Prudential Financial, Inc.

Financial Strength Symposium

JUNE 9, 2014

Exhibit 99.1

Prudential Financial, Inc.

Financial Strength Symposium

ERIC DURANT

SENIOR VICE PRESIDENT

INVESTOR RELATIONS

FORWARD-LOOKING STATEMENTS

1

Financial Strength Symposium 6.9.2014

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

Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “includes,”  “plans,” “assumes,” “estimates,” “projects,” “intends,”

“should,” “will,” “shall” or variations of such words are generally part of forward-looking statements.  Forward-looking statements are made based

on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and

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

anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties,

and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in

such forward-looking statements, including, among others:  (1) general economic, market and political conditions, including the performance and

fluctuations of fixed income, equity, real estate and other financial markets; (2) the availability and cost of additional debt or equity capital or

external financing for our operations; (3) interest rate fluctuations or prolonged periods of low interest rates; (4) the degree to which we choose

not to hedge risks, or the potential ineffectiveness or insufficiency of hedging or risk management strategies we do implement, with regard to

variable annuity or other product guarantees; (5) any inability to access our credit facilities; (6) reestimates of our reserves for future policy

benefits and claims; (7) differences between actual experience regarding mortality, longevity, morbidity, persistency, surrender experience,

interest rates or market returns and the assumptions we use in pricing our products, establishing liabilities and reserves or for other purposes;

(8) changes in our assumptions related to deferred policy acquisition costs, value of business acquired or goodwill; (9) changes in assumptions

for retirement expense; (10) changes in our financial strength or credit ratings; (11) statutory reserve requirements associated with term and

universal life insurance policies under Regulation XXX and Guideline AXXX; (12) investment losses, defaults and counterparty non-performance;

(13) competition in our product lines and for personnel; (14) difficulties in marketing and distributing products through current or future distribution

channels; (15) changes in tax law; (16) economic, political, currency and other risks relating to our international operations; (17) fluctuations in

foreign currency exchange rates and foreign securities markets; (18) regulatory or legislative changes, including the Dodd-Frank Wall Street

Reform and Consumer Protection Act; (19) inability to protect our intellectual property rights or claims of infringement of the intellectual property

rights of others; (20) adverse determinations in litigation or regulatory matters and our exposure to contingent liabilities, including in connection

with our divestiture or winding down of businesses; (21) domestic or international military actions, natural or man-made disasters including

terrorist activities or pandemic disease, or other events resulting in catastrophic loss of life; (22) ineffectiveness of risk management policies and

procedures in identifying, monitoring and managing risks; (23) effects of acquisitions, divestitures and restructurings, including possible

difficulties in integrating and realizing projected results of acquisitions; (24) interruption in telecommunication, information technology or other

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

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

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

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

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

particular forward-looking statement included in this presentation.

See “Risk Factors” included in Prudential Financial, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2013 and Quarterly

Report on Form 10-Q for the period ended March 31, 2014 for discussion of certain risks relating to our businesses and investment in our

securities.

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

NON–GAAP MEASURES

2

Financial Strength Symposium 6.9.2014

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

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

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

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

periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and

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

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

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

income excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are

part of a hedging program related to the risk of those products.   Adjusted operating income also excludes gains and losses from changes in value of certain

assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding

strategies for our international subsidiaries, as well as gains and losses on certain investments that are classified as other trading account assets. 

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

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

contractholders. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of these transactions. In

addition, adjusted operating income excludes the results of divested businesses, which are not relevant to our ongoing operations. Discontinued operations,

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

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

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

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

operating income are important to an understanding of our overall results of operations. The schedules on the following pages provide a reconciliation of

adjusted operating income for the Financial Services Businesses to income from continuing operations in accordance with GAAP.

The information referred to above, as well as the risks of our businesses described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q,

should be considered by readers when reviewing forward-looking statements contained in this presentation.  Additional historical information relating to our

financial performance is located on our Web site at www.investor.prudential.com.

RECONCILIATION BETWEEN ADJUSTED OPERATING INCOME

AND THE COMPARABLE GAAP MEASURE

3

Financial Strength Symposium 6.9.2014

($ millions)

2009

2010

2011

2012

2013

Financial Services Businesses after-tax adjusted operating income

2,261

$

2,664

$

2,917

$

3,019

$

4,586

$

Reconciling items:

Realized investment gains (losses), net, and related charges and adjustments

(1,669)

(27)

847

(2,809)

(8,149)

Investment gains (losses) on trading account assets supporting insurance liabilities, net

1,601

501

223

610

(250)

Change in experience-rated contractholder liabilities due to asset value changes

(899)

(631)

(123)

(540)

227

Divested businesses

2,101

1

90

(615)

29

Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests

(2,387)

(87)

(227)

(29)

28

Total reconciling items, before income taxes

(1,253)

(243)

810

(3,383)

(8,115)

Income taxes, not applicable to adjusted operating income

(663)

35

424

(816)

(2,857)

Total reconciling items, after income taxes

(590)

(278)

386

(2,567)

(5,258)

Income (loss) from continuing operations (after-tax) of Financial Services Businesses

before equity in earnings of operating joint ventures

1,671

2,386

3,303

452

(672)

Equity in earnings of operating joint ventures, net of taxes and

earnings attributable to noncontrolling interests

1,580

63

148

10

(48)

Income (loss) from continuing operations attributable to Prudential Financial, Inc.

3,251

2,449

3,451

462

(720)

Earnings attributable to noncontrolling interests

(57)

19

34

50

107

Income (loss) from continuing operations (after-tax) of Financial Services Businesses

3,194

2,468

3,485

512

(613)

Income (loss) from discontinued operations, net of taxes

(19)

32

35

17

7

Net income (loss) of Financial Services Businesses

3,175

2,500

3,520

529

(606)

Less: Income attributable to noncontrolling interests

(57)

19

34

50

107

Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.

3,232

$

2,481

$

3,486

$

479

$   

(713)

$  

RECONCILIATION

FOR

EARNINGS

PER

SHARE

EXCLUDING

MARKET

DRIVEN

AND

DISCRETE

ITEMS

(1)

4

Adjusted Operating Income basis:

2010

2011

2012

2013

Earnings Per Share

5.64

$      

5.97

$      

6.40

$      

9.67

$      

Reconciling items:

Unlockings and experience true-ups

(2)

0.52

        

(0.27)

       

(0.03)

       

0.77

        

Gains on sales of businesses/investments

(3)

0.09

        

0.53

        

0.15

        

0.09

        

Impact of earthquake in Japan

-

          

(0.09)

       

-

          

-

          

Integration costs

(4)

-

          

(0.29)

       

(0.21)

       

(0.09)

       

Write off of bond issue costs

-

          

-

          

(0.04)

       

(0.03)

       

Other

(5)

-

          

(0.16)

       

(0.17)

       

-

          

Sub-total

0.61

        

(0.28)

       

(0.30)

       

0.74

        

Earnings Per Share - excluding market driven and discrete

items

5.03

$      

6.25

$      

6.70

$      

8.93

$      

1)

As disclosed in company earnings releases.

2)

Includes adjustments to reflect updated estimates of profitability based on market performance in relation to our assumptions, as well as annual reviews of

actuarial assumptions and refinements of reserves, deferred policy acquisition and other costs.

3)

Includes gains on sales of investments in China Pacific, Afore XXI, as well as impairments and gains on certain investments.

4)

Includes acquisition and integration expenses related to Star and Edison, and the acquired in force from The Hartford Life.

5)

Includes true ups for legal reserves, and employee benefit accruals, and impairments and write offs of intangible assets.

Financial Strength Symposium 6.9.2014

RECONCILIATION

FOR

U.S.

BUSINESSES

PRE-TAX

ADJUSTED

OPERATING

INCOME

EXCLUDING

MARKET

DRIVEN

AND

DISCRETE

ITEMS

(1)

5

1)

As disclosed in company earnings releases.

2)

Includes adjustments to reflect updated estimates of profitability based on market performance in relation to our assumptions, as well as annual reviews of

actuarial assumptions and refinements of reserves, deferred policy acquisition and other costs.

3)

Includes gain on sale of investment in Afore XXI, as well as an impairment and gains on certain other investments.

4)

Includes true ups for legal reserves and impairments and write offs of intangible assets.

Financial Strength Symposium 6.9.2014

($ millions)

2012

2013

U.S. Businesses pre-tax adjusted operating income

2,661

$   

4,587

$   

Reconciling items:

Unlockings and experience true-ups

(2)

48

764

Gains on sales of business/investments

(3)

44

-

Integration costs for Hartford Life acquisition

(15)

(51)

Other

(4)

(67)

-

Sub-total

10

713

U.S. Businesses pre-tax adjusted operating income excluding market

driven and discrete items

2,651

$   

3,874

$   

RECONCILIATION

FOR

ASSET

MANAGEMENT

PRE-TAX

ADJUSTED

OPERATING

INCOME

EXCLUDING

MARKET

DRIVEN

AND

DISCRETE

ITEMS

(1)

6

1)

As disclosed in company earnings releases.

2)

Includes gain on sale of an investment in Afore XXI, as well as an impairment and gains on sales of certain other investments.

Financial Strength Symposium 6.9.2014

($ millions)

2009

2010

2011

2012

2013

Asset Management pre-tax adjusted operating income

92

$        

523

$      

888

$      

584

$      

723

$      

Reconciling items:

Gains/(losses) on sales of business/investments

(2)

-

-

157

(34)

-

Sub-total

-

-

157

(34)

-

Asset Management pre-tax adjusted operating income excluding market

driven and discrete items

92

$        

523

$      

731

$      

618

$      

723

$      

RECONCILIATION

FOR

INTERNATIONAL

INSURANCE

PRE-TAX

ADJUSTED

OPERATING

INCOME

EXCLUDING

MARKET

DRIVEN

AND

DISCRETE

ITEMS

(1)

7

1)

As disclosed in company earnings releases.

2)

Includes refinements of reserves and amortization of deferred policy acquisition and other costs.

3)

Represents initial surrenders of policies following the restructuring of the acquired Yamato Life business.

Financial Strength Symposium 6.9.2014

($ millions)

2009

2010

2011

2012

2013

International Insurance pre-tax adjusted operating income

1,651

$   

1,887

$   

2,263

$   

2,704

$   

3,152

$   

Reconciling items:

Annual review of actuarial assumptions and reserve refinements

(2)

14

-

-

20

(190)

Gains on sales of indirect investment in China Pacific Group

-

66

237

60

66

Impact of earthquake in Japan

-

-

(69)

-

-

Star/Edison integration costs

-

-

(213)

(138)

(28)

Other

(3)

15

-

-

-

-

Sub-total

29

66

(45)

(58)

(152)

International Insurance pre-tax adjusted operating income excluding market

driven and discrete items

1,622

$   

1,821

$   

2,308

$   

2,762

$   

3,304

$   

RECONCILIATION FOR FSB PRE-TAX ADJUSTED OPERATING INCOME

EXCLUDING

MARKET

DRIVEN

AND

DISCRETE

ITEMS

(1)

8

1)

As disclosed in company earnings releases.

2)

Includes adjustments to reflect updated estimates of profitability based on market performance in relation to our assumptions, as well as annual reviews of

actuarial assumptions and refinements of reserves, deferred policy acquisition and other costs.

3)

Includes gains on sales of investment in China Pacific, Afore XXI, as well as impairments and gains on certain investments.

4)

Includes acquisition and integration expenses related to Star and Edison, and the acquired in force from The Hartford Life.

5)

Includes true ups for legal reserves, and employee benefit accruals, and impairments and write offs of intangible assets.

Financial Strength Symposium 6.9.2014

($ millions)

2012

2013

Financial Services Businesses (FSB) pre-tax adjusted operating income

4,027

$   

6,369

$   

Reconciling items:

Unlockings and experience true-ups

(2)

(10)

574

Gains on sales of businesses/investments

(3)

104

66

Integration costs

(4)

(153)

(79)

Other

(5)

(152)

(27)

Sub-total

(211)

534

Financial Services Businesses pre-tax adjusted operating income excluding

market driven and discrete items

4,238

$   

5,835

$   

ROBERT FALZON

EXECUTIVE VICE PRESIDENT AND

CHIEF FINANCIAL OFFICER

PRUDENTIAL FINANCIAL, INC.

