May 22, 2012

May 22, 2012

Prudential Financial, Inc.

Investor Day

Exhibit 99.1

Forward-Looking Statements

Investor Day 5.22.2012

2

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. 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, value 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 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 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

Investor Day 5.22.2012

3

The information referred to above and on the prior page, as well as the risks of our businesses described in our Forms 10-K and 10-Q, should be considered by

readers when reviewing forward-looking statements contained in this presentation.

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

Businesses.  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.

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 Form

8-K filed on April 26, 2012, which provides supplementary financial information for historical periods reflecting the retrospective adoption of revised U.S. GAAP

accounting standards related to deferred policy acquisition costs, as well as our Forms 10-K and 10-Q, located on the Investor Relations website at

www.investor.prudential.com. 

Additional historical information relating to the Company’s financial performance is also located on the Investor Relations website.

John Strangfeld

John Strangfeld

Chairman and CEO

Chairman and CEO

Prudential Financial, Inc.

ROE Roadmap: 2011 –

2013

(1)

Investor Day 5.22.2012

2

2011

Reported

(2)

10.7%

11.2%

11.2%

2011

2011

Baseline

Baseline

Unusual/

Non-

Recurring

Items

(3)

0%

2%

4%

6%

8%

10%

12%

14%

16%

2013

2013

Target

Target

13-14%

CAPITAL DEPLOYMENT

CAPITAL DEPLOYMENT

BUSINESS ROE EXPANSION

•

Higher margins

•

Business growth

•

Star / Edison integration

1)

Financial Services Businesses.

2)

Reflects the adoption of amended accounting guidance for deferred policy acquisition costs effective January 1, 2012. Based on average attributed

equity excluding total accumulated other comprehensive income.

3)

Reflects market driven and other discrete items disclosed in our earnings press releases.

4)

Additionally assumes S&P 500 will be 1,395 at December 31, 2012; U.S. dollar at 80 Japanese yen and 1,150 Korean won in 2013, inclusive of hedging

programs; yen foreign exchange spot rates unchanged from March 31, 2012; yield curve based on four-week average ending April 9, 2012.

Business ROE Expansion: 2011 –

2013

(1)

Investor Day 5.22.2012

3

Highest

return

businesses

are

fastest

growing

1)

Business

unit

Return

on

Equity

(ROE)

are

unlevered

and

are

based

on

Financial

Services

Businesses

effective

tax

rate

applicable

to

adjusted

operating

income.

2)

Baseline

ROE

is

based

on

adjusted

operating

income,

excluding

market

driven

and

other

discrete

items

disclosed

in

our

earnings

press

releases.

2011 Baseline ROE

(2)

2013 ROE Potential

International

Insurance

~ 16%

~ 18% -

19%

Annuities,

Retirement &

Asset

Management

~ 13%

~ 14% -

15%

Individual Life &

Group Insurance

~ 14%

~ 11% -

12%

Invest in Businesses

Capital Deployment

Investor Day 5.22.2012

4

Return Capital to Shareholders

Organic growth

M&A based on opportunities

Share repurchases

Dividends

Prudential’s Investor Value Proposition

•

Attractive return opportunities in high quality businesses

•

Balanced portfolio of selected risks

•

Growth engines in International Insurance, U.S. Retirement and

Asset Management

•

Market leadership across multiple distribution channels

•

Capital management: balanced approach to investing in businesses,

returning capital to shareholders

•

Proven acquisition and integration track record

•

Seasoned management team

Investor Day 5.22.2012

5

Prudential Financial, Inc.

Capital and Business Mix

Mark Grier

Vice Chairman

Capital Deployment

“Then”

and “Now”

Circa 2008 -

2009

•

Defense

•

Offense

•

Support growth of high

return businesses

•

Return capital to

shareholders

•

Maintain sound capital

position consistent with

business risks

2

Investor Day 5.22.2012

2012

Strong Capital Position

1)

$ in billions.

2)

As reported on statutory basis.

3)

Reflects

targeted

statutory

ratios

in

domestic

and

international

regulated

entities

consistent

with

ratings

objectives.

About half readily

deployable

Investor Day 5.22.2012

3

12/31/2011

(1)

Prudential Insurance

Total Adjusted Capital

(2)

Reported Amount

$ 12

Amount consistent with 400% RBC

10

Excess

$   2

Other Capital Capacity, including Parent

Company and Operating Subsidiaries

(3)

$2.0 –

$2.5

Total Available On Balance Sheet Capital

$4.0 –

$4.5

4

Capital Management and Business Approach

Capital Management

Begins with

Selection of

Businesses

and Risks

•

High value-added

business models

•

Credible diversification

in mix of businesses

and risks

•

Consistent with

established strategies

•

Fit with proven execution

and risk management

capabilities

•

Contribution to

ROE prospects and

growth potential

Investor Day 5.22.2012

Superior Mix of High Quality Businesses

1)

Attributed equity of Financial Services Businesses as of March 31, 2012, excluding accumulated other comprehensive income; excludes Corporate and

Other operations.

5

Investor Day 5.22.2012

MARCH

31,

2012

ATTRIBUTED

EQUITY

$28.5

BILLION

(1)

Superior

Business

Mix

Drives

Growth

and

Return

Prospects

(1)

6

1)

For

illustrative

purposes

only;

not

intended

to

express

actual

growth

or

return

expectations

for

any

particular

periods.

Amounts

shown

(in

billions)

represent

attributed

equity

as

of

March

31,

2012.

2)

Adjusted

operating

income.

International

Insurance

Asset

Management

Individual

Annuities

Group

Insurance

Individual

Life

ROE Prospects

Retirement

High

Low

Medium

Expected AOI

(2)

Volatility

Investor Day 5.22.2012

Prudential’s Business Mix

7

Investor Day 5.22.2012

Prudential’s Business Mix

8

Investor Day 5.22.2012

Prudential’s Business Mix

9

Investor Day 5.22.2012

Prudential’s U.S. Businesses

Charles Lowrey

Executive Vice President and

Chief Operating Officer, U.S.

Prudential’s U.S. Businesses

2

U.S. Retirement Solutions and

Investment Management Division

Attributed Equity $12.6 billion

(1)

1)

As of March 31, 2012, excluding total accumulated other comprehensive income.

