April 26, 2012 - SUPPLEMENTARY FINANCIAL INFORMATION - 8-K: Current report

Exhibit 99.1

Prudential Financial, Inc. (PRU)

LOGO

Supplementary Financial Information - Retrospective

Adoption of Revised U.S. GAAP Accounting

Standards for Deferred Policy Acquisition Costs

Effective January 1, 2012

FINANCIAL SERVICES BUSINESSES

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.

April 26, 2012

Prudential Financial, Inc.

Supplementary Restated Financial Information

CONTENTS


	Page
Financial Highlights		1-3
Restated Statements of Operations		4-11
Deferred Policy Acquisition Costs - Individual Annuities, Individual Life and Group Insurance		12
Key Definitions and Formulas		13

Prudential Financial, Inc.

Supplementary Restated Financial Information

The financial data herein reflects, for all periods presented, the adoption of the accounting guidance that addresses diversity in practice regarding the interpretation of which costs relating to the acquisition of new or renewal insurance contracts qualify for deferral. Under the amended guidance, acquisition costs are to include only those costs that are directly related to the acquisition or renewal of insurance contracts by applying a model similar to the accounting for loan origination costs. An entity may defer incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits, and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts. The Company adopted this guidance effective January 1, 2012 and applied the retrospective method of adoption.

The financial data herein also reflects, for all periods presented, a revision to the Company’s method for calculating operating return on average equity. The revised method utilizes average attributed equity excluding total accumulated other comprehensive income as the denominator. The previous method utilized average attributed equity excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension/postretirement benefits. The definition of the numerator in the calculation, adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation) annualized for interim periods, remains the same.

iii

Prudential Financial, Inc.

Supplementary Restated Financial Information

RESTATED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q

						*Financial Services Businesses:*
						Pre-tax adjusted operating income (loss) by division:
	1,218			(188	)	U.S. Retirement Solutions and Investment Management Division		475			114			818			595			600			605			42			668
	843			799		U.S. Individual Life and Group Insurance Division		138			139			217			200			137			184			173			193
	1,676			1,169		International Insurance Division		454			428			495			538			628			500			660			595
	(788	)		(258	)	Corporate and other operations		(211	)		(191	)		(298	)		(249	)		(269	)		(237	)		(347	)		(286	)

	2,949			1,522		Total pre-tax adjusted operating income		856			490			1,232			1,084			1,096			1,052			528			1,170
	718			413		Income taxes, applicable to adjusted operating income		222			111			330			298			296			279			110			309

	2,231			1,109		Financial Services Businesses after-tax adjusted operating income		634			379			902			786			800			773			418			861


						Reconciling items:
	(1,669	)		(2,464	)	Realized investment gains (losses), net, and related charges and adjustments		(58	)		701			283			(953	)		(375	)		1			1,817			(596	)
	1,601			(1,734	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net		252			79			388			(218	)		(17	)		177			10			53
	(899	)		1,163		Change in experience-rated contractholder liabilities due to asset value changes		(320	)		(144	)		(367	)		200			34			(178	)		68			(47	)
	2,086			(678	)	Divested businesses		(10	)		3			(10	)		(8	)		(9	)		—			24			39
	(2,364	)		654		Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(35	)		18			(17	)		(61	)		(133	)		19			(87	)		12

	(1,245	)		(3,059	)	Total reconciling items, before income taxes		(171	)		657			277			(1,040	)		(500	)		19			1,832			(539	)
	(668	)		(1,002	)	Income taxes, not applicable to adjusted operating income		15			205			120			(313	)		(146	)		10			736			(187	)

	(577	)		(2,057	)	Total reconciling items, after income taxes		(186	)		452			157			(727	)		(354	)		9			1,096			(352	)

	1,654			(948	)	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		448			831			1,059			59			446			782			1,514			509
	1,557			(483	)	Equity in earnings of operating joint ventures, net of taxes and earnings from continuing operations attributable to noncontrolling interests		35			(19	)		16			39			79			(19	)		57			(7	)