PRUDENTIAL FINANCIAL, INC.

AGENDA

Executive Summary

U.S. Businesses

Asset Management

International Business

Investment Portfolio

Capital and Liquidity

2

Financial Strength Symposium 6.9.2014

KEY ELEMENTS OF PRUDENTIAL’S VALUE PROPOSITION

3

Financial Strength Symposium 6.9.2014

Talent Management

Investor Value Proposition

Superior ROE

Sustainable and

Growing

Earnings and

Redeployable

Cash Flows

Conservatively

Managed

Balance Sheet

VALUE ADDED BUSINESS MODELS LEVERAGE KEY STRENGTHS

4

Financial Strength Symposium 6.9.2014

TALENT AND CULTURE AS PERFORMANCE DRIVERS

5

Financial Strength Symposium 6.9.2014

Strong

technical

skills

–

used

independently

and

in

combination

Healthy blend of internally developed and external hires

Environment of collaboration, teamwork and diversity

Cross discipline engagement to drive innovation and execution

Seasoned management team; orderly transitions

DIVERSIFIED MIX OF VALUE ADDED BUSINESSES

6

1)

Pre-tax AOI for Financial Services Businesses excluding market driven and discrete items as disclosed in the company earnings releases; exhibit excludes

Corporate and Other Operations pre-tax loss of ($1.3B).

Financial Strength Symposium 6.9.2014

2013 Pre

-Tax Adjusted

Operating Income

$5.8 Billion

(1)

(1)

ROE AND EPS GROWTH

(1)(2)

7

Financial Strength Symposium 6.9.2014

1)

EPS based on after-tax AOI of FSB excluding market driven and discrete items as disclosed in the company earnings releases; 2010 and 2011 market driven

and discrete items have been restated for U.S. GAAP accounting standards applicable to deferred policy acquisition costs effective January 1, 2012.

2)

ROE based on AOI as adjusted herein and excludes accumulated other comprehensive income and the impact of foreign currency exchange rate

remeasurement on attributed equity.

10.2%

11.9%

11.8%

15.2%

$5.03

$6.25

$6.70

$8.93

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

0%

5%

10%

15%

20%

2010

2011

2012

2013

ROE

Earnings Per Share

OUR METRICS FOR THE FUTURE

8

Financial Strength Symposium 6.9.2014

Diversified mix of insurance and market risks

Balanced and sustainable sources of growth

Sustainable ROE 13-14% over a market cycle

Strong cash flow from earnings

Strong ratings

REGULATORY DEVELOPMENTS

9

Financial Strength Symposium 6.9.2014

Fed

(Applied Basel)

NAIC

(RBC)

FSB/ IAIS

(BCR, ICS)

STEPHEN PELLETIER

EXECUTIVE VICE PRESIDENT AND

CHIEF OPERATING OFFICER, U.S.

PRUDENTIAL’S U.S. BUSINESSES

TODAY’S DISCUSSION

2

Financial Strength Symposium 6.9.2014

Executive Summary

Prudential’s U.S. Business Portfolio

Review of U.S. Businesses

Conclusion

•

Prudential’s U.S. business portfolio represents an attractive mix of businesses and risks

•

Among the best positioned in the industry to participate in growth opportunities

–

Long term trends are putting money in motion

–

Established and emerging solutions directly address these opportunities

–

Superior

and

highly

relevant

set

of

capabilities,

leveraged

both

within

and

across

businesses

–

Access a broad set of institutional and individual customers through multiple distribution channels

•

Sales are an outcome of our focus on:

–

Pursuing market opportunities

–

Achieving appropriate returns

–

Maintaining an attractive balance of risks

•

Strong and sustainable financial performance by virtue of our business mix, operating

leverage, and quality of earnings

EXECUTIVE SUMMARY

3

Financial Strength Symposium 6.9.2014

TODAY’S DISCUSSION

4

Executive Summary

Prudential’s U.S. Business Portfolio

Review of U.S. Businesses

Conclusion

Financial Strength Symposium 6.9.2014

PRUDENTIAL’S U.S. BUSINESS PORTFOLIO REPRESENTS

AN ATTRACTIVE MIX OF BUSINESSES AND RISKS

5

1)

Adjusted Operating Income (AOI) excluding market-driven and discrete items, as disclosed in company earnings releases.

2)

U.S. Individual Life and Group Insurance Division.

3)

Attributed equity of the U.S. Businesses as of 12/31/13, excluding accumulated other comprehensive income.

$3.9

billion

$16.6

billion

2013

Pre-Tax

AOI

(1)

12/31/13

Attributed

Equity

(3)

(2)

(2)

(2)

Financial Strength Symposium 6.9.2014

Annuities

36%

Asset

Management

19%

Retirement

27%

Insurance

18%

Annuities

45%

Asset

Management

11%

Retirement

20%

Insurance

24%

WE ARE AMONG THE BEST POSITIONED IN THE

INDUSTRY TO PARTICIPATE IN GROWTH OPPORTUNITIES

6

Long term trends are putting money in motion

Long term trends are putting money in motion

Our established and emerging solutions

Our established and emerging solutions

directly address these opportunities

directly address these opportunities

Aging population with growing pool of assets

Growing retail investment business

Diversified annuity product portfolio

Innovative individual insurance products

Movement toward derisking in large Defined

Benefit

(DB)

markets

(2)

Pension Risk Transfer

Longevity Reinsurance

Liability-Driven Investing

Growing need for more certain outcomes

80%

had

DB

plans

30

years

ago

(4)

Stable Value Products

In-Plan Income Solutions

Outcome-Oriented DC Plans

Rapid

growth

of

target

date

funds

(5)

•

$618 billion in 401(k) assets

•

31% of 401(k) contributions; 63% by 2018

“Day One”

Target Date Funds

Increasing consumer expenditures

on healthcare

•

5.8%

annual

growth

over

last

10

years

(6)

Voluntary Critical Illness Insurance

Chronic Illness Insurance Rider

1)

LIMRA, Fact Book on Retirement Income 2014, based on 2010 Survey

of Consumer Finances.

2)

U.S.

Investment

Company

Institute

(U.S.

–

ICI);

U.K.

–

Pension

Protection

Fund;

Canada

-

Towers

Watson

Global

Pension

Assets

Study

2014;

year

end

2013 estimates.

3)

Cerulli Retirement Markets 2013. Data as of 2012. 

4)

Employee Benefit Research Institute; data from 1981-2011; among private-sector participants in an employment-based retirement plan.

5)

Cerulli Retirement Markets 2013.

6)

Bureau of Labor Statistics, Consumer Expenditure Survey, Oliver Wyman analysis; as of 2012.

Financial Strength Symposium 6.9.2014

•

69% of covered workers have DC plans only;

•

$5.3

trillion

Defined

Contribution

(DC)

market

(3)

•

$3.0 trillion  U.S.

•

$1.9 trillion  U.K.

•

$1.3 trillion  Canada

•

Consumers age 46+ control 88% of financial

assets

–

over

$23

trillion

(1)

SUPERIOR AND HIGHLY RELEVANT SET OF CAPABILITIES,

LEVERAGED BOTH WITHIN AND ACROSS BUSINESSES

7

Strength in solution development and innovation

Investment management expertise and performance

Actuarial expertise

Risk management expertise

Strong client service and operational capabilities

Financial Strength Symposium 6.9.2014

Over half of the

Fortune 500

Over 9 million retirees

and

near-retirees

(2)

ACCESS A BROAD SET OF INSTITUTIONAL AND INDIVIDUAL

CUSTOMERS THROUGH MULTIPLE DISTRIBUTION CHANNELS

8

Over 25,000

Institutional Clients

Over 30 million

Individual

Customers

(1)

Over 125,000

Financial

Professionals

selling

our

products

(3)

1)

Individual customers count based on a product-by-product basis as of December 2013, with the exception of Mutual Funds, which is as of December 2012.

2)

Retirees and near-retirees count based on unique customers as of December 2012.

3)

Third party financial professionals counted on a product-by-product basis. 

($ millions)

Brokerage

Agency

Independent

Financial

Planners

Agency

Agency

Third

Party

Wirehouses

Banks

Institutional

(Banks and

Wirehouses)

Individual Life Sales*

Annuities Sales*

($ millions)

Agency

Brokerage

*Based on gross sales.

Financial Strength Symposium 6.9.2014

26%

55%

32%

74%

13%

320

731

0%

2002

2013

43%

28%

20%

16%

72%

21%

2,000

11,513

0%

10%

2002

2013

*Based on annualized new business premiums; excludes corporate owned life insurance.

2002 based on scheduled premiums from new sales on an annualized basis and first 

year excess premiums and deposits on a cash-received basis.

FINANCIAL PERFORMANCE REFLECTS

EARNINGS GROWTH AND QUALITY

9

Pre-Tax

AOI

(1)

($ millions)

2012

2013

1)

U.S. Businesses, AOI excluding market-driven and discrete items, as disclosed in company earnings releases.

Net Flows and

Margins

Equity Markets

Financial Strength Symposium 6.9.2014

$2,651

$3,874

M&A and Outsized

Organic Growth

TODAY’S DISCUSSION

10

Executive Summary

Prudential’s U.S. Business Portfolio

Review of U.S. Businesses

Conclusion

Financial Strength Symposium 6.9.2014

ANNUITIES

11

•

Value propositions address needs for secure retirement income

•

Product diversification strategy improves our risk profile

•

Positive cash flows expected over a wide range of scenarios

•

Living benefits exposure has declined due to favorable capital markets

Financial Strength Symposium 6.9.2014

ANNUITIES: PRODUCT DIVERSIFICATION STRATEGY

•

No cash value

•

Payout Annuity

Single

Premium

Immediate 

Annuity

•

Diversification of

investments

•

Living/Death

benefit options

•

Equity/Fixed

income

investments

“Highest

Daily”

Suite

•

No equity exposure

•

Bond fund only

Prudential

Defined

Income

(PDI)

High

Low

Risk

Prudential

Premier

Investment

Variable

Annuity

(VA)

12

•

Developing

new

products

to

meet

market

demand

for

a

broad

set

of

retirement

income solutions

•

Implementing product and design changes to reduce risk and manage volatility

High

Low

Financial Strength Symposium 6.9.2014

•

Accumulation focused

•

Greatest market

upside potential

•

No living benefit option

•

Wide variety of funds

including non-coupon

investments

ANNUITIES:

LIVING

BENEFIT

EXPOSURE

(1)

Notional amount

–

cannot be

accessed by

contract holder

Protected

Protected

Withdrawal

Withdrawal

Value

Value

$122 billion

$122 billion

Notional

“In-the-

Moneyness”

$10 billion

Account

Account

Value

Value

$112

$112

billion

billion

$1 billion

Cost, in excess of

account value, to

buy immediate

annuity to defease

the living benefit

liability, which is

hedged

Economic

“In-the-

Moneyness”

(2)

Notional amount

–

cannot be

accessed by

contract holder

Protected

Protected

Withdrawal

Withdrawal

Value

Value

$109 billion

$109 billion

Notional

“In-the-

Moneyness”

$14 billion

Account

Account

Value

Value

$95

$95

billion

billion

$2 billion

$2 billion

Economic

“In-the-

Moneyness”

(2)

2012

2013

13

Financial Strength Symposium 6.9.2014

1)

Represents products with guaranteed lifetime withdrawal benefits (GLWB), excluding PDI, as of end of period.

2)

Represents our living benefit exposure, as of end of period, based upon policyholder's guaranteed lifetime annual income amount on that date.