U.S. Individual Life and

Group Insurance Division

Attributed

Equity

$3.9

billion

(1)

Prudential

Retirement

Asset

Management

Individual

Annuities

Individual

Life

Group

Insurance

Investor Day 5.22.2012

Prudential’s U.S. Businesses

3

U.S. Retirement Solutions and

Investment Management Division

•

Strong growth prospects in U.S.

retirement market

•

Stable value products, wrap

guarantees and pension risk transfer

solutions address retirement

plan needs

•

Robust asset management skills

drive commercial success,

competitive advantage for

Prudential businesses

Investor Day 5.22.2012

U.S. Individual Life and

Group Insurance Division

•

Risk diversification; relatively limited

financial market sensitivity

•

Historically solid cash flows and

capital generation

U.S. Businesses

Broad Earnings Diversification by Product and Risk

4

2011 Earnings: $2.6 billion

(1)

Individual

Life

$482

Group

Insurance

$205

Asset

Management

$659

Retirement

$594

Individual

Annuities

$662

Investor Day 5.22.2012

1)

Pre-tax adjusted operating income for U.S. Retirement Solutions and Investment Management Division and U.S. Individual Life and Group

Insurance Division; segment results in millions.

U.S. Businesses: Annuities, Retirement and Asset Management

Positioned

for

Market

Developments

–

Retirement

Market

5

Market Developments

Market Developments

Prudential Positioning

Prudential Positioning

•

Retirement income security goals

challenged by financial market volatility,

interest rate environment

•

Variable annuity providers enter and exit

market and restructure products, seeking

to adapt to changing landscape

•

Popular “Highest Daily”

variable annuity

products offer retirement income security

supported by product-based risk

management, proven over 5+ year

track record

•

Pension plan sponsors face increasing

financial and regulatory challenges

•

Pension funds seek guarantees and asset

management expertise to support

benefit obligations

•

Ground-breaking defined benefit risk

transfer products offer innovative solutions

to pension plan sponsors based on

decades of Prudential experience

•

Investment Only Stable Value products

combine risk management backstop for

retirement benefit obligations with robust

asset management capabilities

Investor Day 5.22.2012

U.S. Businesses: Individual Life and Group Insurance

Positioned

for

Market

Developments

–

Protection

Market

6

Market Developments

Market Developments

Prudential Positioning

Prudential Positioning

•

Under-insured individuals seek

convenient access for life insurance

protection needs

•

Life insurance products demanded by

consumers require sophisticated risk

and capital management

•

Effective capital, risk and expense

management support competitively

priced term and universal life products

in individual market, offering attractive

value propositions to clients and

appropriate returns to Prudential

•

Economic conditions and rising health

care costs require employers to stretch

employee benefits dollars

•

“Voluntary”

group life products offer cost-

effective protection for employees through

worksite, while conserving employer’s

benefit dollars

Investor Day 5.22.2012

Prudential Annuities

•

Consistent approach to product design and

demonstrated commitment to advisor-sold market

provide strong competitive advantage

•

Proven, superior value proposition based on

“Highest Daily”

living benefits coupled with auto-

rebalancing tailored to each customer’s account

•

Solid performance of product-based risk

management features over history of 5+ years,

through financial crisis and beyond

•

Popularity and persistency of auto-rebalancing

products drive improving overall risk profile

•

Market leading positions across multiple

distribution channels

7

Investor Day 5.22.2012

$84.0

$106.2

$113.5

$0

$20

$40

$60

$80

$100

$120

Individual Annuities

Account Values, Sales and Flows

2009

2010

2011

Account Values

Sales and Flows

($ billions)

($ billions)

1)

As of end of period.

Investor Day 5.22.2012

8

$16.3

$21.8

$20.3

$9.1

$13.4

$11.7

$0

$5

$10

$15

$20

$25

2009

2010

2011

Gross Sales

Net Flows

(1)

Prudential Retirement

•

Full Service Stable Value products: solid value

proposition for pre-retirees; experience rating limits

risks; low contractual interest rate floors

•

Strong growth in Investment Only Stable Value

risk management/asset management solutions for

pension plan sponsors

•

Emerging Defined Benefit Risk Transfer market

offers attractive opportunities aligned with

Prudential expertise and balance sheet strength

9

Investor Day 5.22.2012

$178.3

$205.5

$229.5

$0

$50

$100

$150

$200

$250

Prudential Retirement

Account Values, Sales and Flows

10

2009

2010

2011

Account Values

Sales and Flows

($ billions)

($ billions)

1)

As of end of period.

Investor Day 5.22.2012

$31.0

$34.6

$44.6

$8.7

$10.8

$19.3

$0

$10

$20

$30

$40

$50

2009

2010

2011

Gross Deposits and Sales

Net Flows

(1)

Prudential Retirement

Sales and Flows

11

Full Service

Institutional

Investment

Products

($ billions)

($ billions)

$23.2

$19.3

$16.8

$8.8

$2.5

-$2.3

-$5

$0

$5

$10

$15

$20

$25

2009

2010

2011

$7.8

$15.3

$27.8

$0.0

$8.3

$21.6

$0

$10

$20

$30

2009

2010

2011

Gross Deposits and Sales

Net Flows

Investor Day 5.22.2012

Full Service Stable Value Products

•

Principal guarantee feature attractive to pre-retirees

•

Value proposition strengthened by low available interest rates on

alternatives for security-minded clients

•

Low risk profile: substantially all balances experience-rated, with clients

sharing investment risk

•

Rate resets semi-annually or annually on most products

•

Future crediting rates typically reflect prior experience

•

Low interest rate floors: about $31 billion has average of ~125 bps

contractual room to reduce rates, or zero crediting rate floors

1)

As of March 31, 2012.

Account Values: $41 billion

(1)

Investor Day 5.22.2012

12

Investment Only Stable Value Products

•

Prudential recordkeeping relationship not required; asset management

mandate required for at least 50% of each account

•

Prudential sets investment guidelines

•

Wrap guarantee of book value based on zero-percent crediting rate floor

•

Liquidity buffers help manage exposure to asset liquidations driven by

participant level withdrawals

•

Plan level withdrawals at market value, or at book value over 3-9

year period

•

Re-pricing generally permitted at one-year intervals without limitations

•

Attractive returns

1)

As of March 31, 2012.

