8%	Income taxes, not applicable to adjusted operating income	(245	)	(280	)	(159	)	(148	)	(260	)

(735	)	(936	)	21%	Total reconciling items, after income taxes	(292	)	(419	)	(407	)	(447	)	(288	)

518		600		-14%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	553		11		(1,286	)	(11	)	529
(7	)	35		-120%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests	16		(134	)	(384	)	5		(12	)

511		635			Income (loss) from continuing operations attributable to Prudential Financial, Inc.	569		(123	)	(1,670	)	(6	)	517
6		32			Earnings attributable to noncontrolling interests	8		5		(1	)	(11	)	17

517		667		-22%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses	577		(118	)	(1,671	)	(17	)	534
22		(1	)	2300%	Income (loss) from discontinued operations, net of taxes	(3	)	5		14		1		21

539		666		-19%	Net income (loss) of Financial Services Businesses	574		(113	)	(1,657	)	(16	)	555
6		32			Less: Income (loss) attributable to noncontrolling interests	8		5		(1	)	(11	)	17

533		634			Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.	566		(118	)	(1,656	)	(5	)	538

12.20%		13.80%			Operating Return on Average Equity (based on adjusted operating income)	15.32%		8.02%		-16.60%		8.89%		15.48%

					*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
533		634			Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)	566		(118	)	(1,656	)	(5	)	538
(356	)	7			Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.	15		(58	)	74		19		(375	)

177		641			Consolidated net income (loss) attributable to Prudential Financial, Inc.	581		(176	)	(1,582	)	14		163

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

					Earnings per share of Common Stock (diluted) (1):
2.94		3.52			Financial Services Businesses after-tax adjusted operating income (loss)	1.96		1.02		(2.04	)	1.05		1.88

					Reconciling items:
(3.60	)	(2.64	)		Realized investment losses, net, and related charges and adjustments	(1.11	)	(1.28	)	(1.21	)	(1.57	)	(2.02	)
1.94		(0.87	)		Investment gains (losses) on trading account assets supporting insurance liabilities, net	(0.28	)	(1.25	)	(1.93	)	0.34		1.58
(0.91	)	0.67			Change in experience-rated contractholder liabilities due to asset value changes	0.22		0.91		1.14		(0.11	)	(0.80	)
(0.14	)	(0.13	)		Divested businesses	0.02		(0.51	)	(0.55	)	(0.08	)	(0.06	)
0.01		0.01			Difference in earnings allocated to participating unvested share-based payment awards	—		—		—		0.01		0.01

(2.70	)	(2.96	)		Total reconciling items, before income taxes	(1.15	)	(2.13	)	(2.55	)	(1.41	)	(1.29	)
(0.99	)	(0.93	)		Income taxes, not applicable to adjusted operating income	(0.52	)	(0.84	)	(0.67	)	(0.37	)	(0.61	)

(1.71	)	(2.03	)		Total reconciling items, after income taxes	(0.63	)	(1.29	)	(1.88	)	(1.04	)	(0.68	)

1.23		1.49			Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.	1.33		(0.27	)	(3.92	)	0.01		1.20
0.05		—			Income (loss) from discontinued operations, net of taxes	(0.01	)	0.02		0.03		—		0.05

1.28		1.49			Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.	1.32		(0.25	)	(3.89	)	0.01		1.25


427.5		437.0			Weighted average number of outstanding Common shares (basic)	431.9		423.8		421.3		422.1		432.9

428.7		441.6			Weighted average number of outstanding Common shares (diluted)	436.5		428.0		423.0		423.2		434.3

22		26			Direct equity adjustments for earnings per share calculation	14		10		19		11		11

					*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
14		9			Financial Services Businesses after-tax adjusted operating income	5		3		1		4		10
6		4			Income from continuing operations (after-tax) of Financial Services Businesses	4		—		1		—		6

(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 the 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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

		*Financial Services Businesses Capitalization Data (1):*
		Senior Debt:
		Short-term debt	12,895	13,744	10,092	6,651	3,643
		Long-term debt	13,856	14,602	17,022	17,394	17,713
		Junior Subordinated Long-Term Debt	1,398	1,518	1,518	1,518	1,518

		Attributed Equity:
		Including accumulated other comprehensive income	20,541	18,780	14,292	14,349	18,681
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	22,321	21,553	19,899	20,337	22,452
		Excluding total accumulated other comprehensive income	21,772	21,343	19,529	20,238	22,194

		Total Capitalization:
		Including accumulated other comprehensive income	35,795	34,900	32,832	33,261	37,912
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	37,575	37,673	38,439	39,249	41,683
		Excluding total accumulated other comprehensive income	37,026	37,463	38,069	39,150	41,425

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	47.67	43.92	33.69	33.83	40.20
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	51.80	50.40	46.91	47.95	48.32
		Excluding total accumulated other comprehensive income	50.53	49.91	46.04	47.72	47.76

		Number of diluted shares at end of period	430.9	427.6	424.2	424.1	464.7

		*Common Stock Price Range (based on closing price):*
46.00	91.36	High	82.21	86.25	64.80	35.11	46.00
11.29	59.74	Low	59.74	56.07	13.73	11.29	20.50
37.22	59.74	Close	59.74	72.00	30.26	19.02	37.22

		*Common Stock market capitalization (1)*	25,465	30,362	12,749	8,042	17,139

(1)	As of end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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OPERATIONS HIGHLIGHTS


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

		*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	179.3	170.9	161.2	152.7	163.5
		Retail customers	84.6	75.4	61.6	61.3	70.3
		General account	175.0	175.2	172.6	172.3	175.6

		Total Investment Management and Advisory Services	438.9	421.5	395.4	386.3	409.4
		Non-proprietary assets under management	115.3	97.6	80.5	75.1	89.3

		Total managed by U.S. Retirement Solutions and Investment Management Division	554.2	519.1	475.9	461.4	498.7
		Managed by U.S. Individual Life and Group Insurance Division	14.3	13.3	12.4	11.9	11.2
		Managed by International Insurance and Investments Division:	69.4	69.9	69.9	68.4	69.7

		Total assets under management	637.9	602.3	558.2	541.7	579.6
		Client assets under administration	125.0	112.1	101.1	98.8	106.7

		Total assets under management and administration	762.9	714.4	659.3	640.5	686.3


		Assets managed or administered for customers outside of the United States at end of period	120.0	115.6	112.6	110.4	115.2

		*Distribution Representatives (1):*
		Prudential Agents	2,446	2,482	2,360	2,389	2,421
		International Life Planners	6,179	6,267	6,365	6,397	6,375
		Gibraltar Life Advisors	5,899	6,057	6,330	6,170	6,376

45	54	*Prudential Agent productivity ($ thousands)*	58	55	70	41	49

(1)	As of end of period.

(2)	At fair market value.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

					Revenues (1):
6,581		6,063		9%	Premiums	2,961		2,798		2,997		3,261		3,320
1,500		1,633		-8%	Policy charges and fee income	809		709		781		734		766
4,117		4,255		-3%	Net investment income	2,145		2,076		2,099		2,064		2,053
2,144		1,821		18%	Asset management fees, commissions and other income	939		770		10		1,945		199

14,342		13,772		4%	Total revenues	6,854		6,353		5,887		8,004		6,338


					Benefits and Expenses (1):
6,392		6,026		6%	Insurance and annuity benefits	2,944		3,040		3,472		3,464		2,928
1,811		1,609		13%	Interest credited to policyholders’ account balances	803		853		881		1,086		725
486		546		-11%	Interest expense	248		287		303		247		239
(1,219	)	(1,176	)	-4%	Deferral of acquisition costs	(588	)	(559	)	(567	)	(578	)	(641	)
1,135		653		74%	Amortization of acquisition costs	315		238		512		1,205		(70	)
4,034		4,056		-1%	General and administrative expenses	2,005		1,878		2,470		2,003		2,031

12,639		11,714		8%	Total benefits and expenses	5,727		5,737		7,071		7,427		5,212

1,703		2,058		-17%	Adjusted operating income (loss) before income taxes	1,127		616		(1,184	)	577		1,126


					Reconciling items:
(1,582	)	(1,192	)	-33%	Realized investment losses, net, and related adjustments	(527	)	(564	)	(511	)	(710	)	(872	)
39		28		39%	Related charges	41		17		—		44		(5	)

(1,543	)	(1,164	)	-33%	Total realized investment losses, net, and related charges and adjustments	(486	)	(547	)	(511	)	(666	)	(877	)

831		(385	)	316%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(123	)	(534	)	(815	)	145		686
(392	)	294		-233%	Change in experience-rated contractholder liabilities due to asset value changes	94		388		481		(45	)	(347	)
(56	)	(57	)	2%	Divested businesses	10		(219	)	(230	)	(32	)	(24	)
17		(68	)	125%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(32	)	213		509		3		14

(1,143	)	(1,380	)	17%	Total reconciling items, before income taxes	(537	)	(699	)	(566	)	(595	)	(548	)


560		678		-17%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures	590		(83	)	(1,750	)	(18	)	578
42		78		-46%	Income tax expense (benefit)	37		(94	)	(464	)	(7	)	49

518		600		-14%	Income (loss) from continuing operations before equity in earnings of operating joint ventures	553		11		(1,286	)	(11	)	529

