June 10, 2011 - SLIDE PRESENTATION OF PRUDENTIAL FINANCIAL, INC. - 8-K: Current report

Exhibit 99.1

Forward-Looking Statements

Certain of the statements included in this presentation constitute forward-looking statements within the meaning of the U. S. Private Securities

Litigation Reform Act of 1995. It is possible that actual results may differ materially from any expectations or predictions expressed in this

presentation. Words such as “expects,” “believes,” “anticipates,” “includes,” “plans,” “assumes,” “estimates,” “projects,” “intends,” “should,” “will,”

“shall,” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s

current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. There

can be no assurance that future developments affecting Prudential Financial, Inc. and its subsidiaries will be those anticipated by management.

These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important

factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements,

including, among others: (1) general economic, market and political conditions, including the performance and fluctuations of fixed income, equity,

real estate and other financial markets; (2) the availability and cost of additional debt or equity capital or external financing for our operations;

(3) interest rate fluctuations or prolonged periods of low interest rates; (4) the degree to which we choose not to hedge risks, or the potential

ineffectiveness or insufficiency of hedging or risk management strategies we do implement, with regard to variable annuity or other product

guarantees; (5) any inability to access our credit facilities; (6) reestimates of our reserves for future policy benefits and claims; (7) differences

between actual experience regarding mortality, morbidity, persistency, surrender experience, interest rates or market returns and the assumptions we

use in pricing our products, establishing liabilities and reserves or for other purposes; (8) changes in our assumptions related to deferred policy

acquisition costs, valuation of business acquired or goodwill; (9) changes in assumptions for retirement expense; (10) changes in our financial

strength or credit ratings; (11) statutory reserve requirements associated with term and universal life insurance policies under Regulation XXX and

Guideline AXXX; (12) investment losses, defaults and counterparty non-performance; (13) competition in our product lines and for personnel; (14)

difficulties in marketing and distributing products through current or future distribution channels; (15) changes in tax law; (16) economic, political,

currency and other risks relating to our international operations; (17) fluctuations in foreign currency exchange rates and foreign securities markets;

(18) regulatory or legislative changes, including the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act; (19) inability to

protect our intellectual property rights or claims of infringement of the intellectual property rights of others; (20) adverse determinations in litigation or

regulatory matters and our exposure to contingent liabilities, including in connection with our divestiture or winding down of businesses; (21) domestic

or international military actions, natural or man-made disasters including terrorist activities or pandemic disease, or other events resulting in

catastrophic loss of life; (22) ineffectiveness of risk management policies and procedures in identifying, monitoring and managing risks; (23) effects

of acquisitions, divestitures and restructurings, including possible difficulties in integrating and realizing the projected results of acquisitions, including

risks associated with the recent acquisition of certain insurance operations in Japan; (24) interruption in telecommunication, information technology or

other operational systems or failure to maintain the security, confidentiality or privacy of sensitive data on such systems; (25) changes in statutory or

U.S. GAAP accounting principles, practices or policies; (26) Prudential Financial, Inc.’s primary reliance, as a holding company, on dividends or

distributions from its subsidiaries to meet debt payment obligations and the ability of the subsidiaries to pay such dividends or distributions in light of

our ratings objectives and/or applicable regulatory restrictions; and (27) risks due to the lack of legal separation between our Financial Services

Businesses and our Closed Block Business. Prudential Financial, Inc. does not intend, and is under no obligation, to update any particular forward-

looking statement included in this presentation.

Prudential Financial, Inc. of the United States is not affiliated with Prudential PLC which is headquartered in the United Kingdom.

Non–GAAP Measures

This presentation includes references to “adjusted operating income.” Adjusted operating income is a non-GAAP measure of performance of our

Financial Services Businesses (“FSB”). Adjusted operating income excludes “Realized investment gains (losses), net,” as adjusted, and related charges

and adjustments. A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and

losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary

considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely

subject to our discretion and influenced by market opportunities as well as our tax and capital profile.

Realized investment gains (losses) within certain of our businesses for which such gains (losses) are a principal source of earnings, and those

associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income.

Adjusted operating income excludes realized investment gains and losses from products that contain embedded derivatives, and from associated

derivative portfolios that are part of a hedging program related to the risk of those products. Adjusted operating income also excludes gains and losses

from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or

considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are classified

as other trading account assets.

Adjusted operating income also excludes investment gains and losses on trading account assets supporting insurance liabilities and changes in

experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to

ultimately accrue to contractholders. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating

effects of these transactions. In addition, adjusted operating income excludes the results of divested businesses, which are not relevant to our ongoing

operations. Discontinued operations, which is presented as a separate component of net income under GAAP, is also excluded from adjusted operating

income.

We believe that the presentation of adjusted operating income as we measure it for management purposes enhances understanding of the results of

operations of the Financial Services Businesses by highlighting the results from ongoing operations and the underlying profitability of our businesses.

However, adjusted operating income is not a substitute for income determined in accordance with GAAP, and the adjustments made to derive adjusted

operating income are important to an understanding of our overall results of operations.

Return on equity (“ROE”) based on adjusted operating income is determined by dividing adjusted operating income after-tax (giving effect to the direct

equity adjustment for earnings per share calculation) by average attributed equity for the Financial Services Businesses excluding accumulated other

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

postretirement benefits.

Our expectations of ROE potential are based on after-tax adjusted operating income. Because we do not predict future realized investment gains / losses

or recorded changes in asset and liability values that are expected to ultimately accrue to contractholders, we cannot provide a measure of our ROE

expectations based on income from continuing operations of the Financial Services Businesses, which is the GAAP measure most comparable to

adjusted operating income.

For additional information about adjusted operating income and the comparable GAAP measure, including reconciliation between the two, please refer

to our Annual Report on Form 10-K for the year ended December 31, 2010 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011

located on the Investor Relations Web site at www.investor.prudential.com. Additional historical information relating to the Company’s financial

performance, including its first quarter 2011 Quarterly Financial Supplement, is also located on the Investor Relations website.

The information referred to above and on the prior page, as well as the risks of our businesses described in our Annual Report on Form 10-K for the year

ended December 31, 2010, should be considered when reviewing forward-looking statements contained in this presentation.

Reconciliation for Individual Annuities pre-tax adjusted

operating income excluding disclosed items

2011

Individual Annuities pre-tax adjusted operating income (loss)

(244)

489

315

197

244

(131)

588

345

292

Reconciling items:

Amortization

deferred

policy

acquisition

and

other

costs

(1)

112

(142)

(26)

(32)

(21)

(245)

(46)

(19)

Change

reserves

for

guaranteed

minimum

death

and

income

benefits

(1)

215

(274)

(185)

(47)

(53)

196

(167)

(100)

(40)

Other

(2)

(25)

Individual Annuities pre-tax adjusted operating income

excluding disclosed items indicated above

104

118

145

153

176

199

233

2009

2010

1) Reflects impact of market performance, actual-to-expected result differences, and changes in assumptions used in projecting gross profits and claims.

2) Includes refinements based on review and settlement of reinsurance contracts related to acquired business.

