May 24, 2012 - SLIDE PRESENTATION OF PRUDENTIAL FINANCIAL, INC. - 8-K: Current report

May 24, 2012

Prudential Financial, Inc.

Financial Strength Symposium

Exhibit 99.1

Forward-Looking Statements

Financial Strength Symposium 5.24.2012

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

Financial Strength Symposium 5.24.2012

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.

RBC Disclosure

Financial Strength Symposium 5.24.2012

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

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

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

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

December 31, 2011, the RBC ratio for The Prudential Insurance Company of America ("PICA") was 491%. This information is provided to you for information

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

advertising or promotional activities.

Prudential’s U.S. Businesses

Charles Lowrey

Executive Vice President and

Chief Operating Officer, U.S.

Prudential’s U.S. Businesses

U.S. Retirement Solutions and

Investment Management Division

Attributed Equity $12.6 billion

(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

Financial Strength Symposium 5.24.2012

Prudential’s U.S. Businesses

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

U.S. Individual Life and

Group Insurance Division

•

Risk diversification; relatively limited

financial market sensitivity

•

Historically solid cash flows and

capital generation

Financial Strength Symposium 5.24.2012

19%

25%

23%

U.S. Businesses

Broad Earnings Diversification by Product and Risk

2011 Earnings: $2.6 billion

(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.

Individual

Life

$482

Group

Insurance

$205

Asset

Management

$659

Retirement

$594

Individual

Annuities

$662

Financial Strength Symposium 5.24.2012

Market Developments

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

Financial Strength Symposium 5.24.2012

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

Positioned for Market Developments – Retirement Market

Market Developments

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

Financial Strength Symposium 5.24.2012

U.S. Businesses: Individual Life and Group Insurance

Positioned for Market Developments – Protection Market

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

Financial Strength Symposium 5.24.2012

$84.0

$106.2

$113.5

$20

$40

$60

$80

$100

$120

Individual Annuities

Account Values, Sales and Flows

2009

2010

2011

Account Values

(1)

Sales and Flows

($ billions)

As of end of period.

$16.3

$21.8

$20.3

$9.1

$13.4

$11.7

$10

$15

$20

$25

2009

2010

2011

Gross Sales

Net Flows

Financial Strength Symposium 5.24.2012

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

Financial Strength Symposium 5.24.2012

$178.3

$205.5

$229.5

$50

$100

$150

$200

$250

Prudential Retirement

Account Values, Sales and Flows

2009

2010

2011

Account Values

(1)

Sales and Flows

($ billions)

As of end of period.

$31.0

$34.6

$44.6

$8.7

$10.8

$19.3

$10

$20

$30

$40

$50

2009

2010

2011

Gross Deposits and Sales

Net Flows

Financial Strength Symposium 5.24.2012

Prudential Retirement

Sales and Flows

Full Service

Institutional

Investment

Products

($ billions)

Financial Strength Symposium 5.24.2012

$23.2

$19.3

$16.8

$8.8

$2.5

-$2.3

-$5

$10

$15

$20

$25

2009

2010

2011

$7.8

$15.3

$27.8

$0.0

$8.3

$21.6

$10

$20

$30

2009

2010

2011

Gross Deposits and Sales

Net Flows

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

As of March 31, 2012.

Account Values: $41 billion

(1)

Financial Strength Symposium 5.24.2012

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

As of March 31, 2012.

Account Values: $45 billion

(1)

Financial Strength Symposium 5.24.2012

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

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

Financial Strength Symposium 5.24.2012

Prudential Retirement

Flexible, Innovative Risk Transfer Strategies

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

Financial Strength Symposium 5.24.2012

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

multiple asset classes support attractive general account investments

and funds managed for clients

Financial Strength Symposium 5.24.2012

Prudential Asset Management

Competitive Advantages

Experience and

Track Record

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

As of December 31, 2011.

Breadth and Depth

of Capabilities

Access to Capital

and Co-investing

Brand and

Reputation

Scale

Third Party Clients

$320 billion

third party AUM

(1)

12% AUM CAGR

(2006 –

2011)

Manager Continuity

(2)

219 portfolio

managers

Average tenure

14 years

Financial Strength Symposium 5.24.2012

Asset Management

An Integral Business

AUM by Asset Type

AUM by Client Type

As of March 31, 2012.

Total

AUM

$637

billion

(1)

Financial Strength Symposium 5.24.2012

Strong Asset Management Net Flows

(1)

Third party, excluding money market activity.

($ billions)

Financial Strength Symposium 5.24.2012

$100

$200

$300

$400

$500

$600

$700

2009

2010

2011

Fixed Income

Equity

Real Estate

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2009

2010

2011

AUM Growth Driving Asset Management Fees

As of end of period.

