May 1, 2013 - EX-99.2 - 8-K: Current report | Prudential Financial, Inc. (PRU)

Exhibit 99.2

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

First Quarter 2013

Reference is made to Prudential Financial, Inc.’s filings with the Securities and Exchange Commission for general information, and consolidated financial information, regarding Prudential Financial, Inc., including its Closed Block Business. All financial information in this document is unaudited.

May 1, 2013

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

CONTENTS


	Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4

FINANCIAL SERVICES BUSINESSES
Combined Statements of Operations		5
Combined Balance Sheets		6
Combining Statements of Operations by Division		7
Combining Balance Sheets by Division		8
Short-Term and Long-Term Debt		9

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
Combined Statements of Operations		10
Combining Statements of Operations		11
Individual Annuities Sales Results and Account Values		12
Individual Annuities Account Value Activity		13
Individual Annuities Living Benefit Features		14
Individual Annuities Death Benefit Features		15
Retirement Segment Sales Results and Account Values		16
Supplementary Revenue and Assets Under Management Information for Asset Management Segment		17
Supplementary Assets Under Management and Assets Under Administration Information for Asset Management Segment		18

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		19
Combining Statements of Operations		20
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force		21
Supplementary Information for Individual Life Insurance		22
Supplementary Information for Group Insurance		23

DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE		24

INTERNATIONAL INSURANCE DIVISION
Combined Statements of Operations		25
Combining Statements of Operations		26
Sales Results and Supplementary Information		27-28

INVESTMENT PORTFOLIO
Investment Portfolio Composition		29
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		30
Financial Services Businesses Investment Results		31
Financial Services Businesses Investment Results - Japanese Insurance Operations		32
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		33

KEY DEFINITIONS AND FORMULAS		34-36

RATINGS AND INVESTOR INFORMATION		37

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						%			2012												2013
2013			2012			Change			1Q			2Q			3Q			4Q			1Q

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	775			705			10%	U.S. Retirement Solutions and Investment Management Division		705			304			503			668			775
	146			72			103%	U.S. Individual Life and Group Insurance Division		72			94			147			87			146
	877			597			47%	International Insurance Division		597			678			782			647			877
	(314	)		(326	)		4%	Corporate and other operations		(326	)		(225	)		(413	)		(371	)		(314	)

	1,484			1,048			42%	Total pre-tax adjusted operating income		1,048			851			1,019			1,031			1,484
	405			283			43%	Income taxes, applicable to adjusted operating income		283			205			270			233			405

	1,079			765			41%	Financial Services Businesses after-tax adjusted operating income		765			646			749			798			1,079


								Reconciling items:
	(3,003	)		(1,838	)		-63%	Realized investment gains (losses), net, and related charges and adjustments		(1,838	)		2,030			(1,303	)		(1,698	)		(3,003	)
	95			234			-59%	Investment gains on trading account assets supporting insurance liabilities, net		234			4			264			108			95
	(143	)		(246	)		42%	Change in experience-rated contractholder liabilities due to asset value changes		(246	)		54			(254	)		(94	)		(143	)
	33			4			725%	Divested businesses		4			24			(685	)		60			33
	(30	)		5			-700%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		5			8			(40	)		26			(30	)

	(3,048	)		(1,841	)		-66%	Total reconciling items, before income taxes		(1,841	)		2,120			(2,018	)		(1,598	)		(3,048	)
	(1,240	)		(113	)		-997%	Income taxes, not applicable to adjusted operating income		(113	)		536			(623	)		(608	)		(1,240	)

	(1,808	)		(1,728	)		-5%	Total reconciling items, after income taxes		(1,728	)		1,584			(1,395	)		(990	)		(1,808	)

	(729	)		(963	)		24%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		(963	)		2,230			(646	)		(192	)		(729	)
	7			(4	)		275%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(4	)		(9	)		20			(25	)		7

	(722	)		(967	)		25%	Income (loss) from continuing operations attributable to Prudential Financial, Inc.		(967	)		2,221			(626	)		(217	)		(722	)
	42			11			282%	Earnings attributable to noncontrolling interests		11			15			25			27			42

	(680	)		(956	)		29%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses		(956	)		2,236			(601	)		(190	)		(680	)
	1			7			-86%	Income (loss) from discontinued operations, net of taxes		7			8			(1	)		3			1

	(679	)		(949	)		28%	Net income (loss) of Financial Services Businesses		(949	)		2,244			(602	)		(187	)		(679	)
	42			11			282%	Less: Income attributable to noncontrolling interests		11			15			25			27			42

	(721	)		(960	)		25%	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		(960	)		2,229			(627	)		(214	)		(721	)

	16.2%			11.4%				Operating Return on Average Equity (based on adjusted operating income)		11.4%			9.5%			10.6%			11.6%			16.2%

								*Reconciliation to Consolidated Net Income (Loss) Attributable to Prudential Financial, Inc:*
	(721	)		(960	)			Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		(960	)		2,229			(627	)		(214	)		(721	)
	15			21				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		21			(5	)		43			(18	)		15

	(706	)		(939	)			Consolidated net income (loss) attributable to Prudential Financial, Inc.		(939	)		2,224			(584	)		(232	)		(706	)

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2012												2013
2013			2012				1Q			2Q			3Q			4Q			1Q

						Earnings per share of Common Stock (diluted): (1)
	2.28			1.61		Financial Services Businesses after-tax adjusted operating income		1.61			1.38			1.59			1.69			2.28

						Reconciling items:
	(6.37	)		(3.85	)	Realized investment gains (losses), net, and related charges and adjustments		(3.85	)		4.29			(2.76	)		(3.61	)		(6.37	)
	0.20			0.49		Investment gains on trading account assets supporting insurance liabilities, net		0.49			0.01			0.56			0.23			0.20
	(0.30	)		(0.52	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.52	)		0.11			(0.54	)		(0.20	)		(0.30	)
	0.07			0.01		Divested businesses		0.01			0.05			(1.45	)		0.13			0.07
	0.02			0.02		Difference in earnings allocated to participating unvested share-based payment awards		0.02			(0.03	)		0.02			—			0.02

	(6.38	)		(3.85	)	Total reconciling items, before income taxes		(3.85	)		4.43			(4.17	)		(3.45	)		(6.38	)
	(2.55	)		(0.20	)	Income taxes, not applicable to adjusted operating income		(0.20	)		1.14			(1.24	)		(1.28	)		(2.55	)

	(3.83	)		(3.65	)	Total reconciling items, after income taxes		(3.65	)		3.29			(2.93	)		(2.17	)		(3.83	)

	(1.55	)		(2.04	)	Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		(2.04	)		4.67			(1.34	)		(0.48	)		(1.55	)
	—			0.01		Income from discontinued operations, net of taxes		0.01			0.02			—			—			—

	(1.55	)		(2.03	)	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		(2.03	)		4.69			(1.34	)		(0.48	)		(1.55	)


	464.3			469.2		Weighted average number of outstanding Common shares (basic)		469.2			466.1			464.4			462.6			464.3

	471.7			477.5		Weighted average number of outstanding Common shares (diluted)		477.5			473.5			471.8			469.9			471.7

	4			8		Direct equity adjustments for earnings per share calculation		8			8			4			—			4

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

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	10			8		Financial Services Businesses after-tax adjusted operating income		8			6			8			7			10
	2			—		Income from continuing operations (after-tax) of Financial Services Businesses		—			21			—			7			2

(1)

Diluted share count used in the diluted earnings per share calculation for GAAP measures is equal to weighted average basic common shares for the three months ended March 31, 2012, September 30, 2012, December 31, 2012, and March 31, 2013 as all potential common shares are anti-dilutive due to the loss from continuing operations available to holders of common stock after direct equity adjustment.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2012									2013
2013		2012			1Q		2Q		3Q		4Q			1Q

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		3,655		3,226		3,013		2,409			2,153
				Long-term debt		21,110		21,030		19,576		18,460			18,009
				Junior Subordinated Long-Term Debt		1,519		1,519		2,519		4,594			5,804

				Attributed Equity:
				Including accumulated other comprehensive income		33,527		36,593		37,189		37,078			38,478
				Excluding accumulated other comprehensive income (3)		26,637		28,687		27,976		27,088			26,265
				Amount included above for foreign currency exchange rate remeasurement (4)		62		1,039		813		(179	)		(1,782	)

				Book value per share of Common Stock:
				Including accumulated other comprehensive income		70.84		78.14		79.63		79.19			81.96
				Excluding accumulated other comprehensive income (3)		56.28		61.26		59.91		57.86			55.94
				Amount included above for foreign currency exchange rate remeasurement (4)		0.13		2.22		1.74		(0.38	)		(3.80	)

				Number of diluted shares at end of period (2)		473.3		468.3		467.0		468.2			469.5

				*Common Stock Price Range (based on closing price):*
	60.41		64.65	High		64.65		64.50		58.63		59.89			60.41
	54.64		51.30	Low		51.30		44.74		45.46		48.74			54.64
	58.99		63.39	Close		63.39		48.43		54.51		53.33			58.99

				*Common Stock market capitalization (1)*		29,667		22,472		25,184		24,692			27,448

(1)	As of end of period.

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

(3)	Foreign currency translation adjustments and the cumulative impact of foreign exchange remeasurement, except for those items remeasured through net income (loss), are a component of accumulated other comprehensive income.