ANNUITIES: SALES AS AN OUTCOME

14

2009-2012

Increasing VA sales

in a rising market

2013

Moderating VA sales reflects strategy

to adapt products to current

environment and diversify risks

S&P 500

($ billions)

Financial Strength Symposium 6.9.2014

$0

$5

$10

$15

$20

$25

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

9.7

11.8

10.3

16.3

21.8

20.3

20.0

11.5

2006

2007

2008

2009

2010

2011

2012

2013

Gross Sales

S&P 500

1)   Based on pre-tax AOI excluding market unlockings and experience true-ups, and impact of annual actuarial review as disclosed in company earnings releases, as

percentage of average account value.

ANNUITIES:

RETURN

ON

ASSETS

(ROA)

(1)

15

2009

2010                                  2011   

2012

2013

ROA

Financial Strength Symposium 6.9.2014

0.66%

0.44%

0.79%

0.76%

0.96%

RETIREMENT

•

Market leader in Pension Risk Transfer (PRT)

–

PRT

pipeline

and

market

remain

strong;

pace

of

transactions

will

be

lumpy

–

Foothold

in U.K. longevity reinsurance market

•

Investment

Only

Stable

Value

(IOSV)

book

exceeds

$70

billion

(1)

–

Filled post-crisis vacuum

–

Favorable risk profile

–

Increasing competition in market

•

Investment in the Full Service business

–

Improved cost efficiency and pipeline; strong persistency

–

Solid value proposition focused on mid to large case market

16

1)

As of 3/31/2014.

Financial Strength Symposium 6.9.2014

RETIREMENT: DEMAND FOR PENSION RISK TRANSFER

17

Improved Pension Plan

Improved Pension Plan

Funded Status

Funded Status

Heightened Awareness

Heightened Awareness

of Pension Plan Risk

of Pension Plan Risk

Greater Comprehension

Greater Comprehension

of Risk Transfer Solutions

of Risk Transfer Solutions

Driven by more stringent

funding rules, increasing

interest rates and surging

equity markets

Resulting from increased

external transparency and

a deeper understanding

of longevity and asset risk 

Achieved by dispelling

common misconceptions

(i.e., too costly, too time-

consuming, not viable in a

low interest rate environment)

•

There

are

three

key

drivers

of

a

vibrant

market

for

pension

risk

transfer

transactions

U.K.

U.K.

$1.9 Trillion

$1.9 Trillion

(2)

(2)

U.S.

U.S.

$3.0 Trillion

$3.0 Trillion

(1)

(1)

Canada

Canada

$1.4 Trillion

$1.4 Trillion

(3)

(3)

•

The U.S., U.K. and Canada either have or are developing these drivers

The size of the DB markets in these countries represents significant opportunities

DB market assets estimated in U.S. dollars, as of year end 2013.

1)

Investment Company Institute.

2)

Pension Protection Fund.

3)

Towers Watson Global Pension Assets Study 2014.

Financial Strength Symposium 6.9.2014

RETIREMENT: SALES, FLOWS, AND ACCOUNT VALUES

18

Sales

Account

Values

(2)

1)

Represents significant transactions

recorded in fourth quarter 2012.

2)

At end of period.

Net Flows

($ billions)

45

71

38

19

44

9

($ billions)

($ billions)

Financial Strength Symposium 6.9.2014

$0

$10

$20

$30

$40

$50

$60

$70

$80

2011

2012

2013

Full Service

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

2011

2012

2013

Full Service and Institutional Investment Products 

230

290

323

$0

$50

$100

$150

$200

$250

$300

$350

2011

2012

2013

Full Service

Institutional Investment Products

Other Institutional Investment Products

Pension

Risk

Transfer

(1)

INDIVIDUAL LIFE

•

Stable earnings contributor; balances interest rate and equity market

sensitivity in other businesses

•

Shifting product emphasis to maintain attractive risk profile

•

Hartford integration on track and delivering product and distribution benefits

–

Back office integration, financial performance of acquired block, and synergies

continue to track expectations

–

Unified, Prudential-branded product portfolio reflecting enhanced innovation

•

Chronic illness rider (BenefitAccess Rider)

•

Unique hybrid indexed universal life product (Founders Plus)

•

Unique variable universal life product (VUL Protector)

–

Integrated, multi-channel distribution strategy; significantly increased presence in

Institutional (bank and wirehouse) channels

19

Financial Strength Symposium 6.9.2014

INDIVIDUAL LIFE: NEW BUSINESS PREMIUMS AND IN FORCE

20

1)  Annualized new business premiums, excludes corporate-owned life insurance.

2)  As of end of period, net of reinsurance ceded.

Sales

(1)

Face

Amount

In

Force

(2)

($ millions)

($ billions)

Variable Life

Financial Strength Symposium 6.9.2014

278

412

731

$0

$100

$200

$300

$400

$500

$600

$700

$800

2011

2012

2013

234

233

376

$0

$50

$100

$150

$200

$250

$300

$350

$400

2011

2012

2013

376

Hartford

Legacy Prudential

Legacy Prudential

Guaranteed

Universal Life

Term

Other

Universal Life

Hartford

INDIVIDUAL LIFE: PRODUCT DIVERSIFICATION STRATEGY

21

1H 2013

2H 2013

1Q 2014

Sales

(1)

1)

Annualized new business premiums, excludes corporate-owned life insurance.

Financial Strength Symposium 6.9.2014

59%

15%

26%

52%

20%

28%

38%

28%

34%

Other Universal Life and

Variable Life

Term

Guaranteed Universal Life

•

Overall Business

–

Sales reflect focus on restoring appropriate returns

–

Investing in underwriting and technology

–

Emphasis on voluntary products

•

Group Life

–

Dominant source of profitability for Group Insurance

–

Benefit ratios historically within expected ranges

–

Benefiting from strong demand for voluntary products; 76% of life sales in 2013

•

Group Disability

–

60%

of

the

book

has

been

repriced

or

lapsed

over

the

past

two

years

(1)

–

Significant investments in claims management

–

Progress will not be linear

GROUP INSURANCE

22

1)

For the years ended 12/31/12 and 2013, including 1/1/14 renewals.

Financial Strength Symposium 6.9.2014

GROUP INSURANCE: SALES AND IN FORCE

23

($ millions)

Sales

(1)

In

Force

Premiums

(2)

1)

Annualized new business premiums.

2)

As of end of period; net of reinsurance.

Financial Strength Symposium 6.9.2014

5,071

5,172

5,278

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2011

2012

2013

Life

Disability

635

439

313

$0

$100

$200

$300

$400

$500

$600

$700

2011

2012

2013

Voluntary Life

Basic Life

Disability

ASSET MANAGEMENT

•

Leading global asset manager with a unique multi-manager model

–

Global

top

10

asset

manager

(1)

–

Broad client base including many of the world’s most sophisticated clients

–

Diversified product suite and broad range of investment capabilities

•

Robust underlying fundamentals and attractive shareholder returns

–

Strong, consistent financial performance

–

14%

annual

AUM

growth

over

past

5

years

–

Earnings driven primarily and increasingly by asset management fees

•

Source of competitive advantage for the Prudential businesses

–

Culture of product innovation; collaborating with Annuities and Retirement to meet

client needs

•

Higher investment margins for the General Account

•

Continuing to invest in the business and in its people to drive further growth

24

Financial Strength Symposium 6.9.2014

1)

Based on Pensions & Investments Top Money Managers list for 2013 assets. Assets represent assets managed by Prudential Financial.

2)

Assets managed by the Asset Management segment as of 12/31/13.

(2)

TODAY’S DISCUSSION

25

•

Executive Summary

•

Prudential’s U.S. Business Portfolio

•

Review of U.S. Businesses

•

Conclusion

Financial Strength Symposium 6.9.2014

CONCLUSION

26

•

Prudential’s U.S. businesses portfolio represents an attractive mix of businesses and risks

•

Among the best positioned in the industry to participate in growth opportunities

–

Long term trends are putting money in motion

–

Established and emerging solutions directly address these opportunities

–

Superior

and

highly

relevant

set

of

capabilities,

leveraged

both

within

and

across

businesses

–

Access a broad set of institutional and individual customers through multiple distribution channels

•

Sales are an outcome of our focus on:

–

Pursuing market opportunities

–

Achieving appropriate returns

–

Maintaining an attractive balance of risks

•

Strong and sustainable financial performance by virtue of our business mix, operating

leverage, and quality of earnings

Financial Strength Symposium 6.9.2014

ASSET MANAGEMENT

DAVID

HUNT

PRUDENTIAL

INVESTMENT

MANAGEMENT

PRESIDENT

&

CEO

OUR DISCUSSION TODAY

2

Financial Strength Symposium 6.9.2014

•

Prudential is a leading global asset manager with a distinct multi-

manager model

•

The Asset Management business has robust underlying fundamentals

and attractive shareholder returns

•

Asset Management is a source of competitive advantage for the other

Prudential businesses

•

Prudential continues to invest in the Asset Management business and in

its people to drive further growth

LEADING GLOBAL ASSET MANAGER

3

1)

Based

on

Pensions

&

Investments

(P&I)

Top

Money

Managers

list

for

2013

assets.

Assets

represent

assets

managed

by

Prudential

Financial.

2)

As of 3/31/14.

3)

Assets Under Management; as of 3/31/14.

•

Global

top

10

asset

manager

(1)

•

Broad client base including many of the world’s most sophisticated clients

•

Diversified product suite and broad range of investment capabilities

•

Global business model and presence

–

30 offices on 5 continents

(2)

–

21% of third party AUM

(3)

from non-U.S. clients

•

Distinct multi-manager model focused on delivering investment performance

Financial Strength Symposium 6.9.2014

PRUDENTIAL’S MARKET LEADING POSITION AS

10    LARGEST ASSET MANAGER

4

1)

Pensions

&

Investments

Top

Money

Managers

list.

2)

Figure includes Prudential’s Asset Management business of $870 billion and non-proprietary assets under management for Prudential Financial of $237 billion.

Financial Strength Symposium 6.9.2014

Top 10 Asset Managers

(1)

2013 Total Assets

($ billions)

1.

BlackRock

4,324

2.    Vanguard Group

2,753

3.    State Street Global Advisors

2,345

4.    Fidelity Investments

2,160

5.    J.P. Morgan Asset Management

1,598

6.    BNY Mellon Asset Management

1,583

7.    PIMCO

1,535

Capital Group

1,339

Deutsche Asset & Wealth Management

1,289

1,107

(2)

8.

10.  Prudential Financial

TH

9.

5

$1.88 billion

1)

Year ended 12/31/13. 

•

78% of fee-based revenues from clients outside of the General Account

•

Balanced revenue base across institutional, retail, and affiliated clients

Asset

Management

Fees

(1)

Financial Strength Symposium 6.9.2014

General Account

22%

Third Party

Institutional

43%

Affiliated

Institutional

2%

Third Party

Retail

26%

Affiliated Retail

7%

REVENUES WELL-BALANCED ACROSS CLIENT GROUPS

ROBUST INSTITUTIONAL CLIENT BASE

•

Over

1,100

third

party

clients

(1)

•

60

third

party

clients

with

more

than

$1

billion

invested

with

us

(1)

–

46 U.S. clients

–

14 international clients

•

7 out

of

top

10

Fortune

500

companies

(2)

•

24

out

of

largest

25

corporate

U.S.

pension

plans

(3)

•

24

out

of

largest

25

public

U.S.

pension

plans

(3)

•

116

out

of

largest

300

global

pension

funds

(4)

6

1)

As of 3/31/14.

2)

Based on CNN Money, Fortune 500 annual ranking of America’s largest corporations as of 12/31/13, published January 2014.

3)

Based on U.S. Plan Sponsor rankings in Pensions & Investments as of 9/30/13, published January 2014.

4)

/Towers

Watson

Top

300

Pension

Funds

ranking,

as

of

12/31/12,

published

September

2013.

Financial Strength Symposium 6.9.2014

P&I

DIVERSIFIED PRODUCT OFFERING

7

1)

Includes both traditional and alternative asset allocation products.