($ billions)

($ millions)

$1,049

$1,273

$1,467

$457

$537

$619

Assets

Under

Management

by Asset Class

(1)

Asset

Management

Fees

by Asset Class

Financial Strength Symposium 5.24.2012

Building Sustainable Asset Management Revenues

(1)

•

Growth in

asset

management

fees

•

Reduced strategic

investing exposure

•

Exited commercial

mortgage

securitization

conduit

Asset Management Fees

ITSICM

2007

$1.6 billion

(2)

2011

$1.8 billion

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

As originally reported.

Financial Strength Symposium 5.24.2012

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

Financial Strength Symposium 5.24.2012

Based on earned premiums, policy charges and fee income for year ended December 31, 2011.

$100

$200

$300

$400

$500

$600

$700

2009

2010

2011

Voluntary Group Life

Basic Group Life

Group Disability

Group Insurance

($ millions)

Annualized New Business Premiums

$577

$607

$690

Financial Strength Symposium 5.24.2012

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

Financial Strength Symposium 5.24.2012

$100

$200

$300

$400

$500

$600

$700

2009

2010

2011

$50

$100

$150

$200

$250

$300

$350

$400

2009

2010

2011

Term Life

Universal Life

Variable Life

Individual Life

Building Quality Business

($ millions)

($ billions)

Annualized

New Business

Premiums

(1)

Face Amount

In Force

(2)

Excludes corporate-owned life insurance.

As of end of period; before reinsurance ceded.

$359

$260

$278

$589

$613

$631

Financial Strength Symposium 5.24.2012

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

Financial Strength Symposium 5.24.2012

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

Financial Strength Symposium 5.24.2012

Market Developments –

Client Perspective

Today’s Variable Annuity Market

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

Financial Strength Symposium 5.24.2012

Market Developments –

Distributor Perspective

Today’s Variable Annuity Market

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

Financial Strength Symposium 5.24.2012

Financial Strength Symposium 5.24.2012

FY 2011 Variable Annuity

Assets Under Management

($ millions)

FY 2011 Advisor-Sold

Variable Annuity Sales

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

$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

Building Multi-Channel Distribution Strength

Financial Strength Symposium 5.24.2012

Prudential Individual Annuity Gross Sales

(1)

In millions; includes variable and fixed annuities.

2008

$10,329

2011

$20,293

2010

$21,754

Independent

45%

Wirehouse

22%

Bank

17%

Insurance

Agents

16%

Independent

49%

Wirehouse

21%

Bank

17%

Insurance

Agents

13%

Independent

57%

Wirehouse

12%

Bank

Insurance

Agents

24%

Differentiated Value Proposition

The

Highest

Daily

Lock-In

–

Protected

Value

Financial Strength Symposium 5.24.2012

Hypothetical for illustrative purposes only.

Protected Withdrawal Value –

notional amount for calculation

of lifetime annual withdrawals

Account Value

What are the chances

of an annual lock-in

capturing the

best day?

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?

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

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.

Differentiated Value Proposition

Contract Level Auto-Rebalancing

Recent Market Approaches

for Client Risk Sharing

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

Financial Strength Symposium 5.24.2012

Account Value and

“Protected Withdrawal Value”

Financial Strength Symposium 5.24.2012

“PWV”: notional amount

for calculation of

lifetime annual withdrawals

Year

Account

value

available to

customer

Market Downturn Scenario

(1)

(“PWV”)

Protected Withdrawal Value

Total Account Value

Bond Fund Value

$50,000

$100,000

$150,000

$200,000

$250,000

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

Preserving Account Values to Fund Retirement Income

Financial Strength Symposium 5.24.2012

Market Downturn Scenario

(1)

= Payments Funded by Customer Account Value

= Payments Funded by Prudential guarantee

AGE

82+

$100,000

Account Value

AGE

$100,000

82+

Income

Without Auto-Rebalancing

Income

With Auto-Rebalancing

Account Value

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

return of 3%. 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.

Financial Strength Symposium 5.24.2012

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.

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

(1)

Account Value

w/o Auto-

Rebalancing 0%

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Protected

Withdrawal Value

+38%

HD7 Account

Value +23%

S&P 500 +4%

Account Value

% of HD

Account Value

Invested in

Customer-

Selected Funds

Auto-Rebalancing

Proven Through Financial Market Crisis… and Beyond

1,258

1,326

1,321

1,131

1,258

1,408

$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

Financial Strength Symposium 5.24.2012

Accounts with Auto-Rebalancing

(1)

$57,336

$64,786

$68,273

$64,769

$70,341

$78,622

($ millions)

As of end of period.