Account Values: $45 billion

(1)

Investor Day 5.22.2012

13

Defined Benefit Risk Transfer

An Emerging Opportunity

•

Large potential market: $2.2 trillion private sector defined benefit plan

assets

(1)

; few companies equipped to offer solutions

•

Actuarially-driven long-term risks; relatively limited exposure to financial

markets volatility

•

Products draw on Prudential skill sets with successful track record of

more than 80 years in managing pension risks

•

Strong track record in defined benefit risk transfer

•

Longevity risk is a natural hedge to life insurance mortality risk

14

1)

As of December 31, 2010; Source: Investment Company Institute.

Investor Day 5.22.2012

Prudential Retirement

Flexible, Innovative Risk Transfer Strategies

15

2011 Gross Sales

Over $2 billion,

including U.S. market’s

first pension plan

“Buy-In”

and several

longevity reinsurance

transactions

Traditional

Pension

Plan

“Buy-Out”

Plan sponsor completely transfers pension

plan risk to Prudential through general

account products

Portfolio Protected “Buy-In”

Plan holds specially designed Prudential

annuity as asset, transferring risk without

triggering settlement

Portfolio

Protected

“Buy-Out”

Combines strength of Prudential guarantee with

insulated separate account portfolio

Longevity Reinsurance

Prudential assumes risk of greater than

expected longevity, allowing plan sponsor

contribution certainty

Investor Day 5.22.2012

Asset Management

•

Leading third party asset manager

•

Robust institutional and retail businesses attract and retain talented

investment professionals

•

Growing base of AUM driven revenues

•

Limited capital requirements; sustainable high ROE

•

Competitive

advantage

for

Prudential

businesses;

seasoned

skills

in

multiple asset classes support attractive general account investments

and funds managed for clients

16

Investor Day 5.22.2012

Prudential Asset Management

Competitive Advantages

17

1)

As of March 31, 2012; AUM excludes affiliated institutional and retail assets under management.

2)

As of December 31, 2011.

Third Party Clients

$320 billion

third party AUM

(1)

12% AUM CAGR

(2006 –

2011)

Manager Continuity

(2)

219 portfolio

managers

Average tenure

14 years

Investor Day 5.22.2012

Experience and

Track Record

Breadth and Depth

of Capabilities

Access to Capital

and Co-investing

Brand and

Reputation

Scale

Asset Management

An Integral Business

18

AUM by Asset Type

AUM by Client Type

1)

As of March 31, 2012.

Total AUM $637 billion

(1)

Investor Day 5.22.2012

Strong Asset Management Net Flows

(1)

19

1)

Third party, excluding money market activity.

($ billions)

Investor Day 5.22.2012

$0

$100

$200

$300

$400

$500

$600

$700

2009

2010

2011

Fixed Income

Equity

Real Estate

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2009

2010

2011

AUM Growth Driving Asset Management Fees

20

1)

As of end of period.

($ billions)

($ millions)

$1,049

$1,273

$1,467

$457

$537

$619

Assets

Under

Management

by

Asset

Class

Asset

Management

Fees

by Asset Class

Investor Day 5.22.2012

(1)

Building Sustainable Asset Management Revenues

(1)

21

Asset Management Fees

ITSICM

2007

$1.6 billion

(2)

2011

$1.8 billion

1)

Asset management fees and incentive, transaction, strategic investing and commercial mortgage (ITSICM) revenues.

2)

As originally reported.

Investor Day 5.22.2012

•

Growth in

asset

management

fees

•

Reduced strategic

investing exposure

•

Exited commercial

mortgage

securitization

conduit

Group Insurance

•

Emphasis on group life insurance: approximately 75% of business

in force

(1)

•

Experience-rated larger-case business: pricing reflects experience

over time

•

Relatively short pricing cycle for smaller cases not subject to

retrospective experience rating

•

Focus on appropriate returns; actively repricing group disability products

•

“Voluntary”

business offers opportunity for low cost workplace delivery

of life insurance protection products

•

Manage business for stable earnings and strong cash flows

22

Investor Day 5.22.2012

1)

Based

on

earned

premiums,

policy

charges

and

fee

income

for

year

ended

December

31,

2011.

$0

$100

$200

$300

$400

$500

$600

$700

2009

2010

2011

Voluntary Group Life

Basic Group Life

Group Disability

Group Insurance

23

($ millions)

$577

$607

$690

Investor Day 5.22.2012

Annualized New Business Premiums

Individual Life

•

Focus on returns through capital management, cost effective distribution

•

Complementary products and distribution channels

•

Quality business: pricing and underwriting discipline

•

Product mix limits overall interest rate and equity market sensitivity

•

Historically solid cash flows, capital generation and ROE

24

Investor Day 5.22.2012

$0

$100

$200

$300

$400

$500

$600

$700

2009

2010

2011

$0

$50

$100

$150

$200

$250

$300

$350

$400

2009

2010

2011

Term Life

Universal Life

Variable Life

Individual Life

Building Quality Business

25

($ millions)

($ billions)

Annualized

New Business

Premiums

(1)

Face Amount

In Force

(2)

1)

Excludes corporate-owned life insurance.

2)

As of end of period; before reinsurance ceded.

$359

$260

$278

$589

$613

$631

Investor Day 5.22.2012

Key Takeaways

•

Strong growth prospects in U.S. retirement market

•

Popular “Highest Daily”

variable annuity products offer superior value

proposition supported by proven product-based risk management

•

Investment Only Stable Value products offer compelling risk management /

asset management solutions for pension plan sponsors

•

Emerging Defined Benefit Risk Transfer market offers attractive

opportunities aligned with Prudential expertise and balance sheet strength

•

Robust asset management skills drive commercial success, competitive

advantage for Prudential businesses

•

Individual Life and Group Insurance protection businesses provide risk

diversification, historically solid cash flows and capital generation; focusing

on appropriate returns

26

Investor Day 5.22.2012

Prudential Annuities

Robert O’Donnell

President

Prudential Annuities

Strong Position in an Attractive Market

•

Superior value proposition for retirement

income security

•

Consistency of approach, demonstrated

commitment to market, brand and reputation

are competitive advantages

•

Risk management by design: contract level

auto-rebalancing proven over track record of

more than five years

•

Favorable demographics offer continuing

growth opportunity

•

Growing base of business with favorable return

prospects, improving risk profile

Investor Day 5.22.2012

2

Investor Day 5.22.2012

Market Developments –

Client Perspective

Today’s Variable Annuity Market

Today’s Variable Annuity Market

Prudential Positioning

Prudential Positioning

•

Reduced availability of defined benefit

retirement plans and increasing retirement

lifespans strengthen client demand for

income clients can’t outlive

•

Financial crisis experience, volatile

markets, and alarming headlines drive

heightened client perception of risks in

retirement investing

•

Available yields on “safe”