PUBLIC FIXED

INCOME

U.S. Broad Market: Core

Conservative, Core, and Core

Plus, and Absolute Return

U.S., European, and Global IG

Corporate

Global Leveraged Finance

Global and Emerging Market

Debt

Municipal Bonds

Short, Intermediate, and  Long

Duration

Liability Driven Investing

EQUITY

Large Cap Growth Equity

Large Cap Value Equity

Large Cap Core Equity

Global, Developed, and

Emerging Markets

Small and Mid Cap Equity

Opportunistic Equity

Sector Strategies

Equity Indexing

Structured Equity

Fundamental and Quantitative

REAL ESTATE

Core, Value Add, and

Opportunistic

U.S., Europe, Latin America,

Middle East, and Asia

Global Real Estate Securities

U.S. and European Real Estate

Debt

Commercial Mortgages

ALTERNATIVES

Long / Short Fixed Income

Emerging Markets

Relative Value

Collateralized Loan Obligations

Bank Loans

Mezzanine

Global Tactical Asset Allocation

Equity Long / Short

Market Neutral

Multi-Asset

Class

(1)

•

Broad range of investment capabilities tailored to evolving client needs

•

Accessed through proven multi-manager model

PRIVATE FIXED

INCOME

Privately Placed Debt

Commercial Mortgages

Agricultural Debt

Financial Strength Symposium 6.9.2014

ASSET CLASS MIX DIVERSIFIES FEE REVENUE

8

1)

Year ended 12/31/13. Alternatives included in relevant underlying asset classes. 

$1.88 billion

Financial Strength Symposium 6.9.2014

Public Fixed

Income

38%

Public Equity

31%

Real Estate

17%

Commercial

Mortgages

5%

Private Fixed

Income

9%

Asset

Management

Fees

(1)

GLOBAL FOOTPRINT

9

•

30

offices

on

5

continents

(1)

•

Broad global investment platform and client facing capability

•

Building out Global Institutional Relations Group to deepen coverage of sovereign wealth funds and

central

banks

–

currently

managing

over

$26

billion

in

assets

(1)

1)

As of 3/31/14.

Note: Rio de Janeiro, Milan, and Shanghai are offices for joint ventures where Prudential has a minority stake.

Financial Strength Symposium 6.9.2014

DISTINCT MULTI-MANAGER MODEL

10

•

Autonomy of investment process and business decisions

•

Product design done at affiliate level

•

Talent, culture, and people decisions made at affiliate level

Fundamental

Equity and Fixed

Income

Quantitative

Equity and Asset

Allocation

Public Fixed

Income

Private

Placement and

Mezzanine Debt

Real Estate

Debt

Real Estate

Equity

Local market

asset managers

in Asia, Europe

and Latin America

U.S. Mutual Fund

Distribution and

Research

Financial Strength Symposium 6.9.2014

Prudential

Investment

Management

Jennison

Associates

Quantitative

Management

Associates

Prudential

Fixed

Income

Prudential

Capital

Group

Prudential

International

Investments

Prudential

Real Estate

Investors

Prudential

Mortgage

Capital

Company

Prudential

Investments

•

Power of Focus

•

Clarity of Accountability

•

Strength of Diversification

OUR DISCUSSION TODAY

•

Prudential is a leading global asset manager with a distinct multi-

manager model

11

•

The Asset Management business has robust underlying

fundamentals and attractive shareholder returns

•

Asset Management is a source of competitive advantage for the other

Prudential businesses

•

Prudential continues to invest in the Asset Management business and in

its people to drive further growth

Financial Strength Symposium 6.9.2014

•

Consistent, strong investment performance for clients

•

Deep manager experience and robust investment

processes drive Alpha generation

•

•

26

26

consecutive

consecutive

quarters

quarters

of

of

positive

positive

institutional

institutional

net

net

flows

flows

(1)

(1)

•

•

Rapidly growing retail business, including mutual funds

Rapidly growing retail business, including mutual funds

•

•

14%

14%

annual

annual

AUM

AUM

growth

growth

over

over

past

past

5

5

years

years

(2)

(2)

•

•

Earnings driven primarily and increasingly by asset

Earnings driven primarily and increasingly by asset

management fees

management fees

•

•

Strong and attractive returns with improved quality

Strong and attractive returns with improved quality

of earnings

of earnings

ROBUST UNDERLYING FUNDAMENTALS

12

Investment

Performance

Client

Client

Flows

Flows

Earnings

Earnings

1)

Through 3/31/14.

2)

Assets managed by the Asset Management segment as of 12/31/13.

Financial Strength Symposium 6.9.2014

17.5%

16.5%

Asset

Management

Russell 1000

Growth

STRONG INVESTMENT PERFORMANCE

13

1)

Based on all actively managed Fixed Income and Equity AUM reported in eVestment for Jennison Associates, Prudential Fixed Income, and Quantitative

Management Associates. Composite assets reported in eVestment assumed to represent full strategy AUM. As of 12/31/13.

2)

Performance reported in eVestment as of 12/31/13. Core Plus and Emerging Markets Debt managed by Prudential Fixed Income, U.S. Small Cap Core managed

by Quantitative Management Associates, and Large Cap Growth managed by Jennison Associates.

% of

AUM

above

Benchmark

(1)

Net of Fees, 3-Year Period

82%

84%

Performance

of

Select

Strategies

(2)

Net of Fees, 3-Year Period

Large Cap Growth

Core Plus

Emerging Markets Debt

U.S. Small Cap Core

20.5%

15.7%

Asset

Management

Russell 2000

5.7%

3.3%

Asset Management

Barclays U.S.

Aggregate

Financial Strength Symposium 6.9.2014

Fixed

Income

Equity

7.2%

6.1%

Asset

Management

JPM EMBI Global

Diversified

DEEP MANAGER EXPERIENCE,

STRONG INVESTMENT PROCESSES

14

•

Deep, stable, and experienced investment talent base

–

Average

manager

tenure

of

16

years

with

Prudential,

22

years

in

industry

(1)

–

Established track records

–

Long-standing

client

relationships

–

over

100

clients

for

more

than

20

years

(1)

•

Rigorous fundamental and quantitative research heritage

•

Distinct, autonomous investment processes with key common elements:

–

Consistent and team based

–

Well-defined

–

Institutional-quality

•

Robust risk management framework

1)

As of 3/31/14.

Financial Strength Symposium 6.9.2014

26 CONSECUTIVE QUARTERS OF

POSITIVE

INSTITUTIONAL

NET

FLOWS

(1)

15

Third

Party

Institutional

Net

Flows

(2)

($ billions)

13.2

28.7

16.9

17.2

19.4

2009

2010

2011

2012

2013

1)

Through 3/31/2014.

2)

Excludes money market activity.

Financial Strength Symposium 6.9.2014

FAST GROWING RETAIL BUSINESS DRIVEN BY NET FLOWS

16

Third Party Retail AUM

(1)

($ billions)

•

Our retail business has grown organically over the last 5 years as we have strengthened and

diversified our distribution capabilities and product line and realized strong investment performance

AUM attributable to

net flows, 2010-13

(2)

61

115

31

2009

2013

1)

At end of period.

2)

Excludes money market activity.

17%

CAGR

Financial Strength Symposium 6.9.2014

STRONG ORGANIC GROWTH OVER THE LAST 5 YEARS

17

Total

AUM

(1)

($ billions)

P&I Ranking

(3)

13

10

1)

For Asset Management segment, at end of period.

2)

Excludes money market activity.

3)

Pensions

&

Investments

Top

Money

Managers

list.

AUM attributable

to third party net

flows, 2010-13

(2)

515

870

113

2009

2013

14%

CAGR

Financial Strength Symposium 6.9.2014

GROWING FEE BASE

18

•

Our consistent and strong investment performance, broad client base, and diversified product

capabilities have led to strong net flows

•

Net flows, combined with market appreciation, have led to consistently higher and stable fee-

based revenues

1,097

1,326

1,541

1,667

1,881

2009

2010

2011

2012

2013

Asset Management Fees

Fees

($ millions)

14%

CAGR

Financial Strength Symposium 6.9.2014

STRONG, STABLE, FEE-BASED CONTRIBUTION

TO ENTERPRISE

19

($ millions)

1)

Pre-tax; Adjusted Operating Income (AOI) excluding market driven and

discrete items as disclosed in company earnings releases.

2)

Other Related Revenue (ORR) on AOI basis, after associated direct costs; includes net incentive fees, net transaction fees, strategic investing AOI, and

commercial mortgage revenue, excluding agency origination activities.

Excluding

ORR

(2)

ORR

(2)

2009

2010

2011

2012

2013

279

426

468

438

595

(187)

97

263

180

128

92

523

731

618

723

Financial Strength Symposium 6.9.2014

Asset

Management

Adjusted

Operating

Income

(1)

HISTORICAL CAPITAL REDEPLOYMENT

20

1)

Reflects dividends and returns of capital to parent holding company and deployed to affiliates not engaged in Asset Management activities.  Redeployment

percentages based on after-tax adjusted operating income excluding market driven and discrete items as disclosed in company earnings releases; excludes

strategic investing and Prudential Mortgage Capital Company commercial mortgage activities.

Financial Strength Symposium 6.9.2014

•

Average annual capital redeployment has been ~80-90% of earnings over

the last 5 years

Capital

Redeployment

(1)

2009

2010

2011

2012

2013

410

405

306

223

200

($ millions)

1,529

911

1,900

IMPROVING RISK PROFILE CONTRIBUTES TO

ROE PERFORMANCE

21

Investments and Interim Loan Portfolio

Interim Loan

Portfolio

(1)

Strategic

Investments

ROE

($ millions)

$3,429

$933

Required Equity

$760

$420

1)

Principal balance of outstanding loans.

12/31/08

3/31/14

22

Financial Strength Symposium 6.9.2014

2013 KEY FINANCIAL METRICS

22

Metric

2013

Asset Management Fees

($ millions)

1,881

Pre-Tax AOI

($ millions)

723

Operating Margin

27%

AUM

($ billions)

870

1)

For Asset Management segment; as of 12/31/13.

Financial Strength Symposium 6.9.2014

(1)

OUR DISCUSSION TODAY

•

Prudential is a leading global asset manager with a distinct multi-

manager model

23

Financial Strength Symposium 6.9.2014

•

Asset Management is a source of competitive advantage for the

other Prudential businesses

•

Prudential continues to invest in the Asset Management business and in

its people to drive further growth

•

The Asset Management business has robust underlying fundamentals

and attractive shareholder returns

COLLABORATING WITH OUR AFFILIATES

TO GENERATE ENTERPRISE VALUE

24

•

Higher investment margins for the General Account

–

Private Fixed Income and Commercial Mortgages have historically led to

higher returns

•

Capacity

to

manage

significant

additional

General

Account

assets

with

existing infrastructure

•

Culture of product innovation, collaborating with Annuities and Retirement

to meet client needs

–

Annuities:

AST

Investment

Grade

Bond

Portfolio,

AST

Multi-Sector

Fixed

Income Portfolio

–

Retirement:

Pension

Risk

Transfer,

Stable

Value

•

Opportunity to compete on our affiliated Annuities and Retirement platforms

Financial Strength Symposium 6.9.2014

PRIVATES IMPROVE INVESTMENT MARGIN

FOR THE GENERAL ACCOUNT

25

General

Account

Investment

Portfolio

$334 billion

(1)

•

Asset Management capabilities and strengths in Private Fixed Income and Commercial Mortgage

originations and underwriting provide a strategic advantage to the General Account

•

Privates

have

historically

led

to

higher

returns

for

the

General

Account

versus

the

comparable

Public asset classes

Financial Strength Symposium 6.9.2014

Other

Investments

80%

20%

Privates

(2)

1)

General Account portfolio for the Financial Services Businesses; excludes (i) assets of our asset management operations, including assets managed

for third parties, (ii) derivative operations and (iii) those assets classified as “Separate account assets” on our balance sheet. As of 3/31/14; at

balance sheet carrying amount.

2)

Privates, totaling $65.1 billion, includes private debt managed by Prudential Capital Group and commercial mortgages managed by Prudential

Mortgage Capital Company.

