February 10, 2010 - QUARTERLY FINANCIAL SUPPLEMENT - 8-K: Current report

Exhibit 99.1

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FOURTH 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.

February 10, 2010

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

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 and Account Values		13
Individual Annuities Account Value Activity		14
Individual Annuities Living Benefit Features		15
Individual Annuities Death Benefit Features		16
Retirement Segment Sales Results and Account Values		17
Supplementary Revenue And Assets Under Management Information for Asset Management Segment		18
Supplementary Assets Under Management and Assets Under Administration Information for Asset Management Segment		19

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		20
Combining Statements of Operations		21
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force		22
Supplementary Information for Individual Life Insurance		23
Supplementary Information for Group Insurance		24

DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE		25

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations		26
Combining Statements of Operations		27
International Insurance Segment - Supplementary Income Statement Information		28
Sales Results and Supplementary Information		29-30

INVESTMENT PORTFOLIO
Investment Portfolio Composition		31
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		32
Financial Services Businesses Investment Results		33
Financial Services Businesses Investment Results - Japanese Insurance Operations		34
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		35

RECLASSIFIED STATEMENTS OF OPERATION AND SUPPLEMENTAL INFORMATION		36-38

KEY DEFINITIONS AND FORMULAS		39-41

RATINGS AND INVESTOR INFORMATION		42

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

Revenues and expenses reported herein reflect certain reclassifications to conform to current reporting practices.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

					*Financial Services Businesses:*
					Pre-tax adjusted operating income (loss) by division:
1,268		(314	)	504%	U.S. Retirement Solutions and Investment Management Division	(975	)	175		564		314		215
893		786		14%	U.S. Individual Life and Group Insurance Division	78		133		243		307		210
1,886		1,415		33%	International Insurance and Investments Division	1		435		481		513		457
(728	)	(397	)	-83%	Corporate and other operations	(288	)	(166	)	(162	)	(201	)	(199	)
3,319		1,490		123%	Total pre-tax adjusted operating income (loss)	(1,184	)	577		1,126		933		683
838		403		108%	Income taxes, applicable to adjusted operating income	(305	)	141		309		200		188
2,481		1,087		128%	Financial Services Businesses after-tax adjusted operating income (loss)	(879)		436		817		733		495

					Reconciling items:
(1,739	)	(2,222	)	22%	Realized investment gains (losses), net, and related charges and adjustments	(511	)	(666	)	(877	)	(234	)	38
1,601		(1,734	)	192%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(815	)	145		686		694		76
(899	)	1,163		-177%	Change in experience-rated contractholder liabilities due to asset value changes	481		(45	)	(347	)	(458	)	(49	)
2,131		(506	)	521%	Divested businesses	(230	)	(32	)	(24	)	25		2,162
(2,364	)	654		-461%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	509		3		14		(92	)	(2,289	)
(1,270	)	(2,645	)	52%	Total reconciling items, before income taxes	(566	)	(595	)	(548	)	(65	)	(62	)
(624	)	(883	)	29%	Income taxes, not applicable to adjusted operating income	(159	)	(148	)	(260	)	(345	)	129
(646	)	(1,762	)	63%	Total reconciling items, after income taxes	(407	)	(447	)	(288	)	280		(191	)
1,835		(675	)	372%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	(1,286	)	(11	)	529		1,013		304
1,557		(483	)	422%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests	(384	)	5		(12	)	81		1,483
3,392		(1,158	)	393%	Income (loss) from continuing operations attributable to Prudential Financial, Inc.	(1,670	)	(6	)	517		1,094		1,787
(34	)	36		-194%	Earnings attributable to noncontrolling interests	(1	)	(11	)	17		(50	)	10
3,358		(1,122	)	399%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses	(1,671	)	(17	)	534		1,044		1,797
19		18		6%	Income (loss) from discontinued operations, net of taxes	14		1		21		(4)		1
3,377		(1,104	)	406%	Net income (loss) of Financial Services Businesses	(1,657	)	(16	)	555		1,040		1,798
(34	)	36		-194%	Less: Income (loss) attributable to noncontrolling interests	(1	)	(11	)	17		(50)		10
3,411		(1,140	)	399%	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.	(1,656	)	(5	)	538		1,090		1,788

11.27%		5.22%			Operating Return on Average Equity (based on adjusted operating income)	-16.60%		8.89%		15.48%		12.85%		8.18%

					*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
3,411		(1,140	)		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)	(1,656	)	(5	)	538		1,090		1,788
(287	)	23			Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.	74		19		(375)		(8)		77
3,124		(1,117	)		Consolidated net income (loss) attributable to Prudential Financial, Inc.	(1,582	)	14		163		1,082		1,865

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

				Earnings per share of Common Stock (diluted) (1):
5.58		2.62		Financial Services Businesses after-tax adjusted operating income (loss)	(2.04	)	1.05		1.88		1.59		1.07

				Reconciling items:
(3.88	)	(5.12	)	Realized investment gains (losses), net, and related charges and adjustments	(1.21	)	(1.57	)	(2.02	)	(0.50	)	0.08
3.57		(4.00	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(1.93	)	0.34		1.58		1.49		0.16
(2.01	)	2.68		Change in experience-rated contractholder liabilities due to asset value changes	1.14		(0.11	)	(0.80	)	(0.99	)	(0.10	)
4.75		(1.17	)	Divested businesses	(0.55	)	(0.08	)	(0.06	)	0.05		4.60
(0.01	)	—		Difference in earnings allocated to participating unvested share-based payment awards	—		0.01		0.01		—		(0.03	)

2.42		(7.61	)	Total reconciling items, before income taxes	(2.55	)	(1.41	)	(1.29	)	0.05		4.71
0.41		(2.42	)	Income taxes, not applicable to adjusted operating income	(0.67	)	(0.37	)	(0.61	)	(0.72	)	2.00

2.01		(5.19	)	Total reconciling items, after income taxes	(1.88	)	(1.04	)	(0.68	)	0.77		2.71

7.59		(2.57	)	Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.	(3.92	)	0.01		1.20		2.36		3.78
0.04		0.04		Income (loss) from discontinued operations, net of taxes	0.03		—		0.05		(0.01	)	0.01

7.63		(2.53	)	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.	(3.89	)	0.01		1.25		2.35		3.79


444.6		429.7		Weighted average number of outstanding Common shares (basic)	421.3		422.1		432.9		461.2		461.8

448.2		433.6		Weighted average number of outstanding Common shares (diluted)	423.0		423.2		434.3		464.6		470.3

43		55		Direct equity adjustments for earnings per share calculation	19		11		11		12		9

5		—		Earnings related to interest, net of tax, on exchangeable surplus notes	0		0		—		1		4

				*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
28		6		Financial Services Businesses after-tax adjusted operating income	1		4		10		8		6
38		1		Income from continuing operations (after-tax) of Financial Services Businesses	1		—		6		12		20

(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 and twelve months ended December 31, 2008 as all potential common shares are anti-dilutive due to the loss from continuing operations available to holders of common stock after direct equity adjustment. Diluted share count used in 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.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

		*Financial Services Businesses Capitalization Data (1):*
		Senior Debt:
		Short-term debt	10,092	6,651	3,643	2,182	3,122
		Long-term debt	17,022	17,394	17,713	19,491	17,769
		Junior Subordinated Long-Term Debt	1,518	1,518	1,518	1,518	1,518

		Attributed Equity:
		Including accumulated other comprehensive income	14,292	14,349	18,681	23,239	24,154
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	19,899	20,337	22,452	23,919	25,399
		Excluding total accumulated other comprehensive income	19,529	20,238	22,194	23,338	24,728

		Total Capitalization:
		Including accumulated other comprehensive income	32,832	33,261	37,912	44,248	43,441
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	38,439	39,249	41,683	44,928	44,686
		Excluding total accumulated other comprehensive income	38,069	39,150	41,425	44,347	44,015

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	33.69	33.83	40.20	49.71	51.52
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	46.91	47.95	48.32	51.16	54.18
		Excluding total accumulated other comprehensive income	46.04	47.72	47.76	49.92	52.75

		Number of diluted shares at end of period	424.2	424.1	464.7	467.5	468.8

		*Common Stock Price Range (based on closing price):*
54.63	91.36	High	64.80	35.11	46.00	54.63	52.82
11.29	13.73	Low	13.73	11.29	20.50	33.28	44.64
49.76	30.26	Close	30.26	19.02	37.22	49.91	49.76


		*Common Stock market capitalization (1)*	12,749	8,042	17,139	23,024	22,995

(1)	As of end of period.