investments at

historical low, rendering conservative

retirement savings strategies inadequate

to support income replacement needs

in retirement

•

Highest Daily living benefit features help

increase retirement income base, protect

it from market downturns, and guarantee

retirement income to last a lifetime

•

Prudential’s product-based risk

management allows client access to

market growth opportunities with

downside protection peace of mind

•

Rigorous investment oversight supported

by extensive experience comes with

every Prudential variable annuity

Investor Day 5.22.2012

3

Investor Day 5.22.2012

Market Developments –

Distributor Perspective

Today’s Variable Annuity Market

Today’s Variable Annuity Market

Prudential Positioning

Prudential Positioning

•

Market entries, exits and re-entries by

variable annuity writers create challenges

for distributors and raise questions on

market commitment

•

Changing key product features require

substantial training efforts and adaptation

of sales story by financial advisors

•

Recent approaches for risk sharing with

clients untested through market cycles

•

Recent market risk management

approaches require highly restricted fund

selections, limiting advisors’

latitude in

recommending investment choices

•

Prudential’s Highest Daily product suite

forms basis of consistent approach to

advisor-sold variable annuity market

since 2006

•

Product-based risk management with

auto-rebalancing tailored to each client’s

account, proven over track record of

more than five years through financial

crisis and beyond

•

Contract-level auto rebalancing allows

Prudential to offer a wide range of

investment choices within asset

allocation programs

Investor Day 5.22.2012

4

Investor Day 5.22.2012

FY 2011 Variable Annuity

Assets

Under

Management

($ millions)

FY 2011 Advisor-Sold

Variable

Annuity

Sales

1)

Source: VARDS  Q4’11. Advisor-sold, excludes group/retirement plan contracts. Assets under management as of year end.

Prudential Annuities

2011 Asset and Sales Rankings

Investor Day 5.22.2012

5

$43,362

$48,123

$50,861

$59,902

$61,484

$65,217

$66,471

$68,725

$108,936

$126,164

Nationwide

Pacific Life

John

Hancock

AXA

Ameriprise

Jackson

Lincoln

Hartford

Prudential

MetLife

$3,318

$3,792

$4,478

$5,407

$6,395

$7,636

$8,692

$17,494

$20,236

$28,262

Pacific Life

Allianz

AXA

AEGON

Ameriprise

Nationwide

Lincoln

Jackson

Prudential

MetLife

1

1

Building Multi-Channel Distribution Strength

Investor Day 5.22.2012

6

Prudential Individual Annuity Gross Sales

(1)

1)

In millions; includes variable and fixed annuities.

2008

2008

$10,329

$10,329

2011

2011

$20,293

$20,293

Investor Day 5.22.2012

2010

2010

$21,754

$21,754

Independent

57%

Wirehouse

12%

Bank

7%

Insurance

Agents

24%

Independent

49%

Wirehouse

21%

Bank

17%

Insurance

Agents

13%

Independent

45%

Wirehouse

22%

Bank

17%

Insurance

Agents

16%

Differentiated Value Proposition

The

Highest

Daily

Lock-In

–

Protected

Value

Investor Day 5.22.2012

Hypothetical for illustrative purposes only.

5

7

Investor Day 5.22.2012

Hypothetical for illustrative purposes only.

Protected Withdrawal Value –

notional amount for calculation of

lifetime annual withdrawals

What are the chances

of an annual lock-in

capturing the

best day?

1%

What are the chances

of a daily lock-in

capturing the

best day?

100%

What are the chances

of a quarterly lock-in

capturing the

best day?

4%

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

investment. The account value has no guarantees, may fluctuate, can lose value, and is separate from the Protected Withdrawal

Value.

Source:

Standard

&

Poor’s,

Barclays

Capital.

For

the

period

from

January

3,

1989

through

March

31,

2011.

Represents the percentage of rolling ten-year periods where each step-up frequency captured the highest market

point in that ten-year period (2,286 periods total). Assumes an 80% allocation to U.S. equities and 20% allocation to

U.S. bonds. All figures are rounded to the nearest percentage. Past performance is not a guarantee of future results.

Account Value

Differentiated Value Proposition

Contract Level Auto-Rebalancing

Recent Market Approaches

Recent Market Approaches

for Client Risk Sharing

for Client Risk Sharing

Prudential Auto-Rebalancing

Prudential Auto-Rebalancing

•

Fund-based approaches typically limit

investment choices to designated funds

•

Broad client group may be affected by

general fund level reallocations under

approaches not tailored to individual

contracts

•

New clients may encounter funds highly

weighted to fixed income due to earlier

market downturns

•

Most product-based risk management

strategies are recently introduced

•

Powerful algorithm mitigates risk by

protecting client account values in

market downturns

•

Algorithm specified in contract, providing

transparency for clients

•

Contract level approach tailored to each

client’s account value and guarantee

profile allows Prudential to offer a wide

range of investment choices

•

Proven track record of protecting

account values and returning funds to

client-selected investments when

appropriate, allowing participation

in market growth

Investor Day 5.22.2012

8

Investor Day 5.22.2012

$0

$50,000

$100,000

$150,000

$200,000

$250,000

0

60

120

Protected Withdrawal Value

Total Account Value

Bond Fund Value

Account Value and

“Protected Withdrawal Value”

Investor Day 5.22.2012

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.

“PWV”: notional amount

for calculation of

lifetime annual withdrawals

Year

0

6

12

Account

value

available to

customer

Market Downturn Scenario

(1)

(“PWV”) 

9

Investor Day 5.22.2012

Auto-Rebalancing

Preserving Account Values to Fund Retirement Income

Investor Day 5.22.2012

10

Market Downturn Scenario

Market Downturn Scenario

(1)

(1)

Income

Without Auto-Rebalancing

= Payments Funded by Customer Account Value

= Payments Funded by Prudential guarantee

Investor Day 5.22.2012

Income

With Auto-Rebalancing

Account Value

81

82+

80

79

78

72

77

76

75

74

73

81

82+

80

79

78

72

77

76

75

74

73

AGE

60

AGE

60

$100,000

Account Value

$100,000

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.