OUR DISCUSSION TODAY

•

Prudential is a leading global asset manager with a distinct multi-

manager model

26

•

The Asset Management business has robust underlying fundamentals

and attractive shareholder returns

•

Asset Management is a source of competitive advantage for the other

Prudential businesses

•

Prudential continues to invest in the Asset Management business

and in its people to drive further growth

Financial Strength Symposium 6.9.2014

STRATEGICALLY POSITIONED FOR GROWTH

27

•

Prudential Investment Management has made targeted investments in

our people, investment capabilities, and in other strategic areas

–

Over 50 new investment products and strategies launched since 2012

–

Over $400 million in focused seed capital committed at year-end 2013

–

Over 40 new middle and senior management positions created since

2013

•

Globalization and investors’

changing approach to asset allocation

provide a foundation for Asset Management growth opportunities

•

Prudential Investment Management is investing in new capabilities and

talent to take advantage of market trends

Financial Strength Symposium 6.9.2014

28

•

Investor Base

•

Investments

•

Talent

•

Non-Correlated

Alternatives

•

Retirement

Income

•

Real Assets,

Infrastructure

•

Volatility

Managed

•

Solutions

•

Liability Driven

Investing

•

De-Risking

•

Outcomes

Financial Strength Symposium 6.9.2014

Globalization

Shift in Investment

Orientation

Broadening of

Investment

Categories

MARKET

TRENDS

PROVIDE

THE

BACKDROP

FOR

GROWTH

KEY STRATEGIC PRIORITIES

29

Continue to build a more resilient, diversified business portfolio

1

Continue to globalize our product and client footprint

Continue to globalize our product and client footprint

Evaluate disciplined team lift outs and bolt on acquisitions

Evaluate disciplined team lift outs and bolt on acquisitions

4

2

3

Financial Strength Symposium 6.9.2014

Develop broader solutions capability

Develop broader solutions capability

Partner with other Prudential businesses to leverage enterprise capabilities

5

CONCLUSION

•

Prudential is a leading global asset manager with a distinct multi-

manager model

30

•

The Asset Management business has robust underlying fundamentals

and attractive shareholder returns

•

Asset Management is a source of competitive advantage for the other

Prudential businesses

•

Prudential continues to invest in the Asset Management business and in

its people to drive further growth

Financial Strength Symposium 6.9.2014

JOHN HANRAHAN

SENIOR VICE PRESIDENT AND

CHIEF FINANCIAL OFFICER, INTERNATIONAL

PRUDENTIAL INTERNATIONAL INSURANCE

KEY MESSAGES

2

Financial Strength Symposium 6.9.2014

•

Proven, superior business model

•

High ROE

and low volatility earnings primarily driven by stable

mortality and expense margins

•

Captive distribution provides sustainable competitive advantage

•

Well-positioned in attractive Japanese insurance market

•

Solid risk management

•

Sustained capital generation and deployment

1)

Return on equity.

(1)

3

•

Proven, Superior Business Model

•

High ROE & Low Volatility Earnings

•

Captive Distribution -

Life Planner

•

Captive Distribution -

Life Consultant

•

Supplemental Distribution Channels

•

Well-Positioned in Attractive Japanese Insurance Market

•

Risk Management, Capital Generation and Deployment

AGENDA

Financial Strength Symposium 6.9.2014

THE LIFE PLANNER MODEL

FOUNDATION OF OUR SUCCESS

4

•

Began in 1988

•

Differentiated approach for the Japanese life insurance market

•

Proprietary distribution through selective, high-quality sales force

•

Emphasize protection products requiring analysis of client needs

•

Target the affluent and mass affluent consumer; serve small business

and professional markets

Financial Strength Symposium 6.9.2014

EXPANSION THROUGH DIVERSIFICATION

5

•

Life Consultants

(1)

expand proprietary distribution coverage

to middle-market customers, and have strong affinity

group relationships

•

Supplemental distribution through banks and independent agents

expands access to investible wealth, geographical coverage and

business market

•

Product

diversification

to

meet

clients’

financial

security

needs

over

a lifetime

•

Pursue opportunities in limited number of attractive countries

outside Japan

Maintain Discipline, Quality, Solid Execution;

Guided by Life Planner Business Model Concepts

1)

The formal name for Life Consultant is Life Plan Consultant. 

Financial Strength Symposium 6.9.2014

MEETING CUSTOMER NEEDS THROUGH

PRODUCT AND CHANNEL EXPANSION

6

Customer

Segment

Primary

Customer

Needs

Product

Solution

Captive Channels

Life Planner

Distribution

Affluent

Death protection

Whole life & Term

Middle-market

Affinity groups

Life Consultant

Death protection

Retirement

Whole life & Term

Retirement income

USD products

Accident & Health

Multi-currency fixed

annuities

Third Party Channels

Bank / Independent Agency

High net worth

Business and

professional market

Death protection

Retirement

Business planning

Savings

Whole life & Term

Retirement income

USD products

Accident & Health

Multi-currency fixed

annuities

Mass affluent

Business and

professional market

Retirement

Business planning

Retirement income

USD products

Accident & Health

Financial Strength Symposium 6.9.2014

EMPHASIS ON PROTECTION PRODUCTS

7

Savings

(4)

18%

Accident

& Health

8%

Retirement

22%

Death

Protection

52%

1)

As of 12/31/2013.  Annualized premiums in force, including paid-up policies and 10% of single premium.  Japan only.

2)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented; including Japanese yen 82 per U.S. dollar. 

U.S. dollar denominated activity is included based on the amounts as transacted in U.S. dollars.

3)

For the year ended 12/31/2013.  Japan only.

4)

Includes annuities and yen based bank channel single premium whole life.

Premiums

In

Force

(1)(2)

Annualized

New

Business

Premiums

(2)(3)

Financial Strength Symposium 6.9.2014

Savings

(4)

16%

Death

Protection

54%

Retirement

16%

Accident

& Health

14%

SUCCESSFUL TRACK RECORD OF

ACQUISITIONS AND BUSINESS INTEGRATIONS

8

Kyoei

Aoba

Yamato

Star /

Edison

POJ

(millions)

11x

($ millions)

Financial Strength Symposium 6.9.2014

2001

•

Kyoei

Life,

Japan

–

acquired

in

bankruptcy

•

Predecessor of today’s Gibraltar Life

2004

•

Aoba Life, Japan

•

Integrated into Prudential of Japan

2009

•

Yamato Life, Japan

•

Integrated into Gibraltar Life

2011

•

AIG Star Life & AIG Edison Life, Japan

•

Merged into Gibraltar Life

0.9

10.2

3/31/2001

3/31/2014

713

2001

2013

2,773

(1)(2)

(1)

1)

Japan only.

2)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented; Japanese yen 82 per U.S. dollar.

Timeline

Acquisitions

Number

of

In

Force

Annualized

New

Policies

Business

Premiums

STAR/EDISON INTEGRATION SUBSTANTIALLY COMPLETE

9

Integration Costs

Cost Savings

More Productive

Sales Force

•

Incurred $340 million through 2013; total expected

approximately $400 million, down $100 million from

original estimate

•

Substantially achieved targeted $250 million

annualized cost savings as of fourth quarter 2013

•

Implemented agent training program, productivity

standards and variable compensation

Integrated Product

Portfolio

De-risked

Investment Portfolio

•

Replaced lower margin product portfolio with higher

margin products

•

Investment portfolio composition aligned with

Prudential quality standards

Financial Strength Symposium 6.9.2014

10

•

Proven, Superior Business Model

•

High ROE & Low Volatility Earnings

•

Captive Distribution -

Life Planner

•

Captive Distribution -

Life Consultant

•

Supplemental Distribution Channels

•

Well-Positioned in Attractive Japanese Insurance Market

•

Risk Management, Capital Generation and Deployment

AGENDA

Financial Strength Symposium 6.9.2014

11

1)

Pre-tax adjusted operating income (AOI) excludes market driven and discrete items as disclosed in company earnings releases.

2)

Hedged foreign currency exchange rate for Japanese yen per U.S. dollar.

SUSTAINED EARNINGS GROWTH

($ millions)

1,622

1,821

2,308

2,762

3,304

106

AOI

FX

Rate

(2)

99

92

85

80

Financial Strength Symposium 6.9.2014

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2009

2010

2011

2012

2013

Gibraltar Life and

Other Operations

Life Planner

Operations

•

Organic growth

•

Star/Edison acquisition

•

Favorable hedged currency trend through 2013

•

Other “tailwinds”

in 2013

Pre-Tax

Adjusted

Operating

Income

(1)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2010

2011

2012

2013

HIGH

RETURN

ON

EQUITY

DRIVEN

BY

FUNDAMENTALS

12

1)

Based on after-tax AOI of our International Insurance operations, excluding market driven and discrete items as disclosed in company earnings releases, using

overall effective tax rate for the Financial Services Businesses, and associated attributed equity excluding accumulated other comprehensive income and the

impact of foreign currency exchange rate remeasurement.

•

ROE has improved including Star/Edison business integration following

2011 acquisition

Return

on

Equity

(1)

22.0%

17.4%

18.3%

21.2%

Financial Strength Symposium 6.9.2014

February 2011

Star/Edison

Acquisition

13

•

Proven, Superior Business Model

•

High ROE & Low Volatility Earnings

•

Captive Distribution -

Life Planner

•

Captive Distribution -

Life Consultant

•

Supplemental Distribution Channels

•

Well-Positioned in Attractive Japanese Insurance Market

•

Risk Management, Capital Generation and Deployment

AGENDA

Financial Strength Symposium 6.9.2014

CAPTIVE DISTRIBUTION

PROVIDES SUSTAINABLE COMPETITIVE ADVANTAGE

14

•

Affluent and mass affluent

consumers

•

Business and professional market

•

Mass middle-market

•

Affinity group relationships

•

Broad geographical coverage

Financial Strength Symposium 6.9.2014

Prudential of

Japan

Life Planner

Life Planner

Gibraltar Life

Gibraltar Life

Life Consultant

Life Consultant

BENEFICIAL CYCLE OF LIFE PLANNER MODEL

15

1)

Data based on 2013 Prudential of Japan (POJ).  Annualized new business premiums (AP) produced by each Life Planner (LP) in a month; foreign denominated

activity translated to U.S. dollars at uniform exchange rate, Japanese yen 82 per U.S. dollar. Number of new policies sold per LP per month, including medical

policies.

Total

retention

for

agents

in

all

service

years.

13

month

policy

persistency

measured

based

on

face

amount,

12

month

rolling

average

data

for

2013.

Superior

Returns &

Steady

Growth

Productivity

$22,600 AP per LP month

7.3 policies per LP month

Quality

Quality

People

People

Quality

Quality

Products

Products

Quality

Quality

Service

Service

Retention

89.6%

(1)

Persistency

95.2%

(1)

•

Providing financial security over customers’

lifetime drives our beneficial cycle

Financial Strength Symposium 6.9.2014

High Life

High Life

Planner

Planner

Productivity

Productivity

Quality

Quality

Referrals

Referrals

High Policy

High Policy

Persistency

Persistency

High Income

High Income

for Life

for Life

Planner

Planner

High

High

Customer

Customer

Satisfaction

Satisfaction

High Life

High Life

Planner

Planner

Retention

Retention

(1)

QUALITY PEOPLE

16

1)

Source:  Million Dollar Round Table Association, Japan -

membership data as of 4/14/2014.