(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 and include charges for income attributable to non controlling interests.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $116,193; $118,111; $125,753; $123,589; $123,430)	114,541		114,626		119,153		116,094		119,084
Fixed maturities, held to maturity, at amortized cost (fair value $3,490; $3,410; $3,832; $4,629; $4,938)	3,572		3,481		3,808		4,661		4,935
Trading account assets supporting insurance liabilities, at fair value	14,624		14,392		13,875		13,973		14,766
Other trading account assets, at fair value	2,984		3,240		4,216		4,445		3,550
Equity securities, available for sale, at fair value (cost $4,686; $4,634; $4,273; $3,893; $3,380)	4,567		4,258		3,665		3,425		3,404
Commercial mortgage and other loans	23,837		24,173		24,366		24,069		23,961
Policy loans	4,207		3,822		4,280		4,230		4,413
Securities purchased under agreements to resell	184		171		480		—		—
Other long-term investments	5,683		5,255		5,383		4,247		4,170
Short-term investments	5,601		6,621		4,092		3,458		5,790

Total investments	179,800		180,039		183,318		178,602		184,073
Cash and cash equivalents	8,762		9,907		13,054		12,748		11,798
Accrued investment income	1,531		1,551		1,603		1,610		1,571
Deferred policy acquisition costs	12,203		12,472		13,127		12,223		12,768
Deferred income taxes, net	—		—		(533	)	(462	)	—
Other assets	25,605		25,624		21,962		18,452		19,142
Separate account assets	179,323		165,148		147,095		139,638		151,266

Total assets	407,224		394,741		379,626		362,811		380,618


Liabilities:
Future policy benefits	62,449		62,027		70,221		67,417		69,699
Policyholders’ account balances	86,337		90,871		93,991		95,033		95,680
Securities sold under agreements to repurchase	4,307		4,209		4,288		3,743		3,467
Cash collateral for loaned securities	2,808		2,231		2,684		1,966		2,233
Income taxes	3,442		2,493		364		773		2,213
Senior short-term debt	12,895		13,744		10,092		6,651		3,643
Senior long-term debt	13,856		14,602		17,022		17,394		17,713
Junior subordinated long-term debt	1,398		1,518		1,518		1,518		1,518
Other liabilities	19,575		18,817		17,708		13,753		13,903
Separate account liabilities	179,323		165,148		147,095		139,638		151,266

Total liabilities	386,390		375,660		364,983		347,886		361,335


Attributed Equity:
Accumulated other comprehensive loss	(1,231	)	(2,563	)	(5,237	)	(5,889	)	(3,513	)
Other attributed equity	21,772		21,343		19,529		20,238		22,194

Total attributed equity	20,541		18,780		14,292		14,349		18,681

Noncontrolling Interest	293		301		351		576		602

Total Equity	20,834		19,081		14,643		14,925		19,283

Total liabilities and equity	407,224		394,741		379,626		362,811		380,618

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended June 30, 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	3,320		261		1,156		1,911		(8	)
Policy charges and fee income	766		269		412		91		(6	)
Net investment income	2,053		1,114		350		509		80
Asset management fees, commissions and other income	199		43		88		130		(62	)

Total revenues	6,338		1,687		2,006		2,641		4


Benefits and Expenses (1):
Insurance and annuity benefits	2,928		257		1,222		1,465		(16	)
Interest credited to policyholders’ account balances	725		527		119		110		(31	)
Interest expense	239		16		47		1		175
Deferral of acquisition costs	(641	)	(217	)	(136	)	(299	)	11
Amortization of acquisition costs	(70	)	(351	)	74		214		(7	)
General and administrative expenses	2,031		891		437		669		34

Total benefits and expenses	5,212		1,123		1,763		2,160		166


Adjusted operating income (loss) before income taxes	1,126		564		243		481		(162	)


	Quarter Ended June 30, 2008
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,961		151		1,076		1,736		(2	)
Policy charges and fee income	809		353		380		82		(6	)
Net investment income	2,145		1,155		343		504		143
Asset management fees, commissions and other income	939		734		95		155		(45	)

Total revenues	6,854		2,393		1,894		2,477		90


Benefits and Expenses (1):
Insurance and annuity benefits	2,944		398		1,168		1,360		18
Interest credited to policyholders’ account balances	803		635		113		101		(46	)
Interest expense	248		51		50		4		143
Deferral of acquisition costs	(588	)	(183	)	(122	)	(299	)	16
Amortization of acquisition costs	315		84		87		152		(8	)
General and administrative expenses	2,005		923		415		680		(13	)

Total benefits and expenses	5,727		1,908		1,711		1,998		110


Adjusted operating income (loss) before income taxes	1,127		485		183		479		(20	)

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Six Months Ended June 30, 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	6,581		436		2,346		3,810		(11	)
Policy charges and fee income	1,500		518		805		190		(13	)
Net investment income	4,117		2,260		703		1,043		111
Asset management fees, commissions and other income	2,144		1,836		165		236		(93	)

Total revenues	14,342		5,050		4,019		5,279		(6	)


Benefits and Expenses (1):
Insurance and annuity benefits	6,392		899		2,498		2,966		29
Interest credited to policyholders’ account balances	1,811		1,422		238		229		(78	)
Interest expense	486		41		98		2		345
Deferral of acquisition costs	(1,219	)	(366	)	(261	)	(608	)	16
Amortization of acquisition costs	1,135		527		210		416		(18	)
General and administrative expenses	4,034		1,788		860		1,358		28

Total benefits and expenses	12,639		4,311		3,643		4,363		322


Adjusted operating income (loss) before income taxes	1,703		739		376		916		(328	)


	Six Months Ended June 30, 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	6,063		370		2,191		3,508		(6	)
Policy charges and fee income	1,633		700		771		169		(7	)
Net investment income	4,255		2,280		686		965		324
Asset management fees, commissions and other income	1,821		1,431		183		330		(123	)

Total revenues	13,772		4,781		3,831		4,972		188


Benefits and Expenses (1):
Insurance and annuity benefits	6,026		861		2,352		2,773		40
Interest credited to policyholders’ account balances	1,609		1,270		227		201		(89	)
Interest expense	546		117		102		6		321
Deferral of acquisition costs	(1,176	)	(375	)	(239	)	(593	)	31
Amortization of acquisition costs	653		157		202		312		(18	)
General and administrative expenses	4,056		1,908		818		1,356		(26	)

Total benefits and expenses	11,714		3,938		3,462		4,055		259


Adjusted operating income (loss) before income taxes	2,058		843		369		917		(71	)

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of June 30, 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	184,073		83,356		25,188		67,622		7,907
Deferred policy acquisition costs	12,768		2,246		4,494		6,170		(142	)
Other assets	32,511		9,506		3,649		10,406		8,950
Separate account assets	151,266		119,794		32,591		350		(1,469	)

Total assets	380,618		214,902		65,922		84,548		15,246


Liabilities:
Future policy benefits	69,699		15,835		8,610		44,839		415
Policyholders’ account balances	95,680		60,875		14,152		22,574		(1,921	)
Debt	22,874		2,524		5,444		450		14,456
Other liabilities	21,816		6,675		2,239		9,659		3,243
Separate account liabilities	151,266		119,794		32,591		350		(1,469	)

Total liabilities	361,335		205,703		63,036		77,872		14,724


Attributed Equity:
Accumulated other comprehensive loss	(3,513	)	(1,206	)	(750	)	(686	)	(871	)
Other attributed equity	22,194		9,804		3,636		7,327		1,427

Total attributed equity	18,681		8,598		2,886		6,641		556

Noncontrolling Interest	602		601		—		35		(34	)

Total Equity	19,283		9,199		2,886		6,676		522


Total liabilities and equity	380,618		214,902		65,922		84,548		15,246


	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 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of June 30, 2009					As of December 31, 2008
	Senior debt		Junior Subordinated Long-term Debt	Total Debt		Senior debt		Junior Subordinated Long-term Debt	Total Debt
	Short-term Debt	Long-term Debt	Junior Subordinated Long-term Debt	Total Debt		Short-term Debt	Long-term Debt	Junior Subordinated Long-term Debt	Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt	105	6,381	1,518	8,004		925	5,092	1,518	7,535
Investment related	1,289	9,089	—	10,378		6,245	9,792	—	16,037
Securities business related	2,126	517	—	2,643		1,806	1,550	—	3,356
Specified other businesses	88	559	—	647		778	264	—	1,042
Limited recourse and non-recourse borrowing	35	1,167	—	1,202		338	324	—	662

Total debt - Financial Services Businesses	3,643	17,713	1,518	22,874		10,092	17,022	1,518	28,632

Ratio of long-term and short-term capital debt to capitalization (1)				22.5	%				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 June 30, 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	6,982	835	187	8,004		6,837	462	236	7,535
Investment related	5,911	1,233	3,234	10,378		8,819	3,991	3,227	16,037
Securities business related	277	2,261	105	2,643		694	2,430	232	3,356
Specified other businesses	579	68	—	647		290	752	—	1,042
Limited recourse and non-recourse borrowing	—	—	1,202	1,202		—	—	662	662

Total debt - Financial Services Businesses	13,749	4,397	4,728	22,874		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 June 30, 2009 and $444 million for December 31, 2008.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

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

(in millions)


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

					Revenues (1):
436		370		18%	Premiums	151		75		209		175		261
518		700		-26%	Policy charges and fee income	353		331		256		249		269
2,260		2,280		-1%	Net investment income	1,155		1,068		1,101		1,146		1,114
1,836		1,431		28%	Asset management fees, commissions and other income	734		517		191		1,793		43