Auto-Rebalancing

Proven Through Financial Market Crisis…

and Beyond

Investor Day 5.22.2012

11

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.

Investor Day 5.22.2012

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Account Value

Protected

Withdrawal Value

+38%

HD7 Account

Value +23%

S&P 500 +4%

(1)

% of HD

Account Value

Invested in

Customer-

Selected Funds

Account Value

w/o Auto-

Rebalancing 0%

1,258

1,326

1,321

1,131

1,258

1,408

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

Auto-Rebalancing Fixed Income Investments

Client-Selected Investments

S&P 500

Auto-Rebalancing

Protecting from Market Downturns –

Returning Funds for Growth

Investor Day 5.22.2012

12

Accounts with Auto-Rebalancing

(1)

$57,336

$64,786

$68,273

$64,769

$70,341

$78,622

($ millions)

1)

As of end of period.

Investor Day 5.22.2012

Variable Annuity Account Values

Balanced Market Exposure Mitigates Risk

Investor Day 5.22.2012

13

December 31, 2010

$102 billion

December 31, 2011

$110 billion

Equity Funds –

Client selected

Bond

Funds

and

Fixed

Income

Investments

–

Client

selected

Auto-rebalancing Fixed Income Investments

Other –

Client selected

Average

Duration

approximately

6 years

Investor Day 5.22.2012

Retirement Income Security

A Continuing Market Opportunity

Investor Day 5.22.2012

14

Profile of a Typical Prudential

“HD”

Variable Annuity Purchaser

(1)

•

Average age at purchase: 60

•

Average ticket size: $102,000

•

Median

net

worth

(excluding

primary

residence):

$350,000

(2)

•

Objective: lifetime retirement income

•

77

million

baby

boomers

born

1946

–

1964

(3)

•

Over

12,500

Americans

turn

50

every

day

(3)

•

Adults

50

and

older

own

65%

of

the

aggregate

net

worth

of

all

U.S.

households

(3)

1)

For the three months ended March 31, 2012.

2)

Source: LIMRA, May 2012.

3)

Source: U.S. census; U.S. consumer expenditure survey.

Investor Day 5.22.2012

Innovation Culture

Captures Market Opportunities

•

Partnered with Edward Jones to create the O Share variable annuity

•

O share evolves the A share business model and complements our HD

living benefit

(1)

•

Levelized recovery of policy acquisition costs results in less market sensitive

fee base

•

First to bring this product design to market in May 2011 and have since seen

broad adoption within the Edward Jones distribution network

Investor Day 5.22.2012

15

Investor Day 5.22.2012

1)

An A Share class variable annuity carries a front end charge whereas an O Share class variable annuity has an annual premium-based charge.

O

NGOING

EVALUATION

OF

OPPORTUNITIES

TO

EXPAND

RETIREMENT

INCOME

SECURITY

$9.7

$11.8

$10.3

$16.3

$21.8

$20.3

$0.6

$0.6

$0.8

$9.1

$13.4

$11.7

$0

$5

$10

$15

$20

$25

2006

2007

2008

2009

2010

2011

Gross Sales

Net Flows

Value Proposition, Distribution Strength and

Market Commitment Drive Sales and Flows

Investor Day 5.22.2012

16

$78.3

$83.8

$63.3

$84.0

$106.2

$113.5

$0

$20

$40

$60

$80

$100

$120

2006

2007

2008

2009

2010

2011

($ billions)

Account Values

(1)

1)

As of end of period.

Investor Day 5.22.2012

($ billions)

Sales and Flows

HD Lifetime Products introduced November 2006

Improving Risk Profile

Investor Day 5.22.2012

17

14

The accelerated growth in our overall block has increased the percentage of account values with

auto-rebalancing, which will continue to improve the level and volatility of returns. 

1)

As of end of period.

Investor Day 5.22.2012

Well Positioned to Retain

Auto-Rebalancing Business In-Force

Investor Day 5.22.2012

Surrender Charge

Less Than 1%

1% to 3%

Over 3%

Living Benefits With

Auto-Rebalancing

$71 B

8%

2%

90%

Living Benefits Without 

Auto-Rebalancing

$15 B

47%

9%

44%

No Living Benefits

$24 B

70%

8%

22%

Total

$110 B

27%

4%

69%

Surrender Charges Applicable to Account Values

Surrender Charges Applicable to Account Values

(1)

(1)

1)

For Variable Annuities; surrender charges as percentage of variable annuity account values; as of December 31, 2011.

Average

surrender

charge

6.9%

18

Investor Day 5.22.2012

Growing Base of Profitable Business

Drives Underlying Earnings Growth

Individual Annuities

2009

2010

2011

End of period account values

$83,971

$106,185

$113,535

Pre-tax adjusted operating income

$672

$950

$662

Market

performance

unlocking

(1)

319

101

(280)

Assumption

unlocking

(1)

(48)

167

24

Actual

experience

true-up

(1)

88

68

34

Reinsurance

reserve

adjustment

(2)

0

25

0

Pre-tax AOI, excluding disclosed

items indicated above

$313

$589

$884

“ROA”:  Pretax AOI, excluding disclosed

items indicated above, as percentage of

average account values

0.44%

0.63%

0.79%

Investor Day 5.22.2012

1)

Includes benefits (charges) from change in amortization of DAC and related items and GMDB / GMIB reserve provisions due to market performance, actual-to-

expected result differences, and changes in assumptions used to project gross profits and claims.

2)

Based on review and settlement of reinsurance contracts related to acquired business.