Auto-Rebalancing

Protecting from Market Downturns – Returning Funds for Growth

Variable Annuity Account Values

Balanced Market Exposure Mitigates Risk

Financial Strength Symposium 5.24.2012

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

55%

30%

Average

Duration

approximately

6 years

46%

28%

19%

Retirement Income Security

A Continuing Market Opportunity

Financial Strength Symposium 5.24.2012

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

and

older

own

65%

the

aggregate

net

worth

all

U.S.

households

(3)

)

For the three months ended March 31, 2012.

Source: LIMRA, May 2012.

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

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

Financial Strength Symposium 5.24.2012

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

NGOING EVALUATION OF OPPORTUNITIES TO

EXPAND RETIREMENT INCOME SECURITY

$78.3

$83.8

$63.3

$84.0

$106.2

$113.5

$20

$40

$60

$80

$100

$120

2006

2007

2008

2009

2010

2011

$9.7

$11.8

$10.3

$16.3

$21.8

$20.3

$0.6

$0.8

$9.1

$13.4

$11.7

$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

Financial Strength Symposium 5.24.2012

($ billions)

Account Values

(1)

As of end of period.

($ billions)

Sales and Flows

HD Lifetime Products introduced November 2006

Improving Risk Profile

Financial Strength Symposium 5.24.2012

As of end of period.

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.

Well Positioned to Retain

Auto-Rebalancing Business In-Force

Financial Strength Symposium 5.24.2012

Surrender Charge

Less Than 1%

1% to 3%

Over 3%

Living Benefits With

Auto-Rebalancing

$71 B

90%

Living Benefits Without

Auto-Rebalancing

$15 B

47%

44%

No Living Benefits

$24 B

70%

22%

Total

$110 B

27%

69%

Surrender Charges Applicable to Account Values

(1)

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

Average

surrender

charge

6.9%

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

Actual experience true-up

(1)

Reinsurance reserve adjustment

(2)

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%

Financial Strength Symposium 5.24.2012

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.

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

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

Financial Strength Symposium 5.24.2012

Prudential International Insurance

Edward Baird

Executive Vice President and

Chief Operating Officer, International

Our Historical Strategy and

Business Model…

…Is the Foundation For Our

Evolving 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

The Evolution of our International Strategy

Financial Strength Symposium 5.24.2012

Investment Margin

Mortality Margin

and Expense &

Other Margin

Sustained Earnings Growth Through

Challenging Markets and Events

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

previously

included

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.

CAGR based on 2008 –

2011.

Pre-Tax Adjusted Operating Income

(1)

($ millions)

2008

2009

2010

2011

$1,581

$1,651

$1,887

$2,263

Financial Strength Symposium 5.24.2012

Earnings are

primarily the result

of stable drivers

Earnings are

primarily the result

of stable drivers

High Return on Equity Driven by Fundamentals

22.2%

17.5%

2010

2011

Return on Equity

(1)

Reflects

Star / Edison

before

expense

synergies

Reflects

Star / Edison

before

expense

synergies

Financial Strength Symposium 5.24.2012

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.

Sustained Business Momentum

Through Financial Crisis and Beyond

Annualized New Business Premiums

(1)

($ millions)

2007

2008

2009

2010

2011

$3,040

$1,870

$1,495

$1,345

$1,293

$2,312

Financial Strength Symposium 5.24.2012

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.

CAGR based on 2007 – 2011, excluding Star / Edison contribution.

Star / Edison

Excluding

Star / Edison

Japan: Track Record of Success

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.

Pre-Tax Adjusted

Operating

Income

(1)

($ millions)

Annualized New

Business

Premiums

(2)

($ millions)

Financial Strength Symposium 5.24.2012

$1,224

$1,600

$2,724

2009

2010

2011

$1,497

$1,724

$2,321

2009

2010

2011

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

Japan: Substantial Growth Opportunities

in an Attractive Market

•

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

Financial Strength Symposium 5.24.2012

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.

Product

Trend

Distribution

Trend

Retirement

Market

Investable

Asset Pool

Household

Wealth

Market Size

World’s Largest Life Insurance Markets

2010 Life Insurance Premiums

(1)

Source: Swiss Re –

statistical appendix, January 2012.

($ billions)

507

448

410

201

193

122

United

States

Japan

Overall

Asian Market

excluding

Japan

United

Kingdom

France

Italy

Financial Strength Symposium 5.24.2012

Japan has the Largest Pool of Household Assets

in Currency and Deposits

Source:

Federal

Reserve,

Bank

Japan,

Eurostat,

Central

Bureau

Statistics

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)

Financial Assets in Currency & Deposits

($ trillions)

Financial Strength Symposium 5.24.2012

7.1

10.9

42.0

8.4

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

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

Household Sector Financial Assets –

Japan and the United States

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

Investments

Trusts

Shares and

Equities

Insurance

and Pension

Reserves

28%

Other

Currency and

Deposits

14%

Bonds

10%

Investment

Trusts

12%

Shares and

Equities

31%

Insurance

and Pension

Reserves

29%

Other

Financial Strength Symposium 5.24.2012

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

In thousands; direct business only; includes annuities.