RBC Disclosure

This presentation includes references to Risk Based Capital (“RBC”). Prudential manages its insurance subsidiaries' RBC ratios to a level at or above a "AA"

ratings target. RBC is determined by statutory guidelines and formulas that consider, among other things, risks related to the type and quality of the invested

assets, insurance-related risks associated with an insurer's products and liabilities, interest rate risks and general business risks. The RBC ratio calculations

are intended to assist insurance regulators in measuring the adequacy of an insurer's statutory capitalization. The RBC calculation is an annual calculation. As

of December 31, 2010, the RBC ratio for The Prudential Insurance Company of America ("PICA") was 533%. This information is provided to you for

information purposes only. It is not intended that this RBC information be used for the purpose of ranking any insurance company or for use in connection with

any marketing, advertising or promotional activities.

Legal Notice

Life insurance and annuities are issued by The Prudential Insurance Company of America and its affiliates. Securities and investment advisory products and

services are offered through Pruco Securities, LLC (member SIPC). Each of the foregoing is a Prudential Financial subsidiary located in Newark, N.J. that is solely

responsible for its own financial condition and contractual obligations. All guarantees are based on the claims-paying ability of the insurer. Prudential Real Estate

brokerage services are offered through the independently owned and operated network of broker member franchisees of Prudential Real Estate Affiliates, Inc., a

Prudential Financial subsidiary. Equal Housing Opportunity.

•

Big business

•

A market leader in Japan

•

High margins, low volatility

•

Strong growth

International Insurance

Financial Strength Symposium 6.10.11

$9,200

$12,700

2010

Proforma

$1,787

$2,467

2010

Proforma

7,956

11,569

12/31/10

3/31/11

International Insurance

Star/Edison

POJ

(4)

/Gibraltar

All Other Operations

Annualized New

Business

Premiums

(2)

Total

Premium

Revenue

(2)(3)

Number of

Policies

Inforce

(1)

(thousands)

(millions)

Direct business only; includes annuities.

Foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar; Korean won 1190 per U.S. dollar.

Represents net premiums, policy charges and fee income.

Prudential of Japan (“POJ”).

Financial Strength Symposium 6.10.11

238

5,148

12/31/10

3/31/11

100

12/31/10

3/31/11

12,846

19,808

12/31/10

3/31/11

Number of

Captive

Agents

Number of

Bank

Relationships

Number of

Independent

Agencies

International Insurance

Star/Edison

POJ/Gibraltar

All Other Operations

Financial Strength Symposium 6.10.11

6 Years Ago

FY 2004

Nine Months ended

December 31, 2010

1. Nippon

18.4%

1. Dai-ichi

12.2%

2. Dai-ichi

14.3%

2. Nippon

12.1%

3. Meiji-Yasuda

11.1%

3. T&D Financial

10.9%

4. Sumitomo

10.8%

4. Prudential

9.7%

5. T&D Financial

7.7%

5. Sumitomo

7.5%

6. AIG Group

5.6%

6. Meiji-Yasuda

7.3%

7. Prudential

4.9%

7. Sony

6.7%

8. Sony

3.8%

8. MetLife Alico

4.8%

9. Fukoku

3.4%

9. Millea

4.5%

10. Mitsui

2.9%

10. Sompo Japan

3.6%

Overall Position –

New

Business

(Face

Amount)

(1)

Market share improvement of 4.8%

Financial Strength Symposium 6.10.11

Industry data from Life Insurance Association of Japan. Data shown are based on companies’ Japanese statutory results for nine months ended

December 31, 2010 and fiscal year ended March 31, 2005. New business amounts are individual life and annuity contracts including net increase by

conversion. Excludes Japan Post Insurance. Prudential’s share for the nine months ended December 31, 2010 is pro forma for the acquisition of

Star/Edison, which contributed 1.7% of share.

Stable Sources of Earnings

Earnings are primarily the result of stable drivers.

Pre-Tax AOI International Insurance Operations

(1)

Financial Strength Symposium 6.10.11

$2,057

2007

2008

2009

2010

Mortality Margin and Expense & Other Margin

Investment Margin

$1,747

$ in millions

(2)

$1,598

$1,843

Pre-tax adjusted operating income for our International Insurance operations as presented above excludes the results of the International Investments

businesses previously included in the International Investments segment and currently included within “Gibraltar Life and Other Operations” within the

International Insurance segment for financial reporting purposes.

Includes margin on multi-currency annuity products.

Japan: Substantial Growth Opportunities

in an Attractive Market

•

World’s second largest life insurance market:

Life premiums $399 billion

(1)

•

Household sector wealth $18.3 trillion, similar to

U.S. on per-capita basis

(2)

•

Expanding retirement market driven by aging population,

increased emphasis on individual responsibility for

financial security

•

Growing distribution opportunities include banks,

independent distributors

For the year 2009, based on Swiss Re survey

Based

December

31,

2010

data;

Sources:

Federal

Reserve,

Bank

Japan,

U.S.

Census

Bureau,

Oanda

Financial Strength Symposium 6.10.11

World’s Largest Life Insurance Markets

Country

Rank

Life Premiums ($ billions)

2009

United States

492

Japan

399

United Kingdom

218

France

194

Italy

115

Germany

112

China

109

South Korea

India

Taiwan

Source: Swiss Re survey

Financial Strength Symposium 6.10.11

Growing Retirement Market Complements

Substantial Premature Death Protection Market

Source: National Institute of Population and Social Security Research, Japanese Journal of Population

Population

(in millions)

Japan Demographics

15-64 years old

65 and over

0-14 years old

Financial Strength Symposium 6.10.11

Financial Assets in the Household Sector

of Select Major Economies

Household Sector Financial Assets

Note: Data for Japan, USA, and UK is as of December 31, 2010; China is as of September 30, 2009; other markets are as of December 31, 2009

Source: Federal Reserve, Bank of Japan, Eurostat, Central Bureau of Statistics of China, OECD, US Census Bureau, Oanda.

Financial assets

Population

Financial Strength Symposium 6.10.11

Portfolio of Financial Assets –

Japan

Source: Bank of Japan, Federal Reserve, Oanda

$10.1T

Financial Assets in the Household Sector

December 31, 2010

Financial Strength Symposium 6.10.11

100% = $18.3 Trillion

Household Sector

Pool of Currency and Deposits

Japan has the largest pool of household assets in currency and deposits

•~50% higher than that of the U.S. despite a population that is ~60% smaller

•Greater than the currency and deposits of Germany, the United Kingdom and France combined

Household Sector Financial Assets in Currency and Deposits

Note: Data for Japan, USA, and UK is as of December 31, 2010; China is as of September 30, 2009; other markets are as of December 31, 2009

Source: Federal Reserve, Bank of Japan, Eurostat, Central Bureau of Statistics of China, OECD, US Census Bureau, Oanda.