	3,211			(1,431	)	Income (loss) from continuing operations attributable to Prudential Financial, Inc.		483			812			1,075			98			525			763			1,571			502
	(34	)		36		Earnings from continuing operations attributable to noncontrolling interests		(26	)		27			(2	)		12			25			29			10			8

	3,177			(1,395	)	Income (loss) from continuing operations (after-tax) of Financial Services Businesses		457			839			1,073			110			550			792			1,581			510
	(19	)		146		Income (loss) from discontinued operations, net of taxes, attributable to Prudential Financial, Inc.		3			15			1			13			14			16			(9	)		14

	3,158			(1,249	)	Net income (loss) of Financial Services Businesses		460			854			1,074			123			564			808			1,572			524
	(34	)		36		Less: Income (loss) attributable to noncontrolling interests		(26	)		27			(2	)		12			25			29			10			8

	3,192			(1,285	)	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		486			827			1,076			111			539			779			1,562			516

	11.4%			6.1%		Operating Return on Average Equity (based on adjusted operating income)		11.4%			6.6%			14.9%			12.5%			12.5%			11.7%			6.2%			12.4%

						*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	3,192			(1,285	)	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		486			827			1,076			111			539			779			1,562			516
	(286	)		36		Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		166			284			79			(34	)		22			10			32			82

	2,906			(1,249	)	Consolidated net income (loss) attributable to Prudential Financial, Inc.		652			1,111			1,155			77			561			789			1,594			598

Page 1

Prudential Financial, Inc.

Supplementary Restated Financial Information

RESTATED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q

						Earnings per share of Common Stock (diluted): (1)
	5.03			2.67		Financial Services Businesses after-tax adjusted operating income		1.36			0.82			1.91			1.63			1.62			1.57			0.87			1.79

						Reconciling items:
	(3.72	)		(5.68	)	Realized investment gains (losses), net, and related charges and adjustments		(0.12	)		1.49			0.60			(1.97	)		(0.76	)		—			3.71			(1.25	)
	3.57			(4.00	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.53			0.17			0.82			(0.45	)		(0.03	)		0.36			0.02			0.11
	(2.01	)		2.68		Change in experience-rated contractholder liabilities due to asset value changes		(0.68	)		(0.31	)		(0.78	)		0.41			0.07			(0.36	)		0.14			(0.10	)
	4.65			(1.56	)	Divested businesses		(0.02	)		0.01			(0.02	)		(0.02	)		(0.02	)		—			0.05			0.08
	(0.02	)		0.01		Difference in earnings allocated to participating unvested share-based payment awards		—			(0.01	)		—			0.01			0.01			—			(0.03	)		—

	2.47			(8.55	)	Total reconciling items, before income taxes		(0.29	)		1.35			0.62			(2.02	)		(0.73	)		—			3.89			(1.16	)
	0.31			(2.68	)	Income taxes, not applicable to adjusted operating income		0.03			0.45			0.26			(0.59	)		(0.19	)		0.02			1.57			(0.41	)

	2.16			(5.87	)	Total reconciling items, after income taxes		(0.32	)		0.90			0.36			(1.43	)		(0.54	)		(0.02	)		2.32			(0.75	)

	7.19			(3.20	)	Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.04			1.72			2.27			0.20			1.08			1.55			3.19			1.04
	(0.04	)		0.34		Income (loss) from discontinued operations, net of taxes, attributable to Prudential Financial, Inc.		0.01			0.04			—			0.03			0.02			0.03			(0.01	)		0.03

	7.15			(2.86	)	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.05			1.76			2.27			0.23			1.10			1.58			3.18			1.07


	444.6			429.7		Weighted average number of outstanding Common shares (basic)		463.0			464.3			464.8			475.1			484.9			486.0			481.2			469.2

	448.2			433.6		Weighted average number of outstanding Common shares (diluted) (2)		471.5			468.2			473.2			483.5			493.9			494.8			489.3			477.0

	43			55		Direct equity adjustments for earnings per share calculation		10			10			9			7			9			8			8			(1	)

	5			—		Earnings related to interest, net of tax, on exchangeable surplus notes (2)		4			5			4			4			4			5			4			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	26			6		Financial Services Businesses after-tax adjusted operating income		8			5			12			10			11			10			6			11
	36			1		Income from continuing operations (after-tax) of Financial Services Businesses		6			11			14			7			7			11			20			9

(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 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.