(4)	Represents cumulative impact of gains and losses resulting from foreign exchange remeasurement included in net income (loss).

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

OPERATIONS HIGHLIGHTS


Year-to-date					2012								2013
2013		2012			1Q		2Q		3Q		4Q		1Q

				*Assets Under Management and Administration ($ billions) (1) (2):*
				Assets Under Management:
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
				Institutional customers		286.1		289.2		303.1		313.7		323.2
				Retail customers		125.1		131.7		133.9		138.7		143.8
				General account		321.3		331.4		340.7		374.6		373.3

				Total Investment Management and Advisory Services		732.5		752.3		777.7		827.0		840.3
				Non-proprietary assets under management		176.8		176.2		193.0		196.8		180.7

				Total managed by U.S. Retirement Solutions and Investment Management Division		909.3		928.5		970.7		1,023.8		1,021.0
				Managed by U.S. Individual Life and Group Insurance Division		14.8		13.6		13.7		16.4		22.6
				Managed by International Insurance Division		18.8		19.0		20.5		20.1		17.8

				Total assets under management		942.9		961.1		1,004.9		1,060.3		1,061.4
				Client assets under administration		89.2		87.1		88.4		91.9		127.9

				Total assets under management and administration		1,032.1		1,048.2		1,093.3		1,152.2		1,189.3


				Assets managed or administered for customers outside of the United States at end of period		214.6		223.0		237.3		243.8		241.2

				*Distribution Representatives (1):*
				Prudential Agents		2,603		2,607		2,662		2,615		2,701
				International Life Planners		6,819		6,806		6,929		7,058		7,101
				Gibraltar Life Consultants		12,219		12,031		11,683		11,333		10,252

	48		45	*Prudential Agent productivity ($ thousands)*		45		54		58		64		48

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date						% Change			2012												2013
2013			2012			% Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	6,329			5,980			6%	Premiums		5,980			6,695			8,263			41,145			6,329
	1,425			1,078			32%	Policy charges and fee income		1,078			1,085			1,251			1,183			1,425
	2,821			2,500			13%	Net investment income		2,500			2,526			2,631			2,713			2,821
	1,259			937			34%	Asset management fees, commissions and other income		937			941			1,107			1,098			1,259

	11,834			10,495			13%	Total revenues		10,495			11,247			13,252			46,139			11,834


								Benefits and Expenses (1):
	6,332			5,484			15%	Insurance and annuity benefits		5,484			6,404			8,229			40,783			6,332
	966			948			2%	Interest credited to policyholders’ account balances		948			971			941			944			966
	327			308			6%	Interest expense		308			311			311			313			327
	(864	)		(809	)		-7%	Deferral of acquisition costs		(809	)		(911	)		(882	)		(932	)		(864	)
	475			406			17%	Amortization of acquisition costs		406			513			466			581			475
	3,114			3,110			0%	General and administrative expenses		3,110			3,108			3,168			3,419			3,114

	10,350			9,447			10%	Total benefits and expenses		9,447			10,396			12,233			45,108			10,350

	1,484			1,048			42%	Adjusted operating income before income taxes		1,048			851			1,019			1,031			1,484


								Reconciling items:
	(3,305	)		(2,716	)		-22%	Realized investment gains (losses), net, and related adjustments		(2,716	)		3,058			(1,951	)		(2,057	)		(3,305	)
	302			878			-66%	Related charges		878			(1,028	)		648			359			302

	(3,003	)		(1,838	)		-63%	Total realized investment gains (losses), net, and related charges and adjustments		(1,838	)		2,030			(1,303	)		(1,698	)		(3,003	)

	95			234			-59%	Investment gains on trading account assets supporting insurance liabilities, net		234			4			264			108			95
	(143	)		(246	)		42%	Change in experience-rated contractholder liabilities due to asset value changes		(246	)		54			(254	)		(94	)		(143	)
	33			4			725%	Divested businesses		4			24			(685	)		60			33
	(30	)		5			-700%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		5			8			(40	)		26			(30	)

	(3,048	)		(1,841	)		-66%	Total reconciling items, before income taxes		(1,841	)		2,120			(2,018	)		(1,598	)		(3,048	)


	(1,564	)		(793	)		-97%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		(793	)		2,971			(999	)		(567	)		(1,564	)
	(835	)		170			-591%	Income tax expense (benefit)		170			741			(353	)		(375	)		(835	)

	(729	)		(963	)		24%	Income (loss) from continuing operations before equity in earnings of operating joint ventures		(963	)		2,230			(646	)		(192	)		(729	)

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on trading account assets supporting insurance liabilities, and revenues of divested businesses, and include revenues representing equity in earnings of operating joint ventures other than those classified as divested businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes and benefits and expenses of divested businesses and include charges for income attributable to non controlling interests.

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	03/31/2012		06/30/2012		09/30/2012		12/31/2012		03/31/2013

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $195,582; $202,699; $208,474; $236,517; $232,366)		208,419		217,232		226,015		254,917		254,222
Fixed maturities, held to maturity, at amortized cost (fair value $5,006; $5,041; $5,018; $4,511; $4,186)		4,775		4,771		4,720		4,268		3,878
Trading account assets supporting insurance liabilities, at fair value		19,679		19,729		20,132		20,590		20,890
Other trading account assets, at fair value		4,860		5,349		5,610		6,053		6,584
Equity securities, available for sale, at fair value (cost $4,041; $4,188; $4,253; $4,302; $4,070)		4,629		4,651		4,821		5,052		5,315
Commercial mortgage and other loans		26,205		26,643		27,057		27,125		28,744
Policy loans		6,191		6,291		6,551		6,455		6,861
Other long-term investments		5,517		5,655		6,133		8,016		7,689
Short-term investments		7,196		8,253		7,825		5,186		4,700

Total investments		287,471		298,574		308,864		337,662		338,883
Cash and cash equivalents		12,980		13,390		13,102		17,546		14,023
Accrued investment income		2,147		2,180		2,230		2,534		2,523
Deferred policy acquisition costs		13,008		12,612		13,250		13,688		13,968
Value of business acquired		3,553		3,510		3,516		3,248		4,167
Other assets		12,109		11,496		11,901		11,376		13,462
Separate account assets		236,567		235,268		247,510		253,254		266,308

Total assets		567,835		577,030		600,373		639,308		653,334


Liabilities:
Future policy benefits		116,721		123,555		132,209		165,212		160,290
Policyholders’ account balances		128,038		128,423		130,227		128,987		132,913
Securities sold under agreements to repurchase		3,806		4,656		4,662		3,436		3,679
Cash collateral for loaned securities		2,226		2,247		2,442		2,864		2,375
Income taxes		8,097		9,081		9,323		9,058		8,501
Senior short-term debt		3,655		3,226		3,013		2,409		2,153
Senior long-term debt		21,110		21,030		19,576		18,460		18,009
Junior subordinated long-term debt		1,519		1,519		2,519		4,594		5,804
Notes issued by consolidated variable interest entities		537		537		636		1,577		1,896
Other liabilities		11,436		10,286		10,376		11,663		12,225
Separate account liabilities		236,567		235,268		247,510		253,254		266,308

Total liabilities		533,712		539,828		562,493		601,514		614,153


Attributed Equity:
Accumulated other comprehensive income		6,890		7,906		9,213		9,990		12,213
Other attributed equity		26,637		28,687		27,976		27,088		26,265

Total attributed equity		33,527		36,593		37,189		37,078		38,478

Noncontrolling Interest		596		609		691		716		703

Total Equity		34,123		37,202		37,880		37,794		39,181

Total liabilities and equity		567,835		577,030		600,373		639,308		653,334

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Three Months Ended March 31, 2013
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		6,329			145			1,279			4,914			(9	)
Policy charges and fee income		1,425			619			657			159			(10	)
Net investment income		2,821			1,160			473			1,093			95
Asset management fees, commissions and other income		1,259			1,154			148			184			(227	)

Total revenues		11,834			3,078			2,557			6,350			(151	)


Benefits and Expenses (1):
Insurance and annuity benefits		6,332			524			1,605			4,203			—
Interest credited to policyholders’ account balances		966			506			193			267			—
Interest expense		327			33			96			1			197
Deferral of acquisition costs		(864	)		(235	)		(220	)		(427	)		18
Amortization of acquisition costs		475			145			73			270			(13	)
General and administrative expenses		3,114			1,330			664			1,159			(39	)

Total benefits and expenses		10,350			2,303			2,411			5,473			163


Adjusted operating income (loss) before income taxes		1,484			775			146			877			(314	)


	Three Months Ended March 31, 2012
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		5,980			116			1,269			4,605			(10	)
Policy charges and fee income		1,078			544			391			152			(9	)
Net investment income		2,500			999			400			1,014			87
Asset management fees, commissions and other income		937			973			107			46			(189	)

Total revenues		10,495			2,632			2,167			5,817			(121	)


Benefits and Expenses (1):
Insurance and annuity benefits		5,484			251			1,473			3,752			8
Interest credited to policyholders’ account balances		948			544			133			278			(7	)
Interest expense		308			35			77			1			195
Deferral of acquisition costs		(809	)		(265	)		(89	)		(470	)		15
Amortization of acquisition costs		406			97			57			260			(8	)
General and administrative expenses		3,110			1,265			444			1,399			2