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

OPERATIONS HIGHLIGHTS


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

		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management:
		Managed by U.S. Retirement Solutions and Investment Management Division:
		Asset Management Segment - Investment Management & Advisory Services
		Institutional customers	161.2	152.7	163.5	179.9	188.4
		Retail customers	61.6	61.3	70.3	79.1	84.4
		General account	172.6	172.3	175.6	184.9	184.0

		Total Investment Management and Advisory Services	395.4	386.3	409.4	443.9	456.8
		Non-proprietary assets under management	80.5	75.1	89.3	109.4	122.3

		Total managed by U.S. Retirement Solutions and Investment Management Division	475.9	461.4	498.7	553.3	579.1
		Managed by U.S. Individual Life and Group Insurance Division	12.4	11.9	11.2	12.1	12.4
		Managed by International Insurance and Investments Division	69.9	68.4	69.7	75.5	75.8

		Total assets under management	558.2	541.7	579.6	640.9	667.3
		Client assets under administration	101.1	98.8	106.7	116.3	119.5

		Total assets under management and administration	659.3	640.5	686.3	757.2	786.8


		Assets managed or administered for customers outside of the United States at end of period	112.6	110.4	115.2	127.0	130.0

		*Distribution Representatives (1):*
		Prudential Agents	2,360	2,389	2,421	2,453	2,447
		International Life Planners	6,365	6,397	6,375	6,484	6,609
		Gibraltar Life Advisors	6,330	6,170	6,376	6,060	6,398

51	58	*Prudential Agent productivity ($ thousands)*	70	41	49	58	56

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

					Revenues (1):
13,294		11,858		12%	Premiums	2,997		3,261		3,320		3,361		3,352
3,033		3,123		-3%	Policy charges and fee income	781		734		766		693		840
8,231		8,430		-2%	Net investment income	2,099		2,064		2,053		2,055		2,059
3,182		2,577		23%	Asset management fees, commissions and other income	(2	)	1,943		201		498		540

27,740		25,988		7%	Total revenues	5,875		8,002		6,340		6,607		6,791


					Benefits and Expenses (1):
12,709		12,538		1%	Insurance and annuity benefits	3,472		3,464		2,928		3,115		3,202
3,460		3,343		3%	Interest credited to policyholders’ account balances	881		1,086		725		831		818
955		1,136		-16%	Interest expense	303		247		239		228		241
(2,769	)	(2,302	)	-20%	Deferral of acquisition costs	(567	)	(578	)	(641	)	(782	)	(768	)
1,522		1,403		8%	Amortization of acquisition costs	512		1,205		(70	)	102		285
8,544		8,380		2%	General and administrative expenses	2,458		2,001		2,033		2,180		2,330

24,421		24,498		0%	Total benefits and expenses	7,059		7,425		5,214		5,674		6,108

3,319		1,490		123%	Adjusted operating income (loss) before income taxes	(1,184	)	577		1,126		933		683


					Reconciling items:
(1,651	)	(2,267	)	27%	Realized investment gains (losses), net, and related adjustments	(511	)	(710	)	(872	)	(183	)	114
(88	)	45		-296%	Related charges	—		44		(5	)	(51	)	(76	)

(1,739	)	(2,222	)	22%	Total realized investment gains (losses), net, and related charges and adjustments	(511	)	(666	)	(877	)	(234	)	38

1,601		(1,734	)	192%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(815	)	145		686		694		76
(899	)	1,163		-177%	Change in experience-rated contractholder liabilities due to asset value changes	481		(45	)	(347	)	(458	)	(49	)
2,131		(506	)	521%	Divested businesses	(230	)	(32	)	(24	)	25		2,162
(2,364	)	654		-461%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	509		3		14		(92	)	(2,289	)

(1,270	)	(2,645	)	52%	Total reconciling items, before income taxes	(566	)	(595	)	(548	)	(65	)	(62	)


2,049		(1,155	)	277%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures	(1,750	)	(18	)	578		868		621
214		(480	)	145%	Income tax expense (benefit)	(464	)	(7	)	49		(145	)	317

1,835		(675	)	372%	Income (loss) from continuing operations before equity in earnings of operating joint ventures	(1,286	)	(11	)	529		1,013		304

(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.

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $125,753; $123,589; $123,430; $127,490; $131,727)	119,153		116,094		119,084		128,459		132,694
Fixed maturities, held to maturity, at amortized cost (fair value $3,832; $4,629; $4,938; $5,199; $5,197)	3,808		4,661		4,935		5,141		5,120
Trading account assets supporting insurance liabilities, at fair value	13,875		13,973		14,766		15,848		16,020
Other trading account assets, at fair value	4,216		4,445		3,550		3,656		2,866
Equity securities, available for sale, at fair value (cost $4,273; $3,893; $3,380; $3,390; $3,459)	3,665		3,425		3,404		3,747		3,810
Commercial mortgage and other loans	24,366		24,069		23,961		23,616		23,021
Policy loans	4,280		4,230		4,413		4,634		4,728
Securities purchased under agreements to resell	480		—		—		6		6
Other long-term investments	5,383		4,247		4,170		4,296		4,359
Short-term investments	4,092		3,458		5,790		6,072		5,481

Total investments	183,318		178,602		184,073		195,475		198,105
Cash and cash equivalents	13,054		12,748		11,798		10,524		12,451
Accrued investment income	1,603		1,610		1,571		1,613		1,668
Deferred policy acquisition costs	13,127		12,223		12,768		13,313		13,751
Deferred income taxes, net	(533	)	(462	)	—		—		—
Other assets	21,962		18,452		19,142		19,964		15,222
Separate account assets	147,095		139,638		151,266		168,128		174,074

Total assets	379,626		362,811		380,618		409,017		415,271


Liabilities:
Future policy benefits	70,221		67,417		69,699		72,774		73,931
Policyholders’ account balances	93,991		95,033		95,680		95,766		96,078
Securities sold under agreements to repurchase	4,288		3,743		3,467		3,650		2,985
Cash collateral for loaned securities	2,684		1,966		2,233		2,573		2,323
Income taxes	364		773		2,213		3,935		4,665
Senior short-term debt	10,092		6,651		3,643		2,182		3,122
Senior long-term debt	17,022		17,394		17,713		19,491		17,769
Junior subordinated long-term debt	1,518		1,518		1,518		1,518		1,518
Other liabilities	17,708		13,753		13,903		15,212		14,118
Separate account liabilities	147,095		139,638		151,266		168,128		174,074

Total liabilities	364,983		347,886		361,335		385,229		390,583


Attributed Equity:
Accumulated other comprehensive loss	(5,237	)	(5,889	)	(3,513	)	(99	)	(574	)
Other attributed equity	19,529		20,238		22,194		23,338		24,728

Total attributed equity	14,292		14,349		18,681		23,239		24,154

Noncontrolling Interest	351		576		602		549		534

Total Equity	14,643		14,925		19,283		23,788		24,688

Total liabilities and equity	379,626		362,811		380,618		409,017		415,271

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended December 31, 2009
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	3,352		136		1,165		2,053		(2	)
Policy charges and fee income	840		358		407		94		(19	)
Net investment income	2,059		1,054		368		567		70
Asset management fees, commissions and other income	540		390		82		119		(51	)

Total revenues	6,791		1,938		2,022		2,833		(2	)


Benefits and Expenses (1):
Insurance and annuity benefits	3,202		360		1,234		1,601		7
Interest credited to policyholders’ account balances	818		583		128		128		(21	)
Interest expense	241		13		41		1		186
Deferral of acquisition costs	(768	)	(310	)	(133	)	(338	)	13
Amortization of acquisition costs	285		(3	)	96		207		(15	)
General and administrative expenses	2,330		1,080		446		777		27

Total benefits and expenses	6,108		1,723		1,812		2,376		197


Adjusted operating income (loss) before income taxes	683		215		210		457		(199	)


	Quarter Ended December 31, 2008
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,997		209		1,091		1,698		(1	)
Policy charges and fee income	781		256		441		90		(6	)
Net investment income	2,099		1,101		357		527		114
Asset management fees, commissions and other income	(2	)	191		80		(217	)	(56	)

Total revenues	5,875		1,757		1,969		2,098		51


Benefits and Expenses (1):
Insurance and annuity benefits	3,472		814		1,210		1,325		123
Interest credited to policyholders’ account balances	881		707		117		109		(52	)
Interest expense	303		54		62		2		185
Deferral of acquisition costs	(567	)	(148	)	(126	)	(299	)	6
Amortization of acquisition costs	512		126		222		182		(18	)
General and administrative expenses	2,458		1,179		406		778		95

Total benefits and expenses	7,059		2,732		1,891		2,097		339


Adjusted operating income (loss) before income taxes	(1,184	)	(975	)	78		1		(288	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Twelve Months Ended December 31, 2009
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	13,294		690		4,737		7,878		(11	)
Policy charges and fee income	3,033		1,189		1,509		374		(39	)
Net investment income	8,231		4,378		1,432		2,176		245
Asset management fees, commissions and other income	3,182		2,547		375		460		(200	)

Total revenues	27,740		8,804		8,053		10,888		(5	)


Benefits and Expenses (1):
Insurance and annuity benefits	12,709		1,469		5,058		6,139		43
Interest credited to policyholders’ account balances	3,460		2,609		492		480		(121	)
Interest expense	955		68		181		4		702
Deferral of acquisition costs	(2,769	)	(1,023	)	(537	)	(1,248	)	39
Amortization of acquisition costs	1,522		548		208		798		(32	)
General and administrative expenses	8,544		3,865		1,758		2,829		92

Total benefits and expenses	24,421		7,536		7,160		9,002		723


Adjusted operating income (loss) before income taxes	3,319		1,268		893		1,886		(728	)


	Twelve Months Ended December 31, 2008
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	11,858		654		4,381		6,833		(10	)
Policy charges and fee income	3,123		1,287		1,525		342		(31	)
Net investment income	8,430		4,449		1,396		2,006		579
Asset management fees, commissions and other income	2,577		2,139		412		266		(240	)