19

Investor Day 5.22.2012

Key Takeaways

•

Market leadership driven by superior value proposition

•

Consistent approach and market commitment drive competitive

advantage in distribution

•

Product-based risk management based on auto-rebalancing

proven over track record of more than five years

•

Growing base of business with favorable return prospects and

improving risk profile

•

Commitment to sustainable, profitable growth

20

Investor Day 5.22.2012

Prudential International Insurance

Edward Baird

Executive Vice President and

Chief Operating Officer, International

2

Our Historical Strategy and

Business Model…

…Is the Foundation For Our

Evolving Strategy

Investor Day 5.22.2012

The Evolution of our International Strategy

•

Concentrate on a limited number of

attractive countries

•

Target the affluent and mass-

affluent consumer

•

Needs-based selling

•

Proprietary distribution based on

selective recruiting, professional

training, performance-based

variable compensation

•

Historical focus on death

protection insurance

•

Concentrate on a limited number of

attractive countries

•

Expand the breadth and depth of

our capabilities in those countries

-

Target middle to mass-affluent

consumer and small/medium

business market

-

Diversify distribution and products to

meet additional customer needs

•

Maintain our proven discipline,

quality, and execution in all markets,

channels, products, and customer

relationships

3

Investment Margin

Mortality Margin

and Expense &

Other Margin

Sustained Earnings Growth Through

Challenging Markets and Events

Pre-Tax Adjusted Operating Income

Pre-Tax Adjusted Operating Income

(1)

(1)

Investor Day 5.22.2012

($ millions)

2008

2009

2010

2011

$1,581

$1,651

$1,887

$2,263

Earnings are

primarily the result

of stable drivers

1)

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

previously included in the International Investments segment and currently included within “Gibraltar Life and Other Operations” for financial reporting purposes, 

with pre-tax adjusted operating income (loss) of $(412) million, $25 million, $28 million  and $120 million in 2008, 2009, 2010, and 2011, respectively. 

2)

CAGR based on 2008 – 2011.

4

High Return on Equity Driven by Fundamentals

22.2%

17.5%

2010

2011

Return on Equity

Return on Equity

(1)

(1)

Investor Day 5.22.2012

Reflects

Star / Edison

before

expense

synergies

1)

Based on after-tax adjusted operating income of our International Insurance operations excluding the results of our International Investments

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

financial reporting purposes, using overall effective tax rate for the Financial Services Businesses and associated attributed equity. Excludes

transaction and integration costs relating to the Star / Edison acquisition in 2011 of $213 million.

5

Star / Edison

Excluding       

Star / Edison

Sustained Business Momentum

Through Financial Crisis and Beyond

1)

Foreign

denominated

activity

translated

to

U.S.

dollars

at

uniform

exchange

rates

for

all

periods

presented;

Japanese

yen

85

per

U.S.

dollar;

Korean

won

1,180

per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.  2011 includes contribution of sales by Star / Edison

distribution channels, totaling $728 million.

2)

CAGR based on 2007 –

2011, excluding Star / Edison contribution.

Annualized New Business Premiums

Annualized New Business Premiums

(1)

(1)

Investor Day 5.22.2012

($ millions)

2007

2008

2009

2010

2011

$3,040

$1,870

$1,495

$1,345

$1,293

$2,312

6

Japan: Track Record of Success

1)

Excludes corporate management and development expenses incurred in the U.S. related to Japanese Insurance operations other than Gibraltar Life. Excludes

results of International Investments businesses previously included in International Investments segment and transaction and integration costs relating to the

Star / Edison acquisition in 2011 of $213 million.

2)

Foreign

denominated

activity

translated

to

U.S.

dollars

at

uniform

exchange

rates

for

all

periods

presented;

Japanese

yen

85

per

U.S.

dollar.

Pre-Tax Adjusted

Operating

Income

($ millions)

Annualized New

Business

Premiums

($ millions)

Investor Day 5.22.2012

$1,497

$1,724

$2,321

2009

2010

2011

+15%

+35%

$1,224

$1,600

$2,724

2009

2010

2011

+31%

+70%

(1)

(2)

7

Japan: Substantial Growth Opportunities

in an Attractive Market

Source: Swiss Re –

statistical appendix, January 2012; based on 2010 life insurance premiums.

Based on December 31, 2011 data; Sources: Federal Reserve, Bank of Japan, U.S. Census Bureau, Oanda.

Investor Day 5.22.2012

Investable

Asset Pool

Market Size

Household

Wealth

Retirement

Market

Product

Trend

Distribution

Trend

•

World’s second largest life insurance market:

Life premiums $448 billion

(1)

•

Household sector wealth $19.3 trillion, similar to

U.S. on per-capita basis

(2)

•

$10.9 trillion household pool of currency and deposits

is world’s largest, ~50% higher than U.S.

(2)

•

Expanding retirement market driven by aging population, increased

emphasis on individual responsibility for financial security

•

Customers prefer insurance products to equities, for savings

and investments

•

Growing distribution opportunities include banks and independent

distributors

1)

2)

8

World’s Largest Life Insurance Markets

2010 Life Insurance Premiums

2010 Life Insurance Premiums

(1)

(1)

($ billions)

Investor Day 5.22.2012

507

448

410

201

193

122

United

States

Japan

Overall

Asian Market

excluding

Japan

United

Kingdom

France

Italy

1)

Source: Swiss Re – statistical appendix, January 2012.

9

Japan has the Largest Pool of Household Assets

in Currency and Deposits

Investor Day 5.22.2012

Source:

Federal

Reserve,

Bank

of

Japan,

Eurostat,

Central

Bureau

of

Statistics

of

China,

OECD,

U.S.

Census

Bureau,

Oanda. 

Japan and U.S. data as of 12/31/2011; China as of 9/30/2009; other markets as of 12/31/2009.

Financial Assets in Household Sector

($ trillions)

10.9

7.1

10.5

4.4

2.6

1.9

1.6

0.8

Japan

U.S.

China

Germany

U.K.

France

China

Germany

U.K.

France

Korea

7.1

10.9

42.0

8.4

6.7

6.7

6.0

5.5

1.7

United

States

Japan

Germany

U.K.

China

France

Korea

Total

All others

Currency & deposits

49.1

19.3

Financial Assets in Currency & Deposits

Financial Assets in Currency & Deposits

($ trillions)

10

Household Sector Financial Assets –

Japan and the United States

Investor Day 5.22.2012

Financial Assets of the Household Sector

Japan

$19.3 Trillion

United States

$49.1 Trillion

Source: Bank of Japan (data as of December 31, 2011).

Japan data translated to U.S. dollars at Japanese yen 77 per U.S. dollar (FX rate as of December 31, 2011).