(2)

In calculating diluted earnings per share under the if-converted method, the potential shares that would be issued related to the exchangeable surplus notes assuming a hypothetical exchange, weighted for the period the notes are outstanding, is added to the denominator, and interest expense, net of tax, is added to the numerator, if the overall effect is dilutive. For the three months ended June 30, 2010, the hypothetical impact of these shares was antidilutive and therefore excluded from the diluted earnings per share calculation for non-GAAP measures, as presented above. The weighted average number of outstanding common shares used in the diluted earnings per share calculation for the three months ended June 30, 2010 for GAAP measures is 473.3 million. For the three months ended December 31, 2010, the hypothetical impact of these shares was antidilutive and therefore excluded from the diluted earnings per share calculation for GAAP measures. The weighted average number of outstanding common shares used in the diluted earnings per share calculation for the three months ended December 31, 2010 for GAAP measures is 478.4 million.

Page 2

Prudential Financial, Inc.

Supplementary Restated Financial Information

RESTATED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2010								2011
2009		2008			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
	3,122		10,092	Short-term debt		3,066		2,219		2,572		1,982		2,432		2,152		2,899		2,336
	17,769		17,022	Long-term debt		18,373		19,130		19,068		20,384		20,764		21,309		20,651		21,353
	1,518		1,518	Junior Subordinated Long-Term Debt		1,518		1,519		1,519		1,519		1,519		1,519		1,519		1,519

				Attributed Equity:
	21,733		12,052	Including accumulated other comprehensive income		23,261		25,862		29,480		28,310		28,501		30,754		32,901		32,817
	22,411		17,431	Excluding total accumulated other comprehensive income		22,951		23,856		24,991		25,571		26,206		27,052		27,916		27,567

				Total Capitalization:
	41,020		30,592	Including accumulated other comprehensive income		43,152		46,511		50,067		50,213		50,784		53,582		55,071		55,689
	41,698		35,971	Excluding total accumulated other comprehensive income		42,842		44,505		45,578		47,474		48,489		49,880		50,086		50,439

				Book value per share of Common Stock:
	46.36		28.41	Including accumulated other comprehensive income		49.41		54.91		62.46		57.58		57.82		62.28		68.77		69.07
	47.81		41.09	Excluding total accumulated other comprehensive income		48.75		50.65		52.95		52.01		53.17		54.78		58.35		58.02

	468.8		424.2	Number of diluted shares at end of period (2)		470.8		471.0		472.0		491.7		492.9		493.8		478.4		475.1

(1)	As of end of period.

(2)	Beginning third quarter 2009, the number of diluted shares at end of period excludes the impact of exchangeable surplus notes due to the anti-dilutive impact of conversion at $98.78 per share.

Page 3

Prudential Financial, Inc.

Supplementary Restated Financial Information

RESTATED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q

						Revenues (1):
	13,235			11,836		Premiums		3,522			3,801			3,962			3,935			4,817			5,497			5,413			5,645
	3,032			3,123		Policy charges and fee income		860			888			805			929			982			1,038			979			1,033
	8,219			8,370		Net investment income		2,072			2,105			2,190			2,231			2,304			2,525			2,536			2,552
	2,289			2,430		Asset management fees, commissions and other income		684			812			796			916			1,044			1,039			956			1,038

	26,775			25,759		Total revenues		7,138			7,606			7,753			8,011			9,147			10,099			9,884			10,268


						Benefits and Expenses (1):
	12,691			12,519		Insurance and annuity benefits		3,428			3,993			3,752			3,704			4,644			5,160			5,419			5,047
	3,376			3,399		Interest credited to policyholders’ account balances		846			875			820			877			829			934			1,040			953
	955			1,134		Interest expense		251			258			267			273			279			290			296			299
	(2,158	)		(1,749	)	Deferral of acquisition costs		(563	)		(595	)		(622	)		(682	)		(743	)		(768	)		(788	)		(770	)
	946			1,231		Amortization of acquisition costs		260			417			65			294			360			426			411			381
	8,016			7,703		General and administrative expenses		2,060			2,168			2,239			2,461			2,682			3,005			2,978			3,188