Financial Strength Symposium 6.10.11

Needs-Based Selling Over a Lifetime

Client Age

20 30 40 50

60+

Client Focus

Death Retirement

Protection

Income

Needs

Prudential

Solutions

Term Insurance

Whole Life

U.S. Dollar Retirement Income

Accident & Health

(1)

Fixed Annuity Products

•

Lifetime client relationships

•

Needs-based selling through client life cycles

•

Innovative products serve evolving needs

Accident and Health (A&H) primarily includes daily hospitalization indemnity, cancer insurance, and accident and sickness riders.

Financial Strength Symposium 6.10.11

Protecting Financial Security For a Lifetime

Based on annual premium for new Prudential of Japan insureds in 2009 (male, married insured, individual policies); foreign-denominated activity translated

to U.S. dollars at uniform exchange rates, Japanese yen 99 per U.S. dollar.

Aging population leads to demand for larger policy size.

Financial Strength Symposium 6.10.11

Japan Average Premium

(1)

Based on annualized new business premiums for the year ended December 31, 2010 sold by Life Planners and Life Advisors. Foreign denominated activity

translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar.

Financial Strength Symposium 6.10.11

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Protection

Accident & Health

Annuity

Retirement

International Insurance

Meeting customer needs through…

–

Strong and diverse product portfolio

–

Complementary distribution capabilities

–

Strong relationships

Financial Strength Symposium 6.10.11

684

669

656

645

642

637

626

622

618

613

607

602

600

597

590

589

576

567

500

600

700

The Prudential Life Insurance

Sony Life Insurance

Tokio Marine & Nichido Life Insurance

The Gibraltar Life Insurance

Sompo Japan Himawari Life Insurance

American Life Insurance Company (ALICO)

JAPAN POST INSURANCE

Fukoku Mutual Life Insurance

American Family Life Assurance Company of Columbus (Aflac)

Life Support Insurance Segment Average

Aioi Life Insurance

Nippon Life Insurance

Sompo Japan DIY Life Insurance

AXA Life Insurance

The Dai-ichi Life Insurance

Sumitomo Life Insurance

Mitsui Life Insurance

Meiji Yasuda Life Insurance

Asahi Mutual Life Insurance

No. 1 in Customer Satisfaction

Included in the study but not ranked due to small sample size are: AIG Edison Life Insurance; AIG Star Life Insurance; Allianz Life Insurance Japan; Daido Life

Insurance; Fukokushinrai Life Insurance; ING Life Insurance; Lifenet Insurance; Manulife Life Insurance; Mitsui Sumitomo Kirameki Life Insurance; NEXTIA Life

Insurance (former SBI AXA Life Insurance); NIPPONKOA Life Insurance; ORIX Life Insurance; Taiyo Life Insurance; The FujiLife Insurance; The Prudential Gibraltar

Financial Life Insurance (former Yamato Life Insurance); and Zurich Life Insurance.

Source:

J.D.

Power

Asia

Pacific

2011

Japan

Life

Insurance

Contract

Customer

Satisfaction

Study

Rankings are based on numerical scores, and not necessarily on statistical significance.

J.D. Power Asia Pacific

2011

Japan

Life

Insurance

Contract

Customer

Satisfaction

Study

Customer Satisfaction Index Ranking

(Based on a 1,000-point scale)

Life Support Insurance Segment

Financial Strength Symposium 6.10.11

Product Portfolio

Serving Financial Security Needs Over a Lifetime

Annualized

New

Business

Premiums

(1)

Year ended December 31, 2010

For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar.

Pro-forma including approximation of Star and Edison businesses.

Annualized

New

Business

Premiums

(1)(2)

Pro Forma Year ended December 31, 2010

Financial Strength Symposium 6.10.11

Death

Protection

46%

Retirement

24%

Annuity

12%

A&H 18%

Death

Protection

44%

Retirement

18%

Annuity

16%

A&H

22%

$1,521 million

$2,202 million

Diverse Annualized New Business Premiums in Japan

For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented;

Japanese yen 92 per U.S. dollar.

Annualized New Business Premiums

(1)

($ in millions)

Financial Strength Symposium 6.10.11

$289

$281

$296

$298

$344

$359

$398

$420

$555

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

Death Protection

Accident & Health

Retirement

Annuity

Distribution Channels in Japan

For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92

per U.S. dollar.

Pro-forma including approximation of Star and Edison businesses.

Annualized

New

Business

Premiums

(1)

Year ended December 31, 2010

Annualized

New

Business

Premiums

(1)(2)

Pro Forma Year ended December 31, 2010

Financial Strength Symposium 6.10.11

Life

Planner

44%

Life

Advisor

31%

Bank

22%

Independent

Agency

$1,521 million

$2,202 million

Life

Planner

30%

Life

Advisor

43%

Bank

18%

Independent

Agency

Complementary Distribution Channels

Drive Sales Growth in Japan

For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented.

Japanese yen 92 per U.S. dollar.

Annualized

New

Business

Premiums

(1)

($ in millions)

Financial Strength Symposium 6.10.11

$979

$1,521

200

400

600

800

1,000

1,200

1,400

1,600

2007

2008

2009

2010

Life Planners

Life Advisors

Bank Channel

Independent Agency

$289

$281

$296

$298

$344

$359

$398

$420

$555

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

Life Planner

Life Advisor

Bank

Independent Agency

Complementary Distribution Channels

Drive Sales Growth in Japan

($ in millions)

For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented.

Japanese yen 92 per U.S. dollar.

Annualized New Business Premiums

(1)

Financial Strength Symposium 6.10.11

Bank Channel Sales Growth

Driven by Protection Products

Annualized

New

Business

Premiums

(1)

($ in millions)

Financial Strength Symposium 6.10.11

$21

$25

$40

$48

$56

$78

$90

$104

$128

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

Death Protection

Accident & Health

Retirement

Annuity

Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented; Japanese yen 92 per U.S. dollar.

Prudential’s Key International Strategies:

Suited to Japanese Market Opportunities

•

Target the affluent and mass affluent consumer

•

Needs-based selling: historical focus on life insurance;

increasing emphasis on meeting retirement needs

•

Proprietary distribution model built on recruiting, selection

and training

•

Growth through complementary distribution channels and

opportunistic acquisitions

Financial Strength Symposium 6.10.11

Life Planner Distribution

•

Life Planner –

a selective, high quality sales force

–

Hire about 3 out of 100 candidates

–

Well trained and professional

–

Customer focused

–

Disciplined, and demonstrate “missionary zeal”

•

Emphasize protection products requiring analysis of client needs

•

Significant sales to small business/executive/professional market

•

Exceptional sales productivity and persistency

Financial Strength Symposium 6.10.11

Teachers Association:

Perennial Sales Opportunities

Numbers approximate as of March 31, 2011.

120,000

Retired

Teachers

Association

members

(1)

950,000

Active

Teachers

(1)

Active

Market

Retirement

Market

20,000

–

30,000

new

teachers

hired

each

year

20,000

–

30,000

teachers

retire

each

year

48% Gibraltar

Policyholders

87% Gibraltar

Policyholders

Financial Strength Symposium 6.10.11

Teachers Association

Core Relationship Contributes to Life Advisor Distribution

•

Relationship since 1952

•

Approximately

600,000

members

(1)

•

Access to approximately 950,000 teachers and school personnel

through

prefectural

(local)

associations

and

37,000

schools

(1)

•

Annualized

new

business

premiums

2010,

$181

million

(2)

Japanese Educational Mutual Aid

Association of Welfare Foundation

(Teachers Association)

As of March 31, 2011.

Foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar.

Financial Strength Symposium 6.10.11

Bancassurance Powered by Prudential

Prudential Support

•

Insurance education and training

backed by proven distribution model

•

Competitive products focused

on protection

•

Highly regarded brand, promises

backed by a strong company

•

Access to expertise of “seconded”

former Prudential of Japan

Life Planners

(1)

At certain banks.

Bank Employee

Life Insurance Sales

Financial Strength Symposium 6.10.11

$500

$1,000

$1,500

$2,000

$2,500

2004

2005

2006

2007

2008

2009

2010

International Insurance

Sustained Growth Reflects Success in Japanese Market

$917

$1,321

$1,428

$1,598

$1,747

$1,843

$2,057

Japan

All Other Operations

$ in millions

Pre-Tax Adjusted Operating Income

(1)

Financial Strength Symposium 6.10.11

Pre-tax adjusted operating income for our International Insurance operations as presented above excludes the results of the International Investments businesses

previously included in the International Investments segment and currently included within “Gibraltar Life and Other Operations” within the International Insurance

segment for financial reporting purposes. The pre-tax adjusted operating income (loss) of our International Investments businesses was $28 million, $25 million,

$(412) million, $63 million, $20 million, $(5) million and $(9) million in 2010, 2009, 2008, 2007, 2006, 2005 and 2004, respectively.

Key Takeaways

•

Prudential’s largest business

•

A market leader in Japan

•

High margins, low volatility

•

Strong growth

Financial Strength Symposium 6.10.11

Prudential has a Complementary and Diversified

Portfolio of U.S. Businesses

Financial Strength Symposium 6.10.11

More Market Sensitive

Less Market Sensitive

Prudential

Retirement

Individual

Annuities

Asset

Management

Individual

Life

Group

Insurance

U.S. Retirement Solutions

and

Investment

Management

U.S. Individual Life

and Group Insurance

U.S. Businesses

Earnings from the U.S. Businesses

Have Rebounded Since the Financial Crisis

Financial Strength Symposium 6.10.11

Less Market Sensitive Businesses are Important Stabilizers;

More Market Sensitive Businesses Allow Participation in Market Upside

Financial Strength Symposium 6.10.11

$ in millions

2007

2008

2009

2010

Less market sensitive businesses: Individual Life, Group Insurance, and Retirement

More market sensitive businesses: Asset Management and Individual Annuities

3,000

2,500

(1,000)

2,000

1,500

1,000

500

(500)

1,402

1,390

1,331

(658)

1,387

812

1,533

1,287

Pre-Tax Adjusted Operating Income

Asset Management

•

Robust institutional and retail businesses attract and retain talented

investment professionals

•

Substantial fee-based earnings that benefit from operating leverage

•

Limited capital requirements; sustainable high ROE

•

Seasoned skills in multiple asset classes support attractive

general account investments

•

Investment management strength supports retirement, annuities, and

insurance businesses

Leading Third Party Asset Manager

Competitive Advantage for Prudential Businesses

Financial Strength Symposium 6.10.11

Prudential Investment Management

Key Strategies

•

Utilize significant talent base

across multiple asset classes;

established track records, and

broad and deep client relationships

to increase AUM

(1)

base

•

Grow high-quality earnings driven

primarily by asset management fees

•

Manage business risks and

strategically employ

proprietary investing

•

Apply skill sets to support general

account asset selection and

management

•

Fee-driven growth potential

•

Favorable ROE

•

Competitive advantage

for Prudential’s retirement,

annuities and

insurance businesses

Assets under management (AUM).

Financial Strength Symposium 6.10.11

Asset Management’s Competitive Strengths

Appeal to Clients as well as Investment Professionals

Experience

and

Track Record

As of March 31, 2011; AUM excludes affiliated institutional and retail assets under management.

Breadth and Depth

of Capabilities

Access to Capital

and Co-investing

Brand and

Reputation

Scale

Third Party Clients

$275 billion

third party AUM

(1)

13% AUM CAGR

(2005 –

2010)

Manager

Continuity

(1)

220 portfolio

managers

Average tenure

13 years

Financial Strength Symposium 6.10.11

Asset Management has Three Major Client Types

Total AUM: $569 billion

(1)

•

Public Pension Plans

(DB/DC)

•

Corporate Pension Plans

(DB/DC)

•

Union Pension Plans

•

Endowments

•

Foundations

•

Sovereign Wealth Funds

•

Non-affiliated Insurance

Companies

•

Affiliated

–

Annuities

–

Retirement

–

Individual life

•

Proprietary Mutual Funds

•

Subadvisory relationships

•

U.S. individual life and

group insurance

•

Retirement

•

Annuities

•

International Insurance

(U.S. dollar assets)

As of March 31, 2011.

Financial Strength Symposium 6.10.11

General Account

$214 billion

Institutional

$246 billion

Retail

$109 billion

AUM and Revenues are Well Diversified by Client Type

Assets Under Management

$569 billion

(1)

Asset Management Fees

$1.3 billion

(2)

As of March 31, 2011.

For the year ended December 31, 2010.

$246 B

$214 B

$109 B

$353 M

$626 M

$294 M

Financial Strength Symposium 6.10.11

General

Account

38%

Institutional

43%

Retail

19%

Institutional

49%

Retail

28%

General

Account

23%

AUM and Revenues are also Diversified by Asset Class

48% of Fees from Fixed Income

71% of AUM from Fixed Income

As of March 31, 2011.

For the year ended December 31, 2010.

Public

Private

Asset Management Fees

$1.3 billion

(2)

Assets Under Management

$569 billion

(1)

Financial Strength Symposium 6.10.11

Public Fixed

Income

56%

Public Equity

24%

Real Estate

Commercial

Mortgages

Private Fixed

Income

Public Fixed

Income

32%

Public Equity

30%

Real Estate

22%

Commercial

Mortgages

Private Fixed

Income

11%

AUM Spans Six Distinct Investment Disciplines

Total AUM: $569

Investment Manager

Investment

Discipline

Public/Private

3/31/11

AUM

(1)

Jennison Associates

Fundamental Equity

Public

$ 86

Quantitative Management Associates (QMA)

Quantitative Equity

Public

Prudential Fixed Income (PFIM)

Public Fixed Income

Public

273

Jennison Associates

Public Fixed Income

Public

Prudential Capital Group (PCG)

Private Fixed Income

Private

Prudential Mortgage Capital Company (PMCC)

Real Estate Debt

Private

Prudential Real Estate Investors (PREI)

Real Estate Equity

Private

In billions.

Financial Strength Symposium 6.10.11

Public Fixed Income

Prudential Fixed Income

Jennison Fixed Income

•

$273 billion AUM

(1)

•

$47 billion in fixed income AUM

(1)

•

Operations in U.S., Europe, and Asia

•

Operations in U.S.