5,050		4,781		6%	Total revenues	2,393		1,991		1,757		3,363		1,687


					Benefits and Expenses (1):
899		861		4%	Insurance and annuity benefits	398		593		814		642		257
1,422		1,270		12%	Interest credited to policyholders’ account balances	635		679		707		895		527
41		117		-65%	Interest expense	51		54		54		25		16
(366	)	(375	)	2%	Deferral of acquisition costs	(183	)	(166	)	(148	)	(149	)	(217	)
527		157		236%	Amortization of acquisition costs	84		140		126		878		(351	)
1,788		1,908		-6%	General and administrative expenses	923		873		1,179		897		891

4,311		3,938		9%	Total benefits and expenses	1,908		2,173		2,732		3,188		1,123

739		843		-12%	Adjusted operating income (loss) before income taxes	485		(182	)	(975	)	175		564

(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 and include charges for income attributable to non controlling interests.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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

(in millions)


	Six Months Ended June 30, 2009								Quarter Ended June 30, 2009
	Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management		Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management
Revenues (1):
Premiums	436		33		403		—		261		16		245		—
Policy charges and fee income	518		420		98		—		269		220		49		—
Net investment income	2,260		525		1,692		43		1,114		251		831		32
Asset management fees, commissions and other income	1,836		1,029		245		562		43		(372	)	105		310

Total revenues	5,050		2,007		2,438		605		1,687		115		1,230		342


Benefits and Expenses (1):
Insurance and annuity benefits	899		125		774		—		257		(179	)	436		—
Interest credited to policyholders’ account balances	1,422		450		972		—		527		43		484		—
Interest expense	41		7		18		16		16		3		6		7
Deferral of acquisition costs	(366	)	(329	)	(29	)	(8	)	(217	)	(197	)	(15	)	(5	)
Amortization of acquisition costs	527		507		12		8		(351	)	(355	)	—		4
General and administrative expenses (2)	1,788		798		433		557		891		368		220		303

Total benefits and expenses	4,311		1,558		2,180		573		1,123		(317	)	1,131		309

Adjusted operating income before income taxes	739		449		258		32		564		432		99		33


	Six Months Ended June 30, 2008								Quarter Ended June 30, 2008
	Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management		Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management
Revenues (1):
Premiums	370		32		338		—		151		13		138		—
Policy charges and fee income	700		611		89		—		353		307		46		—
Net investment income	2,280		335		1,778		167		1,155		174		885		96
Asset management fees, commissions and other income	1,431		217		269		945		734		128		138		468

Total revenues	4,781		1,195		2,474		1,112		2,393		622		1,207		564


Benefits and Expenses (1):
Insurance and annuity benefits	861		129		732		—		398		58		340		—
Interest credited to policyholders’ account balances	1,270		214		1,056		—		635		112		523		—
Interest expense	117		29		49		39		51		15		19		17
Deferral of acquisition costs	(375	)	(318	)	(48	)	(9	)	(183	)	(155	)	(23	)	(5	)
Amortization of acquisition costs	157		139		9		9		84		76		4		4
General and administrative expenses (2)	1,908		733		411		764		923		362		203		358

Total benefits and expenses	3,938		926		2,209		803		1,908		468		1,066		374

Adjusted operating income before income taxes	843		269		265		309		485		154		141		190

(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 and include charges for income attributable to non controlling interests.

(2)

General and administrative expenses for Individual Annuities include $146 million for the six months ended June 30, 2009 and $54 million for the six months ended June 30, 2008, $(4) million for the quarter ended June 30, 2009 and $24 million for the quarter ended June 30, 2008 for the amortization, net of interest, of value of business acquired (VOBA).

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

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			2Q		3Q		4Q		1Q		2Q

				SALES AND ACCOUNT VALUES:

				Variable Annuities:
60,007		80,330		Beginning total account value	74,977		74,707		67,968		60,007		57,942
5,486		5,569		Sales	2,740		2,507		2,132		2,108		3,378
(2,758	)	(4,358	)	Surrenders and withdrawals	(2,185	)	(1,988	)	(1,654	)	(1,443	)	(1,315	)

2,728		1,211		Net sales	555		519		478		665		2,063
(492	)	(556	)	Benefit payments	(262	)	(259	)	(242	)	(256	)	(236	)

2,236		655		Net flows	293		260		236		409		1,827
3,297		(5,655	)	Change in market value, interest credited, and other	(246	)	(6,712	)	(7,986	)	(2,269	)	5,566
(441	)	(623	)	Policy charges	(317	)	(287	)	(211	)	(205	)	(236	)

65,099		74,707		Ending total account value	74,707		67,968		60,007		57,942		65,099


				Fixed Annuities:
3,295		3,488		Beginning total account value	3,440		3,394		3,349		3,295		3,263
96		41		Sales	24		33		47		55		41
(152	)	(114	)	Surrenders and withdrawals	(61	)	(71	)	(91	)	(77	)	(75	)

(56	)	(73	)	Net redemptions	(37	)	(38	)	(44	)	(22	)	(34	)
(80	)	(83	)	Benefit payments	(40	)	(37	)	(40	)	(43	)	(37	)

(136	)	(156	)	Net flows	(77	)	(75	)	(84	)	(65	)	(71	)
63		63		Interest credited and other	31		32		32		33		30
(1	)	(1	)	Policy charges	—		(2	)	(2	)	—		(1	)

3,221		3,394		Ending total account value	3,394		3,349		3,295		3,263		3,221


				SALES BY DISTRIBUTION CHANNEL:

				Variable and Fixed Annuities (1):
996		1,319		Insurance Agents	673		589		540		465		531
1,029		647		Wirehouses	324		340		264		344		685
3,557		3,644		Independent Financial Planners (2)	1,767		1,611		1,375		1,354		2,203

5,582		5,610		Total	2,764		2,540		2,179		2,163		3,419


				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (3):

				Return of net deposits:
				Account value	41,272		38,285		34,892		34,313		39,124
				Net amount at risk	1,750		3,572		6,462		7,433		5,138
				Minimum return, anniversary contract value, or maximum contract value:
				Account value	28,717		25,469		21,494		20,208		22,358
				Net amount at risk	4,032		6,431		9,640		10,503		8,438

				Variable Annuity Account Values with Living Benefit Features (3):
				Guaranteed minimum accumulation benefits	10,867		10,221		9,891		9,793		9,951
				Guaranteed minimum withdrawal benefits	1,902		1,646		1,326		1,198		1,312
				Guaranteed minimum income benefits	5,958		5,149		4,114		3,750		4,184
				Guaranteed minimum withdrawal & income benefits	18,372		18,153		17,723		18,470		23,249

				Total	37,099		35,169		33,054		33,211		38,696

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

(3)	At end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

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

(in millions)


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

				INDIVIDUAL ANNUITIES:

				Account Values in General Account (1):
18,110		8,644		Beginning balance	12,013		12,282		17,051		18,110		18,208
196		124		Premiums and deposits	51		70		81		83		113
(742	)	(505	)	Surrenders and withdrawals	(254	)	(296	)	(433	)	(386	)	(356	)

(546	)	(381	)	Net redemptions	(203	)	(226	)	(352	)	(303	)	(243	)
(176	)	(183	)	Benefit payments	(80	)	(87	)	(92	)	(93	)	(83	)

(722	)	(564	)	Net flows	(283	)	(313	)	(444	)	(396	)	(326	)
285		204		Interest credited and other	105		121		159		156		129
(1,317	)	3,999		Net transfers (to) from separate account	447		4,963		1,346		338		(1,655	)
(1	)	(1	)	Policy charges	—		(2	)	(2	)	—		(1	)

16,355		12,282		Ending balance	12,282		17,051		18,110		18,208		16,355


				Account Values in Separate Account:
45,192		75,174		Beginning balance	66,404		65,819		54,266		45,192		42,997
5,386		5,486		Premiums and deposits	2,713		2,470		2,098		2,080		3,306
(2,168	)	(3,967	)	Surrenders and withdrawals	(1,992	)	(1,763	)	(1,312	)	(1,134	)	(1,034	)

3,218		1,519		Net sales	721		707		786		946		2,272
(396	)	(456	)	Benefit payments	(222	)	(209	)	(190	)	(206	)	(190	)

2,822		1,063		Net flows	499		498		596		740		2,082
3,075		(5,796	)	Change in market value, interest credited and other	(320	)	(6,801	)	(8,113	)	(2,392	)	5,467
1,317		(3,999	)	Net transfers (to) from general account	(447	)	(4,963	)	(1,346	)	(338	)	1,655
(441	)	(623	)	Policy charges	(317	)	(287	)	(211	)	(205	)	(236	)

51,965		65,819		Ending balance	65,819		54,266		45,192		42,997		51,965

(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 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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			2Q		3Q		4Q		1Q		2Q

				RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

				Full Service:
99,738		112,192		Beginning total account value	107,060		106,917		100,463		99,738		102,159
14,379		9,116		Deposits and sales	4,530		3,276		6,549		10,489		3,890
(8,034	)	(8,299	)	Withdrawals and benefits	(4,366	)	(2,883	)	(3,869	)	(4,231	)	(3,803	)
4,867		(6,092	)	Change in market value, interest credited and interest income	(307	)	(6,847	)	(12,320	)	(3,837	)	8,704
—		—		Acquisition (1)	—		—		8,915		—		—