MDRT

Japan

Membership

(1)

24% of POJ Life Planners

are MDRT members

(1)

•

Industry leading Million Dollar Round Table memberships

•

Prudential

of

Japan

has

the

highest

number

of

MDRT

members

in

the

Japanese

industry for 17 consecutive years

(1)

Financial Strength Symposium 6.9.2014

837

607

458

326

164

117

110

QUALITY PRODUCTS OVER A LIFETIME

17

•

Needs-based selling over customer’s life cycle

Note: Specific needs and solutions will vary by customer

Financial Strength Symposium 6.9.2014

Young household,

early professional

career

Mid career,

pre-retirement

Retirement

•

Premature death

income replacement

•

Income loss and expenses

due to accident or sickness

•

Accumulation of funds

for retirement

•

Lifetime retirement

income

•

Term insurance

•

Accident and health

policies and riders

•

Whole life insurance

•

Life insurance based

retirement income

products

30’s

40’s

50’s

60’s

Age

Prudential

Solutions

Financial Risk

Protection Needs

Client Life Cycle

QUALITY SERVICE

18

Customer

Satisfaction

(1)

POJ Policy

Persistency

(2)

95%  

2011

2012

2013

•

According to J.D. Power Asia Pacific, Prudential of Japan is the

highest in

customer satisfaction

(1)

for four years in a row

•

Satisfied customers drive high policy persistency

2014

Financial Strength Symposium 6.9.2014

1)

Life

Support

Insurance

segment

of

J.D.

Power

Asia

Pacific

2011

–

2014

Japan

Life

Insurance

Contract

Customer

Satisfaction

Studies

SM

.

Contract

Customer 

Satisfaction Study based on a total of 4,647 life insurance policyholders who purchased or renewed coverage during the past year.  japan.jdpower.com

2)

13 month policy persistency measured based on face amount, 12 month rolling average data for 2013.

1

#

1

#

1

#

1

#

19

LIFETIME CLIENT RELATIONSHIPS

DRIVE SUBSEQUENT SALES OPPORTUNITIES

Annualized

New

Business

Premiums

(1)

POJ

Second

Sales

to

Existing

Customers

($ millions)

117

121

145

191

152

Financial Strength Symposium 6.9.2014

$0

$50

$100

$150

$200

2009

2010

2011

2012

2013

Death Protection

Accident & Health

Retirement

1)

Data based on Prudential of Japan sales to individual market; foreign denominated activity translated to U.S. dollars at uniform exchange rates;

Japanese yen 82 per U.S. dollar.

PAYOFF FROM QUALITY

20

•

Superior business drivers of Life Planner model significantly increase the lifetime

production of agents

Lifetime

Sales

of

Agents

Traditional Agent

1)

Sales represent annualized new business premiums. Assumptions for traditional agent: AP Productivity = $6,000 per month; Agent

Retention (Year 1/ Year 2/ Year 3+) = 55%/ 60%/ 80%; POJ Life Planner: AP Productivity = $22,600 per month; Agent Retention (Year

1/ Year 2/ Year 3+) = 83%/ 82%/ 90%.

Financial Strength Symposium 6.9.2014

(1)

Cumulative

Sales

($ millions)

2.5

2.0

1.5

1.0

0.5

0.0

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Service Year

LP Retention

1.9

0.5

0.2

LP Productivity

and Retention

21

1)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented; including Japanese yen 82 per U.S. dollar,

Korean won 1,150 per U.S. dollar.

2)

As of end of period.

LIFE PLANNER OPERATIONS –

ANNUALIZED NEW BUSINESS PREMIUMS

($ millions)

6,609

983

1,107

1,321

1,214

Life Planner

Count

(2)

6,565

6,792

7,058

7,248

892

Financial Strength Symposium 6.9.2014

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2009

2010

2011

2012

2013

Other Countries

Japan

Annualized

New

Business

Premiums

(1)

22

•

Proven, Superior Business Model

•

High ROE & Low Volatility Earnings

•

Captive Distribution -

Life Planner

•

Captive Distribution -

Life Consultant

•

Supplemental Distribution Channels

•

Well-Positioned in Attractive Japanese Insurance Market

•

Risk Management, Capital Generation and Deployment

AGENDA

Financial Strength Symposium 6.9.2014

CAPTIVE DISTRIBUTION

PROVIDES SUSTAINABLE COMPETITIVE ADVANTAGE

23

•

Affluent and mass affluent

consumers

•

Business and professional market

•

Mass middle-market

•

Affinity group relationships

•

Broad geographical coverage

Financial Strength Symposium 6.9.2014

Life Planner

Prudential of

Japan

Life Consultant

Gibraltar Life

LIFE

CONSULTANT

DISTRIBUTION

-

BROAD

MARKET

COVERAGE

WITH ACCESS TO NEARLY ALL OF JAPANESE POPULATION

24

•

Branch offices established in substantially

all prefectures

•

Prudential training supports emphasis on

death protection products and needs-based

selling

•

Serving expanding need for retirement

income security products

•

Teachers Association and other affinity

group relationships provide recurring

sources of new business

1)

As of 4/1/2014.

Financial Strength Symposium 6.9.2014

Osaka area

Tokyo area

83 branch offices

supporting

Life

Consultants

(1)

LIFE

CONSULTANT

DISTRIBUTION

-

TEACHERS

MARKET

25

Member eligibility:

Public school teachers

and support employees

•

Relationship since 1952

•

Access to approximately 950,000

(1)

active teachers

and support employees of public schools through 47

prefectural (local) associations and 35,000 schools

(1)

•

Life Consultants serve teachers’

financial security needs

–

Annualized

new

business

premiums  

:

$216

million,

25%

of

Life

Consultant

sales

–

Out

of

$216

million,

~12%

of

sales

were

from

retiring

teachers

(3)

Financial Strength Symposium 6.9.2014

Japanese Educational Mutual Aid

Japanese Educational Mutual Aid

Japanese Educational Mutual Aid

Association of Welfare Foundation

Association of Welfare Foundation

Association of Welfare Foundation

(Teachers Association)

(Teachers Association)

(Teachers Association)

1)

As of 5/1/2013, based on the latest annual data published.

2)

For 2013.  Foreign denominated activity translated to U.S. dollars at uniform exchange rate; Japanese yen 82 per U.S. dollar.

3)

For those teachers who retired in March 2013 and purchased our single premium products during April – June 2013 period. 

(2)

TEACHERS ASSOCIATION:

PERENNIAL SALES OPPORTUNITIES

Active Market

Retiree Market

26

~950,000

Active Teachers

(1)

~200,000

Retired Teachers

~33,000

new hires

each year

~36,000

new retirees

each year

Financial Strength Symposium 6.9.2014

1)

As of 5/1/2013, based on the latest annual data published. Includes support employees of public schools.

2)

As of 5/1/2014.

Association Members

(2)

GIBRALTAR LIFE –

POST KYOEI ACQUISITION

27

•

Acquired Kyoei Life in 2001 –

Life Consultant count reduced while

productivity grew

Post-Kyoei Acquisition

Pre-Star/Edison

Acquisition

Life Consultant Count

Financial Strength Symposium 6.9.2014

3,100

5,100

7,300

7,400

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2001

2002

2003

2010

Life Consultant Count

Life Consultant AP Productivity

Historical

Life

Consultant

Count

&

AP

Productivity

(1)

1)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented; Japanese yen 82 per U.S. dollar. 

Annualized new business premium per Life Consultant per month.

GIBRALTAR LIFE –

POST STAR/EDISON ACQUISITION

28

•

Acquired Star and Edison in 2011, added 7,300 agents upon acquisition

Post-Star/Edison Acquisition

Life Consultant Count

Financial Strength Symposium 6.9.2014

7,400

6,700

6,400

7,400

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2010

2011

2012

2013

Life Consultant Count

Life Consultant AP Productivity

(1)

1)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented; Japanese yen 82 per U.S. dollar. 

Annualized new business premium per Life Consultant per month.

Life

Consultant

Count

&

AP

Productivity

29

1)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented; including Japanese yen 82 per U.S. dollar.

2)

As of end of period.

LIFE CONSULTANT DISTRIBUTION –

ANNUALIZED NEW BUSINESS PREMIUMS

Annualized

New

Business

Premiums

(1)

($ millions)

519

943

898

849

Life Consultant

Count

(2)

6,281

12,791

11,333

9,327

-10%

-27%

Change from

2011 to 2013

Financial Strength Symposium 6.9.2014

$0

$250

$500

$750

$1,000

2010

2011

2012

2013

30

•

Proven, Superior Business Model

•

High ROE & Low Volatility Earnings

•

Captive Distribution -

Life Planner

•

Captive Distribution -

Life Consultant

•

Supplemental Distribution Channels

•

Well-Positioned in Attractive Japanese Insurance Market

•

Risk Management, Capital Generation and Deployment

AGENDA

Financial Strength Symposium 6.9.2014

•

Sales can be volatile due to

changes in interest rates and

competitor actions

•

Less influence over distribution

•

Profitability can vary with

changes in product mix

•

Manage to bottom line, not

top line

•

Balance profitability and

business mix

BANK AND INDEPENDENT AGENCY DISTRIBUTION

BRINGS GROWTH OPPORTUNITIES AND CHALLENGES

31

•

Enhances access to expanded

customer base and investable

wealth

•

Growth potential through

development of distribution

relationships

•

Competitive product portfolio

meets customer needs

•

Strong brand name attracts

security focused customers

•

Leverages infrastructure costs

Advantages

Challenges

Financial Strength Symposium 6.9.2014

SUPPLEMENTAL DISTRIBUTION CHANNELS

EXPAND MARKET ACCESS, CONTRIBUTE OPPORTUNISTIC SALES

32

1)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 82 per U.S. dollar,

Korean won 1,150 per U.S. dollar.

2)

Represents Bank and Independent Agency distribution.

Annualized

New

Business

Premiums

(1)

($ millions)

1,519

1,898

3,083

3,956

3,118

Financial Strength Symposium 6.9.2014

$0

$1,000

$2,000

$3,000

$4,000

2009

2010

2011

2012

2013

Life Planner

Life Consultant

Third

Party

(2)

33

AGENDA

Financial Strength Symposium 6.9.2014

•

Proven, Superior Business Model

•

High ROE & Low Volatility Earnings

•

Captive Distribution -

Life Planner

•

Captive Distribution -

Life Consultant

•

Supplemental Distribution Channels

•

Well-Positioned in Attractive Japanese Insurance Market

•

Risk Management, Capital Generation and Deployment

WORLD LIFE INSURANCE MARKETS

34

•

Japan is the second largest market in the world

•

Southeast Asia is growing fast, but the market size is still small (< 2% of world)

2012

Life

Insurance

Premiums

(1)

($ billions)

1)

China

Korea

Taiwan

India

SE Asia

Other

433

Financial Strength Symposium 6.9.2014

568

524

72

206

149

106

United States

Japan

Asia ex-

Japan

Latin

America

United

Kingdom

France

Germany

Source: Swiss Re. Based on 2012 life premium volume, foreign denominated activity translated to U.S. dollars at average exchange rates for 2012. 

World total life premiums are $2,621 billion. This chart is not inclusive of the remainder of Europe, Africa, Oceania and Canada.

JAPAN: SUBSTANTIAL GROWTH OPPORTUNITIES

IN AN ATTRACTIVE MARKET

35

Market Context

Market Size

•

World’s second largest life insurance market:

Life

premiums

$524

billion

(1)

Household

Wealth

•

Household

sector

wealth

¥1,645

trillion

($15.6

trillion)

(2)

Investable

Asset Pool

•

¥874 trillion ($8.3 trillion) household pool of currency and deposits is

among

the

world’s

largest

(2)

Retirement

Market

•

Expanding retirement market driven by aging population, increased

emphasis on individual responsibility for financial security

Product

Trend

•

Customers prefer insurance products to equities for savings

and investments

Distribution

Trend

•

Growing distribution opportunities include banks and independent

distributors

1)

Source: Swiss Re -

World Insurance in 2012, based on 2012 life insurance premiums.

2)

Based

on

12/31/2013

data;

Sources:

Bank

of

Japan,

Oanda.

Yen

to

the

U.S.

dollar

translation

at

the

spot

currency

FX

rate

as

of

12/31/2013.

Financial Strength Symposium 6.9.2014

New

Business

Face

Amount

(1)

PRUDENTIAL’S GROWTH IN JAPAN

CONTRASTS TO INDUSTRY TREND

(¥

trillions)

Industry

Prudential Japanese

Insurance Operations

36

1)

Source: The Life Insurance Association of Japan.  Fiscal year starting April 1.  Industry data excludes Japan Post Insurance; includes policy conversions. 