Total benefits and expenses		9,447			1,927			2,095			5,220			205


Adjusted operating income (loss) before income taxes		1,048			705			72			597			(326	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of March 31, 2013
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		338,883		122,098		45,416		158,035		13,334
Deferred policy acquisition costs		13,968		4,432		3,497		6,289		(250	)
Other assets		34,175		11,496		8,991		10,369		3,319
Separate account assets		266,308		225,432		41,780		1,617		(2,521	)

Total assets		653,334		363,458		99,684		176,310		13,882


Liabilities:
Future policy benefits		160,290		52,587		12,907		91,523		3,273
Policyholders’ account balances		132,913		55,817		25,981		51,110		5
Debt		25,966		5,523		8,481		43		11,919
Other liabilities		28,676		7,332		6,038		12,857		2,449
Separate account liabilities		266,308		225,432		41,780		1,617		(2,521	)

Total liabilities		614,153		346,691		95,187		157,150		15,125


Attributed Equity:
Accumulated other comprehensive income (loss)		12,213		2,222		1,545		9,660		(1,214	)
Other attributed equity		26,265		13,841		2,952		9,491		(19	)

Total attributed equity		38,478		16,063		4,497		19,151		(1,233	)

Noncontrolling Interest		703		704		—		9		(10	)

Total Equity		39,181		16,767		4,497		19,160		(1,243	)


Total liabilities and equity		653,334		363,458		99,684		176,310		13,882


	As of December 31, 2012
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		337,662		124,654		36,648		164,144		12,216
Deferred policy acquisition costs		13,688		4,036		3,298		6,589		(235	)
Other assets		34,704		13,958		6,422		11,506		2,818
Separate account assets		253,254		214,416		39,757		1,555		(2,474	)

Total assets		639,308		357,064		86,125		183,794		12,325


Liabilities:
Future policy benefits		165,212		54,799		10,252		96,874		3,287
Policyholders’ account balances		128,987		56,282		18,518		54,172		15
Debt		25,463		4,969		8,428		38		12,028
Other liabilities		28,598		9,308		5,172		13,016		1,102
Separate account liabilities		253,254		214,416		39,757		1,555		(2,474	)

Total liabilities		601,514		339,774		82,127		165,655		13,958


Attributed Equity:
Accumulated other comprehensive income (loss)		9,990		2,541		1,728		7,359		(1,638	)
Other attributed equity		27,088		14,023		2,270		10,776		19

Total attributed equity		37,078		16,564		3,998		18,135		(1,619	)

Noncontrolling Interest		716		726		—		4		(14	)

Total Equity		37,794		17,290		3,998		18,139		(1,633	)


Total liabilities and equity		639,308		357,064		86,125		183,794		12,325

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of March 31, 2013								As of December 31, 2012
	Senior debt				Junior Subordinated Long-term Debt		Total Debt		Senior debt				Junior Subordinated Long-term Debt		Total Debt
	Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt		Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt		748		4,404		5,804		10,956		668		5,381		4,594		10,643
Operating Debt - Investment related		475		9,608		—		10,083		1,258		9,203		—		10,461
Operating Debt - Specified businesses		930		3,997		—		4,927		483		3,876		—		4,359
Limited recourse and non-recourse borrowing		—		—		—		—		—		—		—		—

Total debt - Financial Services Businesses		2,153		18,009		5,804		25,966		2,409		18,460		4,594		25,463

Closed Block Business
Investment related		—		—		—		—		—		—		—		—
Limited recourse and non-recourse borrowing		75		1,675		—		1,750		75		1,675		—		1,750

Total debt		75		1,675		—		1,750		75		1,675		—		1,750


	As of March 31, 2013								As of December 31, 2012
	Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total		Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total
Financial Services Businesses
*Borrowings by sources:*
Capital Debt		9,501		1,042		413		10,956		9,149		1,042		452		10,643
Operating Debt - Investment related		6,521		350		3,212		10,083		6,955		293		3,213		10,461
Operating Debt - Specified businesses		3,045		1,733		149		4,927		2,740		1,468		151		4,359
Limited recourse and non-recourse borrowing		—		—		—		—		—		—		—		—

Total debt - Financial Services Businesses		19,067		3,125		3,774		25,966		18,844		2,803		3,816		25,463

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $940 million of Surplus Notes for March 31, 2013 and December 31, 2012, respectively.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

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

(in millions)


Year-to-date						% Change			2012												2013
2013			2012			% Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	145			116			25%	Premiums		116			248			161			31,979			145
	619			544			14%	Policy charges and fee income		544			556			584			598			619
	1,160			999			16%	Net investment income		999			983			1,002			1,096			1,160
	1,154			973			19%	Asset management fees, commissions and other income		973			929			1,087			1,121			1,154

	3,078			2,632			17%	Total revenues		2,632			2,716			2,834			34,794			3,078


								Benefits and Expenses (1):
	524			251			109%	Insurance and annuity benefits		251			611			736			32,292			524
	506			544			-7%	Interest credited to policyholders’ account balances		544			568			504			531			506
	33			35			-6%	Interest expense		35			39			37			33			33
	(235	)		(265	)		11%	Deferral of acquisition costs		(265	)		(288	)		(305	)		(233	)		(235	)
	145			97			49%	Amortization of acquisition costs		97			168			(20	)		166			145
	1,330			1,265			5%	General and administrative expenses		1,265			1,314			1,379			1,337			1,330

	2,303			1,927			20%	Total benefits and expenses		1,927			2,412			2,331			34,126			2,303

	775			705			10%	Adjusted operating income before income taxes		705			304			503			668			775

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

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

(in millions)


	Three Months Ended March 31, 2013
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		145			24			121			—
Policy charges and fee income		619			571			48			—
Net investment income		1,160			176			966			18
Asset management fees, commissions and other income		1,154			297			201			656

Total revenues		3,078			1,068			1,336			674


Benefits and Expenses (1):
Insurance and annuity benefits		524			42			482			—
Interest credited to policyholders’ account balances		506			118			388			—
Interest expense		33			23			7			3
Deferral of acquisition costs		(235	)		(223	)		(5	)		(7	)
Amortization of acquisition costs		145			134			5			6
General and administrative expenses		1,330			602			231			497

Total benefits and expenses		2,303			696			1,108			499

Adjusted operating income before income taxes		775			372			228			175


	Three Months Ended March 31, 2012
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		116			27			89			—
Policy charges and fee income		544			494			50			—
Net investment income		999			197			779			23
Asset management fees, commissions and other income		973			240			189			544

Total revenues		2,632			958			1,107			567


Benefits and Expenses (1):
Insurance and annuity benefits		251			(45	)		296			—
Interest credited to policyholders’ account balances		544			117			427			—
Interest expense		35			28			4			3
Deferral of acquisition costs		(265	)		(254	)		(4	)		(7	)
Amortization of acquisition costs		97			86			5			6
General and administrative expenses		1,265			605			223			437

Total benefits and expenses		1,927			537			951			439

Adjusted operating income before income taxes		705			421			156			128

(1)

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

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

(in millions)


Year-to-date							2012												2013
2013			2012				1Q			2Q			3Q			4Q			1Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	131,608			109,743		Beginning total account value		109,743			120,276			120,326			128,949			131,608
	4,208			4,943		Sales		4,943			5,344			5,912			3,778			4,208
	(1,776	)		(1,676	)	Surrenders and withdrawals		(1,676	)		(1,626	)		(1,579	)		(1,765	)		(1,776	)

	2,432			3,267		Net sales		3,267			3,718			4,333			2,013			2,432
	(310	)		(285	)	Benefit payments		(285	)		(288	)		(283	)		(313	)		(310	)

	2,122			2,982		Net flows		2,982			3,430			4,050			1,700			2,122
	6,039			8,171		Change in market value, interest credited, and other		8,171			(2,742	)		5,264			1,687			6,039
	(735	)		(620	)	Policy charges		(620	)		(638	)		(691	)		(728	)		(735	)

	139,034			120,276		Ending total account value		120,276			120,326			128,949			131,608			139,034


						Fixed Annuities:
	3,734			3,792		Beginning total account value		3,792			3,778			3,768			3,756			3,734
	16			16		Sales		16			14			14			11			16
	(41	)		(43	)	Surrenders and withdrawals		(43	)		(34	)		(35	)		(48	)		(41	)

	(25	)		(27	)	Net redemptions		(27	)		(20	)		(21	)		(37	)		(25	)
	(71	)		(83	)	Benefit payments		(83	)		(62	)		(68	)		(68	)		(71	)

	(96	)		(110	)	Net flows		(110	)		(82	)		(89	)		(105	)		(96	)
	77			96		Interest credited and other		96			73			78			83			77
	(1	)		—		Policy charges		—			(1	)		(1	)		—			(1	)

	3,714			3,778		Ending total account value		3,778			3,768			3,756			3,734			3,714


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (1):
	703			764		Insurance Agents		764			799			903			557			703
	923			1,233		Wirehouses		1,233			1,299			1,471			929			923
	1,935			2,103		Independent Financial Planners		2,103			2,338			2,706			1,661			1,935
	663			859		Bank Distribution		859			922			846			642			663

	4,224			4,959		Total		4,959			5,358			5,926			3,789			4,224

(1)	Amounts represent gross sales.