	23,826			24,237		Total benefits and expenses		6,282			7,116			6,521			6,927			8,051			9,047			9,356			9,098

	2,949			1,522		Adjusted operating income before income taxes		856			490			1,232			1,084			1,096			1,052			528			1,170


						Reconciling items:
	(1,213	)		(2,736	)	Realized investment gains (losses), net, and related adjustments		63			1,263			186			(1,360	)		(365	)		155			3,385			(672	)
	(456	)		272		Related charges		(121	)		(562	)		97			407			(10	)		(154	)		(1,568	)		76

	(1,669	)		(2,464	)	Total realized investment gains (losses), net, and related charges and adjustments		(58	)		701			283			(953	)		(375	)		1			1,817			(596	)

	1,601			(1,734	)	Investment gains on trading account assets supporting insurance liabilities, net		252			79			388			(218	)		(17	)		177			10			53
	(899	)		1,163		Change in experience-rated contractholder liabilities due to asset value changes		(320	)		(144	)		(367	)		200			34			(178	)		68			(47	)
	2,086			(678	)	Divested businesses		(10	)		3			(10	)		(8	)		(9	)		—			24			39
	(2,364	)		654		Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(35	)		18			(17	)		(61	)		(133	)		19			(87	)		12

	(1,245	)		(3,059	)	Total reconciling items, before income taxes		(171	)		657			277			(1,040	)		(500	)		19			1,832			(539	)


	1,704			(1,537	)	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		685			1,147			1,509			44			596			1,071			2,360			631
	50			(589	)	Income tax expense (benefit)		237			316			450			(15	)		150			289			846			122

	1,654			(948	)	Income (loss) from continuing operations before equity in earnings of operating joint ventures		448			831			1,059			59			446			782			1,514			509

(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 4

Prudential Financial, Inc.

Supplementary Restated Financial Information

RESTATED STATEMENTS OF OPERATIONS - INDIVIDUAL ANNUITIES SEGMENT

(in millions)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q

						Revenues (1):
	88			64		Premiums		37			43			49			37			39			31			27			24
	991			1,107		Policy charges and fee income		345			345			365			406			443			475			469			463
	979			800		Net investment income		224			216			220			218			201			197			195			197
	457			466		Asset management fees, commissions and other income		153			164			173			200			215			230			214			218

	2,515			2,437		Total revenues		759			768			807			861			898			933			905			902


						Benefits and Expenses (1):
	89			947		Insurance and annuity benefits		39			298			(49	)		3			60			110			331			(25	)
	618			568		Interest credited to policyholders’ account balances		157			182			98			144			136			136			182			116
	13			58		Interest expense		15			15			16			20			27			28			28			29
	(833	)		(510	)	Deferral of acquisition costs		(226	)		(267	)		(277	)		(319	)		(345	)		(235	)		(230	)		(228	)
	208			510		Amortization of acquisition costs		67			155			(59	)		68			83			131			233			89
	1,748			1,819		General and administrative expenses		482			529			526			628			663			556			553			548

	1,843			3,392		Total benefits and expenses		534			912			255			544			624			726			1,097			529

	672			(955	)	Adjusted operating income (loss) before income taxes		225			(144	)		552			317			274			207			(192	)		373

(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 5

Prudential Financial, Inc.