110,950		106,917		Ending total account value	106,917		100,463		99,738		102,159		110,950


6,345		817		Net additions	164		393		2,680		6,258		87


				Stable value account values included above	33,883		34,570		35,346		36,601		36,722

				Institutional Investment Products:
50,491		51,591		Beginning total account value	51,667		51,513		50,041		50,491		49,030
2,970		3,416		Additions (2)	1,606		1,052		1,270		627		2,343
(3,309	)	(3,646	)	Withdrawals and benefits	(1,944	)	(2,114	)	(1,632	)	(2,037	)	(1,272	)
526		802		Change in market value, interest credited and interest income	241		153		1,243		(152	)	678
(1,203	)	(650	)	Other (3)	(57	)	(563	)	(431	)	101		(1,304	)

49,475		51,513		Ending total account value	51,513		50,041		50,491		49,030		49,475


(339	)	(230	)	Net additions (withdrawals)	(338	)	(1,062	)	(362	)	(1,410	)	1,071

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

(2)

Includes $700 million and $500 million for the three months ended December 31, 2008 and the three and six months ended June 30, 2009, respectively, 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 $115 million, $(20) million and $543 million for the three months ended June 30, 2008, September 30, 2008 and December 31, 2008, respectively; and $(91) million for the six months ended June 30, 2008. “Other” activity also includes $(700) million for the three months ended December 31, 2008 and $(500) million for the three and six months ended June 30, 2009, respectively, related to transfers discussed above in note 2. For the three months ended March 31, 2009 and six months ended June 30, 2009, other includes $1,500 million representing collateralized funding agreements issued to the Federal Home Loan Bank of New York (FHLBNY). Other also includes $(507) million, $(1,015) million and $(1,522) million for the three months ended June 30, 2009, March 31, 2009 and the six months ended June 30, 2009, respectively, 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 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

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		2Q	3Q		4Q		1Q		2Q

				Analysis of revenues by type:
493		569	-13%	Asset management fees	288	289		257		239		254
(47	)	240	-120%	Incentive, transaction, principal investing and commercial mortgage revenues	152	(49	)	(141	)	(35	)	(12	)
159		303	-48%	Service, distribution and other revenues	124	105		113		59		100

605		1,112	-46%	Total Asset Management segment revenues	564	345		229		263		342


				Analysis of asset management fees by source:
245		269	-9%	Institutional customers	136	138		133		119		126
118		166	-29%	Retail customers	85	83		58		56		62
130		134	-3%	General account	67	68		66		64		66

493		569	-13%	Total asset management fees	288	289		257		239		254


Supplementary Assets Under Management Information (in billions):

	June 30, 2009
	Equity	Fixed Income	Real Estate	Total
Institutional customers	40.1	101.7	21.7	163.5
Retail customers	45.2	23.4	1.7	70.3
General account	3.4	171.3	0.9	175.6

Total	88.7	296.4	24.3	409.4


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

Total	122.1	284.7	32.1	438.9

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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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			2Q		3Q		4Q		1Q		2Q

				Institutional Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
128.5		141.7		Beginning assets under management	140.1		145.8		138.6		128.5		120.6
12.6		17.2		Additions	10.9		6.3		6.1		4.9		7.7
(11.1	)	(8.8	)	Withdrawals	(4.5	)	(4.8	)	(5.9	)	(4.6	)	(6.5	)
(0.1	)	(3.3	)	Change in market value	(0.5	)	(8.4	)	(10.7	)	(7.3	)	7.2
(1.0	)	(1.1	)	Net money market flows	(0.1	)	(0.3	)	0.9		(0.9	)	(0.1	)
—		0.1		Other (1)	(0.1	)	—		(0.5	)	—		—

128.9		145.8		Ending assets under management	145.8		138.6		128.5		120.6		128.9
34.6		33.5		Affiliated institutional assets under management	33.5		32.3		32.7		32.1		34.6

163.5		179.3		Total assets managed for institutional customers at end of period	179.3		170.9		161.2		152.7		163.5


1.5		8.4		Net institutional additions, excluding money market and other activity (1)	6.4		1.5		0.2		0.3		1.2


				Retail Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
33.4		50.9		Beginning assets under management	48.2		50.7		43.4		33.4		33.5
8.1		7.3		Additions	3.8		4.4		3.4		3.5		4.6
(6.0	)	(5.4	)	Withdrawals	(2.9	)	(4.3	)	(5.0	)	(3.3	)	(2.7	)
3.8		(2.1	)	Change in market value	1.9		(7.5	)	(8.4	)	(0.7	)	4.5
0.3		—		Net money market flows	(0.3	)	0.1		—		0.7		(0.4	)
—		—		Other	—		—		—		—		—

39.5		50.7		Ending assets under management	50.7		43.4		33.4		33.5		39.5
30.8		33.9		Affiliated retail assets under management	33.9		32.0		28.2		27.8		30.8

70.3		84.6		Total assets managed for retail customers at end of period	84.6		75.4		61.6		61.3		70.3


2.1		1.9		Net retail additions (withdrawals), excluding money market activity	0.9		0.1		(1.6	)	0.2		1.9

(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 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

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

(in millions)


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

					Revenues (1):
2,346		2,191		7%	Premiums	1,076		1,099		1,091		1,190		1,156
805		771		4%	Policy charges and fee income	380		313		441		393		412
703		686		2%	Net investment income	343		353		357		353		350
165		183		-10%	Asset management fees, commissions and other income	95		149		80		77		88

4,019		3,831		5%	Total revenues	1,894		1,914		1,969		2,013		2,006


					Benefits and Expenses (1):
2,498		2,352		6%	Insurance and annuity benefits	1,168		1,136		1,210		1,276		1,222
238		227		5%	Interest credited to policyholders’ account balances	113		119		117		119		119
98		102		-4%	Interest expense	50		51		62		51		47
(261	)	(239	)	-9%	Deferral of acquisition costs	(122	)	(121	)	(126	)	(125	)	(136	)
210		202		4%	Amortization of acquisition costs	87		(37	)	222		136		74
860		818		5%	General and administrative expenses	415		427		406		423		437

3,643		3,462		5%	Total benefits and expenses	1,711		1,575		1,891		1,880		1,763


376		369		2%	Adjusted operating income before income taxes	183		339		78		133		243

(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

Second Quarter 2009

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

(in millions)


	Six Months Ended June 30, 2009						Quarter Ended June 30, 2009
	Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance		Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance
Revenues (1):
Premiums	2,346		330		2,016		1,156		170		986
Policy charges and fee income	805		554		251		412		278		134
Net investment income	703		397		306		350		200		150
Asset management fees, commissions and other income	165		102		63		88		55		33

Total revenues	4,019		1,383		2,636		2,006		703		1,303


Benefits and Expenses (1):
Insurance and annuity benefits	2,498		522		1,976		1,222		250		972
Interest credited to policyholders’ account balances	238		127		111		119		65		54
Interest expense	98		98		—		47		47		—
Deferral of acquisition costs	(261	)	(243	)	(18	)	(136	)	(128	)	(8	)
Amortization of acquisition costs	210		197		13		74		69		5
General and administrative expenses	860		504		356		437		262		175

Total benefits and expenses	3,643		1,205		2,438		1,763		565		1,198


Adjusted operating income before income taxes	376		178		198		243		138		105


	Six Months Ended June 30, 2008						Quarter Ended June 30, 2008
	Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance		Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance
Revenues (1):
Premiums	2,191		296		1,895		1,076		148		928
Policy charges and fee income	771		558		213		380		273		107
Net investment income	686		362		324		343		182		161
Asset management fees, commissions and other income	183		140		43		95		73		22

Total revenues	3,831		1,356		2,475		1,894		676		1,218


Benefits and Expenses (1):
Insurance and annuity benefits	2,352		488		1,864		1,168		249		919
Interest credited to policyholders’ account balances	227		112		115		113		57		56
Interest expense	102		101		1		50		49		1
Deferral of acquisition costs	(239	)	(221	)	(18	)	(122	)	(113	)	(9	)
Amortization of acquisition costs	202		194		8		87		83		4
General and administrative expenses	818		483		335		415		248		167

Total benefits and expenses	3,462		1,157		2,305		1,711		573		1,138


Adjusted operating income before income taxes	369		199		170		183		103		80

(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 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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			2Q		3Q		4Q		1Q		2Q

				ANNUALIZED NEW BUSINESS PREMIUMS:

				Excluding corporate-owned life insurance:
9		21		Variable life	10		8		10		4		5
60		39		Universal life	22		21		23		28		32
113		103		Term life	52		53		53		52		61

182		163		Total excluding corporate-owned life insurance	84		82		86		84		98
—		—		Corporate-owned life insurance	—		—		—		—		—

182		163		Total	84		82		86		84		98


				ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL:

				Excluding corporate-owned life insurance:
46		57		Prudential Agents	29		26		26		22		24
136		106		Third party distribution	55		56		60		62		74
—		—		Corporate-owned life insurance	—		—		—		—		—

182		163		Total	84		82		86		84		98


				ACCOUNT VALUE ACTIVITY:

				*Policyholders’ Account Balances (1):*
7,397		6,582		Beginning balance	6,676		6,948		7,212		7,397		7,691
1,044		779		Premiums and deposits	409		372		462		570		474
(518	)	(449	)	Surrenders and withdrawals	(211	)	(248	)	(303	)	(278	)	(240	)