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date							2012												2013
2013			2012				1Q			2Q			3Q			4Q			1Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	11,564			12,830		Beginning balance		12,830			12,277			12,355			11,929			11,564
	488			548		Premiums and deposits		548			662			674			476			488
	(268	)		(278	)	Surrenders and withdrawals		(278	)		(253	)		(239	)		(288	)		(268	)

	220			270		Net sales		270			409			435			188			220
	(89	)		(101	)	Benefit payments		(101	)		(84	)		(86	)		(86	)		(89	)

	131			169		Net flows		169			325			349			102			131
	86			96		Interest credited and other		96			111			97			70			86
	(632	)		(818	)	Net transfers to separate account		(818	)		(357	)		(871	)		(537	)		(632	)
	(1	)		—		Policy charges		—			(1	)		(1	)		—			(1	)

	11,148			12,277		Ending balance		12,277			12,355			11,929			11,564			11,148


						Account Values in Separate Account:
	123,778			100,705		Beginning balance		100,705			111,777			111,739			120,776			123,778
	3,736			4,411		Premiums and deposits		4,411			4,696			5,252			3,313			3,736
	(1,549	)		(1,441	)	Surrenders and withdrawals		(1,441	)		(1,407	)		(1,375	)		(1,525	)		(1,549	)

	2,187			2,970		Net sales		2,970			3,289			3,877			1,788			2,187
	(292	)		(267	)	Benefit payments		(267	)		(266	)		(265	)		(295	)		(292	)

	1,895			2,703		Net flows		2,703			3,023			3,612			1,493			1,895
	6,030			8,171		Change in market value, interest credited and other		8,171			(2,780	)		5,245			1,700			6,030
	632			818		Net transfers from general account		818			357			871			537			632
	(735	)		(620	)	Policy charges		(620	)		(638	)		(691	)		(728	)		(735	)

	131,600			111,777		Ending balance		111,777			111,739			120,776			123,778			131,600

(1)

Premiums and deposits, and surrenders and withdrawals, are classified within the general account and separate account for purposes of this presentation based on the allocation of customer funds. For example, premiums allocated by customers to separate account investments at the time of sale, while remitted through the company’s general account, are shown as separate account premium in this display, rather than as general account premium and transfers to the separate account.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

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

(in millions)


	2012								2013
	1Q		2Q		3Q		4Q		1Q

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		8,724		8,368		8,224		7,947		7,764
Guaranteed minimum withdrawal benefits		1,066		984		980		947		945
Guaranteed minimum income benefits		3,874		3,603		3,631		3,556		3,639
Guaranteed minimum withdrawal & income benefits		81,156		83,110		91,366		94,804		101,688

Total		94,820		96,065		104,201		107,254		114,036


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		78,622		80,811		88,672		91,954		98,362
Account Values without Auto-Rebalancing Feature		16,198		15,254		15,529		15,300		15,674

Total		94,820		96,065		104,201		107,254		114,036


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		2,650		3,938		3,013		3,145		2,435
Net Amount at Risk without Auto-Rebalancing Feature		1,652		2,008		1,701		1,663		1,346

Total		4,302		5,946		4,714		4,808		3,781

(1)	At end of period.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

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

(in millions)


	2012								2013
	1Q		2Q		3Q		4Q		1Q

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

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		86,442		87,311		94,401		96,951		102,944
Net amount at risk		963		1,390		850		769		584
Minimum return, anniversary contract value, or maximum contract value:
Account value		30,685		30,037		31,510		31,687		33,046
Net amount at risk		4,173		4,975		4,268		4,207		3,574

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		78,622		80,811		88,672		91,954		98,362
Account Values without Auto-Rebalancing Feature		38,505		36,537		37,239		36,684		37,628

Total		117,127		117,348		125,911		128,638		135,990


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		995		1,596		983		958		715
Net Amount at Risk without Auto-Rebalancing Feature		4,141		4,769		4,135		4,018		3,443

Total		5,136		6,365		5,118		4,976		4,158

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - RETIREMENT SEGMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


Year-to-date							2012												2013
2013			2012				1Q			2Q			3Q			4Q			1Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	148,405			139,430		Beginning total account value		139,430			145,991			142,405			146,934			148,405
	5,679			4,646		Deposits and sales		4,646			4,363			3,478			3,903			5,679
	(4,676	)		(7,103	)	Withdrawals and benefits		(7,103	)		(3,671	)		(4,063	)		(4,386	)		(4,676	)
	6,972			9,018		Change in market value, interest credited, interest income and other activity (1)		9,018			(4,278	)		5,114			1,954			6,972

	156,380			145,991		Ending total account value		145,991			142,405			146,934			148,405			156,380


	1,003			(2,457	)	Net additions (withdrawals)		(2,457	)		692			(585	)		(483	)		1,003


						Stable value account values included above		41,169			41,634			42,044			42,836			43,065

						Institutional Investment Products:
	141,435			90,089		Beginning total account value		90,089			93,853			102,443			104,646			141,435
	3,845			4,399		Additions (2)		4,399			8,457			2,957			39,192			3,845
	(2,319	)		(1,538	)	Withdrawals and benefits (3)		(1,538	)		(2,832	)		(1,539	)		(2,586	)		(2,319	)
	202			928		Change in market value, interest credited and interest income		928			1,562			1,509			788			202
	(152	)		(25	)	Other (4)		(25	)		1,403			(724	)		(605	)		(152	)

	143,011			93,853		Ending total account value (5)		93,853			102,443			104,646			141,435			143,011


	1,526			2,861		Net additions		2,861			5,625			1,418			36,606			1,526

(1)	Includes $(1.4) billion for the three months ended June 30, 2012, representing the divestiture of bank deposits previously held by Prudential Bank & Trust, as a result of the Company’s decision to limit its operations to trust services.

(2)

Includes $1,008 million for the three months ended December 31, 2012, representing transfers of client balances from externally managed accounts to accounts managed by Prudential. These additions are offset within the “Other” category and there are no net impacts on ending account values for these transfers.

(3)

Includes $(7) million, $(886) million, and $(9) million, and $(4) million for the three months ended March 31, 2012, June 30, 2012, September 30, 2012, and March 31, 2013, respectively, representing transfers of client balances managed by Prudential to externally managed accounts. These withdrawals are offset within the “Other” category and there are no net impacts on ending account values for these transfers.

(4)

“Other” activity includes transfers to externally/(internally) managed accounts of $7 million, $886 million, $9 million, $(1,008) million, and $4 million for the three months ended March 31, 2012, June 30, 2012, September 30, 2012, December 31, 2012, and March 31, 2013, respectively. These transfers are offset in withdrawals/(additions) discussed above in notes 2 & 3. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

(5)

Ending total account values for Institutional Investment Products business includes $1.5 billion as of March 31, 2012, June 30, 2012, and September 30, 2012, and $1.9 billion as of December 31, 2012 and March 31, 2013, respectively, related to collateralized funding agreements issued to the Federal Home Loan Bank of New York (FHLBNY).

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION FOR ASSET MANAGEMENT SEGMENT


						Supplementary Revenue Information (in millions):
Year-to-date				%			2012									2013
2013		2012		Change			1Q		2Q			3Q		4Q		1Q

						Analysis of revenues by type:
	451		403		12%	Asset management fees		403		407			424		433		451
	65		30		117%	Other related revenues		30		(25	)		113		89		65
	158		134		18%	Service, distribution and other revenues		134		124			117		149		158

	674		567		19%	Total Asset Management segment revenues		567		506			654		671		674


						Analysis of asset management fees by source:
	203		190		7%	Institutional customers		190		190			194		201		203
	145		121		20%	Retail customers		121		124			132		132		145
	103		92		12%	General account		92		93			98		100		103

	451		403		12%	Total asset management fees		403		407			424		433		451


Supplementary Assets Under Management Information (in billions):
	March 31, 2013
	Equity		Fixed Income		Real Estate		Total
Institutional customers		56.6		234.7		31.9		323.2
Retail customers		94.2		47.6		2.0		143.8
General account		7.8		364.0		1.5		373.3

Total		158.6		646.3		35.4		840.3


	March 31, 2012
	Equity		Fixed Income		Real Estate		Total
Institutional customers		53.3		203.0		29.8		286.1
Retail customers		83.9		39.8		1.4		125.1
General account		9.2		310.7		1.4		321.3

Total		146.4		553.5		32.6		732.5

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - SUPPLEMENTARY ASSETS UNDER MANAGEMENT AND ADMINISTRATION INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in billions)


Year-to-date							2012												2013
2013			2012				1Q			2Q			3Q			4Q			1Q

						Institutional Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	274.6			234.2		Beginning assets under management		234.2			247.5			251.4			263.8			274.6
	14.4			14.1		Additions		14.1			11.2			12.7			20.8			14.4
	(7.5	)		(8.7	)	Withdrawals		(8.7	)		(11.2	)		(9.3	)		(12.4	)		(7.5	)
	1.9			7.7		Change in market value		7.7			3.7			8.9			2.8			1.9
	(0.2	)		0.1		Net money market flows		0.1			0.1			0.1			(0.1	)		(0.2	)
	(0.3	)		0.1		Other (1)		0.1			0.1			—			(0.3	)		(0.3	)