•

Comprehensive product line

•

Focused product line

–

Broad market strategies

–

Core, Core Plus

–

Intermediate Gov/Credit

–

Long Duration/LDI

–

Corporates

–

High Yield

–

Emerging Markets

–

US Bank Loans

–

Alternatives/CDOs

–

U.S. strategies

–

Intermediate and long duration

–

Core

•

276 Institutional clients

(1)

•

94 Institutional clients

(1)

•

180 Investment professionals

(1)

•

12 Investment professionals

(1)

As of March 31, 2011.

Financial Strength Symposium 6.10.11

Public Equity

Jennison Associates

Quantitative Management Associates

•

$86 billion in equity AUM

(1)

•

$47 billion in equity AUM

(1)

•

Fundamental

•

Quantitative

•

Growth

•

Blend

•

Value

•

Multi-Cap

•

Equity income

•

Midcap growth

•

Small Cap

•

Sector strategies

•

Global

•

Core

•

Value

•

All Cap

•

Mid Cap

•

Small Cap

•

Global

•

International

•

Emerging Markets

•

Index

•

Asset Allocation

•

Domestic and Global

•

Domestic and Global

•

162 Institutional equity clients

(1)

•

140 Institutional clients

(1)

•

48 Investment professionals

(2)

•

35 Investment professionals

(1)

As of March 31, 2011.

As of May 24, 2011.

Financial Strength Symposium 6.10.11

Private Fixed Income

As of March 31, 2011.

Prudential Capital Group

Prudential Mortgage Capital Company

•

$54 billion AUM

(1)

in private debt

•

$34 billion AUM

(1)

in commercial mortgages

•

Operations in U.S. and Europe

•

Operations in U.S. and Japan

•

Direct origination network

•

Direct origination network

•

$10 billion originations in 2010

•

$9 billion originations in 2010

•

Over 900 Borrowers

•

Over 2,000 Borrowers

•

140 Investment professionals

(1)

•

105 Investment professionals

(1)

Financial Strength Symposium 6.10.11

Prudential Real Estate Investors

As of March 31, 2011.

Prudential Real Estate Investors

•

$28 billion AUM

(1)

•

Operations in U.S., Europe, Asia, and Latin America

•

One of few global real estate investment managers

•

21 offices worldwide

(1)

•

490 Institutional clients

(1)

•

56 Funds managed

(1)

•

Asia (5), Europe (18), Mexico (7), U.S. (17), REITS (9)

•

216 investment professionals

(1)

Financial Strength Symposium 6.10.11

66%

84%

68%

85%

74%

1 Year

3 Year

5 Year

As of 3/31/10

As of 3/31/11

Our Investment Performance Track Record is Strong

% of Total Third Party Assets Under Management

Exceeding Benchmark

70% ($247 billion) of Retail and Institutional assets under management as of March 31, 2011 is actively managed against a benchmark.

•

Percentage

AUM

exceeding

their

respective

benchmarks

has

been

strong

the

and

year

periods

(1)

Financial Strength Symposium 6.10.11

Net flows exclude money market flows, one-time transfers, and acquisition/disposition events

Third Party Net Institutional Flows

Reached Record Levels in 2010

$ billions

Percent of

beginning

of year

AUM

Financial Strength Symposium 6.10.11

$(5)

$10

$15

$20

$25

$30

$35

Equity

Real Estate

Fixed Income

Total

2007

2008

2009

2010

$(2)

Third Party Retail Client Flows

Also Reached Record Levels in 2010

$ billions

Net flows exclude money market flows, one-time transfers, and acquisition/disposition events

Percent of

beginning

of year

AUM

Equity

Real Estate

Fixed Income

Total

2008

2007

2009

2010

Financial Strength Symposium 6.10.11

Growth in AUM has Driven

Growth in Asset Management Fees

At end of period.

Fixed Income

Real Estate

Equity

Financial Strength Symposium 6.10.11

$ billions

(1)

Assets Under Management by Asset Class

$ millions

Asset Management Fees by Asset Class

Quality of Revenues Increasing

Asset management fees and incentive, transaction, principal investing and commercial mortgage (ITPICM) revenues.

As originally reported.

Growing

AUM Base

Reduced proprietary

investing exposure

Exited commercial

mortgage

securitization

conduit

2007 Asset Management Fees

+ “ITPICM”

= $1.6 billion

(1)(2)

2010 Asset Management Fees

+ “ITPICM”

= $1.5 billion

(1)

$1.1 billion

$1.3 billion

Asset Management Fees

ITPICM

Financial Strength Symposium 6.10.11

68%

32%

86%

14%

$550

$701

$232

$55

$487

2006

2007

2008

2009

2010

Asset Management segment pre-tax adjusted operating income

Asset Management segment pre-tax adjusted operating income,

excluding contribution of Incentive, Transaction, Principal Investing and

Commercial Mortgage Activities ("ITPICM")

Building Sustainable Earnings Power

Pre-Tax Adjusted Operating Income

Based on after-tax adjusted operating income for the year ended December 31, 2010 and overall effective tax rate for the Financial Services Businesses.

ITPICM contribution represents revenues net of directly associated costs before allocated compensation including Incentive Awards; excludes agency

origination activities.

(2)

$ millions

Financial Strength Symposium 6.10.11

20% ROE

(1)

Key Takeaways

•

Robust institutional and retail businesses attract and retain talented

investment professionals

•

Strong investment performance has contributed to significant third party flows

and growth in AUM

•

Asset management fees have been a stable percentage of AUM historically

and are expected to grow about in line with AUM

•

Asset management business has operating leverage; therefore, AOI

attributable to asset management fees grows faster than revenue from fees

•

ITPICM activities are sources of additional revenue and AOI, but

are

managed to be smaller and more stable than in the past

•

Our business model positions us well for continued growth and high ROE

Financial Strength Symposium 6.10.11

Prudential Annuities

Superior Value Proposition and Business Prospects

•

Highly differentiated and sustainable strategy

•

#1 in advisor-sold variable

annuity sales

(1)

•

Leading positions in independent financial

planner, wirehouse, bank and insurance

agent channels

•

“Highest Daily”

living benefits serve

retirement income security needs of

attractive, growing market

•

Contract-level product based risk

management protects account values;

proven through financial market meltdown

•

Business growth driven by

strong net flows

•

Growing returns on

increasing base

•

Popularity of auto-

rebalancing products drives

improving overall risk profile

•

Demographic “push”

and individual

retirement responsibility

provide sustained

growth opportunity

Market Leadership

Proven Value Proposition

Strong Business Prospects

Source: VARDS 1Q’11 Report, Advisor-sold, excludes group/retirement plan contracts.

Financial Strength Symposium 6.10.11

Drivers of Market Leadership

•

Innovative retirement

income guarantee features

•

Proven product-based risk

management protecting

account values

•

Sophisticated

hedging capabilities

•

Broad multi-channel

distribution

•

Scale supporting efficient

cost structure

•

Brand, reputation and

demonstrated commitment

to market

Financial Strength Symposium 6.10.11

($ millions)

Variable Annuity

Assets Under Management

(1)

Advisor-Sold

Variable Annuity Sales

(1)

Prudential Annuities

1Q11 Asset and Sales Rankings

Source: VARDS 1Q’11 report. Advisor-sold, excludes group/retirement plan contracts.