526		330		Net sales	198		124		159		292		234
(66	)	(77	)	Benefit payments	(38	)	(41	)	(41	)	(34	)	(32	)

460		253		Net flows	160		83		118		258		202
17		139		Interest credited and other	130		180		78		81		(64	)
130		122		Net transfers from separate account	59		75		70		45		85
(180	)	(148	)	Policy charges	(77	)	(74	)	(81	)	(90	)	(90	)

7,824		6,948		Ending balance	6,948		7,212		7,397		7,691		7,824


				*Separate Account Liabilities:*
12,848		18,585		Beginning balance	17,276		17,387		15,476		12,848		12,110
576		615		Premiums and deposits	311		386		409		315		261
(544	)	(377	)	Surrenders and withdrawals	(215	)	(173	)	(277	)	(328	)	(216	)

32		238		Net sales (redemptions)	96		213		132		(13	)	45
(20	)	(32	)	Benefit payments	(22	)	(6	)	17		(2	)	(18	)

12		206		Net flows	74		207		149		(15	)	27
1,074		(895	)	Change in market value, interest credited and other	288		(1,849	)	(2,524	)	(500	)	1,574
(130	)	(122	)	Net transfers to general account	(59	)	(75	)	(70	)	(45	)	(85	)
(354	)	(387	)	Policy charges	(192	)	(194	)	(183	)	(178	)	(176	)

13,450		17,387		Ending balance	17,387		15,476		12,848		12,110		13,450


				FACE AMOUNT IN FORCE (2):

				Variable life	134,691		131,608		127,503		124,600		123,419
				Universal life	27,091		27,999		29,070		30,537		32,315
				Term life	345,467		359,887		373,927		386,218		402,459

				Total	507,249		519,494		530,500		541,355		558,193

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

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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		2Q	3Q	4Q	1Q	2Q

		Individual Life Insurance:

		Policy Surrender Experience:
493	374	Cash value of surrenders	196	188	240	256	236
5.1%	3.2%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.5%	3.5%	4.8%	5.5%	5.0%

		Death benefits per $1,000 of in force (1):
4.26	3.83	Variable and universal life	4.14	3.23	3.58	4.71	3.83
1.15	1.56	Term life	1.53	1.46	0.97	1.14	1.10
2.86	2.98	Total, Individual Life Insurance	3.08	2.51	2.43	3.14	2.54

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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

(dollar amounts in millions)


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

		GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
245	142	Group life	30		70		76		210		35
160	131	Group disability (1)	17		47		26		134		26

405	273	Total	47		117		102		344		61


		Future Policy Benefits (2):
		Group life	2,046		2,015		2,227		2,169		2,176
		Group disability (1)	810		865		898		1,015		1,059

		Total	2,856		2,880		3,125		3,184		3,235


		Policyholders’ Account Balances (2):
		Group life	6,143		5,785		5,958		6,033		6,160
		Group disability (1)	149		152		172		159		168

		Total	6,292		5,937		6,130		6,192		6,328


		Separate Account Liabilities (2):
		Group life	17,941		19,943		19,429		20,315		19,141
		Group disability (1)	—		—		—		—		—

		Total	17,941		19,943		19,429		20,315		19,141


		Group Life Insurance:
1,835	1,861	Gross premiums, policy charges and fee income (3)	912		840		922		920		915
1,706	1,603	Earned premiums, policy charges and fee income	810		789		840		857		849
87.6%	88.3%	Benefits ratio	89.4	%	88.1	%	89.9	%	88.0	%	87.3	%
8.8%	8.2%	Administrative operating expense ratio	8.2	%	9.4	%	8.7	%	8.8	%	8.7	%
		Persistency ratio	94.0	%	93.6	%	93.3	%	95.8	%	95.6	%

		Group Disability Insurance (1):
568	526	Gross premiums, policy charges and fee income (3)	238		265		241		297		271
561	505	Earned premiums, policy charges and fee income	225		259		231		290		271
85.9%	88.9%	Benefits ratio	86.2	%	81.5	%	90.0	%	86.2	%	85.6	%
18.0%	19.6%	Administrative operating expense ratio	22.3	%	19.3	%	20.8	%	17.9	%	18.1	%
		Persistency ratio	90.4	%	86.7	%	85.6	%	94.5	%	93.6	%

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

(2)	As of end of period.

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

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

(in millions)


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

				INDIVIDUAL ANNUITIES:
2,329		1,976		Beginning balance	2,093		2,199		2,294		2,329		1,580
329		318		Capitalization	155		149		130		132		197
(507	)	(139	)	Amortization - operating results	(76	)	(121	)	(119	)	(862	)	355
13		10		Amortization - realized investment gains and losses	(5	)	10		(10	)	2		11
(221	)	34		Impact of unrealized (gains) or losses on AFS securities	32		57		34		(21	)	(200	)

1,943		2,199		Ending balance	2,199		2,294		2,329		1,580		1,943


				INDIVIDUAL LIFE INSURANCE:
4,226		3,855		Beginning balance	3,805		3,963		4,207		4,226		4,270
243		221		Capitalization	113		111		113		115		128
(197	)	(194	)	Amortization - operating results	(83	)	40		(218	)	(128	)	(69	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
(130	)	81		Impact of unrealized (gains) or losses on AFS securities	128		93		124		57		(187	)

4,142		3,963		Ending balance	3,963		4,207		4,226		4,270		4,142


				GROUP INSURANCE:
347		321		Beginning balance	326		331		338		347		349
18		18		Capitalization	9		10		13		10		8
(13	)	(8	)	Amortization - operating results	(4	)	(3	)	(4	)	(8	)	(5	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

352		331		Ending balance	331		338		347		349		352

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


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

					Revenues (1):
3,810		3,508		9%	Premiums	1,736		1,627		1,698		1,899		1,911
190		169		12%	Policy charges and fee income	82		83		90		99		91
1,043		965		8%	Net investment income	504		514		527		534		509
236		330		-28%	Asset management fees, commissions and other income	155		153		(217	)	106		130

5,279		4,972		6%	Total revenues	2,477		2,377		2,098		2,638		2,641


					Benefits and Expenses (1):
2,966		2,773		7%	Insurance and annuity benefits	1,360		1,279		1,325		1,501		1,465
229		201		14%	Interest credited to policyholders’ account balances	101		106		109		119		110
2		6		-67%	Interest expense	4		1		2		1		1
(608	)	(593	)	-3%	Deferral of acquisition costs	(299	)	(281	)	(299	)	(309	)	(299	)
416		312		33%	Amortization of acquisition costs	152		144		182		202		214
1,358		1,356		0%	General and administrative expenses	680		631		778		689		669

4,363		4,055		8%	Total benefits and expenses	1,998		1,880		2,097		2,203		2,160


916		917		0%	Adjusted operating income before income taxes	479		497		1		435		481

(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 and include charges for income attributable to non controlling interests.

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Six Months Ended June 30, 2009							Quarter Ended June 30, 2009
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	3,810		2,484		1,326		—	1,911		1,199		712		—
Policy charges and fee income	190		150		40		—	91		72		19		—
Net investment income	1,043		505		527		11	509		251		255		3
Asset management fees, commissions and other income	236		42		(4	)	198	130		17		8		105

Total revenues	5,279		3,181		1,889		209	2,641		1,539		994		108


Benefits and Expenses (1):
Insurance and annuity benefits	2,966		1,918		1,048		—	1,465		900		565		—
Interest credited to policyholders’ account balances	229		88		141		—	110		40		70		—
Interest expense	2		2		—		—	1		(1	)	2		—
Deferral of acquisition costs	(608	)	(420	)	(188	)	—	(299	)	(201	)	(98	)	—
Amortization of acquisition costs	416		285		131		—	214		147		67		—
General and administrative expenses	1,358		699		476		183	669		339		238		92

Total benefits and expenses	4,363		2,572		1,608		183	2,160		1,224		844		92


Adjusted operating income before income taxes	916		609		281		26	481		315		150		16


	Six Months Ended June 30, 2008							Quarter Ended June 30, 2008
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	3,508		2,423		1,085		—	1,736		1,161		575		—
Policy charges and fee income	169		134		35		—	82		64		18		—
Net investment income	965		466		474		25	504		234		258		12
Asset management fees, commissions and other income	330		43		(6	)	293	155		30		(11	)	136

Total revenues	4,972		3,066		1,588		318	2,477		1,489		840		148


Benefits and Expenses (1):
Insurance and annuity benefits	2,773		1,917		856		—	1,360		916		444		—
Interest credited to policyholders’ account balances	201		83		118		—	101		40		61		—
Interest expense	6		7		(4	)	3	4		4		(2	)	2
Deferral of acquisition costs	(593	)	(424	)	(169	)	—	(299	)	(203	)	(96	)	—
Amortization of acquisition costs	312		226		86		—	152		105		47		—
General and administrative expenses	1,356		686		406		264	680		341		219		120

Total benefits and expenses	4,055		2,495		1,293		267	1,998		1,203		673		122


Adjusted operating income before income taxes	917		571		295		51	479		286		167		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 and include charges for income attributable to non controlling interests.