Supplementary Restated Financial Information

RESTATED STATEMENTS OF OPERATIONS - RETIREMENT SEGMENT

(in millions)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q

						Revenues (1):
	602			590		Premiums		109			348			351			258			172			213			162			233
	198			180		Policy charges and fee income		53			48			50			50			49			45			50			49
	3,309			3,564		Net investment income		797			805			815			821			805			805			786			782
	550			525		Asset management fees, commissions and other income		170			169			160			179			180			185			173			182

	4,659			4,859		Total revenues		1,129			1,370			1,376			1,308			1,206			1,248			1,171			1,246


						Benefits and Expenses (1):
	1,380			1,321		Insurance and annuity benefits		296			541			556			455			366			420			367			441
	1,907			2,144		Interest credited to policyholders’ account balances		451			458			460			465			414			427			441			433
	29			89		Interest expense		4			4			5			4			4			3			4			3
	(38	)		(64	)	Deferral of acquisition costs		(7	)		(14	)		(9	)		(11	)		(9	)		(8	)		(8	)		(7	)
	17			21		Amortization of acquisition costs		3			4			5			4			25			4			9			3
	873			813		General and administrative expenses		215			243			241			245			234			231			247			233

	4,168			4,324		Total benefits and expenses		962			1,236			1,258			1,162			1,034			1,077			1,060			1,106

	491			535		Adjusted operating income before income taxes		167			134			118			146			172			171			111			140

(1)

Page 6

Prudential Financial, Inc.

Supplementary Restated Financial Information

RESTATED STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE SEGMENT

(in millions)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q

						Revenues (1):
	686			613		Premiums		176			177			181			180			172			183			182			179
	1,024			1,066		Policy charges and fee income		249			294			168			266			264			274			156			258
	809			749		Net investment income		213			223			230			237			236			245			248			249
	248			326		Asset management fees, commissions and other income		49			57			61			56			53			61			57			83

	2,767			2,754		Total revenues		687			751			640			739			725			763			643			769


						Benefits and Expenses (1):
	1,042			965		Insurance and annuity benefits		309			270			265			276			297			268			303			276
	263			231		Interest credited to policyholders’ account balances		69			70			73			72			71			74			77			77
	181			214		Interest expense		35			37			45			45			45			48			48			73
	(408	)		(365	)	Deferral of acquisition costs		(88	)		(79	)		(80	)		(77	)		(72	)		(78	)		(82	)		(85	)
	150			275		Amortization of acquisition costs		41			113			(49	)		61			67			77			(56	)		47
	1,025			971		General and administrative expenses		235			233			229			230			219			239			242			243

	2,253			2,291		Total benefits and expenses		601			644			483			607			627			628			532			631

	514			463		Adjusted operating income before income taxes		86			107			157			132			98			135			111			138

(1)

Page 7

Prudential Financial, Inc.

Supplementary Restated Financial Information

RESTATED STATEMENTS OF OPERATIONS - GROUP INSURANCE SEGMENT

(in millions)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q

						Revenues (1):
	4,051			3,768		Premiums		996			1,013			1,139			1,059			1,188			1,178			1,200			1,196
	484			459		Policy charges and fee income		126			112			134			106			121			110			163			126
	623			647		Net investment income		162			166			169			171			171			173			173			169
	127			86		Asset management fees, commissions and other income		27			25			24			29			26			25			24			25

	5,285			4,960		Total revenues		1,311			1,316			1,466			1,365			1,506			1,486			1,560			1,516


						Benefits and Expenses (1):
	4,016			3,733		Insurance and annuity benefits		1,014			1,038			1,163			1,043			1,213			1,185			1,235			1,192
	229			232		Interest credited to policyholders’ account balances		57			54			57			59			57			56			57			58
	—			1		Interest expense		—			—			—			—			—			—			—			—
	(42	)		(35	)	Deferral of acquisition costs		(10	)		(10	)		(11	)		(9	)		(12	)		(14	)		(12	)		(12	)
	20			13		Amortization of acquisition costs		5			4			5			8			6			5			6			6
	733			680		General and administrative expenses		193			198			192			196			203			205			212			217

	4,956			4,624		Total benefits and expenses		1,259			1,284			1,406			1,297			1,467			1,437			1,498			1,461

	329			336		Adjusted operating income before income taxes		52			32			60			68			39			49			62			55

(1)

Page 8

Prudential Financial, Inc.