Total revenues	25,988		8,529		7,714		9,447		298


Benefits and Expenses (1):
Insurance and annuity benefits	12,538		2,268		4,698		5,377		195
Interest credited to policyholders’ account balances	3,343		2,656		463		416		(192	)
Interest expense	1,136		225		215		9		687
Deferral of acquisition costs	(2,302	)	(689	)	(486	)	(1,173	)	46
Amortization of acquisition costs	1,403		423		387		638		(45	)
General and administrative expenses	8,380		3,960		1,651		2,765		4

Total benefits and expenses	24,498		8,843		6,928		8,032		695


Adjusted operating income (loss) before income taxes	1,490		(314	)	786		1,415		(397	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of December 31, 2009
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Assets:
Total investments	198,105		85,997		28,196		76,775		7,137
Deferred policy acquisition costs	13,751		2,722		4,550		6,627		(148	)
Other assets	29,341		7,819		3,006		9,454		9,062
Separate account assets	174,074		141,330		34,100		462		(1,818	)

Total assets	415,271		237,868		69,852		93,318		14,233


Liabilities:
Future policy benefits	73,931		15,335		9,122		49,079		395
Policyholders’ account balances	96,078		58,154		14,772		24,966		(1,814	)
Debt	22,409		3,570		4,994		499		13,346
Other liabilities	24,091		7,741		2,646		10,124		3,580
Separate account liabilities	174,074		141,330		34,100		462		(1,818	)

Total liabilities	390,583		226,130		65,634		85,130		13,689


Attributed Equity:
Accumulated other comprehensive income (loss)	(574	)	532		148		233		(1,487	)
Other attributed equity	24,728		10,612		4,070		7,948		2,098

Total attributed equity	24,154		11,144		4,218		8,181		611

Noncontrolling Interest	534		594		—		7		(67	)

Total Equity	24,688		11,738		4,218		8,188		544


Total liabilities and equity	415,271		237,868		69,852		93,318		14,233


	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

Fourth Quarter 2009

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of December 31, 2009					As of December 31, 2008
	Senior debt		Junior Subordinated Long-term Debt			Senior debt		Junior Subordinated Long-term 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	389	6,546	1,518	8,453		925	5,092	1,518	7,535
Investment related	1,247	7,998	—	9,245		6,245	9,792	—	16,037
Securities business related	1,015	1,283	—	2,298		1,806	1,550	—	3,356
Specified other businesses	471	1,513	—	1,984		778	264	—	1,042
Limited recourse and non-recourse borrowing	—	429	—	429		338	324	—	662

Total debt - Financial Services Businesses	3,122	17,769	1,518	22,409		10,092	17,022	1,518	28,632

Ratio of long-term and short-term capital debt to capitalization (1)				21.6	%				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 December 31, 2009					As of December 31, 2008
	Prudential Financial, Inc.	The Prudential Insurance Co. of America (2)(3)	Other Affiliates	Total		Prudential Financial, Inc.	The Prudential Insurance Co. of America (2)(3)	Other Affiliates	Total
Financial Services Businesses
*Borrowings by sources:*
Capital Debt	6,973	1,335	145	8,453		6,837	462	236	7,535
Investment related	4,760	1,212	3,273	9,245		8,819	3,991	3,227	16,037
Securities business related	1,422	826	50	2,298		694	2,430	232	3,356
Specified other businesses	1,513	471	—	1,984		290	752	—	1,042
Limited recourse and non-recourse borrowing	—	—	429	429		—	—	662	662

Total debt - Financial Services Businesses	14,668	3,844	3,897	22,409		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 $941 million and $444 million of Surplus Notes for December 31, 2009 and 2008, respectively.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

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

(in millions)


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

					Revenues (1):
690		654		6%	Premiums	209		175		261		118		136
1,189		1,287		-8%	Policy charges and fee income	256		249		269		313		358
4,378		4,449		-2%	Net investment income	1,101		1,146		1,114		1,064		1,054
2,547		2,139		19%	Asset management fees, commissions and other income	191		1,793		43		321		390

8,804		8,529		3%	Total revenues	1,757		3,363		1,687		1,816		1,938


					Benefits and Expenses (1):
1,469		2,268		-35%	Insurance and annuity benefits	814		642		257		210		360
2,609		2,656		-2%	Interest credited to policyholders’ account balances	707		895		527		604		583
68		225		-70%	Interest expense	54		25		16		14		13
(1,023	)	(689	)	-48%	Deferral of acquisition costs	(148	)	(149	)	(217	)	(347	)	(310	)
548		423		30%	Amortization of acquisition costs	126		878		(351	)	24		(3	)
3,865		3,960		-2%	General and administrative expenses	1,179		897		891		997		1,080

7,536		8,843		-15%	Total benefits and expenses	2,732		3,188		1,123		1,502		1,723

1,268		(314	)	504%	Adjusted operating income (loss) before income taxes	(975	)	175		564		314		215

(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.

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

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

(in millions)


	Twelve Months Ended December 31, 2009								Quarter Ended December 31, 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	690		88		602		—		136		27		109		—
Policy charges and fee income	1,189		991		198		—		358		306		52		—
Net investment income	4,378		979		3,309		90		1,054		218		802		34
Asset management fees, commissions and other income	2,547		813		567		1,167		390		(111	)	174		327

Total revenues	8,804		2,871		4,676		1,257		1,938		440		1,137		361


Benefits and Expenses (1):
Insurance and annuity benefits	1,469		89		1,380		—		360		49		311		—
Interest credited to policyholders’ account balances	2,609		702		1,907		—		583		116		467		—
Interest expense	68		13		29		26		13		4		5		4
Deferral of acquisition costs	(1,023	)	(953	)	(48	)	(22	)	(310	)	(297	)	(6	)	(7	)
Amortization of acquisition costs	548		505		25		18		(3	)	(13	)	5		5
General and administrative expenses (2)	3,865		1,812		873		1,180		1,080		493		222		365

Total benefits and expenses	7,536		2,168		4,166		1,202		1,723		352		1,004		367

Adjusted operating income (loss) before income taxes	1,268		703		510		55		215		88		133		(6	)


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

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


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

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

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

(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 $150 million for the twelve months ended December 31, 2009, $395 million for the twelve months ended December 31, 2008, $3 million for the quarter ended December 31, 2009 and $296 million for the quarter ended December 31, 2008 for the amortization, net of interest, of value of business acquired (VOBA).

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO


U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES SALES RESULTS AND ACCOUNT VALUES
(in millions)

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

			SALES AND ACCOUNT VALUES:

			Variable Annuities:
60,007	80,330		Beginning total account value	67,968		60,007		57,942		65,099		75,611
16,117	10,208		Sales	2,132		2,108		3,378		5,829		4,802
(5,776)	(8,000	)	Surrenders and withdrawals	(1,654	)	(1,443	)	(1,315	)	(1,444	)	(1,574	)

10,341	2,208		Net sales	478		665		2,063		4,385		3,228
(988)	(1,057	)	Benefit payments	(242	)	(256	)	(236	)	(239	)	(257	)

9,353	1,151		Net flows	236		409		1,827		4,146		2,971
12,220	(20,353	)	Change in market value, interest credited, and other (1)	(7,986	)	(2,269	)	5,566		6,650		2,273
(1,061)	(1,121	)	Policy charges	(211	)	(205	)	(236	)	(284	)	(336	)

80,519	60,007		Ending total account value	60,007		57,942		65,099		75,611		80,519


			Fixed Annuities:
3,295	3,488		Beginning total account value	3,349		3,295		3,263		3,221		3,213
179	121		Sales	47		55		41		46		37
(258)	(276	)	Surrenders and withdrawals	(91	)	(77	)	(75	)	(49	)	(57	)

(79)	(155	)	Net redemptions	(44	)	(22	)	(34	)	(3	)	(20	)
(160)	(160	)	Benefit payments	(40	)	(43	)	(37	)	(41	)	(39	)

(239)	(315	)	Net flows	(84	)	(65	)	(71	)	(44	)	(59	)
397	127		Interest credited and other (1)	32		33		30		36		298
(1)	(5	)	Policy charges	(2	)	—		(1	)	—		—

3,452	3,295		Ending total account value	3,295		3,263		3,221		3,213		3,452


			SALES BY DISTRIBUTION CHANNEL:

			Variable and Fixed Annuities (2):
2,395	2,448		Insurance Agents	540		465		531		735		664
3,440	1,251		Wirehouses	264		344		685		1,359		1,052
10,461	6,630		Independent Financial Planners (3)	1,375		1,354		2,203		3,781		3,123

16,296	10,329		Total	2,179		2,163		3,419		5,875		4,839

(1)	Includes cumulative reclassification during the fourth quarter of 2009 of $259 million from variable annuity to fixed annuity account values to conform presentation of certain contracts in annuitization status to current reporting practices.

(2)	Amounts represent gross sales.