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


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

				Japanese Yen Basis Results:
				Revenues (1):
¥	239,625	¥	225,207	Japanese insurance operations excluding Gibraltar Life	¥	107,786	¥	110,522	¥	110,212	¥	124,975	¥	114,650
	184,090		168,214	Gibraltar Life		86,092		84,570		83,070		84,867		99,223

	423,715		393,421	Total revenues, Japan, yen basis		193,878		195,092		193,282		209,842		213,873


				Benefits and Expenses (1):
	189,616		176,024	Japanese insurance operations excluding Gibraltar Life		83,323		83,006		86,952		101,197		88,419
	153,124		136,749	Gibraltar Life		68,623		65,640		66,538		70,551		82,573

	342,740		312,773	Total benefits and expenses, Japan, yen basis		151,946		148,646		153,490		171,748		170,992


				Adjusted operating income (2):
	50,009		49,183	Japanese insurance operations excluding Gibraltar Life		24,463		27,516		23,260		23,778		26,231
	30,966		31,465	Gibraltar Life		17,469		18,930		16,532		14,316		16,650

¥	80,975	¥	80,648	Total adjusted operating income, Japan, yen basis	¥	41,932	¥	46,446	¥	39,792	¥	38,094	¥	42,881


				U.S. Dollar adjusted operating income (3):
$	494	$	467	Japanese insurance operations excluding Gibraltar Life	$	236	$	252	$	224	$	237	$	257
	281		295	Gibraltar Life		167		167		160		131		150

	775		762	Total adjusted operating income, Japan, U.S. dollar basis		403		419		384		368		407
	115		104	All other countries (4)		50		41		37		57		58

$	890	$	866	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	453	$	460	$	421	$	425	$	465

(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 and include charges for income attributable to non controlling interests.

(2)	Adjusted operating income on yen basis excludes impact of currency hedging.

(3)	U.S. dollar adjusted operating income includes impact of currency hedging.

(4)	Results include corporate management and development expenses incurred in the U.S. related to Japanese Insurance operations excluding Gibraltar Life.

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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

		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
2,047	1,812	Japan, excluding Gibraltar Life	859	839	924	1,084	963
1,366	1,120	Gibraltar Life	593	515	559	635	731
587	745	All other countries	366	356	305	279	308

4,000	3,677	Total	1,818	1,710	1,788	1,998	2,002


		Annualized new business premiums:
295	288	Japan, excluding Gibraltar Life	125	120	123	173	122
260	242	Gibraltar Life	148	111	101	113	147
106	135	All other countries	63	55	54	47	59

661	665	Total	336	286	278	333	328


		Annualized new business premiums by distribution channel:
401	423	Life Planners	188	175	177	220	181
214	215	Gibraltar Life Advisors	127	96	89	92	122
46	27	Banks	21	15	12	21	25

661	665	Total	336	286	278	333	328


		Constant exchange rate basis (2):

		Net premiums, policy charges and fee income:
1,901	1,794	Japan, excluding Gibraltar Life	850	850	860	995	906
1,219	1,117	Gibraltar Life	575	522	534	546	673
767	749	All other countries	374	380	400	383	384

3,887	3,660	Total	1,799	1,752	1,794	1,924	1,963


		Annualized new business premiums:
275	285	Japan, excluding Gibraltar Life	124	122	115	161	114
244	243	Gibraltar Life	147	112	99	105	139
133	136	All other countries	64	56	68	63	70

652	664	Total	335	290	282	329	323


		Annualized new business premiums by distribution channel:
408	421	Life Planners	188	178	183	224	184
199	215	Gibraltar Life Advisors	125	97	87	84	115
45	28	Banks	22	15	12	21	24

652	664	Total	335	290	282	329	323

(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 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


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

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	244		246		248		250		251
Gibraltar Life	184		184		183		182		180
All other countries	108		108		108		108		109

Total	536		538		539		540		540


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	2,258		2,288		2,313		2,353		2,373
Gibraltar Life	3,782		3,788		3,796		3,787		3,760
All other countries	1,323		1,333		1,348		1,359		1,375

Total	7,363		7,409		7,457		7,499		7,508


International life insurance policy persistency:

Excluding Gibraltar Life:
13 months	92.0	%	92.1	%	92.6	%	92.2	%	91.8	%
25 months	85.3	%	85.5	%	86.2	%	85.0	%	84.7	%

Gibraltar Life:
13 months	90.8	%	91.1	%	91.1	%	91.2	%	91.2	%
25 months	86.4	%	85.3	%	84.0	%	83.4	%	83.1	%

Number of Life Planners at end of period:
Japan	3,079		3,084		3,071		3,078		2,987
All other countries	3,100		3,183		3,294		3,319		3,388

Total life planners	6,179		6,267		6,365		6,397		6,375


Gibraltar Life Advisors	5,899		6,057		6,330		6,170		6,376

(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 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2009					December 31, 2008
	Consolidated	Closed Block	Financial Services Businesses			Consolidated	Closed Block	Financial Services Businesses
	Portfolio	Business	Amount	% of Total		Portfolio	Business	Amount	% of Total
Fixed maturities:
Public, available for sale, at fair value	126,341	27,863	98,478	55.9	%	126,149	27,424	98,725	57.5	%
Public, held to maturity, at amortized cost	4,023	—	4,023	2.3	%	3,002	—	3,002	1.7	%
Private, available for sale, at fair value	30,819	11,966	18,853	10.7	%	30,047	11,479	18,568	10.8	%
Private, held to maturity, at amortized cost	912	—	912	0.5	%	806	—	806	0.5	%
Trading account assets supporting insurance liabilities, at fair value	14,766	—	14,766	8.4	%	13,875	—	13,875	8.1	%
Other trading account assets, at fair value (1)	2,163	165	1,998	1.1	%	848	120	728	0.4	%
Equity securities, available for sale, at fair value	5,904	2,513	3,391	1.9	%	6,059	2,400	3,659	2.1	%
Commercial loans	30,675	8,733	21,942	12.5	%	30,840	8,748	22,092	12.9	%
Policy loans	9,856	5,443	4,413	2.5	%	9,703	5,423	4,280	2.5	%
Other long-term investments (2)	4,327	1,546	2,781	1.6	%	4,664	1,629	3,035	1.8	%
Short-term investments (3)	5,951	1,347	4,604	2.6	%	4,358	1,484	2,874	1.7	%

Subtotal (4)	235,737	59,576	176,161	100.0	%	230,351	58,707	171,644	100.0	%

Invested assets of other entities and operations (5)	7,912	—	7,912			11,674	—	11,674

Total investments	243,649	59,576	184,073			242,025	58,707	183,318

Fixed Maturities by Credit Quality (4):


		June 30, 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	84,551	2,858	2,825	84,584	82.5	%	85,474	4,228	4,425	85,277	83.8	%
2	Baa	14,209	272	1,383	13,098	12.8	%	15,573	163	2,893	12,843	12.6	%

Subtotal Investment Grade		98,760	3,130	4,208	97,682	95.3	%	101,047	4,391	7,318	98,120	96.4	%

3	Ba	3,534	24	767	2,791	2.7	%	3,009	16	800	2,225	2.2	%
4	B	1,693	7	465	1,235	1.2	%	1,639	2	565	1,076	1.1	%
5	C and lower	861	8	360	509	0.5	%	379	14	123	270	0.3	%
6	In or near default	466	15	197	284	0.3	%	36	4	4	36	0.0	%

Subtotal Below Investment Grade		6,554	54	1,789	4,819	4.7	%	5,063	36	1,492	3,607	3.6	%

	Total	105,314	3,184	5,997	102,501	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	6,263	100	261	6,102	30.9	%	6,284	112	408	5,988	30.9	%
2	Baa	10,962	121	1,011	10,072	51.0	%	11,341	92	1,310	10,123	52.2	%

Subtotal Investment Grade		17,225	221	1,272	16,174	81.9	%	17,625	204	1,718	16,111	83.1	%

3	Ba	2,477	23	288	2,212	11.1	%	2,405	24	381	2,048	10.5	%
4	B	944	9	146	807	4.1	%	1,037	14	244	807	4.2	%
5	C and lower	385	5	69	321	1.6	%	283	7	59	231	1.2	%
6	In or near default	276	12	34	254	1.3	%	232	8	39	201	1.0	%

Subtotal Below Investment Grade		4,082	49	537	3,594	18.1	%	3,957	53	723	3,287	16.9	%

	Total	21,307	270	1,809	19,768	100.0	%	21,582	257	2,441	19,398	100.0	%

(1)	Other trading account assets, at fair value includes $1,250 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 June 30, 2009 and December 31, 2008, respectively, 130 securities with amortized cost of $4,568 million (fair value $4,643 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 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2009			December 31, 2008
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	43,374	71.0	%	42,223	70.6	%
Public, held to maturity, at amortized cost	4,023	6.6	%	3,002	5.0	%
Private, available for sale, at fair value	2,863	4.7	%	2,803	4.7	%
Private, held to maturity, at amortized cost	912	1.5	%	806	1.3	%
Trading account assets supporting insurance liabilities, at fair value	1,138	1.9	%	1,077	1.8	%
Other trading account assets, at fair value	433	0.7	%	519	0.9	%
Equity securities, available for sale, at fair value	1,441	2.4	%	2,071	3.5	%
Commercial loans	3,561	5.8	%	3,373	5.6	%
Policy loans	1,614	2.6	%	1,547	2.6	%
Other long-term investments (1)	1,352	2.2	%	2,143	3.6	%
Short-term investments	337	0.6	%	266	0.4	%