Supplementary Restated Financial Information

RESTATED STATEMENTS OF OPERATIONS - LIFE PLANNER OPERATIONS

(in millions)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q

						Revenues (1):
	4,975			4,702		Premiums		1,443			1,311			1,407			1,487			1,655			1,512			1,612			1,632
	295			271		Policy charges and fee income		76			77			86			86			90			91			98			92
	1,069			962		Net investment income		299			295			326			336			351			347			378			375
	54			78		Asset management fees, commissions and other income		10			10			7			(4	)		1			(6	)		(12	)		(14	)

	6,393			6,013		Total revenues		1,828			1,693			1,826			1,905			2,097			1,944			2,076			2,085


						Benefits and Expenses (1):
	3,901			3,738		Insurance and annuity benefits		1,163			1,070			1,150			1,211			1,389			1,229			1,325			1,351
	186			167		Interest credited to policyholders’ account balances		53			47			59			54			62			56			66			61
	3			13		Interest expense		1			—			—			1			—			—			—			(1	)
	(599	)		(588	)	Deferral of acquisition costs		(163	)		(144	)		(160	)		(168	)		(192	)		(177	)		(185	)		(184	)
	385			324		Amortization of acquisition costs		99			100			104			100			113			112			121			117
	1,458			1,361		General and administrative expenses		377			355			377			417			425			409			418			441

	5,334			5,015		Total benefits and expenses		1,530			1,428			1,530			1,615			1,797			1,629			1,745			1,785

	1,059			998		Adjusted operating income before income taxes		298			265			296			290			300			315			331			300

(1)

Page 9

Prudential Financial, Inc.

Supplementary Restated Financial Information

RESTATED STATEMENTS OF OPERATIONS - GIBRALTAR LIFE AND OTHER OPERATIONS

(in millions)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q

						Revenues (1):
	2,855			2,122		Premiums		768			916			841			921			1,601			2,391			2,226			2,386
	79			71		Policy charges and fee income		19			19			21			23			23			52			52			54
	1,103			1,007		Net investment income		286			285			316			326			414			614			648			650
	111			(235	)	Asset management fees, commissions and other income		40			38			36			95			186			47			128			115

	4,148			2,965		Total revenues		1,113			1,258			1,214			1,365			2,224			3,104			3,054			3,205


						Benefits and Expenses (1):
	2,238			1,639		Insurance and annuity benefits		607			745			651			718			1,317			1,941			1,709			1,824
	294			249		Interest credited to policyholders’ account balances		81			83			89			96			99			193			226			215
	1			(5	)	Interest expense		—			—			1			—			—			1			—			1
	(281	)		(243	)	Deferral of acquisition costs		(79	)		(94	)		(97	)		(109	)		(129	)		(269	)		(282	)		(266	)
	186			129		Amortization of acquisition costs		50			55			54			57			73			107			114			123
	1,093			1,025		General and administrative expenses		298			306			317			355			536			946			958			1,013

	3,531			2,794		Total benefits and expenses		957			1,095			1,015			1,117			1,896			2,919			2,725			2,910

	617			171		Adjusted operating income before income taxes		156			163			199			248			328			185			329			295

(1)

Page 10

Prudential Financial, Inc.

Supplementary Restated Financial Information

RESTATED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q

						Revenues (1):
	(22	)		(23	)	Premiums		(7	)		(7	)		(6	)		(7	)		(10	)		(11	)		4			(5	)
	(39	)		(31	)	Policy charges and fee income		(8	)		(7	)		(19	)		(8	)		(8	)		(9	)		(9	)		(9	)
	237			556		Net investment income		67			86			83			85			88			112			90			99
	(425	)		(417	)	Asset management fees, commissions and other income		(120	)		(116	)		(127	)		(124	)		(127	)		(127	)		(123	)		(134	)

	(249	)		85		Total revenues		(68	)		(44	)		(69	)		(54	)		(57	)		(35	)		(38	)		(49	)


						Benefits and Expenses (1):
	25			176		Insurance and annuity benefits		—			31			16			(2	)		2			7			149			(12	)
	(121	)		(192	)	Interest credited to policyholders’ account balances		(22	)		(19	)		(16	)		(13	)		(10	)		(8	)		(9	)		(7	)
	702			686		Interest expense		193			198			197			200			200			206			213			191
	65			70		Deferral of acquisition costs		16			19			18			17			23			19			16			17
	(38	)		(61	)	Amortization of acquisition costs		(11	)		(21	)		(1	)		(10	)		(13	)		(16	)		(23	)		(10	)
	(94	)		(336	)	General and administrative expenses		(33	)		(61	)		15			3			10			(6	)		(37	)		58