($ millions)

Financial Strength Symposium 6.10.11

Building Multi-Channel Distribution Strength

Prudential

Individual

Annuity

Gross

Sales

(1)

In millions; includes variable and fixed annuities.

2008

$10,329

2010

$21,754

Financial Strength Symposium 6.10.11

Product Design:

The Highest Daily Lock-In

Hypothetical for illustrative purposes only.

Prudential’s unique Highest Daily Product

is a powerful feature that continues to drive strong sales

is a powerful feature that continues to drive strong sales.

Account Value

This is a hypothetical example for illustrative purposes only. It does not reflect a specific annuity or the performance of any investment.

Source for percentages: Standard & Poor's, Barclay's Capital; based on analysis of 2,245 rolling ten-year periods assuming 80%

allocation to equities and 20% allocation to bonds.

Financial Strength Symposium 6.10.11

What are the chances

of an annual lock-in

capturing the

best day?

What are the chances

of a quarterly lock-in

capturing the

best day?

What are the chances

of a daily lock-in

capturing the

best day?

100%

Product Embedded Risk Management

Protects Account Values at Contract Level

Note: For illustrative purposes, not representative of actual results.

Powerful algorithmic risk mitigation tool protects client account

values in market downturns and improves our risk profile.

Financial Strength Symposium 6.10.11

-rebalancing

Account Value with auto

Account Value without auto

Time

Account

Value

$50,000

$100,000

$150,000

$200,000

$250,000

120

Protected Withdrawal Value

Total Account Value

Bond Fund Value

Account Value and

“Protected Withdrawal Value”

“PWV”: notional amount

for calculation of

lifetime annual withdrawals

Year

Account

value

available to

customer

(“PWV”)

Financial Strength Symposium 6.10.11

Market Downturn Scenario

(1)

Highest Daily Lifetime Income (HDI) – sub-accounts suffer 30% decline in year 1, followed by 0% sub-account return thereafter; bond fund assumed annual return

of 3%. No withdrawals through end of year 12. All quoted returns are net of fund management and base policy fees. The fee for HDI was explicitly deducted from

the account value on a quarterly basis.

Account Value

Client Age

Year

= Customer account value withdrawals

= Prudential funds

Financial Strength Symposium 6.10.11

Accumulation Period

Retirement Period

Guaranteed Lifetime Withdrawals

Client’s Account Value Pays First

Market Downturn Scenario

(1)

Annual Payments = $10,000,

5% x Protected Value

Highest Daily Lifetime Income (HDI) – sub-accounts suffer 30% decline in year 1, followed by 0% sub-account return thereafter; bond fund assumed

annual return of 3%. Withdrawals commence at end of year 12. All quoted returns are net of fund management and base policy fees. The fee for HDI was

explicitly deducted from the account value on a quarterly basis.

Auto-Rebalancing

Proven Through Financial Market Crisis…

and Beyond

This illustration analysis for HD Lifetime Seven assumes a $500,000 initial investment into the AST Capital Growth Portfolio & AST Investment Grade

Bond Portfolio and election on February 23, 2009 of the 90% limit on bond fund allocation.

(1)

Assumes investment of funds in S&P 500 index on launch date of HD Lifetime Seven, January 28, 2008.

Financial Strength Symposium 6.10.11

Protected Withdrawal

Value +28%

HD7 Account Value

+26%

Account Value w/o

Auto-rebalancing

Formula (3%)

S&P 500 (2%)

Account Value

% of HD Account

Value Invested in

Customer-Selected

Funds

7.2%

0.1%

18.0%

6.0%

-1%

11%

13%

15%

17%

19%

20% loss of account value

33% loss of account value

Comparison of a VA with Auto-Rebalancing

to a VA without Auto-Rebalancing

Probability that a client’s account value suffers a

20%

33%

loss

over

hypothetical

ten-year

period

(1)

Variable Annuity (“VA”) with

Auto-Rebalancing

Variable Annuity without

Auto-Rebalancing

Based on

Ernst & Young

Monte Carlo

simulation

Limited “opportunity cost”

~40 bps mean return reduction

Financial Strength Symposium 6.10.11

Key assumptions used in analysis: Fees (same for both VAs): Mortality and Expense charge of 1.35%, Asset Management fees of .95%, and lifetime

withdrawal benefit fee of 1%. Asset allocation: 55-year-old client’s original asset allocation assumed to be 70% equities and 30% fixed-income. Asset transfer

algorithm: The algorithm used in this analysis is the same algorithm employed in Prudential’s Highest Daily Income Benefit and Premier variable annuities.

This analysis is not intended to be indicative of actual results for Prudential’s or any other provider’s variable annuity. While the algorithm is intended to reduce

account value volatility, it is not a tool to optimize investment results. The projections generated by the Ernst & Young Monte Carlo simulation regarding the

likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. The

analysis presents a range of possible outcomes; the calculated results will vary with each use and over time.

Improving Risk Profile

The

accelerated

growth

our

overall

block

has

also

increased

the

percentage

algorithmic

mechanism

based

account

values,

which

will

continue

improve

the

level

and

volatility

returns.

Financial Strength Symposium 6.10.11

100

120

Variable

Annuity

Account

Values

with

Living

Benefits

with

auto-rebalancing

feature

Variable

Annuity

Account

Values

with

Living

Benefits

without

auto-rebalancing

feature

Variable Annuity Account Values without any Living Benefit options

29%

26%

62%

16%

25%

12%

45%

26%

59%

Strong Net Sales Contribute to

Growing Account Value Base

(1)

Account values as of end of period; includes variable and fixed annuities. In billions.

$63.3

$10.3

$10.4

$84.0

$14.6

$7.6

$106.2

Account values

Net sales

Market appreciation and other activity

Financial Strength Symposium 6.10.11

2008

2010

2009

Well Positioned to Retain

Auto-Rebalancing Business In-Force

Less Than 1%

1% to 3%

Over 3%

92%

54%

10%

36%

25%

70%

Surrender

Charges

Applicable

Account

Values

(1)

Surrender charges as percentage of variable annuity account values; as of March 31, 2011.

Financial Strength Symposium 6.10.11

Auto-Rebalancing

$65 B

Non-Auto-Rebalancing

$45 B

Total

$110 B

Growing Returns on an Increasing Base

($ millions)

Financial Strength Symposium 6.10.11

104

118

145

153

176

199

233

0.00%

0.50%

1.00%

1.50%

$50

$100

$150

$200

$250

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

AOI

Annualized ROA

0.54%

0.45%

0.56%

0.58%

0.68%

0.70%

0.76%

0.78%

0.86%

(1)

(2)

Adjusted

Operating

Income

–

Excluding

Disclosed

Items

Excludes market driven and other discrete items disclosed by the company including unlockings of deferred policy acquisition and other costs and reserves for

guaranteed minimum death and income benefits. See “Reconciliation for Individual Annuities pre-tax adjusted operating income excluding disclosed items”

within this presentation for further information.