(3)	Including bank distribution.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth 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			4Q		1Q		2Q		3Q		4Q

			INDIVIDUAL ANNUITIES:

			Account Values in General Account (1):
18,110	8,644		Beginning balance	17,051		18,110		18,208		16,355		15,308
1,483	275		Premiums and deposits	81		83		196		638		566
(1,522)	(1,234	)	Surrenders and withdrawals	(433	)	(386	)	(356	)	(411	)	(369	)

(39)	(959	)	Net sales (redemptions)	(352	)	(303	)	(160	)	227		197
(349)	(362	)	Benefit payments	(92	)	(93	)	(83	)	(88	)	(85	)

(388)	(1,321	)	Net flows	(444	)	(396	)	(243	)	139		112
556	484		Interest credited and other	159		156		129		141		130
(3,671)	10,308		Net transfers (to) from separate account	1,346		338		(1,738	)	(1,327	)	(944	)
(1)	(5	)	Policy charges	(2	)	—		(1	)	—		—

14,606	18,110		Ending balance	18,110		18,208		16,355		15,308		14,606


			Account Values in Separate Account:
45,192	75,174		Beginning balance	54,266		45,192		42,997		51,965		63,516
14,813	10,054		Premiums and deposits	2,098		2,080		3,223		5,237		4,273
(4,512)	(7,042	)	Surrenders and withdrawals	(1,312	)	(1,134	)	(1,034	)	(1,082	)	(1,262	)

10,301	3,012		Net sales	786		946		2,189		4,155		3,011
(799)	(855	)	Benefit payments	(190	)	(206	)	(190	)	(192	)	(211	)

9,502	2,157		Net flows	596		740		1,999		3,963		2,800
12,061	(20,710	)	Change in market value, interest credited and other	(8,113	)	(2,392	)	5,467		6,545		2,441
3,671	(10,308	)	Net transfers (to) from general account	(1,346	)	(338	)	1,738		1,327		944
(1,061)	(1,121	)	Policy charges	(211	)	(205	)	(236	)	(284	)	(336	)

69,365	45,192		Ending balance	45,192		42,997		51,965		63,516		69,365

(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

Fourth Quarter 2009


U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES LIVING BENEFIT FEATURES
(in millions)
	2008	2009
	4Q	1Q	2Q	3Q	4Q

LIVING BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1):

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits	9,891	9,793	9,951	10,023	9,952
Guaranteed minimum withdrawal benefits	1,326	1,198	1,312	1,420	1,412
Guaranteed minimum income benefits	4,114	3,750	4,184	4,613	4,677
Guaranteed minimum withdrawal & income benefits	17,723	18,470	23,249	31,416	36,430

Total	33,054	33,211	38,696	47,472	52,471


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature	17,653	19,124	22,935	30,116	34,901
Account Values without Auto-Rebalancing Feature	15,401	14,087	15,761	17,356	17,570

Total	33,054	33,211	38,696	47,472	52,471


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature	1,328	1,514	1,250	1,129	1,061
Net Amount at Risk without Auto-Rebalancing Feature	4,973	5,917	4,286	2,895	2,785

Total	6,301	7,431	5,536	4,024	3,846

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES DEATH BENEFIT FEATURES

(in millions)


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

DEATH BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1):

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value	34,892	34,313	39,124	46,881	51,106
Net amount at risk	6,462	7,433	5,138	3,219	2,707
Minimum return, anniversary contract value, or maximum contract value:
Account value	21,494	20,208	22,358	24,880	25,770
Net amount at risk	9,640	10,503	8,438	6,472	5,891

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature	17,653	19,124	22,935	30,116	34,901
Account Values without Auto-Rebalancing Feature	38,733	35,397	38,547	41,645	41,975

Total	56,386	54,521	61,482	71,761	76,876


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature	1,698	1,843	1,328	863	800
Net Amount at Risk without Auto-Rebalancing Feature	14,404	16,093	12,248	8,828	7,798

Total	16,102	17,936	13,576	9,691	8,598

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth 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			4Q		1Q		2Q		3Q		4Q

				RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

				Full Service:
99,738		112,192		Beginning total account value	100,463		99,738		102,159		110,950		121,756
23,188		18,941		Deposits and sales	6,549		10,489		3,890		4,789		4,020
(14,438	)	(15,051	)	Withdrawals and benefits	(3,869	)	(4,231	)	(3,803	)	(3,287	)	(3,117	)
17,857		(25,259	)	Change in market value, interest credited and interest income	(12,320	)	(3,837	)	8,704		9,304		3,686
—		8,915		Acquisition (1)	8,915		—		—		—		—

126,345		99,738		Ending total account value	99,738		102,159		110,950		121,756		126,345


8,750		3,890		Net additions	2,680		6,258		87		1,502		903


				Stable value account values included above	35,346		36,601		36,722		35,881		36,243

				Institutional Investment Products:
50,491		51,591		Beginning total account value	50,041		50,491		49,030		49,475		50,137
7,786		5,738		Additions (2)	1,270		627		2,343		1,329		3,487
(7,817	)	(7,392	)	Withdrawals and benefits (3)	(1,632	)	(2,037	)	(1,272	)	(2,523	)	(1,985	)
2,287		2,198		Change in market value, interest credited and interest income	1,243		(152	)	678		1,548		213
(839	)	(1,644	)	Other (4)	(431	)	101		(1,304	)	308		56

51,908		50,491		Ending total account value	50,491		49,030		49,475		50,137		51,908


(31	)	(1,654	)	Net additions (withdrawals)	(362	)	(1,410	)	1,071		(1,194	)	1,502

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

(2)

Includes $700 million for the three and twelve months ended December 31, 2008 and $500 million for the three months ended June 30, 2009 and twelve months ended December 31, 2009, representing transfers of externally managed client balances to accounts managed by the company. These additions are offset within the “Other” category and there are no net impacts on ending account values for these transfers.

(3)

Includes $(317) million, $(171) million and $(488) million for the three months ended September 30, 2009 and December 31, 2009 and the twelve months ended December 31, 2009, respectively, representing transfers of client balances managed by the Company to externally managed accounts. These withdrawals are offset within the “Other” category and there are no net impacts on ending account values for these transfers.

(4)

“Other” activity includes transfers from (to) the Asset Management segment of $543 million, $432 million for the three and twelve months ended December 31, 2008, respectively; and $(11) million for the three and twelve months ended December 31, 2009. “Other” activity also includes $(700) million for the three and twelve months ended December 31, 2008, $(500) million for the three months ended June 30, 2009, $317 million, $171 million and $(12) million for the three months ended September 30, 2009 and December 31, 2009 and the twelve months ended December 31, 2009, respectively, related to transfers discussed above in notes 2 and 3. For the three months ended March 31, 2009 and the twelve months ended December 31, 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 March 31, 2009, June 30, 2009 and the twelve months ended December 31, 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 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth 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		4Q		1Q		2Q	3Q		4Q

				Analysis of revenues by type:
1,049		1,115	-6%	Asset management fees	257		239		254	269		287
(64	)	50	-228%	Incentive, transaction, principal investing and commercial mortgage revenues	(141	)	(35	)	1	(13	)	(17	)
272		521	-48%	Service, distribution and other revenues	113		59		87	35		91

1,257		1,686	-25%	Total Asset Management segment revenues	229		263		342	291		361


				Analysis of asset management fees by source:
511		540	-5%	Institutional customers	133		119		126	129		137
268		307	-13%	Retail customers	58		56		62	71		79
270		268	1%	General account	66		64		66	69		71

1,049		1,115	-6%	Total asset management fees	257		239		254	269		287


Supplementary Assets Under Management Information (in billions):
	December 31, 2009
	Equity	Fixed Income	Real Estate	Total
Institutional customers	47.9	120.3	20.2	188.4
Retail customers	58.2	24.6	1.6	84.4
General account	3.7	179.3	1.0	184.0

Total	109.8	324.2	22.8	456.8


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

Total	80.1	286.9	28.4	395.4

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

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			4Q		1Q		2Q		3Q		4Q

				Institutional Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
128.5		141.7		Beginning assets under management	138.6		128.5		120.6		128.9		143.4
33.8		29.6		Additions	6.1		4.9		7.7		10.4		10.8
(21.2	)	(19.5	)	Withdrawals	(5.9	)	(4.6	)	(6.5	)	(5.6	)	(4.5	)
11.9		(22.4	)	Change in market value	(10.7	)	(7.3	)	7.2		9.9		2.1
(1.3	)	(0.5	)	Net money market flows	0.9		(0.9	)	(0.1	)	(0.2	)	(0.1	)
—		(0.4	)	Other (1)	(0.5	)	—		—		—		—

151.7		128.5		Ending assets under management	128.5		120.6		128.9		143.4		151.7
36.7		32.7		Affiliated institutional assets under management	32.7		32.1		34.6		36.5		36.7

188.4		161.2		Total assets managed for institutional customers at end of period	161.2		152.7		163.5		179.9		188.4


12.6		10.1		Net institutional additions, excluding money market and other activity (1)	0.2		0.3		1.2		4.8		6.3


				Retail Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
33.4		50.9		Beginning assets under management	43.4		33.4		33.5		39.5		47.2
18.6		15.1		Additions	3.4		3.5		4.6		6.1		4.4
(12.5	)	(14.7	)	Withdrawals	(5.0	)	(3.3	)	(2.7	)	(3.3	)	(3.2	)
11.7		(18.0	)	Change in market value	(8.4	)	(0.7	)	4.4		5.1		2.9
(0.1	)	0.1		Net money market flows	—		0.6		(0.3	)	(0.2	)	(0.2	)
—		—		Other	—		—		—		—		—

51.1		33.4		Ending assets under management	33.4		33.5		39.5		47.2		51.1
33.3		28.2		Affiliated retail assets under management	28.2		27.8		30.8		31.9		33.3