Prudential of Japan (“POJ”).

Number of

Policies In-force

(1)

Number of

Captive Agents

Number of

Bank Relationships

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

12/31/10

12/31/11

3/31/12

Financial Strength Symposium 5.24.2012

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

Financial Strength Symposium 5.24.2012

Overall Position –

New Business (Face Amount)

(1)

Market Share Improvement of 3.1 Percentage Points

Financial Strength Symposium 5.24.2012

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%

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%

4 Years Ago

FY 2007

Nine

Months ended

December 31, 2011

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.

Prudential Sales in Japan

Compared to U.S. Life Insurance Companies

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)

($ millions)

Financial Strength Symposium 5.24.2012

$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

Solvency Margins Position Prudential’s Japanese Companies

As Well Capitalized and Financially Secure

Financial Strength Symposium 5.24.2012

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

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

“New Method”

Estimated Solvency Margins

as of March 31, 2012

(1)

Prudential of Japan

Over 700%

Gibraltar Life

(2)

Over 700%

New Business Product Trend

Driven by Evolving Financial Security Needs

Annualized New Business Premiums

(1)

($ millions)

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

Financial Strength Symposium 5.24.2012

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.

Needs-Based Selling over a Lifetime

Client Life Cycle

Financial Risk

Protection Needs

Prudential

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

Financial Strength Symposium 5.24.2012

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

(1)

Second Sales to Existing Customers

($ millions)

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

Financial Strength Symposium 5.24.2012

Protecting Financial Security For a Lifetime

Aging population leads to demand for larger policy size

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.

Financial Strength Symposium 5.24.2012

Growing Retirement Market Complements

Substantial Premature Death Protection Market

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

Japan Demographic Trend

Population (millions)

105

124

128

115

+16

+19

-13

55%

43%

33%

23%

18%

14%

17%

13%

12%

10%

11%

15%

16%

15%

11%

10%

14%

12%

14%

12%

15%

12%

23%

32%

1950

1970

1990

2010

2030

65+

55-64

45-54

35-44

25-34

0-24

Financial Strength Symposium 5.24.2012

Well Diversified Products Meeting Evolving Client Needs

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

$1,725

$1,939

$3,547

$4,503

Accident &

Health

Death

Protection

Annuity

Retirement

19%

41%

12%

28%

($ millions)

2011

Annualized

New Business

Premiums by

Product

(1)

= $1,709 million

100%

($ whole amount)

Average

Premium per

New Policy by

Product

(1)

Overall

Average

Premium = $2,387

Financial Strength Symposium 5.24.2012

$330

$703

$198

$478

Accident &

Health

Death

Protection

Annuity

Retirement

Japanese Life Planner/Life Consultant Sales

International Insurance

Growing Sales Throughout Multiple Channels

Foreign

denominated

activity

translated

U.S.

dollars

uniform

exchange

rates

for

all

periods

presented;

Japanese

yen

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

Financial Strength Symposium 5.24.2012

2007

2008

2009

2010

2011

Independent Agency

Bank Channel

Life Consultants

Life Planners

Life Planner Distribution

•

Life Planner –

a selective, high quality sales force

–

Hire about 3 out of 100 candidates

–

Well trained and professional

–

Customer focused

–

Disciplined, and demonstrate “missionary zeal”

•

Emphasize protection products requiring analysis of client needs

•

Significant sales to small business/executive/professional market

•

Exceptional sales productivity and persistency

Financial Strength Symposium 5.24.2012

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

Association of Welfare Foundation

(Teachers Association)

As of March 31, 2012.

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

Financial Strength Symposium 5.24.2012

Teachers Association: Perennial Sales Opportunities

Numbers approximate as of March 31, 2012.

Active Market

Retiree Market

Financial Strength Symposium 5.24.2012

Bancassurance Powered by Prudential

Typical Bank Channel Approach

in Japanese Market

Prudential’s Distinctive

Bank Channel Strategy

•

Foreign carriers drove high bank

channel sales through

aggressive variable annuity

strategies

•

Value propositions dependent on

market performance

At certain banks.

Financial Strength Symposium 5.24.2012

•

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

Bank Channel Sales Growth

Driven By Protection Products

Annualized New Business Premiums

(1)

($ millions)

2007

2008

2009

2010

2011

$56

$22

$137

$336

$580

Annuity

Retirement

Accident & Health

Death Protection

1Q11

1Q12

$132

$182

Financial Strength Symposium 5.24.2012

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

Bancassurance Enhances Access to

Substantial Japanese Household Investable Wealth

Japanese

household

wealth

held

currency

and

deposits

(1)

$10.9 Trillion

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”

selected

banks

(4)

180

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

Primarily 3-

and 5-

year payment contracts, and single premium contracts.