	282.9			247.5		Ending assets under management		247.5			251.4			263.8			274.6			282.9
	40.3			38.6		Affiliated institutional assets under management		38.6			37.8			39.3			39.1			40.3

	323.2			286.1		Total assets managed for institutional customers at end of period		286.1			289.2			303.1			313.7			323.2


	6.9			5.4		Net institutional additions, excluding money market activity		5.4			—			3.4			8.4			6.9


						Retail Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	91.1			69.6		Beginning assets under management		69.6			81.1			81.1			87.8			91.1
	10.9			9.4		Additions		9.4			9.5			8.0			10.1			10.9
	(9.1	)		(6.1	)	Withdrawals		(6.1	)		(5.9	)		(5.5	)		(6.7	)		(9.1	)
	5.0			8.2		Change in market value		8.2			(3.6	)		4.3			(0.1	)		5.0
	—			—		Net money market flows		—			—			(0.1	)		—			—
	—			—		Other		—			—			—			—			—

	97.9			81.1		Ending assets under management		81.1			81.1			87.8			91.1			97.9
	45.9			44.0		Affiliated retail assets under management		44.0			50.6			46.1			47.6			45.9

	143.8			125.1		Total assets managed for retail customers at end of period		125.1			131.7			133.9			138.7			143.8


	1.8			3.3		Net retail additions, excluding money market activity		3.3			3.6			2.5			3.4			1.8

(1)	“Other” activity represents transfers from the Retirement Segment, as a result of changes in the client contract form; and FX related to International assets under management.

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

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

(in millions)


Year-to-date						%			2012												2013
2013			2012			Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	1,279			1,269			1%	Premiums		1,269			1,290			1,295			1,274			1,279
	657			391			68%	Policy charges and fee income		391			389			537			439			657
	473			400			18%	Net investment income		400			402			409			408			473
	148			107			38%	Asset management fees, commissions and other income		107			114			127			117			148

	2,557			2,167			18%	Total revenues		2,167			2,195			2,368			2,238			2,557


								Benefits and Expenses (1):
	1,605			1,473			9%	Insurance and annuity benefits		1,473			1,452			1,433			1,411			1,605
	193			133			45%	Interest credited to policyholders’ account balances		133			139			139			146			193
	96			77			25%	Interest expense		77			80			83			83			96
	(220	)		(89	)		-147%	Deferral of acquisition costs		(89	)		(100	)		(103	)		(199	)		(220	)
	73			57			28%	Amortization of acquisition costs		57			77			210			80			73
	664			444			50%	General and administrative expenses		444			453			459			630			664

	2,411			2,095			15%	Total benefits and expenses		2,095			2,101			2,221			2,151			2,411


	146			72			103%	Adjusted operating income before income taxes		72			94			147			87			146

(1)	Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses.

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

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

(in millions)


	Three Months Ended March 31, 2013
	Total
	U.S. Individual Life & Group Insurance			Individual			Group
	Division			Life			Insurance
Revenues (1):
Premiums		1,279			193			1,086
Policy charges and fee income		657			515			142
Net investment income		473			330			143
Asset management fees, commissions and other income		148			117			31

Total revenues		2,557			1,155			1,402


Benefits and Expenses (1):
Insurance and annuity benefits		1,605			468			1,137
Interest credited to policyholders’ account balances		193			136			57
Interest expense		96			94			2
Deferral of acquisition costs		(220	)		(220	)		—
Amortization of acquisition costs		73			71			2
General and administrative expenses		664			469			195

Total benefits and expenses		2,411			1,018			1,393


Adjusted operating income before income taxes		146			137			9


	Three Months Ended March 31, 2012
	Total
	U.S. Individual Life & Group Insurance			Individual			Group
	Division			Life			Insurance
Revenues (1):
Premiums		1,269			175			1,094
Policy charges and fee income		391			265			126
Net investment income		400			254			146
Asset management fees, commissions and other income		107			82			25

Total revenues		2,167			776			1,391


Benefits and Expenses (1):
Insurance and annuity benefits		1,473			294			1,179
Interest credited to policyholders’ account balances		133			77			56
Interest expense		77			77			—
Deferral of acquisition costs		(89	)		(89	)		—
Amortization of acquisition costs		57			56			1
General and administrative expenses		444			249			195

Total benefits and expenses		2,095			664			1,431


Adjusted operating income (loss) before income taxes		72			112			(40	)

(1)	Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses.

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - INDIVIDUAL LIFE ANNUALIZED NEW BUSINESS PREMIUMS, ACCOUNT VALUE ACTIVITY, AND FACE AMOUNT IN FORCE

(in millions)


Year-to-date							2012												2013
2013			2012				1Q			2Q			3Q			4Q			1Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1):

	9			4		Variable life		4			5			4			8			9
	157			34		Universal life		34			42			52			90			157
	50			41		Term life		41			44			42			46			50

	216			79		Total		79			91			98			144			216


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	25			20		Prudential Agents		20			24			22			24			25
	191			59		Third party distribution		59			67			76			120			191

	216			79		Total		79			91			98			144			216


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	10,583			9,500		Beginning balance		9,500			9,792			10,021			10,058			10,583
	1,108			480		Premiums and deposits		480			502			506			709			1,108
	(240	)		(196	)	Surrenders and withdrawals		(196	)		(220	)		(209	)		(213	)		(240	)

	868			284		Net sales		284			282			297			496			868
	(133	)		(57	)	Benefit payments		(57	)		(65	)		(53	)		(59	)		(133	)

	735			227		Net flows		227			217			244			437			735
	276			88		Interest credited and other		88			28			(195	)		111			276
	88			70		Net transfers from separate account		70			78			68			84			88
	(340	)		(93	)	Policy charges		(93	)		(94	)		(80	)		(107	)		(340	)
	8,684			—		Acquisition		—			—			—			—			8,684

	20,026			9,792		Ending balance		9,792			10,021			10,058			10,583			20,026


						*Separate Account Liabilities:*
	17,817			16,491		Beginning balance		16,491			17,842			17,113			17,835			17,817
	305			208		Premiums and deposits		208			211			212			218			305
	(233	)		(145	)	Surrenders and withdrawals		(145	)		(130	)		(148	)		(154	)		(233	)

	72			63		Net sales		63			81			64			64			72
	(41	)		(7	)	Benefit payments		(7	)		(8	)		(8	)		(7	)		(41	)

	31			56		Net flows		56			73			56			57			31
	1,487			1,530		Change in market value, interest credited and other		1,530			(562	)		895			173			1,487
	(88	)		(70	)	Net transfers to general account		(70	)		(78	)		(68	)		(84	)		(88	)
	(243	)		(165	)	Policy charges		(165	)		(162	)		(161	)		(164	)		(243	)
	5,607			—		Acquisition		—			—			—			—			5,607

	24,611			17,842		Ending balance		17,842			17,113			17,835			17,817			24,611


						FACE AMOUNT IN FORCE (3):

						Variable life		113,118			111,530			111,159			110,218			175,851
						Universal life		42,751			45,161			47,943			53,092			130,182
						Term life		483,890			491,724			499,051			506,868			597,272

						Total		639,759			648,415			658,153			670,178			903,305

(1)	Excludes corporate-owned life insurance.

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

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

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

(dollar amounts in millions)


Year-to-date					2012								2013
2013		2012			1Q		2Q		3Q		4Q		1Q

				Individual Life Insurance:

				Policy Surrender Experience:
	303		170	Cash value of surrenders		170		155		165		169		303
	3.1%		2.8%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		2.8%		2.5%		2.6%		2.6%		3.1%

				Death benefits per $1,000 of in force (1):
	4.35		4.35	Variable and universal life		4.35		5.90		4.38		4.17		4.35
	1.29		1.42	Term life		1.42		2.08		1.00		1.36		1.29
	3.10		2.86	Total, Individual Life Insurance		2.86		3.89		2.60		2.69		3.10

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

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

(dollar amounts in millions)


Year-to-date					2012												2013
2013		2012			1Q			2Q			3Q			4Q			1Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	148		211	Group life		211			24			18			51			148
	45		81	Group disability		81			19			28			7			45

	193		292	Total		292			43			46			58			193


				Future Policy Benefits (1):
				Group life		2,325			2,300			2,231			2,385			2,297
				Group disability		37			28			17			4			34

				Total		2,362			2,328			2,248			2,389			2,331


				Policyholders’ Account Balances (1):
				Group life		7,188			7,310			7,522			7,726			7,657
				Group disability		168			182			193			209			212

				Total		7,356			7,492			7,715			7,935			7,869


				Separate Account Liabilities (1):
				Group life		19,826			19,506			20,110			21,940			23,076
				Group disability		—			—			—			—			—

				Total		19,826			19,506			20,110			21,940			23,076


				Group Life Insurance:
	1,074		1,064	Gross premiums, policy charges and fee income (2)		1,064			1,015			1,019			1,079			1,074
	997		990	Earned premiums, policy charges and fee income		990			989			1,010			994			997
	92.2%		95.4%	Benefits ratio		95.4	%		88.6	%		90.7	%		89.0	%		92.2	%
	9.2%		9.1%	Administrative operating expense ratio		9.1	%		9.9	%		9.2	%		11.8	%		9.2	%
				Persistency ratio		95.4	%		95.0	%		94.5	%		94.0	%		95.0	%

				Group Disability Insurance:
	240		232	Gross premiums, policy charges and fee income (2)		232			245			239			243			240
	231		230	Earned premiums, policy charges and fee income		230			232			231			232			231
	94.4%		102.2%	Benefits ratio		102.2	%		97.4	%		93.9	%		98.7	%		94.4	%
	26.7%		25.9%	Administrative operating expense ratio		25.9	%		23.3	%		23.8	%		28.4	%		26.7	%
				Persistency ratio		93.9	%		91.6	%		90.5	%		89.3	%		91.7	%

(1)	As of end of period.