84.4		61.6		Total assets managed for retail customers at end of period	61.6		61.3		70.3		79.1		84.4


6.1		0.4		Net retail additions (withdrawals), excluding money market activity	(1.6	)	0.2		1.9		2.8		1.2

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

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

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

(in millions)


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

					Revenues (1):
4,737		4,381		8%	Premiums	1,091		1,190		1,156		1,226		1,165
1,509		1,525		-1%	Policy charges and fee income	441		393		412		297		407
1,432		1,396		3%	Net investment income	357		353		350		361		368
375		412		-9%	Asset management fees, commissions and other income	80		77		88		128		82

8,053		7,714		4%	Total revenues	1,969		2,013		2,006		2,012		2,022


					Benefits and Expenses (1):
5,058		4,698		8%	Insurance and annuity benefits	1,210		1,276		1,222		1,326		1,234
492		463		6%	Interest credited to policyholders’ account balances	117		119		119		126		128
181		215		-16%	Interest expense	62		51		47		42		41
(537	)	(486	)	-10%	Deferral of acquisition costs	(126	)	(125	)	(136	)	(143	)	(133	)
208		387		-46%	Amortization of acquisition costs	222		136		74		(98	)	96
1,758		1,651		6%	General and administrative expenses	406		423		437		452		446

7,160		6,928		3%	Total benefits and expenses	1,891		1,880		1,763		1,705		1,812


893		786		14%	Adjusted operating income before income taxes	78		133		243		307		210

(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 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

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

(in millions)


	Twelve Months Ended December 31, 2009						Quarter Ended December 31, 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	4,737		686		4,051		1,165		178		987
Policy charges and fee income	1,509		1,025		484		407		290		117
Net investment income	1,432		809		623		368		207		161
Asset management fees, commissions and other income	375		248		127		82		54		28

Total revenues	8,053		2,768		5,285		2,022		729		1,293


Benefits and Expenses (1):
Insurance and annuity benefits	5,058		1,042		4,016		1,234		251		983
Interest credited to policyholders’ account balances	492		263		229		128		68		60
Interest expense	181		181		—		41		41		—
Deferral of acquisition costs	(537	)	(491	)	(46	)	(133	)	(124	)	(9	)
Amortization of acquisition costs	208		186		22		96		91		5
General and administrative expenses	1,758		1,025		733		446		261		185

Total benefits and expenses	7,160		2,206		4,954		1,812		588		1,224


Adjusted operating income before income taxes	893		562		331		210		141		69


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

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


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

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


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

(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 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth 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			4Q		1Q		2Q		3Q		4Q

				ANNUALIZED NEW BUSINESS PREMIUMS (1):

20		39		Variable life	10		4		5		3		8
113		83		Universal life	23		28		32		26		27
226		209		Term life	53		52		61		57		56

359		331		Total	86		84		98		86		91


				ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

95		109		Prudential Agents	26		22		24		22		27
264		222		Third party distribution	60		62		74		64		64

359		331		Total	86		84		98		86		91


				ACCOUNT VALUE ACTIVITY:

				*Policyholders’ Account Balances (2):*
7,397		6,582		Beginning balance	7,212		7,397		7,691		7,824		7,914
1,805		1,613		Premiums and deposits	462		570		474		386		375
(934	)	(1,000	)	Surrenders and withdrawals	(303	)	(278	)	(240	)	(220	)	(196	)

871		613		Net sales	159		292		234		166		179
(149	)	(159	)	Benefit payments	(41	)	(34	)	(32	)	(50	)	(33	)

722		454		Net flows	118		258		202		116		146
78		397		Interest credited and other	78		81		(64	)	11		50
246		267		Net transfers from separate account	70		45		85		53		63
(362	)	(303	)	Policy charges	(81	)	(90	)	(90	)	(90	)	(92	)

8,081		7,397		Ending balance	7,397		7,691		7,824		7,914		8,081


				*Separate Account Liabilities:*
12,848		18,585		Beginning balance	15,476		12,848		12,110		13,450		14,972
1,173		1,410		Premiums and deposits	409		315		261		268		329
(848	)	(827	)	Surrenders and withdrawals	(277	)	(328	)	(216	)	(139	)	(165	)

325		583		Net sales (redemptions)	132		(13	)	45		129		164
(39	)	(21	)	Benefit payments	17		(2	)	(18	)	(11	)	(8	)

286		562		Net flows	149		(15	)	27		118		156
3,509		(5,268	)	Change in market value, interest credited and other	(2,524	)	(500	)	1,574		1,633		802
(246	)	(267	)	Net transfers to general account	(70	)	(45	)	(85	)	(53	)	(63	)
(705	)	(764	)	Policy charges	(183	)	(178	)	(176	)	(176	)	(175	)

15,692		12,848		Ending balance	12,848		12,110		13,450		14,972		15,692


				FACE AMOUNT IN FORCE (3):

				Variable life	127,503		124,600		123,419		122,955		122,091
				Universal life	29,070		30,537		32,315		33,711		34,984
				Term life	373,927		386,218		402,459		417,100		431,831

				Total	530,500		541,355		558,193		573,766		588,906

(1)	Excludes corporate-owned life insurance.

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

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

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		4Q	1Q	2Q	3Q	4Q

		Individual Life Insurance:

		Policy Surrender Experience:
855	802	Cash value of surrenders	240	256	236	173	190
4.2%	3.8%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	4.8%	5.5%	5.0%	3.4%	3.5%

		Death benefits per $1,000 of in force (1):
3.87	3.68	Variable and universal life	3.58	4.71	3.83	3.72	3.30
0.95	1.37	Term life	0.97	1.14	1.10	0.75	0.81
2.49	2.74	Total, Individual Life Insurance	2.43	3.14	2.54	2.32	1.98

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

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

(dollar amounts in millions)


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

		GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
339	288	Group life	76		210		35		53		41
238	204	Group disability (1)	26		134		26		57		21

577	492	Total	102		344		61		110		62


		Future Policy Benefits (2):
		Group life	2,227		2,169		2,176		2,141		2,282
		Group disability (1)	898		1,015		1,059		1,132		1,176

		Total	3,125		3,184		3,235		3,273		3,458


		Policyholders’ Account Balances (2):
		Group life	5,958		6,033		6,160		6,343		6,506
		Group disability (1)	172		159		168		172		185

		Total	6,130		6,192		6,328		6,515		6,691


		Separate Account Liabilities (2):
		Group life	19,429		20,315		19,141		18,083		18,408
		Group disability (1)	—		—		—		—		—

		Total	19,429		20,315		19,141		18,083		18,408


		Group Life Insurance:
3,601	3,623	Gross premiums, policy charges and fee income (3)	922		920		915		889		877
3,414	3,232	Earned premiums, policy charges and fee income	840		857		849		873		835
88.4%	88.6%	Benefits ratio	89.9	%	88.0	%	87.3	%	89.8	%	88.6	%
9.0%	8.6%	Administrative operating expense ratio	8.7	%	8.8	%	8.7	%	9.1	%	9.4	%
		Persistency ratio	93.3	%	95.8	%	95.6	%	94.7	%	94.3	%

		Group Disability Insurance (1):
1,145	1,032	Gross premiums, policy charges and fee income (3)	241		297		271		303		274
1,121	995	Earned premiums, policy charges and fee income	231		290		271		291		269
88.9%	87.2%	Benefits ratio	90.0	%	86.2	%	85.6	%	93.5	%	90.3	%
18.3%	19.8%	Administrative operating expense ratio	20.8	%	17.9	%	18.1	%	17.5	%	20.1	%
		Persistency ratio	85.6	%	94.5	%	93.6	%	92.3	%	90.9	%

(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 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

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

(in millions)


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

				DEFERRED POLICY ACQUISITION COSTS
				INDIVIDUAL ANNUITIES:
2,329		1,976		Beginning balance	2,294		2,329		1,580		1,943		2,111
953		597		Capitalization	130		132		197		327		297
(505	)	(379	)	Amortization - operating results	(119	)	(862	)	355		(11	)	13
23		10		Amortization - realized investment gains and losses	(10	)	2		11		10		—
(351	)	125		Impact of unrealized (gains) or losses on AFS securities	34		(21	)	(200	)	(158	)	28

2,449		2,329		Ending balance	2,329		1,580		1,943		2,111		2,449


				INDIVIDUAL LIFE INSURANCE:
4,226		3,855		Beginning balance	4,207		4,226		4,270		4,142		4,150
491		445		Capitalization	113		115		128		124		124
(186	)	(372	)	Amortization - operating results	(218	)	(128	)	(69	)	102		(91	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
(352	)	298		Impact of unrealized (gains) or losses on AFS securities	124		57		(187	)	(218	)	(4	)

4,179		4,226		Ending balance	4,226		4,270		4,142		4,150		4,179


				GROUP INSURANCE:
347		321		Beginning balance	338		347		349		352		367
46		41		Capitalization	13		10		8		19		9
(22	)	(15	)	Amortization - operating results	(4	)	(8	)	(5	)	(4	)	(5	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