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

Active as of March 31, 2012.

Financial Strength Symposium 5.24.2012

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

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

2009

(1)

2012

(2)

Financial Strength Symposium 5.24.2012

As of December 31, 2009.

As of March 31, 2012.

Potential points of sale represent an aggregated total number of branches of the bank partners as of March 2011.

•

Sales through 25 banks, primarily

fixed annuities

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

Financial Strength Symposium 5.24.2012

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

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

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

Financial Strength Symposium 5.24.2012

Investment Portfolio

Scott Sleyster

Senior Vice President

Chief Investment Officer, U.S.

Well Positioned Investment Portfolio

Financial Strength Symposium 5.24.2012

Investment Management is a core competency for Prudential

Our General Account investment portfolio is well diversified to support our

insurance liabilities

We underwrite much of our own credit risk through direct originations of Private

Placements and Commercial Mortgages

Acquisition of Star & Edison increased Japanese Insurance operations to almost

50% of the Financial Services Businesses’

General Account (“FSB General

Account”) investment portfolio

Broad Investment Expertise Supports Risk Diversification

Financial Strength Symposium 5.24.2012

Public Fixed Maturities

66%

Private Fixed Maturities

10%

Commercial Loans

(2)

Equities, 2%

Other Long Term, 1%

Short Term & Other, 3%

Policy Loans, 2%

TAASIL

(3)

Japanese

Government Bonds

23%

Other Foreign Government

Bonds, 5%

U.S. Government

(5)

CMBS, 3%

ABS

(6)

, 3%

RMBS, 3%

Corporates

35%

FSB General Account

Investment Portfolio

$278.3 Billion

(1)

FSB General Account

Fixed Maturities

$211.4 Billion

(4)

Japanese Portfolio Almost 50% of FSB General Account

(1)

Financial Strength Symposium 5.24.2012

(1)

March

31,

2012

balance

sheet

carrying

amount;

excludes

invested

assets

our

trading

and

banking

operations

and

asset

management

operations.

(2)

Commercial

mortgage

and

other

loans.

(3)

Trading

Account

Assets

Supporting

Insurance

Liabilities

(investment

results

expected

ultimately

accrue

contract

holders).

(2)

(3)

10%

20%

30%

40%

50%

60%

Governments

Public

Fixed

Maturities

Private

Fixed

Maturities

Commercial

Loans

Equities

Other

Long-term

Short-term

& Other

Policy

Loans

TAASIL

11%

37%

16%

14%

13%

52%

31%

FSB General Account, ex. Japanese Operations: $140.0 Billion

FSB General Account, Japanese Operations: $138.3 Billion

Asset Selection Focus on Quality

Financial Strength Symposium 5.24.2012

FSB General Account

Fixed Maturity Portfolio

(1)

($ billions)

$104.4

$111.9

$113.5

$127.7

$134.9

$147.4

$200.9

$198.4

(1)

Amortized Cost. Reflects equivalent ratings for investments of the International Insurance operations.

(2)

NAIC 1-2

(3)

NAIC 3-6

$25

$50

$75

$100

$125

$150

$175

$200

$225

2005

2006

2007

2008

2009

2010

2011

1Q 2012

$6.0 6%

7.1 6%

$7.5

$9.0

9.5 7%

$8.7

$9.3

$9.0

$70.3

67%

$76.8

69%

$75.2

66%

$81.9

64%

$79.3

59%

$84.3

57%

$108.8

54%

$108.1

54%

$28.1

27%

$28.0

25%

$30.8

27%

$36.8

29%

$46.1

34%

$54.4

37%

$82.8

41%

$81.3

41%

High

Highest

Quality:

Governments

(2)

High

Highest

Quality:

Non-Governments

(2)

Other

Securities

(3)

95%

Defensively Positioned Corporate Bond Portfolio

Financial Strength Symposium 5.24.2012

Corporate

Bond

Holdings

Sector

(1)

Financial Services Businesses vs. Barclays Index

March 31, 2012

(1)

Market Value

(2)

Non-Corporate includes Sovereigns, Supranationals, State and Municipals

10%

-5%

10%

15%

20%

Financial Services Businesses Exposure

Over/Under Weight vs Barclays Capital Indices

Strong Commercial Loan Portfolio

Financial Strength Symposium 5.24.2012

FSB

General

Account

Portfolio

(1)

(100% = $278.3 billion)

$25,231

9.1 %

Commercial Mortgage

and Other Loans

($ millions)

(1)

As of March 31, 2012 at balance sheet carrying amount.