(2)	Before returns of premiums to participating policyholders for favorable claims experience.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

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

(in millions)


Year-to-date							2012												2013
2013			2012				1Q			2Q			3Q			4Q			1Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	3,829			2,390		Beginning balance		2,390			3,252			2,619			3,457			3,829
	223			254		Capitalization		254			274			288			200			223
	(134	)		(86	)	Amortization - operating results		(86	)		(157	)		36			(131	)		(134	)
	271			675		Amortization - realized investment gains and losses		675			(747	)		518			288			271
	34			19		Impact of unrealized (gains) or losses on AFS securities		19			(3	)		(4	)		15			34
	—			—		Other		—			—			—			—			—

	4,223			3,252		Ending balance		3,252			2,619			3,457			3,829			4,223


						INDIVIDUAL LIFE INSURANCE:
	3,116			3,192		Beginning balance		3,192			3,242			3,238			2,994			3,116
	220			89		Capitalization		89			100			103			144			220
	(71	)		(56	)	Amortization - operating results		(56	)		(76	)		(209	)		(78	)		(71	)
	2			—		Amortization - realized investment gains and losses		—			—			—			—			2
	50			17		Impact of unrealized (gains) or losses on AFS securities		17			(28	)		(138	)		56			50

	3,317			3,242		Ending balance		3,242			3,238			2,994			3,116			3,317


						GROUP INSURANCE:
	182			132		Beginning balance		132			131			130			129			182
	—			—		Capitalization		—			—			—			55			—
	(2	)		(1	)	Amortization - operating results		(1	)		(1	)		(1	)		(2	)		(2	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	180			131		Ending balance		131			130			129			182			180


						DEFERRED SALES INDUCEMENTS

						INDIVIDUAL ANNUITIES:
	1,357			1,000		Beginning balance		1,000			1,306			1,032			1,275			1,357
	16			82		Capitalization		82			88			70			18			16
	(54	)		(45	)	Amortization - operating results		(45	)		(68	)		(2	)		(50	)		(54	)
	92			262		Amortization - realized investment gains and losses		262			(295	)		172			107			92
	14			7		Impact of unrealized losses on AFS securities		7			1			3			7			14
	—			—		Other		—			—			—			—			—

	1,425			1,306		Ending balance		1,306			1,032			1,275			1,357			1,425

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


Year-to-date						%			2012												2013
2013			2012			Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	4,914			4,605			7%	Premiums		4,605			5,164			6,814			7,901			4,914
	159			152			5%	Policy charges and fee income		152			150			139			156			159
	1,093			1,014			8%	Net investment income		1,014			1,030			1,119			1,105			1,093
	184			46			300%	Asset management fees, commissions and other income		46			62			82			47			184

	6,350			5,817			9%	Total revenues		5,817			6,406			8,154			9,209			6,350


								Benefits and Expenses (1):
	4,203			3,752			12%	Insurance and annuity benefits		3,752			4,303			5,982			7,068			4,203
	267			278			-4%	Interest credited to policyholders’ account balances		278			270			303			271			267
	1			1			0%	Interest expense		1			(1	)		1			2			1
	(427	)		(470	)		9%	Deferral of acquisition costs		(470	)		(542	)		(494	)		(518	)		(427	)
	270			260			4%	Amortization of acquisition costs		260			284			279			350			270
	1,159			1,399			-17%	General and administrative expenses		1,399			1,414			1,301			1,389			1,159

	5,473			5,220			5%	Total benefits and expenses		5,220			5,728			7,372			8,562			5,473


	877			597			47%	Adjusted operating income before income taxes		597			678			782			647			877

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests.

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Three Months Ended March 31, 2013
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		4,914			1,890			3,024
Policy charges and fee income		159			90			69
Net investment income		1,093			403			690
Asset management fees, commissions and other income		184			60			124

Total revenues		6,350			2,443			3,907


Benefits and Expenses (1):
Insurance and annuity benefits		4,203			1,591			2,612
Interest credited to policyholders’ account balances		267			69			198
Interest expense		1			1			—
Deferral of acquisition costs		(427	)		(210	)		(217	)
Amortization of acquisition costs		270			120			150
General and administrative expenses		1,159			450			709

Total benefits and expenses		5,473			2,021			3,452


Adjusted operating income before income taxes		877			422			455


	Three Months Ended March 31, 2012
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		4,605			1,826			2,779
Policy charges and fee income		152			94			58
Net investment income		1,014			386			628
Asset management fees, commissions and other income		46			11			35

Total revenues		5,817			2,317			3,500


Benefits and Expenses (1):
Insurance and annuity benefits		3,752			1,490			2,262
Interest credited to policyholders’ account balances		278			68			210
Interest expense		1			—			1
Deferral of acquisition costs		(470	)		(212	)		(258	)
Amortization of acquisition costs		260			126			134
General and administrative expenses		1,399			463			936

Total benefits and expenses		5,220			1,935			3,285


Adjusted operating income before income taxes		597			382			215

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests.

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2012								2013
2013		2012			1Q		2Q		3Q		4Q		1Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	1,559		1,531	Japan, excluding Gibraltar Life		1,531		1,393		1,416		1,389		1,559
	3,093		2,837	Gibraltar Life		2,837		3,530		5,143		6,229		3,093
	421		389	All other countries		389		391		394		439		421

	5,073		4,757	Total		4,757		5,314		6,953		8,057		5,073


				Annualized new business premiums:
	249		305	Japan, excluding Gibraltar Life		305		316		181		190		249
	459		469	Gibraltar Life		469		762		680		813		459
	96		89	All other countries		89		86		93		94		96

	804		863	Total		863		1,164		954		1,097		804


				Annualized new business premiums by distribution channel:
	345		394	Life Planners		394		402		274		284		345
	204		193	Gibraltar Life Consultants		193		316		208		213		204
	209		193	Banks		193		261		433		547		209
	46		83	Independent Agency		83		185		39		53		46

	804		863	Total		863		1,164		954		1,097		804


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	1,736		1,526	Japan, excluding Gibraltar Life		1,526		1,394		1,398		1,405		1,736
	3,395		2,771	Gibraltar Life		2,771		3,559		5,076		6,252		3,395
	402		377	All other countries		377		390		388		421		402

	5,533		4,674	Total		4,674		5,343		6,862		8,078		5,533


				Annualized new business premiums:
	280		306	Japan, excluding Gibraltar Life		306		316		178		192		280
	488		459	Gibraltar Life		459		769		670		806		488
	92		85	All other countries		85		86		93		91		92

	860		850	Total		850		1,171		941		1,089		860


				Annualized new business premiums by distribution channel:
	372		391	Life Planners		391		402		271		283		372
	217		189	Gibraltar Life Consultants		189		318		203		212		217
	223		190	Banks		190		261		429		542		223
	48		80	Independent Agency		80		190		38		52		48

	860		850	Total		850		1,171		941		1,089		860

(1)	Translated based on applicable average exchange rates for the period shown.

(2)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 80 per U.S. dollar; Korean won 1160 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2012												2013
	1Q			2Q			3Q			4Q			1Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		350			354			356			359			364
Gibraltar Life		400			400			406			411			414
All other countries		105			105			106			107			108

Total		855			859			868			877			886


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,725			2,773			2,794			2,825			2,880
Gibraltar Life		7,448			7,417			7,432			7,449			7,417
All other countries		1,606			1,624			1,643			1,662			1,680

Total		11,779			11,814			11,869			11,936			11,977


International life insurance policy persistency: (3)

Excluding Gibraltar Life:
13 months		93.0	%		93.0	%		93.0	%		93.0	%		93.0	%
25 months		85.2	%		85.4	%		85.7	%		86.1	%		86.3	%

Gibraltar Life:
13 months		93.0	%		90.6	%		90.4	%		89.7	%		89.4	%
25 months		85.8	%		81.6	%		82.0	%		82.4	%		82.2	%

Number of Life Planners at end of period:
Japan		3,165			3,116			3,169			3,216			3,284
All other countries		3,654			3,690			3,760			3,842			3,817

Total life planners		6,819			6,806			6,929			7,058			7,101


Gibraltar Life Consultants		12,219			12,031			11,683			11,333			10,252

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 80 per U.S. dollar; Korean won 1160 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

(2)	Direct business only; policy count includes annuities.

(3)	Excludes Star/Edison business for 1Q 2012.