371		347		Ending balance	347		349		352		367		371


				DEFERRED SALES INDUCEMENTS
				INDIVIDUAL ANNUITIES:
1,023		798		Beginning balance	984		1,023		807		983		1,016
391		334		Capitalization	74		66		82		130		113
(221	)	(96	)	Amortization - operating results	(13	)	(281	)	84		(15	)	(9	)
24		(13	)	Amortization - realized investment gains and losses	(22	)	(1	)	10		10		5
(100	)	—		Impact of unrealized (gains) or losses on AFS securities	—		—		—		(92	)	(8	)
—		—		Other	—		—		—		—		—

1,117		1,023		Ending balance	1,023		807		983		1,016		1,117

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


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

					Revenues (1):
7,878		6,833		15%	Premiums	1,698		1,899		1,911		2,015		2,053
374		342		9%	Policy charges and fee income	90		99		91		90		94
2,176		2,006		8%	Net investment income	527		534		509		566		567
460		266		73%	Asset management fees, commissions and other income	(217	)	106		130		105		119

10,888		9,447		15%	Total revenues	2,098		2,638		2,641		2,776		2,833


					Benefits and Expenses (1):
6,139		5,377		14%	Insurance and annuity benefits	1,325		1,501		1,465		1,572		1,601
480		416		15%	Interest credited to policyholders’ account balances	109		119		110		123		128
4		9		-56%	Interest expense	2		1		1		1		1
(1,248	)	(1,173	)	-6%	Deferral of acquisition costs	(299	)	(309	)	(299	)	(302	)	(338	)
798		638		25%	Amortization of acquisition costs	182		202		214		175		207
2,829		2,765		2%	General and administrative expenses	778		689		669		694		777

9,002		8,032		12%	Total benefits and expenses	2,097		2,203		2,160		2,263		2,376


1,886		1,415		33%	Adjusted operating income before income taxes	1		435		481		513		457

(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 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Twelve Months Ended December 31, 2009								Quarter Ended December 31, 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	7,878		5,018		2,860		—		2,053		1,302		751		—
Policy charges and fee income	374		295		79		—		94		74		20		—
Net investment income	2,176		1,069		1,089		18		567		285		279		3
Asset management fees, commissions and other income	460		61		(5	)	404		119		5		12		102

Total revenues	10,888		6,443		4,023		422		2,833		1,666		1,062		105


Benefits and Expenses (1):
Insurance and annuity benefits	6,139		3,901		2,238		—		1,601		1,013		588		—
Interest credited to policyholders’ account balances	480		186		294		—		128		49		79		—
Interest expense	4		3		1		—		1		1		—		—
Deferral of acquisition costs	(1,248	)	(866	)	(382	)	—		(338	)	(239	)	(99	)	—
Amortization of acquisition costs	798		540		258		—		207		141		66		—
General and administrative expenses	2,829		1,458		992		379		777		399		277		101

Total benefits and expenses	9,002		5,222		3,401		379		2,376		1,364		911		101

Adjusted operating income before income taxes	1,886		1,221		622		43		457		302		151		4


	Twelve Months Ended December 31, 2008								Quarter Ended December 31, 2008
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments		Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	6,833		4,710		2,123		—		1,698		1,158		540		—
Policy charges and fee income	342		271		71		—		90		71		19		—
Net investment income	2,006		962		995		49		527		249		266		12
Asset management fees, commissions and other income	266		79		(26	)	213		(217	)	16		(14	)	(219	)

Total revenues	9,447		6,022		3,163		262		2,098		1,494		811		(207	)


Benefits and Expenses (1):
Insurance and annuity benefits	5,377		3,738		1,639		—		1,325		921		404		—
Interest credited to policyholders’ account balances	416		167		249		—		109		42		67		—
Interest expense	9		13		(8	)	4		2		4		(2	)	—
Deferral of acquisition costs	(1,173	)	(837	)	(336	)	—		(299	)	(213	)	(86	)	—
Amortization of acquisition costs	638		455		183		—		182		129		53		—
General and administrative expenses	2,765		1,361		814		590		778		350		215		213

Total benefits and expenses	8,032		4,897		2,541		594		2,097		1,233		651		213

Adjusted operating income (loss) before income taxes	1,415		1,125		622		(332	)	1		261		160		(420	)

(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 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


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

				Japanese Yen Basis Results:
				Revenues (1):
¥	467,435	¥	445,941	Japanese insurance operations excluding Gibraltar Life	¥	110,212	¥	124,975	¥	114,650	¥	114,616	¥	113,194
	385,922		335,854	Gibraltar Life		83,070		84,867		99,223		105,163		96,669

	853,357		781,795	Total revenues, Japan, yen basis		193,282		209,842		213,873		219,779		209,863


				Benefits and Expenses (1):
	369,581		345,982	Japanese insurance operations excluding Gibraltar Life		86,952		101,197		88,419		88,816		91,149
	319,933		268,927	Gibraltar Life		66,538		70,551		82,573		84,509		82,300

	689,514		614,909	Total benefits and expenses, Japan, yen basis		153,490		171,748		170,992		173,325		173,449


				Adjusted operating income (2):
	97,854		99,959	Japanese insurance operations excluding Gibraltar Life		23,260		23,778		26,231		25,800		22,045
	65,989		66,927	Gibraltar Life		16,532		14,316		16,650		20,654		14,369

¥	163,843	¥	166,886	Total adjusted operating income, Japan, yen basis	¥	39,792	¥	38,094	¥	42,881	¥	46,454	¥	36,414


				U.S. Dollar adjusted operating income (3):
$	974	$	943	Japanese insurance operations excluding Gibraltar Life	$	224	$	237	$	257	$	254	$	226
	622		622	Gibraltar Life		160		131		150		190		151

	1,596		1,565	Total adjusted operating income, Japan, U.S. dollar basis		384		368		407		444		377
	247		182	All other countries (4)		37		57		58		56		76

$	1,843	$	1,747	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	421	$	425	$	465	$	500	$	453

(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 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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

		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
4,046	3,575	Japan, excluding Gibraltar Life	924	1,084	963	980	1,019
2,939	2,194	Gibraltar Life	559	635	731	802	771
1,267	1,406	All other countries	305	279	308	323	357

8,252	7,175	Total	1,788	1,998	2,002	2,105	2,147


		Annualized new business premiums:
577	531	Japan, excluding Gibraltar Life	123	173	122	138	144
568	454	Gibraltar Life	101	113	147	149	159
256	244	All other countries	54	47	59	67	83

1,401	1,229	Total	278	333	328	354	386


		Annualized new business premiums by distribution channel:
833	775	Life Planners	177	220	181	205	227
436	400	Gibraltar Life Advisors	89	92	122	111	111
132	54	Banks	12	21	25	38	48

1,401	1,229	Total	278	333	328	354	386


		Constant exchange rate basis (2):

		Net premiums, policy charges and fee income:
3,877	3,684	Japan, excluding Gibraltar Life	899	1,043	951	938	945
2,780	2,327	Gibraltar Life	571	585	721	771	703
1,468	1,432	All other countries	375	359	359	365	385

8,125	7,443	Total	1,845	1,987	2,031	2,074	2,033


		Annualized new business premiums:
556	548	Japan, excluding Gibraltar Life	122	169	120	132	135
557	469	Gibraltar Life	102	108	149	149	151
291	245	All other countries	64	60	66	76	89

1,404	1,262	Total	288	337	335	357	375


		Annualized new business premiums by distribution channel:
847	793	Life Planners	186	229	186	208	224
425	414	Gibraltar Life Advisors	90	87	124	110	104
132	55	Banks	12	21	25	39	47

1,404	1,262	Total	288	337	335	357	375

(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 99 per U.S. dollar; Korean won 1040 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


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

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	264		266		267		269		270
Gibraltar Life	196		195		193		198		198
All other countries	101		102		103		104		106

Total	561		563		563		571		574


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	2,313		2,353		2,373		2,400		2,425
Gibraltar Life	3,796		3,787		3,760		3,894		3,897
All other countries	1,348		1,359		1,375		1,402		1,434

Total	7,457		7,499		7,508		7,696		7,756


International life insurance policy persistency:

Excluding Gibraltar Life:
13 months	92.6	%	92.2	%	91.8	%	91.5	%	91.6	%
25 months	86.2	%	85.0	%	84.7	%	84.2	%	84.6	%

Gibraltar Life:
13 months	91.1	%	91.2	%	91.2	%	91.1	%	91.6	%
25 months	84.0	%	83.4	%	83.1	%	83.2	%	83.6	%

Number of Life Planners at end of period:
Japan	3,071		3,078		2,987		3,043		3,094
All other countries	3,294		3,319		3,388		3,441		3,515