Weighted Average Debt Service Coverage Ratio (DSCR)

1.9x

Weighted Average Loan to Value Ratio (LTV)

58%

Agricultural and Commercial Loans at a Fixed Rate

98%

Over 30 Days Past Due

0.4%

Broadly Diversified Commercial Loan Portfolio

Financial Strength Symposium 5.24.2012

Commercial and Agricultural Loans

by Region

(1,3)

Commercial Loans

Major

Property

Type

(1,2)

(1)

For the FSB General Account. As of March 31, 2012, at gross carrying value.

(2)

Commercial Mortgages Only ($21.0 Billion). Other consists of golf courses, ski resorts, parking garages, self-storage, hospital and ground leases.

(3)

Commercial and Agricultural Loans only ($22.4 Billion).

10%

15%

20%

25%

30%

35%

25%

24%

20%

16%

10%

18%

25%

33%

15%

Prudential (03/31/12)

ACLI ex. Prudential (12/31/11)

Pacific

31.9%

South

Atlantic

21.2%

Middle

Atlantic

14.9%

West South

Central

8.4%

East North

Central

7.7%

Mountain

5.2%

Non

4.0%

New

England

2.7%

West North

Central

2.5%

East South

Central

1.5%

Commercial & Agricultural Mortgage Loan Portfolio

Financial Strength Symposium 5.24.2012

$25,474

9.2 %

FSB

General

Account

(1)

($ millions)

March

31,

2012,

the

valuation

allowance

for

our

commercial

mortgage

and

other

loan

portfolio

was

$243 million, a decrease of $7 million from year-end 2011 and a decrease of $82 million from the year

ago quarter

We regularly revalue the portfolio using conservative up-to-date cap rates

(1)

As of March 31, 2012 at gross carrying value.

Greater

than 2.0x

1.8x

to 2.0x

1.5x

to < 1.8x

1.2x

to < 1.5x

1.0x

to < 1.2x

Less

than 1.0x

Totals

0%-49.99%

3,467

1,033

1,129

703

331

6,739

50%-59.99%

1,555

723

1,023

412

218

4,005

60%-69.99%

2,277

763

1,591

1,520

352

133

6,636

70%-79.99%

524

202

621

1,312

761

3,453

80%-89.99%

277

208

340

899

90%-100%

132

174

306

Greater than 100%

310

402

Totals

7,842

2,721

4,454

4,241

2,042

1,140

22,440

Debt Service Coverage Ratio (DSCR)

Commercial Mortgage-Backed Securities

(1)

Financial Strength Symposium 5.24.2012

FSB General Account

Amortized Cost at Lowest Rating Agency Rating

($ millions)

(1)

March

31,

2012.

(2)

Percentage

Super

Senior

AAA

securities

which

are

shorter

duration

tranches

Focus on Super Senior AAA rated tranches

99% rated A or better; 91% rated AAA

AAA

BBB

BB and Below

Total

Fair Value

7,212

494

199

7,966

8,550

6,589

Super Senior AAA Total

60.2%

Super

Senior

AAA

Shorter

Duration

Tranches

(2)

Limited Exposure to NAIC 3 –

Financial Strength Symposium 5.24.2012

$5,951

$1,938

$910

$221

(1)

As of March 31, 2012 at Amortized Cost. Reflects equivalent ratings for investments of the International Insurance operations.

FSB General Account

(1)

Fixed Maturity Securities

($ millions)

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

NAIC

58%

63%

41%

48%

42%

37%

59%

52%

Private Fixed Maturities: $3,876 million

Public Fixed Maturities: $5,144 million

Investment Portfolio Yield

Financial Strength Symposium 5.24.2012

Strong Private Placement and Commercial Mortgage production by our investment

staff over the past few years has helped to lessen the decline in portfolio yield due to

lower reinvestment rates

•

Our investment staff has originated the majority of our annual private placement

originations through direct borrower relationships

o

Opportunity for better terms, including covenants and call protection, and to take

advantage of innovative deal structures

•

Within our domestic portfolios, we maintain a private fixed income portfolio that is

larger than the industry average as a percentage of total fixed income holdings

Many of our competitors supplement their Private Placement originations using the

secondary 144A market

Fixed Maturities and Commercial Mortgage Yields

Financial Strength Symposium 5.24.2012

FSB

General

Account,

ex.

Japanese

Operations

(1)

FSB

General

Account

(1)

Excludes realized investment gains/(losses) and non-hedge accounting derivative results. Yields for interim periods are annualized, and exclude investment income on assets other than those included in invested assets.

Yields for commercial mortgages are based on quarterly average carrying values. Yields for fixed maturities are based on amortized cost, and are calculated net of liabilities and rebate expenses corresponding to securities

lending activity. Commercial mortgage yields include investment income related to commercial loans that support insurance liabilities for which the investment results generally accrue to contract holders.

(2)

Yields for 1Q 2011 are weighted for one month of income and assets related to the Star and Edison Businesses.