Pretax adjusted operating income excluding disclosed items as percentage of average account values for variable and fixed annuities.

Improving Product Mix and Market Performance

Drive Growing Returns

Net revenues

(1)

percentage

average

account

values

(2)

Operating expenses

(1)

percentage

average

account

values

(2)

“ROA”: Pretax adjusted operating income excluding disclosed items

percentage

average

account

values

(2)

2.31%

2.32%

2.48%

2.53%

2.55%

2007

2008

2009

2010

1Q11

Financial Strength Symposium 6.10.11

“Net revenues” and “operating expenses” based on adjusted operating income excluding market driven and other discrete items disclosed by the company

including unlockings of deferred policy acquisition and other costs and reserves. “Net revenues” and “operating expenses” reflect reclassification of certain

amounts included in reported revenue and expense line items (e.g., asset management fees netted against revenues for purposes of this display).

Annualized for interim period.

Key Takeaways

•

Market leadership driven by superior value proposition

•

Expanding distribution strength across multiple channels

•

Popularity of auto-rebalancing products driving improving

risk profile

•

Product structure, strong net sales and market performance

producing increasing returns on a growing base of business

•

Sustainable, profitable growth in an attractive market

Financial Strength Symposium 6.10.11

Well Positioned Investment Portfolio

•

Investment Management is a core competency for Prudential

•

Our General Account investment portfolio is well diversified to support

insurance liabilities

Financial Strength Symposium 6.10.11

Broad Investment Expertise

Supports Risk Diversification

Equities 2%

Other Long Term 2%

Short Term & Other 3%

Policy Loans 2%

FSB General Account

$255 Billion

(1)

FSB Fixed Maturities

$190 Billion

(4)

Public Fixed Maturities

65%

Private Fixed Maturities

10%

Commercial Loans

(2)

TAASIL

(3)

Financial Strength Symposium 6.10.11

(1)

As of March 31, 2011 at balance sheet carrying amount; excludes invested assets of securities brokerage,

securities trading, banking and asset management operations, and real estate and relocation services.

(2)

Commercial mortgage and other loans

(3)

Trading Account Assets Supporting Insurance Liabilities (investment results expected to ultimately accrue to contractholders).

(4)

Based on Fair Value

(5)

Includes securities collateralized by sub-prime mortgages

(6)

Includes state, and municipal securities, and securities related to the Build America Bonds program

Japanese Portfolio almost 50% of FSB General Account

FSB

General

Account,

Excluding

Japanese

Operations

$131

Billion

(1)

FSB General Account,

Japanese Operations

$124 Billion

(1)

Governments & Agencies

11%

Public Fixed Maturities

39%

Private Fixed Maturities

15%

Commercial Loans

(2)

14%

TAASIL

(3)

13%

Governments & Agencies

47%

Public Fixed Maturities

34%

Financial Strength Symposium 6.10.11

(1)

As of March 31, 2011 at balance sheet carrying amount; excludes invested assets of securities brokerage,

securities trading, banking and asset management operations, and real estate and relocation services.

(2)

Commercial mortgage and other loans

(3)

Trading Account Assets Supporting Insurance Liabilities (investment results expected to ultimately accrue to contractholders).

Private Fixed

Maturities 4%

Commercial

Loans

(2)

Other Long

Term 3%

Equities 2%

Other Long

Term 1%

Short Term &

Other 3%

Policy Loans 2%

Short Term &

Other 2%

Policy Loans 2%

TAASIL

(3)

Equities 3%

Asset Selection Focus on Quality

Financial Strength Symposium 6.10.11

(1)

Reflects equivalent ratings for investments of the international insurance operations

(2)

FSB General Account at amortized cost

(3)

NAIC 1-2, includes direct obligations of Government agencies

(4)

NAIC 3-6

Limited Exposure to NAIC 3-6

$4,890

$1,955

$1,058

$345

Financial Strength Symposium 6.10.11

(1)

Reflects equivalent ratings for investments of the international insurance operations.

(2)

FSB General Account at amortized cost at 3/31/2011

NAIC 3-6 exposure

(1)

Corporate Bond Portfolio Defensively Positioned

Corporate Bond Holdings by Sector

(1)

FSB vs. Barclays Index

March 31, 2011

Financial Strength Symposium 6.10.11

(1)

Market Value

(2)

Non-Corporate includes Sovereigns, Supranationals, States and Municipals

Note:

The Barclays Credit Index is unmanaged and represents securities that are:

•

SEC-registered and U.S. dollar denominated from U.S. and non U.S. industrial, utility, and financial institutions, and

•

Non-native currency agencies and local authorities, sovereigns, supra-nationals, and taxable municipals.

Strong Commercial Loan Portfolio

(1)

As of March 31, 2011 at balance sheet carrying amount.

Weighted Average Loan to Value Ratio (LTV)

63%

Weighted Average Debt Service Coverage

Ratio

1.74

Over 30 days past due

< 1%

100% = $255 Billion

FSB General Account Portfolio

Financial Strength Symposium 6.10.11

Commercial

Mortgage and

Other Loans

(1)

(in millions

)

Broadly Diversified Commercial Loan Portfolio

Commercial Loans by Major Property Type

(1,2)

Commercial and Agricultural Loans By Region

(1,3)

Financial Strength Symposium 6.10.11

(1)

(2)

(3)

For the Financial Services Businesses General Account as of March 31, 2011.

Commercial Mortgages only ($18.8 billion). “Other” consists of golf courses, ski resorts, parking garages, self-storage, hospital and ground leases

Commercial and Agricultural Loans only, ($20.1 billion)

Limited Exposure to Structured Securities

Financial Strength Symposium 6.10.11

Public Fixed Maturities

65%

Private Fixed Maturities

10%

Invested Assets other than

Fixed Maturities

25%

Japanese Government

Bonds 21%

Corporate 36%

Other Foreign Gov’t

Bonds 4%

CMBS 4%

Asset-backed

(3)

Residential Mortgage

Backed 3%

U.S. Government

(4)

FSB General Account

$255 Billion

(1)

FSB Fixed Maturities

$190 Billion

(2)

(1)

As of March 31, 2011 at balance sheet carrying amount; excludes invested assets of securities brokerage,

securities trading, banking and asset management operations, and real estate and relocation services.