Total life planners	6,365		6,397		6,375		6,484		6,609


Gibraltar Life Advisors	6,330		6,170		6,376		6,060		6,398

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 99 per U.S. dollar; Korean won 1040 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 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2009					December 31, 2008
	Consolidated Portfolio	Closed Block Business	Financial Services Businesses			Consolidated Portfolio	Closed Block Business	Financial Services Businesses
	Consolidated Portfolio	Closed Block Business	Amount	% of Total		Consolidated Portfolio	Closed Block Business	Amount	% of Total
Fixed maturities:
Public, available for sale, at fair value	140,805	29,537	111,268	58.4	%	126,149	27,424	98,725	57.5	%
Public, held to maturity, at amortized cost	4,009	—	4,009	2.1	%	3,002	—	3,002	1.7	%
Private, available for sale, at fair value	32,418	12,994	19,424	10.2	%	30,047	11,479	18,568	10.8	%
Private, held to maturity, at amortized cost	1,111	—	1,111	0.6	%	806	—	806	0.5	%
Trading account assets supporting insurance liabilities, at fair value	16,020	—	16,020	8.4	%	13,875	—	13,875	8.1	%
Other trading account assets, at fair value (1)	1,783	167	1,616	0.8	%	848	120	728	0.4	%
Equity securities, available for sale, at fair value	6,883	3,085	3,798	2.0	%	6,059	2,400	3,659	2.1	%
Commercial loans	29,644	8,363	21,281	11.2	%	30,840	8,748	22,092	12.9	%
Policy loans	10,146	5,418	4,728	2.5	%	9,703	5,423	4,280	2.5	%
Other long-term investments (2)	4,356	1,545	2,811	1.5	%	4,664	1,629	3,035	1.8	%
Short-term investments (3)	5,640	1,338	4,302	2.3	%	4,358	1,484	2,874	1.7	%

Subtotal (4)	252,815	62,447	190,368	100.0	%	230,351	58,707	171,644	100.0	%

Invested assets of other entities and operations (5)	7,737	—	7,737			11,674	—	11,674

Total investments	260,552	62,447	198,105			242,025	58,707	183,318

Fixed Maturities by Credit Quality (4):


	December 31, 2009						December 31, 2008
	Financial Services Businesses						Financial Services Businesses
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value	% of Total		Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value	% of Total
Public Fixed Maturities:

NAIC Rating (6)
1	94,368	3,767	1,845	96,290	83.5	%	85,474	4,228	4,425	85,277	83.8	%
2	14,682	699	790	14,591	12.7	%	15,573	163	2,893	12,843	12.6	%

Subtotal - High or Highest Quality Securities (7)	109,050	4,466	2,635	110,881	96.2	%	101,047	4,391	7,318	98,120	96.4	%

3	2,743	44	314	2,473	2.1	%	3,009	16	800	2,225	2.2	%
4	1,657	22	345	1,334	1.2	%	1,639	2	565	1,076	1.1	%
5	685	19	202	502	0.4	%	379	14	123	270	0.3	%
6	197	25	69	153	0.1	%	36	4	4	36	0.0	%

Subtotal - Other Securities	5,282	110	930	4,462	3.8	%	5,063	36	1,492	3,607	3.6	%

Total	114,332	4,576	3,565	115,343	100.0	%	106,110	4,427	8,810	101,727	100.0	%


Private Fixed Maturities:
NAIC Rating (6)
1	5,795	259	121	5,933	28.9	%	6,284	112	408	5,988	30.9	%
2	10,510	454	379	10,585	51.5	%	11,341	92	1,310	10,123	52.2	%

Subtotal - High or Highest Quality Securities (7)	16,305	713	500	16,518	80.4	%	17,625	204	1,718	16,111	83.1	%

3	2,267	50	131	2,186	10.6	%	2,405	24	381	2,048	10.5	%
4	1,193	18	118	1,093	5.3	%	1,037	14	244	807	4.2	%
5	482	6	36	452	2.2	%	283	7	59	231	1.2	%
6	313	24	39	298	1.5	%	232	8	39	201	1.0	%

Subtotal - Other Securities	4,255	98	324	4,029	19.6	%	3,957	53	723	3,287	16.9	%

Total	20,560	811	824	20,547	100.0	%	21,582	257	2,441	19,398	100.0	%

(1)	Other trading account assets, at fair value includes $466 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 as of December 31, 2008) and partnerships, investment real estate held through direct ownership, and other miscellaneous investments.

(3)	Short-term investments have 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, 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 the international insurance operations. Includes, as of December 31, 2009 and December 31, 2008, respectively, 157 securities with amortized cost of $1,294 million (fair value $1,299 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.

(7)	As a result of the NAIC rating methodology for non-agency residential mortgage-backed securities, may include certain securities rated BB and below by external rating agencies as of December 31, 2009.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2009			December 31, 2008
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	50,406	73.0	%	42,223	70.6	%
Public, held to maturity, at amortized cost	4,009	5.8	%	3,002	5.0	%
Private, available for sale, at fair value	2,671	3.9	%	2,803	4.7	%
Private, held to maturity, at amortized cost	1,111	1.6	%	806	1.3	%
Trading account assets supporting insurance liabilities, at fair value	1,236	1.8	%	1,077	1.8	%
Other trading account assets, at fair value	804	1.2	%	519	0.9	%
Equity securities, available for sale, at fair value	1,508	2.2	%	2,071	3.5	%
Commercial loans	3,675	5.3	%	3,373	5.6	%
Policy loans	1,760	2.5	%	1,547	2.6	%
Other long-term investments (1)	1,524	2.2	%	2,143	3.6	%
Short-term investments	313	0.5	%	266	0.4	%

Total	69,017	100.0	%	59,830	100.0	%


	December 31, 2009			December 31, 2008
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value	60,862	50.1	%	56,502	50.5	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	16,753	13.8	%	15,765	14.1	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	14,784	12.2	%	12,798	11.5	%
Other trading account assets, at fair value	812	0.7	%	209	0.2	%
Equity securities, available for sale, at fair value	2,290	1.9	%	1,588	1.4	%
Commercial loans	17,606	14.5	%	18,719	16.7	%
Policy loans	2,968	2.4	%	2,733	2.5	%
Other long-term investments (1)	1,287	1.1	%	892	0.8	%
Short-term investments	3,989	3.3	%	2,608	2.3	%

Total	121,351	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, derivatives and other miscellaneous investments.

(2)

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended December 31
	2009						2008
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount		Realized Gains / (Losses)		Yield (3)		Amount		Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities	4.39	%	1,441		(36	)	4.91	%	1,497		(353	)
Equity securities	5.85	%	50		17		4.84	%	53		(685	)
Commercial loans	5.77	%	241		(49	)	5.83	%	249		(34	)
Policy loans	5.22	%	60		1		5.05	%	51		—
Short-term investments and cash equivalents	0.39	%	10		—		2.32	%	66		4
Other investments	1.42	%	16		(174	)	2.21	%	19		245

Gross investment income before investment expenses	4.21	%	1,818		(241	)	4.78	%	1,935		(823	)
Investment expenses	-0.17	%	(63	)	—		-0.16	%	(54	)	—

Subtotal	4.04	%	1,755		(241	)	4.62	%	1,881		(823	)

Investment results of other entities and operations (2)			306		(112	)			221		165
Less, investment income relating to divested businesses			(2	)					(3	)

Total			2,059		(353	)			2,099		(658	)


	Twelve Months Ended December 31
	2009						2008
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount		Realized Gains / (Losses)		Yield (3)		Amount		Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities	4.54	%	5,691		(822	)	4.86	%	5,662		(1,597	)
Equity securities	6.32	%	225		(402	)	5.01	%	223		(941	)
Commercial loans	5.80	%	964		(270	)	6.01	%	974		(37	)
Policy loans	5.19	%	225		2		5.24	%	208		—
Short-term investments and cash equivalents	0.54	%	66		1		2.82	%	304		4
Other investments	3.16	%	138		171		4.26	%	140		(39	)

Gross investment income before investment expenses	4.40	%	7,309		(1,320	)	4.87	%	7,511		(2,610	)
Investment expenses	-0.17	%	(218	)	—		-0.16	%	(295	)	—

Subtotal	4.23	%	7,091		(1,320	)	4.71	%	7,216		(2,610	)

Investment results of other entities and operations (2)			1,152		(291	)			1,244		196
Less, investment income relating to divested businesses			(12	)					(30	)

Total			8,231		(1,611	)			8,430		(2,414	)

(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 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 fixed maturities and short term investment and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. 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. Prior period yields are presented on a basis consistent with the current presentation.

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2009						2008
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount		Realized Gains / (Losses)		Yield (1)		Amount		Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities	2.79	%	403		(79	)	3.07	%	360		(23	)
Equity securities	2.77	%	11		(11	)	2.71	%	16		(333	)
Commercial loans	4.68	%	42		—		4.74	%	38		1
Policy loans	4.02	%	18		—		4.15	%	14		—
Short-term investments and cash equivalents	0.68	%	3		—		2.08	%	6		—
Other investments	6.08	%	31		74		6.66	%	37		997

Gross investment income before investment expenses	2.97	%	508		(16	)	3.30	%	471		642
Investment expenses	-0.17	%	(30	)	—		-0.19	%	(28	)	—

Total	2.80	%	478		(16	)	3.11	%	443		642


	Twelve Months Ended December 31
	2009						2008
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount		Realized Gains / (Losses)		Yield (1)		Amount		Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities	2.88	%	1,519		(321	)	2.95	%	1,314		(130	)
Equity securities	3.13	%	58		(334	)	2.91	%	73		(570	)
Commercial loans	4.86	%	167		(8	)	4.76	%	144		17
Policy loans	3.91	%	63		2		3.92	%	50		—
Short-term investments and cash equivalents	0.62	%	11		—		2.26	%	21		—
Other investments	6.27	%	129		(305	)	8.77	%	139		994

Gross investment income before investment expenses	3.07	%	1,947		(966	)	3.24	%	1,741		311
Investment expenses	-0.17	%	(108	)	—		-0.19	%	(107	)	—

Total	2.90	%	1,839		(966	)	3.05	%	1,634		311

(1)

Yields are 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 fixed maturities and short term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. 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. Prior period yields are presented on a basis consistent with the current presentation.