(2)

5.64%

5.70%

5.78%

5.31%

4.62%

4.27%

4.02%

3.74%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

1Q 2009

1Q 2010

1Q 2011

1Q 2012

5.77%

5.95%

6.16%

5.69%

5.68%

5.46%

5.38%

5.27%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

1Q 2009

1Q 2010

1Q 2011

1Q 2012

Commercial Mortgages

Fixed Maturities

Commercial Mortgages

Fixed Maturities

Key Takeaways

Financial Strength Symposium 5.24.2012

High quality, well diversified portfolio

Continue to prefer to underwrite and manage our credit risk directly

•

High priority on private asset classes, both Corporates and Mortgages

•

Disciplined approach to Commercial Mortgage Loan underwriting and diversification

Current High Yield asset mix is based on:

•

Experience in private sector

•

Commitment to managing credit risk directly

Minimal sovereign exposure in Eurozone nations

Our CMBS portfolio is well constructed

While low reinvestment rates have put downward pressure on our portfolio yield,

strong Private Placement and Commercial Mortgage production by our investment

staff over the past several years has helped to lessen the decline

Approach to Capital Management

Rich Carbone

Executive Vice President

Chief Financial Officer

Prudential Financial, Inc.

Financial Strength Symposium 5.24.2012

Superior Value

Proposition for

Customers,

Creditors &

Investors

Delivering Superior Value

Appropriate

ROE

Strong

Ratings

Financial

Strength

Key Measures of Financial Strength

Financial Strength Symposium 5.24.2012

•

Excess Liquidity

•

Appropriate Leverage

•

Adequate Coverage

•

Strong Regulatory Ratios

–

Risk Based Capital

–

Solvency Margin

•

Financial Flexibility

“AA”

Rating

Holding Company Liquidity Profile

Financial Strength Symposium 5.24.2012

The Finance Committee of the Board of Directors approved increasing the targeted cash cushion to $1.2 billion on May 8, 2012.

PFI cash, cash equivalents and short-term investments.

Includes current portion of long-term debt.

$1.8B

Targeted

Cash

Cushion

(1)

$1.2B

ROE Target of

13%-14% in 2013

(1)

Key Drivers of ROE

Financial Strength Symposium 5.24.2012

Organic

Growth

from

Superior

Business

Mix

Synergies

from

Star &

Edison

Capital

Management

(1)

For the Financial Services Businesses (“FSB”)

Superior Business Mix Drives Organic Growth

Financial Strength Symposium 5.24.2012

Organic

Growth from

Superior

Business Mix

Key Considerations:

Credible diversification of risks

High value added business models

Fit with proven execution and risk

management capabilities

•

Solid cash flows and ROE potential

•

Opportunities for Strong Organic Growth

Financial Strength Symposium 5.24.2012

Business Unit

% of 2011

Attributed Equity

(1)

% of 2011

Pre-Tax AOI

(2)

2013 ROE

Potential

(3)

International

Insurance

43%

48%

~18% -

19%

Annuities,

Retirement &

Asset Management

44%

38%

~14% -

15%

Individual Life &

Group Insurance

13%

14%

~11% –

12%

Attributed equity of the FSB excluding accumulated other comprehensive income; excludes Corporate & Other operations; at December 31, 2011.

Excludes Corporate & Other operations.

Business unit ROE’s are unlevered and are based on FSB effective tax rate applicable to adjusted operating income and the attributed equity of

each business unit.

Capital Management Philosophy

Financial Strength Symposium 5.24.2012

Adequate capital &

excess liquidity in

stress

Appropriate financial

leverage

Organic Growth

Opportunistic M&A

Stable dividend payout

ratio

Share repurchases

Protect

Downside

Deploy Capital

for Growth

Distribute to

Shareholders

Capital and Liquidity Management

Robert Falzon

Senior Vice President

Treasurer

Prudential Financial, Inc.

Financial Strength Symposium 5.24.2012

Approach to Capital and Liquidity Management

Financial Strength Symposium 5.24.2012

Capital Protection

Framework

Liquidity

Diverse sources result in significant

financial flexibility

Provides for competitive levels of

capital under stress

Financial Strength

AA standards for capital, leverage

and liquidity

Regulatory Capital Ratios

Financial Strength Symposium 5.24.2012

Risk Based Capital Ratio (“RBC”)

(1)

Target

December 31, 2011

Prudential Insurance

400%

491%

The

inclusion

RBC

measures

intended

solely

for

the

information

investors

and

not

intended

for

the

purpose

ranking

any

insurance

company

for

use

connection with any marketing, advertising or promotional activities.

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

Reflects

inclusion

Star

and

Edison

entities

which

were

merged

into

Gibraltar

Life

Insurance

Company,

Ltd.

effective

January

2012.