Currency and

Deposits

57%

Bonds

2%

Investments

Trusts

3%

Shares and

Equities

6%

Insurance

and Pension

Reserves

28%

Other

4%

Currency and

Deposits

14%

Bonds

10%

Investment

Trusts

12%

Shares and

Equities

31%

Insurance

and Pension

Reserves

29%

Other

4%

11

Star / Edison Acquisition

Enhances Client Base and Distribution in Japan

Acquisition adds 3.5 million in-force policies, bringing the total to more than 10 million

Enhances distribution through captive agents, bank relationships, and independent agencies

Strengthens capital generation and cash flow potential

1)

In thousands; direct business only; includes annuities.

2)

Prudential of Japan (“POJ”).

Number of

Policies In-force

(1)

Number of

Captive Agents

Number of

Bank Relationships

Investor Day 5.22.2012

Star / Edison

Gibraltar / POJ

(2)

,

excluding

Star / Edison

prior to merger

6,452

10,155

12/31/10

12/31/11

10,178

3/31/12

12/31/10

12/31/11

3/31/12

9,403

15,928

15,384

31

12/31/10

12/31/11

3/31/12

98

58

12

Star / Edison Integration On Track

•

Business integration proceeding on schedule

•

Successful merger of Star and Edison into Gibraltar in January 2012,

a major milestone

•

Systems integration well underway

•

“Prudentializing”

sales force: implementing training programs, variable

compensation and productivity requirements

•

Integrated product portfolio

•

Adaptation of acquired investment portfolio to Prudential risk management

standards essentially complete

•

Expect approximately $500 million pre-tax integration costs

over 5 year period, including approximately $175 million

incurred in 2011 and roughly $200 million expected in 2012

•

Targeting annual cost savings of $250 million, with about

65% realized by 2012, 80% by 2013

Investor Day 5.22.2012

13

1.  Dai-ichi

13.3%

1.  Nippon

12.7%

2.  Sumitomo

11.1%

2.  Dai-ichi

10.9%

3.  Nippon

9.7%

3. Prudential

10.4%

4.  T&D Financial

9.3%

4.  T&D Financial

10.3%

5.  AIG Group

7.8%

5.  Meiji-Yasuda

9.6%

6.

Prudential

7.3%

6.  Sony

6.5%

7.  Meiji-Yasuda

6.7%

7.  Sumitomo

6.1%

8.  Sony

5.7%

8.  MetLife Alico

5.5%

9.  Millea

3.9%

9.  NKSJ

4.6%

10.

Fukoku

3.5%

10.  MS & AD Group

3.8%

Overall Position –

New

Business

(Face

Amount)

(1)

Market Share Improvement of 3.1 Percentage Points

Market Share Improvement of 3.1 Percentage Points

Investor Day 5.22.2012

4 Years Ago

FY 2007

Share

Nine Months ended

December 31,  2011

Share

1)

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

December 31, 2011 and fiscal year ended March 31, 2008. 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, 2011 includes Star / Edison, which

contributed 2.3% of share.

14

Prudential Sales in Japan

Compared to U.S. Life Insurance Companies

1)

Source:  LIMRA U.S. individual life insurance sales except Prudential International Insurance (“PII”) data; life sales only, annuities excluded; Prudential

foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 85 per U.S. dollar.

2011 Annualized New Business Premiums

(1)

Investor Day 5.22.2012

($ millions)

$-

$500

$1,000

$1,500

$2,000

$2,500

PII Japan

Total of 4

Largest U.S.

Companies

Northwestern

Mutual

New York Life

MetLife

Lincoln National

15

Solvency Margins Position Prudential’s Japanese Companies

As Well Capitalized and Financially Secure

Investor Day 5.22.2012

1)

Based on Japanese statutory accounting and risk measurement standards applicable to regulatory filings for fiscal year ended March 31, 2012.

2)

Reflects inclusion of Star and Edison entities which were merged into Gibraltar Life effective January 1, 2012.

Prudential of Japan

Over 700%

Over 700%

Gibraltar Life

(2)

as of March 31, 2012

(1)

“New Method”

Estimated Solvency Margins

16

New Business Product Trend

Driven by Evolving Financial Security Needs

Annualized New Business Premiums

(1)

1)

Foreign

denominated

activity

translated

to

U.S.

dollars

at

uniform

exchange

rates

for

all

periods

presented;

85

Japanese

yen

per

U.S.

dollar;

1,180

Korean

won

per

U.S.

dollar.

($ millions)

Investor Day 5.22.2012

2007

2008

2009

2010

2011

Annuity

Retirement

Accident & Health

Death Protection

$1,293

$1,345

$1,495

$1,870

$3,040

1Q11

1Q12

$660

$819

17

Needs-Based Selling over a Lifetime

Client Life Cycle

Client Life Cycle

Financial Risk

Financial Risk

Protection Needs

Protection Needs

Prudential

Prudential

Solutions

Solutions

Young household,

early professional

career

Mid career,

pre-retirement

Retirement

Premature death

income replacement

Income loss and expenses

due to accident or sickness

Accumulation of funds

for retirement

Lifetime retirement income

Term insurance

Accident and health

policies and riders

Whole life insurance

Fixed annuities

Life insurance based

retirement income

products

Investor Day 5.22.2012

18

41

43

44

48

55

3

4

4

4

5

57

58

68

69

84

1

3

7

6

2007

2008

2009

2010

2011

Annuity

Retirement

Accident & Health

Death Protection

Current Customers are Excellent Prospects

for Additional Coverages to Meet Needs

Annualized New Business Premiums

Annualized New Business Premiums

(1)

(1)

Second Sales to Existing Customers

Second Sales to Existing Customers

Investor Day 5.22.2012

($ millions)

1)

Data based on Prudential of Japan; individual market only; foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 85 per

U.S. dollar.

102

105

119

128

150

19

Protecting Financial Security For a Lifetime

Aging population leads to demand for larger policy size

Aging population leads to demand for larger policy size

1)

Based on average annual premium for Prudential of Japan individual life and annuity policies newly issued during 2011; foreign-denominated activity

translated to U.S. dollars at uniform exchange rates, Japanese yen 85 per U.S. dollar.

Investor Day 5.22.2012

20

Growing Retirement Market Complements

Substantial Premature Death Protection Market

Investor Day 5.22.2012

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

55%

43%

33%

23%

18%

14%

17%

13%

12%

10%

11%

15%

16%

15%

11%

9%

10%

14%

12%

14%

6%

8%

12%

15%

15%

5%

7%

12%

23%

32%

1950

1970

1990

2010

2030

65+

55-64

45-54

35-44

25-34

0-24

Population (millions)

89

105

124

128

115

+16

+19

+4

-13

Japan Demographic Trend

21

Well Diversified Products Meeting Evolving Client Needs

1)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 85 per U.S. dollar.