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2009						2008
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount		Realized Gains / (Losses)		Yield (2)		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	5.64	%	1,038		43		6.05	%	1,137		(330	)
Equity securities	8.61	%	39		28		7.61	%	37		(352	)
Commercial loans	6.07	%	199		(49	)	6.08	%	211		(35	)
Policy loans	5.94	%	42		1		5.53	%	37		—
Short-term investments and cash equivalents	0.33	%	7		—		2.34	%	60		4
Other investments	-2.19	%	(15	)	(248	)	-5.31	%	(18	)	(752	)

Gross investment income before investment expenses	5.03	%	1,310		(225	)	5.60	%	1,464		(1,465	)
Investment expenses	-0.18	%	(33	)	—		-0.15	%	(26	)	—

Total	4.85	%	1,277		(225	)	5.45	%	1,438		(1,465	)


	Twelve Months Ended December 31
	2009						2008
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount		Realized Gains / (Losses)		Yield (2)		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	5.73	%	4,172		(501	)	6.06	%	4,348		(1,467	)
Equity securities	9.84	%	167		(68	)	7.73	%	150		(371	)
Commercial loans	6.05	%	797		(262	)	6.30	%	830		(54	)
Policy loans	5.94	%	162		—		5.87	%	158		—
Short-term investments and cash equivalents	0.53	%	55		1		2.89	%	283		4
Other investments	0.39	%	9		476		0.03	%	1		(1,033	)

Gross investment income before investment expenses	5.22	%	5,362		(354	)	5.75	%	5,770		(2,921	)
Investment expenses	-0.16	%	(110	)	—		-0.15	%	(188	)	—

Total	5.06	%	5,252		(354	)	5.60	%	5,582		(2,921	)

(1)

(2)

Yields are 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 fixed maturities and short term investment and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. 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. Prior periods yields are presented on a basis consistent with the current presentation.

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year ended 31-Dec			2008								2009
2007			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
10,794		Premiums	3,102		2,961		2,798		2,997		3,261		3,320		3,361
3,122		Policy charges and fee income	824		809		709		781		734		766		693
8,200		Net investment income	2,110		2,145		2,076		2,099		2,064		2,053		2,055
4,348		Asset management fees, commissions and other income	879		935		765		(2	)	1,943		201		498

26,464		Total revenues	6,915		6,850		6,348		5,875		8,002		6,340		6,607


		Benefits and Expenses (1):
10,829		Insurance and annuity benefits	3,082		2,944		3,040		3,472		3,464		2,928		3,115
3,094		Interest credited to policyholders’ account balances	806		803		853		881		1,086		725		831
1,187		Interest expense	298		248		287		303		247		239		228
(2,248	)	Deferral of acquisition costs	(588	)	(588	)	(559	)	(567	)	(578	)	(641	)	(782	)
935		Amortization of acquisition costs	338		315		238		512		1,205		(70	)	102
8,132		General and administrative expenses	2,048		2,001		1,873		2,458		2,001		2,033		2,180

21,929		Total benefits and expenses	5,984		5,723		5,732		7,059		7,425		5,214		5,674


4,535		Adjusted operating income (loss) before income taxes	931		1,127		616		(1,184	)	577		1,126		933


		Reconciling items:
(41	)	Realized investment losses, net, and related adjustments	(665	)	(527	)	(564	)	(511	)	(710	)	(872	)	(183	)
(52	)	Related charges	(13	)	41		17		—		44		(5	)	(51	)

(93	)	Total realized investment losses, net, and related charges and adjustments	(678	)	(486	)	(547	)	(511	)	(666	)	(877	)	(234	)


—		Investment gains (losses) on trading account assets supporting insurance liabilities, net	(262	)	(123	)	(534	)	(815	)	145		686		694
13		Change in experience-rated contractholder liabilities due to asset value changes	200		94		388		481		(45	)	(347	)	(458	)
274		Divested businesses	(67	)	10		(219	)	(230	)	(32	)	(24	)	25
(336	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(36	)	(32	)	213		509		3		14		(92	)

(142	)	Total reconciling items, before income taxes	(843	)	(537	)	(699	)	(566	)	(595	)	(548	)	(65	)


4,393		Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures	88		590		(83	)	(1,750	)	(18	)	578		868
1,120		Income tax expense (benefit)	41		37		(94	)	(464	)	(7	)	49		(145	)

3,273		Income (loss) from continuing operations before equity in earnings of operating joint ventures	47		553		11		(1,286	)	(11	)	529		1,013

(1)

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)


Year ended 31-Dec			2008								2009
2007			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
(9	)	Premiums	(4	)	(2	)	(3	)	(1	)	(3	)	(8	)	2
(29	)	Policy charges and fee income	(1	)	(6	)	(18	)	(6	)	(7	)	(6	)	(7	)
759		Net investment income	181		143		141		114		31		80		64
(191	)	Asset management fees, commissions and other income	(81	)	(49	)	(54	)	(56	)	(33	)	(60	)	(56	)

530		Total revenues	95		86		66		51		(12	)	6		3


		Benefits and Expenses (1):
39		Insurance and annuity benefits	22		18		32		123		45		(16	)	7
(126	)	Interest credited to policyholders’ account balances	(43	)	(46	)	(51	)	(52	)	(47	)	(31	)	(22	)
662		Interest expense	178		143		181		185		170		175		171
51		Deferral of acquisition costs	15		16		9		6		5		11		10
(47	)	Amortization of acquisition costs	(10	)	(8	)	(9	)	(18	)	(11	)	(7	)	1
83		General and administrative expenses	(16	)	(17	)	(58	)	95		(8	)	36		37

662		Total benefits and expenses	146		106		104		339		154		168		204


(132	)	Adjusted operating loss before income taxes	(51	)	(20	)	(38	)	(288	)	(166	)	(162	)	(201	)

(1)

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

RECLASSIFIED SUPPLEMENTAL INFORMATION - INTERNATIONAL INSURANCE SEGMENT

(dollar amounts in millions, unless otherwise noted)


Year ended December 31		2008				2009
2007		1Q	2Q	3Q	4Q	1Q	2Q	3Q

	Constant exchange rate basis (1):


	Net premiums, policy charges and fee income:
3,434	Japan, excluding Gibraltar Life	993	896	896	899	1,043	951	938
2,361	Gibraltar Life	580	616	560	571	585	721	771
1,381	All other countries	350	348	365	375	359	359	365

7,176	Total	1,923	1,860	1,821	1,845	1,987	2,031	2,074


	Annualized new business premiums:
550	Japan, excluding Gibraltar Life	169	129	128	122	169	120	132
382	Gibraltar Life	99	151	117	102	108	149	149
277	All other countries	66	61	54	64	60	66	76

1,209	Total	334	341	299	288	337	335	357


	Annualized new business premiums by distribution channel:
827	Life Planners	235	190	182	186	229	186	208
360	Gibraltar Life Advisors	93	129	102	90	87	124	110
22	Banks	6	22	15	12	21	25	39

1,209	Total	334	341	299	288	337	335	357


	Face amount of individual policies in force at end of period (in billions) (1)(2):
254	Japan, excluding Gibraltar Life	258	260	262	264	266	267	269
199	Gibraltar Life	198	197	198	196	195	193	198
100	All other countries	100	101	101	101	102	103	104

553	Total	556	558	561	561	563	563	571

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 99 per U.S. dollar; Korean per U.S. dollar. won 1040 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 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth 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.

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

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. Individual Annuities - Net Amounts at Risk:

Living Benefit Features - For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance.

Death Benefit Features - Net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.

Page 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

KEY DEFINITIONS AND FORMULAS

22. 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.

23. 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.

24. Non-recourse and Limited-recourse Debt:

Limited and non-recourse borrowing is where the holder is entitled to collect only against the assets pledged to the debt as collateral or has only very limited rights to collect against other assets.

25. Operating return on average equity (based on adjusted operating income):

Adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average attributed equity for the Financial Services Businesses excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension/postretirement benefits.

An alternative measure to operating return on average equity (based on adjusted operating income) is return on average equity (based on income from continuing operations). Return on average equity (based on income from continuing operations) represents income from continuing operations after-tax 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 18.13% for the twelve months ended December 31, 2009, -5.61% for the twelve months ended December 31, 2008, 30.32% for the three months ended December 31, 2009, 21.11% for the three months ended September 30, 2009, 12.79% for the three months ended June 30, 2009, 0.14% for the three months ended March 31, 2009 and -39.94% for the three months ended December 31, 2008.

26. Policy Persistency - Group Insurance:

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

27. Policy Persistency - International Insurance:

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

28. Prudential Agents:

Insurance agents in our insurance operations in the United States.

29. Prudential Agent productivity:

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

30. Ratio of capital debt to total capitalization:

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

31. Separate Accounts:

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

32. Wrap-Fee Products:

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

Page 41

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2009

LOGO

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of February 10, 2010


	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 February 10, 2010

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-2	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:

Prudential Financial, Inc.

751 Broad Street

Newark, New Jersey 07102

Investor Information Hotline:

Dial 877-998-ROCK for additional printed information or inquiries.

Web Site:

www.prudential.com

Common Stock:

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

Page 42

Form: 8-K

Documents