Solvency Margin Ratio -

“New Method”

Target

Estimated as of

March 31, 2012

Prudential

Japan

(2)

600 -

700%

Over 700%

Gibraltar Life

(2)(3)

600 -

700%

Over 700%

Financial Strength Symposium 5.24.2012

Required

Capital

represents

the

amount

GAAP

capital

necessary

support

business

risk

based

rating

targets

the

insurance

operating

entities.

Excludes total accumulated other comprehensive income.

Based on targeted Risk Based Capital (“RBC”) ratio of 400% for Prudential Insurance and equivalent levels of capital at other insurance operating entities.

December 31, 2011

$ in Billions

Required Capital

(1)

~$34.3 -

$34.8

Attributed Equity

(2)

$27.6

Capital Debt and Hybrids Outstanding

$11.2

Total Capital Outstanding

$38.8

Total

Available

Balance

Sheet

Capital

(3)

~$4.0 -

$4.5

Estimated “Readily Deployable”

Capital

~$2.0 -

$2.25

On Balance Sheet Capital

Financial Services Businesses (“FSB”)

Key Leverage Metrics -

FSB

Financial Strength Symposium 5.24.2012

Ratio

Target

Actual

Total Leverage

< 40%

43.5%

(1)

Fixed Charge Coverage Ratio

> 2x

2.4x

(2)

PFI debt divided by PFI debt plus equity. Calculated as of March 31, 2012. Reflects the retrospective adoption of amended accounting guidance for deferred policy

acquisition costs effective January 1, 2012, which reduced equity by $2.8 billion.

PFI cash sources, net of shareholder dividend divided by PFI fixed expenses. Calculated as of December 31, 2011.

Cash

Flows

from

Subsidiaries

(1)

Financial Strength Symposium 5.24.2012

Reflects dividends and returns of capital to PFI.

75%

$3.2

$3.3

$1.3

$4.0

$3.2

$0.0

$0.5

$1.0

$1.5

$2.5

$3.0

$3.5

$4.0

$4.5

2007

2008

2009

2010

2011

Prudential Insurance

International

Asset Management

Other

$2.0

Holding Company Liquidity

Financial Strength Symposium 5.24.2012

(2)

Targeted Cash Cushion

$1.2

Targeted Cash Cushion

$1.2

$1.8

$7.2

$0.2

$3.8

$1.4

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

Net Cash

Additional Commercial Paper

Capacity

Committed Credit Lines

Internal Sources

Total Liquidity Resources

Diverse Sources of Alternate Liquidity

As of March 31, 2012

($ in Billions)

$3.0

$8.4

(3)

(4)

(1)

PFI cash, cash equivalents and short-term investments, less net short-term intercompany borrowings, commercial paper and tax sharing receipts.

Based on estimated incremental market capacity. $283 million of Prudential Financial, Inc. commercial paper was outstanding as of March 31, 2012.

$1.75 billion shared with Prudential Funding, LLC (“PFLLC”).

Primarily includes Retail Notes and Enterprise Liquidity Account, among other items.

Prudential Insurance Liquidity

Financial Strength Symposium 5.24.2012

(2)

(4)

•

In addition, PICA has substantial available liquid assets for securities lending

(3)

(1)

$13.3

$3.9

$1.8

$2.0

Cash

Additional FHLBNY Capacity

Committed Credit Lines

Additional Commercial Paper

Capacity

Total Liquidity Resources

Diverse Sources of Alternate

Liquidity

As of March 31, 2012

($ in Billions)

$10

$12

$14

$5.6

Represents cash, cash equivalents and short-term investments for FSB and Closed Block Business on a statutory basis as of March 31, 2012.

$2.4 billion of capacity from the Federal Home Loan Bank of New York was used as of March 31, 2012 in the form of advances and funding agreements. Borrowings

are subject to the availability of qualifying assets at Prudential Insurance.

Shared with PFI.

Based on estimated incremental market capacity. $1.0 billion of PFLLC commercial paper was outstanding as of March 31, 2012.

Capital Protection Framework

Financial Strength Symposium 5.24.2012

On Balance

Sheet Capital

Capacity

Derivatives

Reinsurance

Contingent

Capital

Our Toolbox

Equity Market

Decline

Interest Rate

Shock

Credit Shock

Currency Shock

Stress Parameters

Dynamic Capital Protection

Financial Strength Symposium 5.24.2012

Cyclical

Less

Severe

Most

Severe

High

Med

Low

Worst in

History

Modest

Severe

Severity of Shocks

Illustrative

Summary

•

Financial Strength is the foundation for commercial success and informs

our views regarding:

–

Appropriate ROE target

–

Deployment of capital

•

We manage capital to AA standards and provide for adequate protection

under stress.

•

We rely on diverse sources of liquidity to ensure financial flexibility.

Financial Strength Symposium 5.24.2012

Form: 8-K

Documents