Total	61,048	100.0	%	59,830	100.0	%


	June 30, 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	55,104	47.9	%	56,502	50.5	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	15,990	13.9	%	15,765	14.1	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	13,628	11.8	%	12,798	11.5	%
Other trading account assets, at fair value	1,565	1.4	%	209	0.2	%
Equity securities, available for sale, at fair value	1,950	1.7	%	1,588	1.4	%
Commercial loans	18,381	16.0	%	18,719	16.7	%
Policy loans	2,799	2.4	%	2,733	2.5	%
Other long-term investments (1)	1,429	1.2	%	892	0.8	%
Short-term investments	4,267	3.7	%	2,608	2.3	%

Total	115,113	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 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended June 30
	2009						2008
	Investment Income				Realized Gains /		Investment Income				Realized Gains /
	Yield (3)		Amount		(Losses)		Yield (3)		Amount		(Losses)
Financial Services Businesses (1):
Fixed maturities	4.51	%	1,405		(309	)	4.74	%	1,398		(483	)
Equity securities	6.30	%	56		(114	)	5.09	%	60		(96	)
Commercial loans	5.63	%	241		(88	)	5.94	%	247		(5	)
Policy loans	5.11	%	55		—		5.02	%	52		—
Short-term investments and cash equivalents	0.46	%	14		—		2.52	%	67		—
Other investments	3.03	%	34		(798	)	3.23	%	27		79

Gross investment income before investment expenses	4.34	%	1,805		(1,309	)	4.74	%	1,851		(505	)
Investment expenses	-0.15	%	(49	)	—		-0.16	%	(80	)	—

Subtotal	4.19	%	1,756		(1,309	)	4.58	%	1,771		(505	)

Investment results of other entities and operations (2)			301		(109	)			384		(45	)
Less, investment income relating to divested businesses			(4	)					(10	)

Total			2,053		(1,418	)			2,145		(550	)


	Six Months Ended June 30
	2009						2008
	Investment Income				Realized Gains /		Investment Income				Realized Gains /
	Yield (3)		Amount		(Losses)		Yield (3)		Amount		(Losses)
Financial Services Businesses (1):
Fixed maturities	4.60	%	2,861		(545	)	4.82	%	2,778		(868	)
Equity securities	6.00	%	113		(379	)	4.62	%	106		(152	)
Commercial loans	5.67	%	483		(137	)	5.95	%	478		(4	)
Policy loans	5.06	%	108		—		5.08	%	103		—
Short-term investments and cash equivalents	0.71	%	43		—		3.24	%	166		—
Other investments	3.79	%	80		377		3.98	%	63		(266	)

Gross investment income before investment expenses	4.46	%	3,688		(684	)	4.83	%	3,694		(1,290	)
Investment expenses	-0.16	%	(103	)	—		-0.15	%	(160	)	—

Subtotal	4.30	%	3,585		(684	)	4.68	%	3,534		(1,290	)

Investment results of other entities and operations (2)			540		(154	)			741		(62	)
Less, investment income relating to divested businesses			(8	)					(20	)

Total			4,117		(838	)			4,255		(1,352	)

(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 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2009						2008
	Investment Income				Realized Gains /		Investment Income				Realized Gains /
	Yield (1)		Amount		(Losses)		Yield (1)		Amount		(Losses)
Japanese Insurance Operations:
Fixed maturities	2.88	%	364		(82	)	3.00	%	341		(59	)
Equity securities	2.47	%	11		(104	)	2.75	%	18		(104	)
Commercial loans	4.80	%	41		(9	)	4.81	%	37		(1	)
Policy loans	3.78	%	14		—		3.71	%	12		—
Short-term investments and cash equivalents	0.13	%	1		—		4.22	%	9		—
Other investments	4.88	%	24		(143	)	8.36	%	29		(120	)

Gross investment income before investment expenses	2.97	%	455		(338	)	3.26	%	446		(284	)
Investment expenses	-0.15	%	(22	)	—		-0.20	%	(32	)	—

Total	2.82	%	433		(338	)	3.06	%	414		(284	)


	Six Months Ended June 30
	2009						2008
	Investment Income				Realized Gains /		Investment Income				Realized Gains /
	Yield (1)		Amount		(Losses)		Yield (1)		Amount		(Losses)
Japanese Insurance Operations:
Fixed maturities	2.96	%	743		(97	)	2.93	%	641		(108	)
Equity securities	2.82	%	29		(278	)	2.52	%	32		(155	)
Commercial loans	4.85	%	82		(7	)	4.72	%	70		2
Policy loans	3.84	%	29		—		3.84	%	24		—
Short-term investments and cash equivalents	0.55	%	5		—		2.94	%	12		—
Other investments	4.66	%	50		(365	)	8.28	%	52		(142	)

Gross investment income before investment expenses	3.07	%	938		(747	)	3.16	%	831		(403	)
Investment expenses	-0.17	%	(51	)	—		-0.19	%	(55	)	—

Total	2.90	%	887		(747	)	2.97	%	776		(403	)

(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 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2009						2008
	Investment Income				Realized Gains /		Investment Income				Realized Gains /
	Yield (2)		Amount		(Losses)		Yield (2)		Amount		(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	5.62	%	1,041		(227	)	5.83	%	1,057		(424	)
Equity securities	10.49	%	45		(10	)	8.09	%	42		8
Commercial loans	5.84	%	200		(79	)	6.20	%	210		(4	)
Policy loans	5.86	%	41		—		5.59	%	40		—
Short-term investments and cash equivalents	0.53	%	13		—		2.32	%	58		—
Other investments	1.67	%	10		(655	)	-0.29	%	(2	)	199

Gross investment income before investment expenses	5.14	%	1,350		(971	)	5.54	%	1,405		(221	)
Investment expenses	-0.15	%	(27	)	—		-0.13	%	(48	)	—

Total	4.99	%	1,323		(971	)	5.41	%	1,357		(221	)


	Six Months Ended June 30
	2009						2008
	Investment Income				Realized Gains /		Investment Income				Realized Gains /
	Yield (2)		Amount		(Losses)		Yield (2)		Amount		(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	5.71	%	2,118		(448	)	5.98	%	2,137		(760	)
Equity securities	9.85	%	84		(101	)	7.29	%	74		3
Commercial loans	5.87	%	401		(130	)	6.23	%	408		(6	)
Policy loans	5.75	%	79		—		5.62	%	79		—
Short-term investments and cash equivalents	0.74	%	38		—		3.27	%	154		—
Other investments	2.89	%	30		742		1.24	%	11		(124	)

Gross investment income before investment expenses	5.28	%	2,750		63		5.73	%	2,863		(887	)
Investment expenses	-0.15	%	(52	)	—		-0.13	%	(105	)	—

Total	5.13	%	2,698		63		5.60	%	2,758		(887	)

(1)

(2)

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31					2007								2008								2009
2006		2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q		1Q

				*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	)	175
774		722		U.S. Individual Life and Group Insurance Division	152		210		351		195		186		183		339		78		133
1,570		1,425		International Insurance and Investments Division	473		453		537		391		438		479		497		1		435
(14	)	179		Corporate and other operations	(17	)	(27	)	(24	)	(64	)	(51	)	(20	)	(38	)	(288	)	(166	)

3,976		3,757		Total pre-tax adjusted operating income (loss)	1,097		1,121		1,295		1,022		931		1,127		616		(1,184	)	577
1,078		1,139		Income taxes, applicable to adjusted operating income	314		322		378		244		240		282		186		(305	)	141

2,898		2,618		Financial Services Businesses after-tax adjusted operating income (loss)	783		799		917		778		691		845		430		(879	)	436


				Reconciling items:
83		549		Realized investment losses, net, and related charges and adjustments	141		37		(179	)	(91	)	(678	)	(486	)	(547	)	(511	)	(666	)
35		(33	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	82		(108	)	36		(10	)	(262	)	(123	)	(534	)	(815	)	145
11		(44	)	Change in experience-rated contractholder liabilities due to asset value changes	(62	)	72		(6	)	9		200		94		388		481		(45	)
151		(232	)	Divested businesses	127		90		58		(1	)	(67	)	10		(219	)	(230	)	(32	)
(297	)	(193	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(91	)	(96	)	(82	)	(68	)	(36	)	(32	)	213		509		3

(17	)	47		Total reconciling items, before income taxes	197		(5	)	(173	)	(161	)	(843	)	(537	)	(699	)	(566	)	(595	)
27		(499	)	Income taxes, not applicable to adjusted operating income	56		(9	)	(67	)	(118	)	(199	)	(245	)	(280	)	(159	)	(148	)

(44	)	546		Total reconciling items, after income taxes	141		4		(106	)	(43	)	(644	)	(292	)	(419	)	(407	)	(447	)

2,854		3,164		Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	924		803		811		735		47		553		11		(1,286	)	(11	)
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	)	5

3,037		3,285		Income (loss) from continuing operations attributable to Prudential Financial, Inc.	972		852		856		772		66		569		(123	)	(1,670	)	(6	)
25		21		Earnings attributable to noncontrolling interests	29		7		22		9		24		8		5		(1	)	(11	)

3,062		3,306		Income (loss) from continuing operations (after-tax) of Financial Services Businesses	1,001		859		878		781		90		577		(118	)	(1,671	)	(17	)
71		(71	)	Income (loss) from discontinued operations, net of taxes	38		(29	)	(4	)	13		2		(3	)	5		14		1