Investor Day 5.22.2012

$1,725

$1,939

$3,547

$4,503

Accident &

Health

Death

Protection

Annuity

Retirement

19%

19%

41%

41%

12%

12%

28%

28%

($ millions)

2011

Annualized

New Business

Premiums by

Product

= $1,709 million

100%

100%

($ whole amount)

Average

Premium per

New Policy by

Product

Overall

Average

Premium = $2,387

Japanese Life Planner/Life Consultant Sales

(1)

(1)

$330

$703

$198

$478

Accident &

Health

Death

Protection

Annuity

Retirement

22

International Insurance

Growing Sales Throughout Multiple Channels

1)

Foreign

denominated

activity

translated

to

U.S.

dollars

at

uniform

exchange

rates

for

all

periods

presented;

Japanese

yen

85

per

U.S.

dollar;

Korean

won

1,180 per U.S. dollar.

($ millions)

Annualized New Business Premiums

(1)

$ 1,293

$ 1,345

$ 1,495

$ 1,870

$ 3,040

Investor Day 5.22.2012

2007

2008

2009

2010

2011

Independent Agency

Bank Channel

Life Consultants

Life Planners

23

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

Investor Day 5.22.2012

24

Teachers Association

Core Relationship Contributes to Life Consultant Distribution

•

Relationship since 1952

•

Approximately 600,000 members

(1)

•

Access to approximately 950,000 teachers and school personnel through 47

prefectural

(local)

associations

and

36,000

schools

(1)

•

Annualized

new

business

premiums

in

2011,

$209

million

(2)

Japanese Educational Mutual Aid

Japanese Educational Mutual Aid

Association of Welfare Foundation

Association of Welfare Foundation

(Teachers Association)

(Teachers Association)

1)

As of March 31, 2012.

2)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 85 per U.S. dollar.

Investor Day 5.22.2012

25

Teachers Association: Perennial Sales Opportunities

1)

Numbers approximate as of March 31, 2012.

Active Market

Active Market

Retiree Market

Retiree Market

Investor Day 5.22.2012

Gibraltar

Policyholders

26

Bancassurance Powered by Prudential

Investor Day 5.22.2012

Typical Bank Channel Approach

in Japanese Market

Prudential’s Distinctive

Bank Channel Strategy

1)

At certain banks.

•

Foreign carriers drove high bank

channel sales through aggressive

variable annuity strategies

•

Value propositions dependent on

market performance

•

Focus on underserved death

protection needs and

complementary products

with favorable margins and

risk profiles

•

Insurance education and training

backed by proven distribution

model

•

Access to expertise of

“seconded”

former Prudential of

Japan Life Planners

(1)

•

Expand successful model to

other banks including regionals

27

Bank Channel Sales Growth

Driven By Protection Products

1)

Foreign

denominated

activity

translated

to

U.S.

dollars

at

uniform

exchange

rates

for

all

periods

presented;

Japanese

yen

85

per

U.S.

dollar.

Annualized New Business Premiums

(1)

($ millions)

Investor Day 5.22.2012

2007

2008

2009

2010

2011

$56

$22

$137

$336

$580

Annuity

Retirement

Accident & Health

Death Protection

1Q11

1Q12

$132

$182

28

Bancassurance Enhances Access to

Substantial Japanese Household Investable Wealth

Prudential policies typically purchased in bank channel

•

Limited-pay

whole

life

(2)

•

Retirement income

•

U.S. dollar and other non-yen

fixed annuities

Average

premium

per

policy

from

bank

channel

sales

(3)

$8,500

Former

Life

Planners

“seconded”

to

selected

banks

(4)

180

Investor Day 5.22.2012

1)

Based on December 31, 2011 data; source: Bank of Japan.

2)

Primarily 3- and 5- year payment contracts, and single premium contracts.

3)

For the year ended December 31, 2011; based on annualized new business premiums; foreign denominated activity translated to U.S. dollars at uniform

exchange rates; Japanese yen 85 per U.S. dollar.

4)

Active as of March 31, 2012.

29

Bank Channel

Building Relationships for Continued Growth

•

Total of 58 bank sales relationships established,

including three of Japan’s four largest banks

•

Active relationships offer approximately

6,000+ potential points of sale

(3)

covering the

majority of the Japanese prefectures

1)

As of December 31, 2009.

2)

As of March 31, 2012.

3)

Potential

points

of

sale

represent

an

aggregated

total

number

of

branches

of

the

bank

partners

as

of

March

2011.

2009

(1)

2012

(2)

Investor Day 5.22.2012

•

Sales through 25 banks, primarily

fixed annuities

30

Independent Agency Channel

•

Commenced distribution of selected products in 2010; contributed

$435 million

(1)

to annualized new business premiums for 2011 including

$298 million from Star / Edison distribution

•

Star / Edison acquisition provided over 4,000 independent

agent

relationships

(2)

•

Broadens geographical coverage, enhances access to attractive

markets including small businesses

Investor Day 5.22.2012

1)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 85 per U.S. dollar.

2)

Approximately 3,500 independent agency relationships as of March 31, 2012.

31

Key Takeaways

•

Solid business model with sustained track record of success

•

High ROE, strong AOI growth, low volatility:  returns and earnings

primarily the result of stable drivers

•

Leading position in attractive Japanese market, strengthened by

Star / Edison acquisition

•

Competitive advantages in distribution, coupled with financial strength

and reputation, driving growth across multiple channels

•

Strong growth prospects enhanced by product portfolio serving lifetime

financial security needs

Investor Day 5.22.2012

John Strangfeld

John Strangfeld

Chairman and CEO

Chairman and CEO

Prudential Financial, Inc.

Prudential’s Investor Value Proposition

•

Attractive return opportunities in high quality businesses

•

Balanced portfolio of selected risks

•

Growth engines in International Insurance, U.S. Retirement and

Asset Management

•

Market leadership across multiple distribution channels

•

Capital management: balanced approach to investing in businesses,

returning capital to shareholders

•

Proven acquisition and integration track record

•

Seasoned management team

Investor Day 5.22.2012

2