(2)

Based on Fair Value as of March 31, 2011

(3)

Includes securities collateralized by sub-prime mortgages

(4)

Includes state, and municipal securities, and securities related to the Build America Bonds program

Declining Impairments in FSB

(1)

Represents amounts recorded in earnings

Financial Strength Symposium 6.10.11

Total FSB Impairments and Sales of Credit-Impaired Investments

(1)

(in millions)

Summary/Key Takeaways

•

High quality, well diversified portfolio

•

Continue to prefer to underwrite and manage our credit risk directly

–

High priority on private asset classes: corporates and mortgages

–

Disciplined approach to Commercial Mortgage Loan underwriting and

diversification

•

Current high yield asset mix is based on:

–

Experience in private sector

–

Commitment to managing credit risk directly

•

Our CMBS portfolio is well constructed; Sub-prime portfolio continues to run-off

•

Very

limited

exposure

rating

arbitrage

based

products

such

CDO’s

and

CLO’s

Financial Strength Symposium 6.10.11

Capital Deployment

“Then”

and “Now”

•

Defense

•

Offense

•

Offense

•

Defense

Financial Strength Symposium 6.10.2011

Circa 2008 -

2009

2011

Capital Deployment Considerations

Capital

Deployment:

“Offense”

Business Growth

Return of Capital to

Shareholders

•

Organic Growth

•

M&A Opportunities

•

Dividends

•

Share Repurchases

Financial Strength Symposium 6.10.2011

Capital Management

Begins with

Selection of

Businesses

and Risks

•

Credible diversification

in mix of businesses

and risks

•

Fit with proven execution

and risk management

capabilities

•

High value-added

business models

•

Solid cash flows and

superior ROE

Financial Strength Symposium 6.10.2011

Deployment of Capital to

Strategically Important Businesses

100% = $17.4B

100% = $29.1B

Attributed Equity

(1)

March 31, 2011

Attributed Equity

(1)

December 31, 2007

($ in billions)

Excludes Corporate & Other.

($ in billions)

Financial Strength Symposium 6.10.2011

Asset

Management

$1.9

Individual

Annuities

$5.9

Retirement

$4.2

Group Insurance

$2.1

Individual Life

$2.2

International

Insurance

$12.8

Asset

Management

$1.3

Individual

Annuities

3.1

Retirement

$3.7

Group

Insurance

$1.2

Individual Life

$2.3

International

Insurance

$5.8

Attractive Business Mix

Business Unit

% of 2010

Pre-Tax AOI

(1)

2013 ROE Potential

(2)

Individual Life &

Group Insurance

15%

12% –

13%

Annuities, Retirement &

Asset Management

43%

14% -

15%

International Insurance

42%

17% -

18%

Financial Strength Symposium 6.10.2011

Excludes Corporate & Other.

Business unit ROE’s are unlevered and are based on FSB effective tax rate applicable to Adjusted Operating Income and the

attributed equity of each business unit.

Approach to Capital and Liquidity

Management

Capital and

Liquidity

Hedging

Enterprise Risk

Management

•

Manage to AA

standards

•

Conservative capital

and liquidity targets

•

Multiple sources of

liquidity resulting in

significant financial

flexibility

•

Hedge risk in

businesses against

“expected volatility”

–

Equity

–

Interest rates

–

Currencies

•

Risk limits

•

Reinsurance

•

Contingency plans

CONSERVATIVE CAPITAL MANAGEMENT

Robust

Capital

Protection

Framework

employed

ensure

availability

adequate capital under specified tail events

Financial Strength Symposium 6.10.2011

Capital Protection Framework

On Balance

Sheet Capital

Capacity

Derivatives

Reinsurance

Contingent

Capital

Financial Strength Symposium 6.10.2011

2010 Capital and Liquidity

Financial Services Businesses (“FSB”)

($ in Billions)

12/31/2010 Pro-Forma for

Acquisition of Star/Edison and

Divestiture of Global Commodities

Required Capital

(1)

$35.0 –

$35.5

Attributed Equity

(2)

29.2

Capital Debt and Hybrids Outstanding

10.3

Total Capital Outstanding

39.5

Total Available On Balance Sheet Capital

(3)

$4.0 –

$4.5

Estimated

“Readily

Deployable”

Capital

$2.2 –

$2.7

Capital Debt to Capital Ratio

(4)

25%

Prudential Financial, Inc. Net Cash

(5)

~$3.0

Regulatory Capital Ratios

Prudential Insurance RBC

(6)

533%

POJ Solvency Margin Ratio

(7)

1134%

Gibraltar Solvency Margin Ratio

(7)

1120%

Financial Strength Symposium 6.10.2011

Required Capital represents the amount of GAAP capital necessary to support business risk based on AA rating targets at the operating entities.

Excludes accumulated other comprehensive income related to unrealized gains and losses on investments and pension and postretirement benefits.

Based on targeted Risk Based Capital (“RBC”) ratio of 400% for Prudential Insurance.

For the purposes of calculating this ratio, PFI’s outstanding hybrid securities are considered 25% equity and 75% debt.

Net cash includes cash, cash equivalents, and short-term investments, reduced by commercial paper borrowings and cash held in an intra-company liquidity

account at PFI.

Prudential Insurance RBC as of the fiscal year end, December 31, 2010. The inclusion of RBC measures is intended solely for the information of investors and is

not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.

Solvency Margin Ratios are as of the fiscal year-end, March 31, 2011.

Holding Company Liquidity Status

Financial Strength Symposium 6.10.2011

As of March 31, 2011

Cash

well

excess

expected

fixed

charges

2011 maturities were pre-funded in May

Expect to maintain liquidity consistent with $1 billion target

Additional Commercial Paper capacity

Committed

credit

lines:

$4.1

billion

, no material adverse change clauses

Other

internal

sources

~ $2.5 billion

PFI Net Cash

(1)

$2.6 Billion

Additional

Sources of

Liquidity

Net cash includes cash, cash equivalents, and short-term investments, reduced by commercial paper borrowings and cash held in an intra-company liquidity account at PFI.

Includes capital debt interest expense and other holding company expenses.

$2.9 billion of the total credit lines of $4.1 billion is shared with PICA and Prudential Funding.

Primarily reflects ability to borrow funds from subsidiaries including access to an intra-company liquidity account.

(2)

(3)

(4)

Prudential Insurance Liquidity Status

Financial Strength Symposium 6.10.2011

As of March 31, 2011

Cash, cash equivalents and short-term investments as reported on statutory basis.

Cash and invested assets as reported on statutory basis.

Significant recurring cashflows

Significant

General

Account

Asset

Portfolio:

$143

billion

3/31

(2)

Additional Commercial Paper capacity

Federal Home Loan Bank of New York

Additional securities lending capacity

Committed credit lines: $2.9 billion, no material adverse change clauses

(shared with PFI)

PICA Cash

(1)

$2.9 Billion

Additional

Sources of

Liquidity

Cash Flows from Subsidiaries to PFI

(1)

Reflects dividends and returns of capital.

Financial Strength Symposium 6.10.2011

$3,975

$1,305

$3,275

$3,212

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

2007

2008

2009

2010

Prudential Insurance

International

Asset Management

Prudential Annuities

Other

$4.8

$8.8

$10.3

$30.8

$19.3

$18.5

$10

$15

$20

$25

$30

$35

$40

12/31/2007

12/31/2010

3/31/2011

Capital Debt

Operating Debt(1)

Reduction in Total Leverage

Financial Services Businesses

($ Billions)

Includes securities lending; excludes Funding Agreements & Guaranteed Investment Contracts.

$35.6

$28.1

$28.8

Financial Strength Symposium 6.10.2011

Key Takeaways

Financial Strength Symposium 6.10.2011

•

Strong Capital and Liquidity positions

•

Robust Capital Protection Framework under specified tail events

•

Focused on reducing non-strategic leverage

Form: 8-K

Documents