(¥

billions)

Financial Strength Symposium 6.9.2014

124

107

99

89

67

61

61

63

67

73

4,197

4,732

4,848

4,984

5,018

4,861

4,826

4,917

5,170

6,935

8,099

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

-

20

40

60

80

100

120

140

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

77

Number

of Life

Insurance

Captive

Agents

(1)

JAPAN INDUSTRY –

NUMBER OF CAPTIVE AGENTS

37

1)

Source: Japan Institute of Life Insurance. Data as of fiscal year end March 31.  Some former captive agents continue their career in life insurance industry as

independent sales agents.

•

Fewer captive agents to meet customer needs

Captive agents

(thousands)

Population

per agent

increased

88%

Industry

agent 

count

declined

45%

Financial Strength Symposium 6.9.2014

291

546

-

100

200

300

400

500

Population per captive agent

-

50

100

150

200

250

300

350

400

450

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

Number of captive agents

1980

1990

2000

2010

2020

2030

2040

65 and over

15-64 years old

0-14 years old

Japan

Demographics

JAPAN DEMOGRAPHIC CHANGE –

CUSTOMERS’

CHANGE OF NEEDS BY DEMOGRAPHIC SHIFT

38

1)

Source: Japan Statistics Bureau, as of January, 2012. 

67%

9%

24%

19%

15%

12%

10%

10%

12%

69%

23%

29%

32%

36%

68%

59%

58%

54%

•

Retirement income needs

•

Healthcare needs

•

Inheritance needs

13%

64%

17%

118

Population

(in millions)

124

127

128

124

117

107

Financial Strength Symposium 6.9.2014

(1)

We have experienced agents

who can help customers meet

their evolving needs

LEADING POSITION IN ATTRACTIVE MARKET

39

•

New business face amount

•

Annualized new business premiums

•

In force face amount

•

Premium income

(2)

•

Total assets

Ranking Category

Rank

(1)

10.1%

7.8%

7.4%

6.9%

5.3%

#3

#5

#5

#5

#6

Market Share

(1)

Financial Strength Symposium 6.9.2014

Prudential is a leading life insurer in Japan

Premium income

(2)

1)

Source: Company data published in individual company websites.  Industry / market share data excludes Japan Post Insurance. Nine months ended 12/31/2013. 

2)

Prudential’s premium income amount was adjusted down for internal reinsurance transactions. 

PRUDENTIAL SALES IN JAPAN VS.

U.S. LIFE INSURERS SALES IN U.S.

40

1)

U.S. individual insurance sales (annualized premium with 10% excess premium) based on LIMRA; Prudential Japan foreign currency denominated activity

translated to U.S. dollars at uniform exchange rates;  Japanese yen 82 per U.S. dollar.  Annuities excluded.

2)

The combined Top 4 U.S. companies include Northwestern Mutual, Prudential (U.S.), New York Life and Lincoln National.

2013

Annualized

New

Business

Premiums

(1)

($ millions)

(2)

Financial Strength Symposium 6.9.2014

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Pru Japan

Top 4 U.S.

Company 1

Prudential

(U.S.)

Company 3

Company 4

Companies

PURSUING OPPORTUNITIES IN LIMITED NUMBER OF

ATTRACTIVE COUNTRIES OUTSIDE JAPAN

41

•

Well established operation in Korea

–

Annualized

new

business

premiums,

$167

million

(1)

–

Approximately

1,800

Life

Planners

(2)

–

Adjusted

operating

income,

$251

million

(1)

•

Cultivating Life Planner operation in Brazil

–

Annualized

new

business

premiums,

$83

million

(1)

–

Approximately

850

Life

Planners

(2)

•

Joint Ventures: Footholds of future potential opportunities

–

India, China, Malaysia

1)

For the year ended 12/31/2013.

2)

As of 3/31/2014.

Financial Strength Symposium 6.9.2014

42

•

Proven, Superior Business Model

•

High ROE & Low Volatility Earnings

•

Captive Distribution -

Life Planner

•

Captive Distribution -

Life Consultant

•

Supplemental Distribution Channels

•

Well-Positioned in Attractive Japanese Insurance Market

•

Risk Management, Capital Generation and Deployment

AGENDA

Financial Strength Symposium 6.9.2014

FOREIGN CURRENCY RISK MANAGEMENT

43

Potential Exposure

Risk Management

Asset-Liability

Management

Well Matched FX

Shareholder Value in US$

Comprehensive 

Hedging Program

•

Income and Cash Flow

•

Equity Value

Accounting

Remeasurement

Non-Economic Noise

Financial Strength Symposium 6.9.2014

JAPANESE YEN INCOME HEDGE

44

1)

For 2013.

2)

Percentage of expected yen-based AOI hedged as of 3/31/2014.

•

Roughly 50% of Japan’s AOI is Yen-based

(1)

•

Yen-based AOI is hedged over a 36 month rolling period using a series of FX

forwards with laddered maturities

•

The Yen plan rate is derived from the weighted average hedged rate

•

Hedging Yen-based AOI protects the USD value of Japan capital repatriation

Income Hedges

2014

2015

2016

2017

% of Yen AOI Hedged

100%

88%

37%

3%

Plan Rates (¥/$)

¥82

Financial Strength Symposium 6.9.2014

(2)

INTEREST RATE ENVIRONMENT

10-Year

Government

Bond

Yield

•

Interest rates have been low in Japan for more than fifteen years

–

Majority of POJ’s in force business was written in a low rate environment

–

Rehabilitation measures lowered crediting rates of legacy business of Gibraltar

•

High-quality long duration investment portfolio

•

Repriced products to maintain profitability

•

Protection products provide stable

earnings from mortality and

expense margins

•

Fixed annuity products designed to

mitigate interest rate risk

–

Pricing updates bi-weekly

–

Early surrenders subject to market

value adjustments (MVA)

45

Financial Strength Symposium 6.9.2014

1%

2%

3%

4%

5%

6%

7%

8%

1997

1999

2001

2003

2005

2007

2009

2011

2013

JGB

UST

0%

SOLVENCY MARGIN RATIO

46

•

Solvency margin position of Prudential’s Japanese companies –

well capitalized

and financially secure

Stressed Scenario

~680%

~800%

•

Japan Equity

•

Real Estate

•

USD & AUD Exchange Rates

•

Interest Rates

Down 55%

Down 35%

Strengthening 20%

Up 100 bps

Stressed Scenario

(2)

March 31, 2014

777%

Prudential of Japan

Gibraltar Life

(1)

955%

SMR

1)

Gibraltar Life consolidated basis.

2)    Represents indicated change applied to asset valuation as of 3/31/14.

Financial Strength Symposium 6.9.2014

HIGH QUALITY INVESTMENT PORTFOLIO

47

1)

As of 3/31/2014, at balance sheet carrying amount.

2)

Includes commercial/residential mortgage-backed securities and asset-backed securities.

3)

Includes commercial/residential mortgage loans.

4)

Includes trading account assets supporting insurance liabilities, policy loans, other trading account assets and short-term investments.

Japanese

Insurance

Operations

Portfolio

(1)

$143 billion

Corporate Bonds

(Investment Grade)

2% Corporate Bonds (Below Investment Grade)

2% Equities

1% Other Long Term Investments

Structured

Securities

(2)

Commercial

Loans

(3)

Risk

Assets

Other

(4)

Government

(JGB & UST)

Financial Strength Symposium 6.9.2014

26%

4%

5%

4%

5%

56%

HISTORICAL CAPITAL REDEPLOYMENT

48

($ billions)

•

International Insurance operations have redeployed excess capital of more than

60% of after-tax AOI since 2009

1)

Years 2009 –

2011 have been restated for U.S. GAAP accounting standards applicable to deferred policy acquisition costs (DAC) effective 1/1/2012. 

After-tax AOI is based on overall FSB effective tax rates.

(1)

Financial Strength Symposium 6.9.2014

Over 60%

of after-tax

AOI

$1.2

$1.4

$1.7

$2.0

$2.3

$0.7

$0.4

$1.6

$1.3

$1.5

2009

2010

2011

2012

2013

After-tax AOI

Capital Redeployed

Acquisition

Funding

and Other

45%

Dividends

16%

Debt

Repayment

21%

Affiliate

Lending

18%

$8.6

$5.5

Cumulative 2009 -

2013

Historical

Capital

Redeployment

Forms

of

Cumulative

Redeployment

KEY TAKEAWAYS

49

•

Proven, superior business model

•

High ROE & low volatility earnings primarily driven by stable mortality

and expense margins

•

Captive distribution provides sustainable competitive advantage

•

Well-positioned in attractive Japanese insurance market

•

Solid risk management

•

Sustained capital generation and deployment

Financial Strength Symposium 6.9.2014

SCOTT SLEYSTER

SCOTT SLEYSTER

SENIOR VICE PRESIDENT AND

SENIOR VICE PRESIDENT AND

CHIEF INVESTMENT OFFICER

CHIEF INVESTMENT OFFICER

PRUDENTIAL FINANCIAL, INC.

PRUDENTIAL FINANCIAL, INC.

INVESTMENT PORTFOLIO

WHAT DIFFERENTIATES PRUDENTIAL?

2

Financial Strength Symposium 6.9.2014

(1)

Assets managed by Investment Management and Advisory Services as of 3/31/14.

Investment

Management is a

Core Competency

Underwrite Our

Own Credit

High Quality /

Matched Portfolio

•

Asset Management

is a Business Within

Prudential

•

$891 Billion

Managed

(1)

•

26 Consecutive

Quarters of Positive

Institutional Flows

(1)

•

Seasoned Talent

•

Best in Class

Privates and

Mortgages

•

Competitive

Advantage

•

Conservative

Standards

•

Liability Driven

•

Well Diversified by:

•

Well-matched

–

Asset Class

–

Industry

Sector

–

Geographic

Region

–

Issuer

(6)

(7)

BROAD DIVERSIFICATION

3

Financial Strength Symposium 6.9.2014

FSB General Account

Investment Portfolio

$334 Billion

(1)

FSB General Account

Fixed Maturities

$254 Billion

(5)

Equities, 2%

Other Long-Term

(3)

, 2%

Short-Term & Other, 2%

Policy Loans, 2%

Public Fixed Maturities, 66%

Private Fixed Maturities, 10%

Commercial Loans, 10% 

(2)

TAASIL, 6%

(4)

39%

20%

5%

5%

3%

2%

2%

Corporates

Japanese Government

Foreign Government

U.S. Government     

Commercial Mortgage-Backed

Asset-Backed  

Residential Mortgage-Backed

(1)

As of 3/31/14 at balance sheet carrying amount. Financial Services Businesses (“FSB”) excludes invested assets of our derivative and asset management operations.

(2)

Commercial Mortgage and other loans.

(3)

Other Long-Term Investments consist of real estate and non-real estate related investments in JVs and partnerships, investment

real estate held through direct ownership and other miscellaneous investments.       Trading Account Assets Supporting Insurance Liabilities (investment results expected to

ultimately accrue to contract holders).

(5)

At Fair Value. Percentages represent percentage of total FSB General Account (GA). 

(6)

Includes state and municipal securities,

and securities related to the Build America Bonds program. 

(7)

Includes securities collateralized by sub-prime mortgages.

(4)

FSB

GENERAL

ACCOUNT

(1)

4

Financial Strength Symposium 6.9.2014

(1)

As of 3/31/14 at balance sheet carrying amount. Excludes invested assets of derivative and asset management operations.

(2)

Commercial Mortgage and other loans.

(3)

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

The long duration nature of the liabilities in our Japanese Operations creates a natural

appetite for government/agency bonds, limiting the allocation to

Public and Private

Fixed Maturities and Commercial Mortgage Loans

FSB

General

Account,

ex.