	539			343		Total benefits and expenses		143			147			229			195			212			202			309			237

	(788	)		(258	)	Adjusted operating income (loss) before income taxes		(211	)		(191	)		(298	)		(249	)		(269	)		(237	)		(347	)		(286	)

(1)

Page 11

Prudential Financial, Inc.

Supplementary Restated Financial Information

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

(in millions)


Year-to-date							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q

						DEFERRED POLICY ACQUISITION COSTS
						INDIVIDUAL ANNUITIES:
	2,072			1,797		Beginning balance		2,172			2,248			1,913			2,314			3,019			3,278			3,300			2,131
	833			510		Capitalization		226			267			277			319			345			235			230			228
	(208	)		(510	)	Amortization - operating results		(67	)		(155	)		59			(68	)		(83	)		(131	)		(233	)		(89	)
	(205	)		158		Amortization - realized investment gains and losses		(52	)		(377	)		125			320			14			(81	)		(1,138	)		73
	(320	)		117		Impact of unrealized (gains) or losses on AFS securities		(31	)		(70	)		(60	)		134			(1	)		(1	)		(28	)		47
	—			—		Other (1)		—			—			—			—			(16	)		—			—			—

	2,172			2,072		Ending balance		2,248			1,913			2,314			3,019			3,278			3,300			2,131			2,390


						INDIVIDUAL LIFE INSURANCE:
	3,137			2,824		Beginning balance		3,129			3,135			3,030			3,109			3,214			3,225			3,187			3,263
	408			365		Capitalization		88			79			80			77			72			78			82			85
	(150	)		(275	)	Amortization - operating results		(41	)		(113	)		49			(61	)		(67	)		(77	)		56			(47	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—			—			—			—
	(266	)		223		Impact of unrealized (gains) or losses on AFS securities		(41	)		(71	)		(50	)		89			6			(39	)		(62	)		(109	)

	3,129			3,137		Ending balance		3,135			3,030			3,109			3,214			3,225			3,187			3,263			3,192


						GROUP INSURANCE:
	304			282		Beginning balance		326			331			337			343			344			350			359			365
	42			35		Capitalization		10			10			11			9			12			14			12			12
	(20	)		(13	)	Amortization - operating results		(5	)		(4	)		(5	)		(8	)		(6	)		(5	)		(6	)		(6	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—			—			—			—
	—			—		Impact of unrealized (gains) losses on AFS securities		—			—			—			—			—			—			—			—

	326			304		Ending balance		331			337			343			344			350			359			365			371

(1)	“Other” activity for the first quarter of 2011 reflects a reclassification between the balances, as of January 1, 2011, of deferred policy acquisition costs and deferred sales inducements for Individual Annuities due to a refinement in methodology for allocating such balances.

Page 12

Prudential Financial, Inc.

Supplementary Restated Financial Information

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) 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 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. 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.

4. 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.

5. 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.

6. 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.

7. 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. For 2009 periods and prior, the average equity is based on a two point average. For all other periods, the average equity is based on a five point average.

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 , for the Financial Services Businesses, 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. For 2009 periods and prior, the average equity is based on a two point average. For all other periods, the average equity is based on a five point average. Return on average equity (based on income from continuing operations) is 6.1% for the three months ended December 31, 2011, 19.8% for the three months ended September 30, 2011, 10.4% for the three months ended June 30, 2011, 7.5% for the three months ended March 31, 2011, 1.5% for the three months ended December 31, 2010, 15.7% for the three months ended September 30, 2010, 13.4% for the three months ended June 30, 2010, 8.8% for the three months ended March 31, 2010, 19.3% for the year ended Decmber 31, 2009 and (8.3)% for the year ended December 31, 2008.

Page 13

Form: 8-K

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