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2013									December 31, 2012
	Consolidated Portfolio		Closed Block Business		Financial Services Businesses					Consolidated Portfolio		Closed Block Business		Financial Services Businesses
					Financial Services Businesses									Financial Services Businesses
					Amount		% of Total							Amount		% of Total
Fixed maturities:
Public, available-for-sale, at fair value		252,260		28,815		223,445		67.5	%		254,096		28,790		225,306		68.2	%
Public, held-to-maturity, at amortized cost		2,873		—		2,873		0.9	%		3,116		—		3,116		0.9	%
Private, available-for-sale, at fair value		47,754		17,345		30,409		9.2	%		46,875		17,629		29,246		8.8	%
Private, held-to-maturity, at amortized cost		1,005		—		1,005		0.3	%		1,152		—		1,152		0.3	%
Trading account assets supporting insurance liabilities, at fair value		20,890		—		20,890		6.3	%		20,590		—		20,590		6.2	%
Other trading account assets, at fair value		1,724		278		1,446		0.4	%		1,701		275		1,426		0.4	%
Equity securities, available-for-sale, at fair value		8,918		3,603		5,315		1.6	%		8,256		3,225		5,031		1.5	%
Commercial mortgage and other loans, at book value		37,453		9,714		27,739		8.4	%		36,231		9,608		26,623		8.1	%
Policy loans, at outstanding balance		11,938		5,077		6,861		2.1	%		11,575		5,120		6,455		2.0	%
Other long-term investments (1)		8,603		2,174		6,429		1.9	%		8,677		2,012		6,665		2.0	%
Short-term investments		6,214		1,588		4,626		1.4	%		6,385		1,261		5,124		1.6	%

Subtotal (2)		399,632		68,594		331,038		100.0	%		398,654		67,920		330,734		100.0	%

Invested assets of other entities and operations (3)		7,845		—		7,845					6,928		—		6,928

Total investments		407,477		68,594		338,883					405,582		67,920		337,662

Fixed Maturities by Credit Quality (2):


	March 31, 2013											December 31, 2012
	Financial Services Businesses											Financial Services Businesses
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total
Public Fixed Maturities:

NAIC Rating (4)
1		176,254		18,726		1,243		193,737		85.5	%		181,892		15,753		985		196,660		86.0	%
2		25,657		2,173		428		27,402		12.1	%		25,074		2,029		439		26,664		11.7	%

Subtotal - High or Highest Quality Securities		201,911		20,899		1,671		221,139		97.6	%		206,966		17,782		1,424		223,324		97.7	%

3		3,735		203		127		3,811		1.7	%		3,670		128		204		3,594		1.6	%
4		1,178		122		64		1,236		0.6	%		1,351		100		122		1,329		0.6	%
5		316		33		32		317		0.1	%		340		20		58		302		0.1	%
6		61		14		14		61		0.0	%		55		10		17		48		0.0	%

Subtotal - Other Securities		5,290		372		237		5,425		2.4	%		5,416		258		401		5,273		2.3	%

Total		207,201		21,271		1,908		226,564		100.0	%		212,382		18,040		1,825		228,597		100.0	%


Private Fixed Maturities:
NAIC Rating (4)
1		7,465		875		32		8,309		26.4	%		7,237		811		52		7,996		26.2	%
2		17,795		1,822		133		19,484		61.9	%		17,350		1,659		217		18,792		61.7	%

Subtotal - High or Highest Quality Securities		25,260		2,697		165		27,793		88.3	%		24,587		2,470		269		26,788		87.9	%

3		2,377		187		19		2,545		8.1	%		2,416		173		29		2,560		8.4	%
4		686		49		9		725		2.3	%		631		33		7		657		2.2	%
5		302		10		19		293		0.9	%		310		7		16		301		1.0	%
6		85		35		—		120		0.4	%		131		29		—		160		0.5	%

Subtotal - Other Securities		3,450		281		47		3,683		11.7	%		3,488		242		52		3,678		12.1	%

Total		28,710		2,978		212		31,476		100.0	%		28,075		2,712		321		30,466		100.0	%

(1)	Other long-term investments consist of real estate and non-real estate related investments in joint ventures and partnerships, investment real estate held through direct ownership, and other miscellaneous investments.

(2)	Excludes (i) assets of our trading operations, (ii) assets of our asset management operations, including assets managed for third parties, and (iii) those assets classified as “Separate account assets” on our balance sheet.

(3)	Includes invested assets of trading and asset management operations. Excludes assets of our asset management operations managed for third parties and those assets classified as “Separate account assets” on our balance sheet.

(4)

Reflects equivalent ratings for investments of the international insurance operations. Includes, as of March 31, 2013 and December 31, 2012, respectively, 119 securities with amortized cost of $1,046 million (fair value $1,104 million) and 104 securities with amortized cost of $793 million (fair value, $847 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2013					December 31, 2012
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		119,074		81.8	%		124,710		82.2	%
Public, held-to-maturity, at amortized cost		2,873		1.9	%		3,116		2.0	%
Private, available-for-sale, at fair value		6,460		4.4	%		6,252		4.1	%
Private, held-to-maturity, at amortized cost		1,005		0.7	%		1,152		0.8	%
Trading account assets supporting insurance liabilities, at fair value		1,869		1.3	%		1,838		1.2	%
Other trading account assets, at fair value		1,068		0.7	%		1,195		0.8	%
Equity securities, available-for-sale, at fair value		2,320		1.6	%		2,126		1.4	%
Commercial mortgage and other loans, at book value		6,209		4.3	%		6,156		4.1	%
Policy loans, at outstanding balance		2,461		1.7	%		2,665		1.7	%
Other long-term investments (2)		2,052		1.4	%		2,215		1.5	%
Short-term investments		246		0.2	%		318		0.2	%

Total		145,637		100.0	%		151,743		100.0	%


	March 31, 2013					December 31, 2012
	Amount		% of Total			Amount		% of Total
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		104,371		56.3	%		100,596		56.2	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		23,949		12.9	%		22,994		12.9	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		19,021		10.3	%		18,752		10.5	%
Other trading account assets, at fair value		378		0.2	%		231		0.1	%
Equity securities, available-for-sale, at fair value		2,995		1.6	%		2,905		1.6	%
Commercial mortgage and other loans, at book value		21,530		11.6	%		20,467		11.4	%
Policy loans, at outstanding balance		4,400		2.4	%		3,790		2.1	%
Other long-term investments (2)		4,377		2.3	%		4,450		2.5	%
Short-term investments		4,380		2.4	%		4,806		2.7	%

Total		185,401		100.0	%		178,991		100.0	%

(1)	Excludes assets classified as “Separate account assets” on our balance sheet.

(2)	Other long-term investments consist of real estate and non-real estate related investments in joint ventures and partnerships, investment real estate held through direct ownership, derivatives and other miscellaneous investments.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Three Months Ended March 31
	2013									2012
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities		3.67	%		2,147			53			3.74	%		1,841			(14	)
Equity securities		5.70	%		59			34			5.55	%		56			(55	)
Commercial mortgage and other loans		4.99	%		282			(11	)		5.20	%		270			3
Policy loans		4.60	%		76			—			4.56	%		71			—
Short-term investments and cash equivalents		0.19	%		8			—			0.26	%		8			—
Other investments		4.39	%		88			(935	)		2.82	%		46			(1,313	)

Gross investment income before investment expenses		3.66	%		2,660			(859	)		3.71	%		2,292			(1,379	)
Investment expenses		-0.13	%		(80	)		—			-0.12	%		(61	)		—

Subtotal		3.53	%		2,580			(859	)		3.59	%		2,231			(1,379	)

Investment results of other entities and operations (2)					295			39						298			5
Less, investment income related to adjusted operating income reconciling items					(54	)								(29	)

Total					2,821			(820	)					2,500			(1,374	)

(1)

Excludes assets of our trading operations, commercial loans, and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders, assets of our asset management operations, including assets managed for third parties, and those assets classified as “Separate account assets” on our balance sheet. Realized gains / (losses) for Other investments includes changes in fair value of product-related and other derivatives and embedded derivatives.

(2)	Includes investment income of trading operations, asset management operations, commercial loans, and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders.

(3)

Yields are based on net investment income as reported under U.S. GAAP and do not include adjustments, such as settlements of duration management swaps that are included in adjusted operating income. Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets. Prior period’s yields are presented on a basis consistent with the current presentation.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2013									2012
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (1)			Amount			Realized Gains / (Losses)			Yield (1)			Amount			Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities		2.78	%		833			127			2.71	%		794			(11	)
Equity securities		4.11	%		19			30			3.16	%		16			(61	)
Commercial mortgage and other loans		4.23	%		65			2			3.99	%		55			4
Policy loans		3.38	%		22			—			3.36	%		23			—
Short-term investments and cash equivalents		0.15	%		1			—			0.17	%		1			—
Other investments (2)		5.75	%		47			(295	)		2.93	%		31			(204	)

Gross investment income before investment expenses		2.90	%		987			(136	)		2.74	%		920			(272	)
Investment expenses		-0.12	%		(42	)		—			-0.12	%		(44	)		—

Total		2.78	%		945			(136	)		2.62	%		876			(272	)

(1)

(2)	Realized gains / (losses) for Other investments includes changes in fair value of product-related and other derivatives and embedded derivatives.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2013									2012
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (2)			Amount			Realized Gains / (Losses)			Yield (2)			Amount			Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		4.61	%		1,314			(74	)		5.24	%		1,047			(3	)
Equity securities		6.97	%		40			4			7.83	%		40			6
Commercial mortgage and other loans		5.28	%		217			(13	)		5.64	%		215			(1	)
Policy loans		5.36	%		54			—			5.54	%		48			—
Short-term investments and cash equivalents		0.20	%		7			—			0.28	%		7			—
Other investments		3.45	%		41			(640	)		2.63	%		15			(1,109	)

Gross investment income before investment expenses		4.33	%		1,673			(723	)		4.88	%		1,372			(1,107	)
Investment expenses		-0.14	%		(38	)		—			-0.13	%		(17	)		—

Total		4.19	%		1,635			(723	)		4.75	%		1,355			(1,107	)

(1)

(2)

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure of performance of our Financial Services Businesses that excludes “Realized investment gains (losses), net”, as adjusted, and related charges and adjustments; net investment gains and losses on trading account assets supporting insurance liabilities; change in experience-rated contractholder liabilities due to asset value changes; results of divested businesses and discontinued operations; earnings attributable to noncontrolling interests; and the related tax effects thereof. Adjusted operating income includes equity in earnings of operating joint ventures and the related tax effects thereof. Revenues and benefits and expenses shown as components of adjusted operating income, are presented on the same basis as pre-tax adjusted operating income and are adjusted for the items above as well.