3,133		3,235		Net income (loss) of Financial Services Businesses	1,039		830		874		794		92		574		(113	)	(1,657	)	(16	)
25		21		Less: Income (loss) attributable to noncontrolling interests	29		7		22		9		24		8		5		(1	)	(11	)

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	)	(5	)


14.17%		13.23%		Operating Return on Average Equity (based on adjusted operating income)	14.84%		14.96%		16.89%		14.24%		12.34%		15.32%		8.02%		-16.60%		8.89%

				*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	)	(5	)
284		321		Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.	95		11		7		79		(8	)	15		(58	)	74		19

3,392		3,535		Consolidated net income (loss) attributable to Prudential Financial, Inc.	1,105		834		859		864		60		581		(176	)	(1,582	)	14

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31				2007								2008								2009
2006	2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q		1Q
			*Earnings per share of Common Stock (diluted) (1):*
5.98	5.16		Financial Services Businesses after-tax adjusted operating income (loss)	1.67		1.72		2.00		1.72		1.56		1.96		1.02		(2.04	)	1.05

			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	)	(1.57	)
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	)	0.34
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		(0.11	)
0.31	(0.45	)	Divested businesses	0.27		0.19		0.12		—		(0.15	)	0.02		(0.51	)	(0.55	)	(0.08	)
—	(0.01	)	Difference in earnings allocated to participating unvested share-based payment awards	—		—		—		—		0.01		—		—		—		0.01

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	)	(1.41	)
0.28	(0.82	)	Income taxes, not applicable to adjusted operating income	0.22		0.08		(0.07	)	(0.18	)	(0.41	)	(0.52	)	(0.84	)	(0.67	)	(0.37	)

0.29	1.28		Total reconciling items, after income taxes	0.39		0.11		(0.13	)	(0.02	)	(1.39	)	(0.63	)	(1.29	)	(1.88	)	(1.04	)

6.27	6.44		Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.	2.06		1.83		1.87		1.70		0.17		1.33		(0.27	)	(3.92	)	0.01
0.14	(0.14	)	Income (loss) from discontinued operations, net of taxes	0.08		(0.07	)	(0.01	)	0.03		0.01		(0.01	)	0.02		0.03		—

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	)	0.01


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		422.1
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		423.2
68	82		Direct equity adjustments for earnings per share calculation	15		14		13		11		12		14		10		19		11

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

(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 the weighted average basic common shares for the three months ended December 31, 2008 as all potential common shares are anti-diutive due to the adjusted operating loss available to holders of common stock after direct equity adjustment.

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Years ended December 31					2007								2008								2009
2006		2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q		1Q
				Revenues (1):
10,287		10,128		Premiums	2,720		2,684		2,673		2,717		3,102		2,961		2,798		2,997		3,261
2,649		2,529		Policy charges and fee income	784		783		727		828		824		809		709		781		734
7,597		6,845		Net investment income	1,994		2,033		2,068		2,105		2,110		2,145		2,076		2,099		2,064
3,647		3,124		Asset management fees, commissions and other income	1,032		1,072		1,199		1,045		882		939		770		10		1,945

24,180		22,626		Total revenues	6,530		6,572		6,667		6,695		6,918		6,854		6,353		5,887		8,004


				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		3,464
2,790		2,516		Interest credited to policyholders’ account balances	745		762		779		808		806		803		853		881		1,086
1,005		622		Interest expense	298		295		293		301		298		248		287		303		247
(2,037	)	(1,801	)	Deferral of acquisition costs	(539	)	(556	)	(554	)	(599	)	(588	)	(588	)	(559	)	(567	)	(578	)
670		910		Amortization of acquisition costs	272		265		108		290		338		315		238		512		1,205
7,353		6,632		General and administrative expenses	1,894		2,002		2,088		2,148		2,051		2,005		1,878		2,470		2,003

20,204		18,869		Total benefits and expenses	5,433		5,451		5,372		5,673		5,987		5,727		5,737		7,071		7,427


3,976		3,757		Adjusted operating income (loss) before income taxes	1,097		1,121		1,295		1,022		931		1,127		616		(1,184	)	577


				Reconciling items:
66		657		Realized investment losses, net, and related adjustments	147		41		(178	)	(51	)	(665	)	(527	)	(564	)	(511	)	(710	)
17		(108	)	Related charges	(6	)	(4	)	(1	)	(40	)	(13	)	41		17		—		44

83		549		Total realized investment losses, net, and related charges and adjustments	141		37		(179	)	(91	)	(678	)	(486	)	(547	)	(511	)	(666	)


35		(33	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	82		(108	)	36		(10	)	(262	)	(123	)	(534	)	(815	)	145
11		(44	)	Change in experience-rated contractholder liabilities due to asset value changes	(62	)	72		(6	)	9		200		94		388		481		(45	)
151		(232	)	Divested businesses	127		90		58		(1	)	(67	)	10		(219	)	(230	)	(32	)
(297	)	(193	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(91	)	(96	)	(82	)	(68	)	(36	)	(32	)	213		509		3

(17	)	47		Total reconciling items, before income taxes	197		(5	)	(173	)	(161	)	(843	)	(537	)	(699	)	(566	)	(595	)


3,959		3,804		Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures	1,294		1,116		1,122		861		88		590		(83	)	(1,750	)	(18	)
1,105		640		Income tax expense (benefit)	370		313		311		126		41		37		(94	)	(464	)	(7	)

2,854		3,164		Income (loss) from continuing operations before equity in earnings of operating joint ventures	924		803		811		735		47		553		11		(1,286	)	(11	)

(1)

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Years ended December 31					2007								2008								2009
2006		2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q		1Q
				Revenues (1):
5,946		6,098		Premiums	1,553		1,531		1,518		1,590		1,772		1,736		1,627		1,698		1,899
286		264		Policy charges and fee income	72		73		72		76		87		82		83		90		99
1,425		1,324		Net investment income	386		405		418		433		461		504		514		527		534
649		466		Asset management fees, commissions and other income	214		209		277		176		175		155		153		(217	)	106

8,306		8,152		Total revenues	2,225		2,218		2,285		2,275		2,495		2,477		2,377		2,098		2,638


				Benefits and Expenses (1):
4,682		4,865		Insurance and annuity benefits	1,219		1,219		1,194		1,275		1,413		1,360		1,279		1,325		1,501
251		207		Interest credited to policyholders’ account balances	77		79		84		90		100		101		106		109		119
10		22		Interest expense	2		3		8		6		2		4		1		2		1
(1,007	)	(1,003	)	Deferral of acquisition costs	(261	)	(259	)	(253	)	(284	)	(294	)	(299	)	(281	)	(299	)	(309	)
454		390		Amortization of acquisition costs	128		126		103		129		160		152		144		182		202
2,346		2,246		General and administrative expenses	587		597		612		668		676		680		631		778		689

6,736		6,727		Total benefits and expenses	1,752		1,765		1,748		1,884		2,057		1,998		1,880		2,097		2,203


1,570		1,425		Adjusted operating income before income taxes	473		453		537		391		438		479		497		1		435

(1)

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INVESTMENTS SEGMENT

(in millions)


Years ended December 31			2007				2008					2009
2006	2005		1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q		1Q
		Revenues (1):
—	—	Premiums	—	—	—	—	—	—	—	—		—
—	—	Policy charges and fee income	—	—	—	—	—	—	—	—		—
31	25	Net investment income	8	9	10	7	13	12	12	12		8
540	445	Asset management fees, commissions and other income	164	154	235	158	157	136	139	(219	)	93

571	470	Total revenues	172	163	245	165	170	148	151	(207	)	101


		Benefits and Expenses (1):
—	—	Insurance and annuity benefits	—	—	—	—	—	—	—	—		—
—	—	Interest credited to policyholders’ account balances	—	—	—	—	—	—	—	—		—
1	2	Interest expense	1	2	2	1	1	2	1	—		—
—	—	Deferral of acquisition costs	—	—	—	—	—	—	—	—		—
—	—	Amortization of acquisition costs	—	—	—	—	—	—	—	—		—
428	364	General and administrative expenses	110	118	129	126	144	120	113	213		91

429	366	Total benefits and expenses	111	120	131	127	145	122	114	213		91


142	104	Adjusted operating income (loss) before income taxes	61	43	114	38	25	26	37	(420	)	10

(1)

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure of performance of our Financial Services Businesses that excludes “Realized investment gains (losses), net”, as adjusted, and related charges and adjustments; net investment gains and losses on trading account assets supporting insurance liabilities; change in experience-rated contractholder liabilities due to asset value changes; results of divested businesses and discontinued operations; 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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

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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 6.76% for the six months ended June 30, 2009, 6.08% for the six months ended June 30, 2008, 12.79% for the three months ended June 30, 2009, .14% for the three months ended March 31, 2009, -39.94% 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.

25. Policy Persistency - Group Insurance:

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

26. Policy Persistency - International Insurance:

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

27. Prudential Agents:

Insurance agents in our insurance operations in the United States.

28. Prudential Agent productivity:

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

29. Ratio of capital debt to total capitalization:

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

30. Separate Accounts:

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

31. Wrap-Fee Products:

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2009

LOGO

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of August 5, 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 August 5, 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.

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Form: 8-K

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