Realized investment gains (losses) within certain of our businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of a hedging program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are classified as other trading account assets.

Adjusted operating income does not equate to “Income from continuing operations” as determined in accordance with GAAP but is the measure of profit or loss we use to evaluate segment performance. Adjusted operating income is not a substitute for income determined in accordance with GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability factors of our businesses.

2. After-tax adjusted operating income:

Adjusted operating income before taxes, as defined above, less the income tax effect applicable to adjusted operating income before taxes.

3. Annualized New Business Premiums:

Premiums from new sales that are expected to be collected over a one year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Group disability amounts include dental products. Excess (unscheduled) and single premium business for the company’s domestic individual life and international insurance operations are included in annualized new business premiums based on a 10% credit.

4. Assets Under Management:

Fair market value or account value of assets which Prudential manages directly in proprietary products, such as mutual funds and variable annuities, in separate accounts, wrap-fee products and the general account, and assets invested in investment options included in the Company’s products that are managed by third party sub-managers (i.e., the non-proprietary investment options in the Company’s products).

5. Attributed Equity:

Amount of capital assigned to each of the Company’s segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment’s risks. Attributed equity for the Financial Services Businesses represents all of the Company’s equity that is not included in the Closed Block Business or attributable to noncontrolling interests.

6. Book value per share of Common Stock:

Equity attributed to Financial Services Businesses divided by the number of Common shares outstanding at end of period, on a diluted basis.

7. Borrowings - Capital Debt:

Borrowings that are or will be used for capital requirements at Prudential Financial, Inc as well as borrowings invested in equity or debt securities of direct or indirect subsidiaries of Prudential Financial, Inc., and subsidiary borrowings, utilized for capital requirements.

8. Borrowings - Operating Debt - Investment Related:

Debt issued to finance specific investment assets or portfolios of investment assets, including institutional spread lending investment portfolios as well as institutional and insurance company portfolio cash flow timing differences.

9. Borrowings - Operating Debt - Specified Businesses:

Borrowings primarily associated with the individual annuity and asset management businesses.

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

KEY DEFINITIONS AND FORMULAS

10. Client Assets:

Fair market value of assets in client accounts of International brokerage operations, Prudential Bank and mortgage loan servicing business, that are not included in Assets Under Management. Prudential does not receive a management or administrative fee on these assets, but may receive a fee for executing trades, custody or recordkeeping services.

11. Earned Premiums:

The portion of a premium, net of any amount ceded, that represents coverage already provided or that belongs to the insurer based on the part of the policy period that has passed.

12. Earnings Per Share of Common Stock:

Net income (loss) for the Financial Services Businesses and the Closed Block Business is determined in accordance with GAAP and includes general and administrative expenses charged to each of the businesses based on the Company’s methodology for the allocation of such expenses. Cash flows between the Financial Services Businesses and the Closed Block Business related to administrative expenses are determined by a policy servicing fee arrangement that is based upon insurance and policies in force and statutory cash premiums. To the extent reported administrative expenses vary from these cash flow amounts, the differences are recorded, on an after-tax basis, as direct equity adjustments to the equity balances of each business. The direct equity adjustments modify earnings available to holders of Common Stock and Class B Stock for earnings per share purposes. Earnings per share of Common Stock based on adjusted operating income (loss) of the Financial Services Businesses reflects these adjustments as well.

13. Full Service:

The Full Service line of business provides retirement plan products and services to public, private and not-for-profit organizations. This business provides recordkeeping, plan administration, actuarial advisory services, participant education and communication services, trustee services and institutional and retail investment funds. This business mainly services defined contribution and defined benefit plans; non-qualified plans are also serviced. For clients with both defined contribution and defined benefit plans, integrated recordkeeping services are available. For participants leaving these plans, a range of rollover products are provided through a broker-dealer bank.

14. Full Service Stable Value:

Our Full Service Stable Value products represent fixed rate options on investment funds offered to customers. These products contain an obligation to pay interest at a specified rate for a specific period of time. Upon termination these products repay account balances at market value immediately or may be liquidated at book value over time. Substantially all of these products are either fully or partially participating, with annual or semi-annual resets giving effect to previous investment experience. These products are issued through the general account, separate accounts or client-owned trusts. Profits from partially participating general account products result from the spread between the rate of return on investment assets and the interest rates credited to the customer, less expenses. For fully participating products, generally subject to a minimum interest rate guarantee, we earn fee income.

15. General Account:

Invested assets and policyholder liabilities and reserves for which the Company bears the investment risk. Excludes assets recognized for statutory purposes that are specifically allocated to a separate account. General account assets also include assets of the parent company, Prudential Financial, Inc.

16. Gibraltar Life Consultants:

Insurance representatives for Gibraltar Life, previously identified as Life Advisors.

17. Group Life Insurance and Group Disability Insurance Administrative Operating Expense Ratios:

Ratio of administrative operating expenses (excluding commissions) to gross premiums, policy charges and fee income.

18. Group Life Insurance and Group Disability Insurance Benefits Ratios:

Ratio of policyholder benefits to earned premiums, policy charges and fee income.

19. Individual Annuity Account Values in General Account and Separate Account:

Amounts represent the breakdown of invested customer funds in annuities either written or reinsured by the Company.

20. Individual Annuities - Net Amounts at Risk:

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

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

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

KEY DEFINITIONS AND FORMULAS

21. Insurance and Annuity Benefits:

Total death benefits, annuity benefits, disability benefits, other policy benefits, and losses paid or incurred, under insurance and annuity contracts, plus the change in reserves for future policy benefits, losses and loss adjustment expenses.

22. International Life Planners:

Insurance agents in our insurance operations outside the United States, excluding Gibraltar Life Advisors.

23. Non-recourse and Limited-recourse Debt:

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

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

Adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average attributed equity for the Financial Services Businesses excluding accumulated other comprehensive income.

An alternative measure to operating return on average equity (based on adjusted operating income) is return on average equity (based on income from continuing operations). Return on average equity (based on income from continuing operations) represents income from continuing operations after-tax, for the Financial Services Businesses, attributable to Prudential Financial, Inc. as determined in accordance with GAAP (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average total attributed equity for the Financial Services Businesses. Return on average equity (based on income from continuing operations) is (7.6%) for the three months ended March 31, 2013, (2.3)% for the three months ended December 31, 2012, (6.7)% for the three months ended September 30, 2012, 25.4% for the three months ended June 30, 2012, and (11.6)% for the three months ended March 31, 2012.

25. Policy Persistency - Group Insurance:

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

26. Policy Persistency - International Insurance:

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

27. Prudential Agents:

Insurance agents in our insurance operations in the United States.

28. Prudential Agent productivity:

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

29. Separate Accounts:

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

30. Wrap-Fee Products:

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

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2013

LOGO

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of May 1, 2013


	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+	AA-	A2	A+
PRUCO Life Insurance Company	A+	AA-	A2	A+
PRUCO Life Insurance Company of New Jersey	A+	AA-	NR*	A+
Prudential Annuities Life Assurance Corporation	A+	AA-	NR	A+
Prudential Retirement Insurance and Annuity Company	A+	AA-	A2	A+
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	NR	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA-	NR	NR
The Prudential Gibraltar Financial Life Insurance Co. Ltd.	NR	AA-	NR	NR

CREDIT RATINGS:
as of May 1, 2013

Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-1	P-2	F2
Long-Term Senior Debt	a-	A	Baa2	BBB+
Junior Subordinated Long-Term Debt	bbb	BBB+	Baa3	BBB-

The Prudential Insurance Company of America:
Capital and surplus notes	a	A	Baa1	A-

Prudential Funding, LLC:
Short-Term Debt	AMB-1	A-1+	P-2	F1
Long-Term Senior Debt	a+	AA-	A3	A

PRICOA Global Funding I
Long-Term Senior Debt	aa-	AA-	A2	A+

*	NR indicates not rated.

INVESTOR INFORMATION:


Corporate Offices:		Investor Information Hotline:
Prudential Financial, Inc.		Dial 877-998-ROCK for additional printed information or inquiries.
751 Broad Street
Newark, New Jersey 07102		Web Site:
		www.prudential.com

Common Stock:

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

Page 37

Form: 8-K

Documents