Japanese

Operations:

$191

Billion

FSB General Account, Japanese Operations: $143 Billion

ASSET SELECTION -

FOCUS ON QUALITY

5

Financial Strength Symposium 6.9.2014

(1)

Amortized

Cost.

Reflects

equivalent

ratings

for

investments

of

the

International

Insurance

operations.

(2)

NAIC

1-2.

(3)

NAIC

3-6.

FSB General Account

Fixed

Maturity

Portfolio

(1)

(2)

(2)

(3)

High

or

Highest

Quality:

Governments

High

or

Highest

Quality:

Non-Governments

Other

Securities

LIMITED EXPOSURE TO NAIC 3-6

(1)

6

Financial Strength Symposium 6.9.2014

Weighted towards higher quality (NAIC 3)

Emphasis on allocations to Private

Placements with strong covenant packages

and ability to restructure

(1)

As

of

3/31/14

at

Amortized

Cost.

Reflects

equivalent

ratings

for

investments

of

the

International

Insurance

operations.

(2)

High

Yield

exposure

reflects

securities

with

NAIC ratings 3-6.

Total FSB GA Fixed Maturity Portfolio

100% = $235 Billion

(1)

NAIC 3-6

$8.9 Billion

NAIC 1-2

96%

4%

Private Fixed Maturities: $3.2 billion

Public Fixed Maturities: $5.7 billion

•

High Yield exposure

(2)

comprises less than 4%

of the FSB General Account (GA) portfolio

STATUTORY

ASSET

ALLOCATION:

PEER

COMPARISON

(1)

7

Financial Strength Symposium 6.9.2014

(1)

As of 12/31/13. Represents Statutory data for the domestic insurance companies general accounts only. Percent of invested assets less Policy Loans.

Source: AM Best Data Suite.

NAIC 3 & Below as a Percentage of Invested Assets

CORPORATE

BOND

PORTFOLIO

BY

SECTOR

(1)

8

Financial Strength Symposium 6.9.2014

(1)

As

of

03/31/14.

FSB

includes

Public

and

Private

holdings.

Based

on

Market

Value.

Corporate Bond Holdings by Sector

Financial Services Businesses vs. Barclays U.S. Corporate Index

Financial

Services

Businesses

Exposure

Overweight

Barclays

U.S.

Corporate

Index

Underweight

Barclays

U.S.

Corporate

Index

STRONG & WELL DIVERSIFIED COMMERCIAL LOAN

PORTFOLIO

9

Financial Strength Symposium 6.9.2014

(1)

As of

3/31/14

at

balance

sheet

carrying

amount.

(2)

At

gross

carrying

value.

Excludes

Agricultural

loans

(Commercial

only).

Prudential

as

of

3/31/14.

ACLI

as

of

12/31/13

(latest available).

(3)

Other consists of golf courses, ski resorts, parking garages, self-storage, hospital and ground leases.

Commercial Mortgage

and Other Loans

$32 Billion

(1)

FSB General Account Portfolio

100%

=

$334

Billion

(1)

10%

(2)

(2)

(3)

  Weighted Average Debt Service Coverage Ratio (DSCR)

2.21x

  Weighted Average Loan to Value Ratio (LTV)

55%

  Agricultural and Commercial Loans at a Fixed Rate

96%

  Over 30 Days Past Due

0.1%

Pacific

31%

South

Atlantic

20%

Middle

Atlantic

14%

West

South

Central

9%

East North

Central

9%

Mountain

5%

Other

4%

New

England

3%

Asia

2%

West North

Central

2%

East South

Central

1%

Retail

Apartments /

Multi

-

Family

Industrial

Office

Senior Living

&

Other

Hospitality

FSB General Account

ACLI ex. Prudential

COMMERCIAL & AGRICULTURAL MORTGAGE LOAN

PORTFOLIO

10

Financial Strength Symposium 6.9.2014

(1)

As of 3/31/14 at gross carrying value.

FSB

General

Account

(1)

($ millions)

Greater

than 2.0x

1.8x

to 2.0x

1.5x

to < 1.8x

1.2x

to < 1.5x

1.0x

to < 1.2x

Less

than 1.0x

Totals

0%-49.99%

5,189

$          

897

$             

1,227

$          

877

$             

249

$             

184

$             

8,623

$          

50%-59.99%

3,479

1,124

1,481

1,101

338

72

7,595

$          

60%-69.99%

4,427

1,129

1,375

2,138

321

52

9,442

$          

70%-79.99%

1,480

126

820

1,040

341

237

4,044

$          

80%-89.99%

19

49

48

99

78

3

296

$             

90%-100%

88

-

-

12

-

113

213

$             

Greater than 100%

-

19

25

18

56

50

168

$             

Totals 

14,682

$        

3,344

$          

4,976

$          

5,285

$          

1,383

$          

711

$             

30,381

$        

1Q 2014

219

$            

0.72%

1Q 2013 

249

$            

0.98%

4Q 2011

627

$            

2.85%

4Q 2009

1,141

$         

5.91%

Debt Service Coverage Ratio (DSCR)

Shaded

(higher LTVR, lower DSCR): 

COMMERCIAL MORTGAGE MARKET DELINQUENCIES

11

Financial Strength Symposium 6.9.2014

As of 3Q13, the Life Insurance delinquency rate for commercial mortgage

loans

stood

at

0.06%.

Life

Insurance

delinquency

rates

peaked

in

excess

of 7% in the early 90’s

Source: Mortgage Bankers Association –

Q3 2013 Mortgage Delinquency Rates For Major Investor Groups (Dec 2013).

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

7.51%

1.95%

0.18%

0.06%

0.05%

CMBS (30+)

Banks & Thrifts (90+)

Fannie Mae (60+)

Freddie Mac (60+)

Life Ins. (60+)

NON-COUPON INVESTMENTS

12

Financial Strength Symposium 6.9.2014

(1)

As of 3/31/14 at balance sheet carrying amount.

(2)

Excludes Equity Securities. Reported within Other Long-term Investments.

$ millions

4,268

1,543

276

Private Equity

Hedge Funds

JV/LP Non-

Real Estate

Directly Owned

Real Estate

JV/LP Real Estate

FSB General Account Portfolio

100%

=

$334

Billion

(1)

Non-coupon

(2)

$6.1 Billion

1.8%

Prudential has increased its allocation to Non-

coupon investments in order to:

Diversify away from credit risk

Hedge long-tailed exposures in selected

product portfolios

Generate taxable capital gains allowing

monetization of tax benefits

Produce higher risk-adjusted returns in the

current rate environment

DECLINING IMPAIRMENTS IN FSB

13

Financial Strength Symposium 6.9.2014

(1)

Represents pre-tax amounts recorded in earnings. FSB only.

Total

FSB

Impairments

and

Sales

of

Credit-Impaired

Investments

(1)

($ millions)

(196)

(2,645)

(1,748)

(713)

(565)

(469)

(205)

(37)

2007

2008

2009

2010

2011

2012

2013

1Q 2014

53%

68%

53%

68%

•

Since 3Q 2012, Prudential’s assets increased by approximately $41 billion

related to two significant pension risk transfer deals, and the acquisition of The

Hartford’s life insurance business

•

No Privates or Mortgages were included in the pension risk transfer deals, which

has lowered our overall allocation to these asset classes

PENSION RISK TRANSFER (PRT) AND THE HARTFORD UPDATE

IMPACT ON PORTFOLIO

14

Financial Strength Symposium 6.9.2014

Note: Amounts presented at balance sheet carrying amount. FSB General Account excludes invested assets of our derivative and asset management operations.

$ billions

%

$ billions

%

$ billions

%

Total Fixed Maturities

94.5

$       

64.6%

128.3

$     

69.2%

128.1

$     

67.2%

Public Fixed Maturities

71.6

48.9%

104.4

56.2%

103.3

54.1%

Private Fixed Maturities

22.9

15.7%

23.9

12.9%

24.8

13.0%

Commercial Loans

20.2

13.8%

21.5

11.6%

25.4

13.3%

Equities

2.8

1.9%

3.0

1.6%

3.6

1.9%

Short Term & Other

4.3

3.0%

4.8

2.6%

4.4

2.3%

Other Long-term Investments

2.5

1.7%

4.4

2.4%

5.7

3.0%

Policy Loans

3.7

2.5%

4.4

2.4%

4.5

2.4%

TAASIL

18.3

12.5%

19.0

10.3%

19.0

10.0%

Totals

146.3

$     

100.0%

185.4

$     

100.0%

190.7

$     

100.0%

3/31/13

3/31/14

FSB GA, ex. Japan

FSB GA, ex. Japan

9/30/12

FSB GA, ex. Japan

Pre-jumbo PRT

transactions and

Hartford acquisition

Post-jumbo PRT

transactions and

Hartford acquisition

Current

SPREAD ENVIRONMENT

15

Financial Strength Symposium 6.9.2014

Public Investment Grade

Public Below Investment Grade

Source: Barclays. Investment Grade = 18% Financial, 82% Industrial. Below Investment Grade = 100% Industrial.

bps

bps

FIXED

MATURITIES

AND

COMMERCIAL

MORTGAGE

YIELDS

(1)

16

Financial Strength Symposium 6.9.2014

Fixed Maturity Yields

Commercial Mortgage and Other Loans Yields

Excludes realized investment gains (losses) and non-hedge accounting derivative results. Yields for commercial mortgage and other loans and are based on quarterly average carrying

values and include investment income related to commercial loans that support insurance liabilities, for which the investment results generally accrue to contract holders. Yields for fixed

maturities are based on amortized cost and are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income on assets

other than those included in invested assets. Prior period’s yields are presented as last reported. Treasury yields shown are annual averages.

(1)

KEY TAKEAWAYS

17

Financial Strength Symposium 6.9.2014

•

Asset

Management

is

a

core

business

at

Prudential

-

it

is

what

we

do

and

we are good at it

•

Core principals of Insurance Portfolio Management:

–

Liability driven

–

High quality

–

Well-matched

•

Continue to prefer to underwrite and manage our credit risk directly

–

High priority on private asset classes, both Corporates and Mortgages

•

High Yield asset mix is higher quality, with an emphasis on Privates

–

New business premiums being invested at lower rates, but with solid net

margins

•

We have increased our allocation to Non-coupon investments as an

additional source of income and diversification

•

Expect to be in a challenging rate/spread environment over the near-term

KEN TANJI

SENIOR VICE PRESIDENT AND

TREASURER

PRUDENTIAL FINANCIAL, INC.

CAPITAL AND LIQUIDITY MANAGEMENT

DELIVERING SUPERIOR VALUE

2

Financial Strength Symposium 6.9.2014

Superior Value

Proposition for

Customers,

Creditors &

Investors

Sustainable

ROE

Strong

Ratings

Financial

Strength

APPROACH TO CAPITAL AND LIQUIDITY MANAGEMENT

3

Financial Strength Symposium 6.9.2014

Capital Protection

Framework

Liquidity

Diverse sources provide

significant financial flexibility

Competitive levels of capital

under stress

Financial Strength

AA standards for

capital and liquidity

4

Financial Strength Symposium 6.9.2014

Protect

Downside

Adequate capital and

liquidity

Appropriate financial

leverage

Deploy Capital

for Growth

Organic growth

Opportunistic

business expansion /

M&A

Distribute to

Shareholders

Stable dividend

payout ratio

Share repurchases

CAPITAL MANAGEMENT PHILOSOPHY

ON BALANCE SHEET CAPITAL

FINANCIAL SERVICES BUSINESSES (“FSB”)

5

Financial Strength Symposium 6.9.2014

$ in billions

$ in billions

December 31, 2013

December 31, 2013

Required

Capital

(1)

~$32.0

Attributed

Equity

(2)

$25.3

Capital Debt & Hybrids

$10.2

Total Capital Outstanding

$35.5

Estimated

On

Balance

Sheet

Capital

Capacity

(3)

~$3.5

Estimated

“Readily

Deployable”

Capital

~$1.5

1)

Required Capital represents the amount of GAAP capital necessary to support business risk based on AA Financial Strength rating targets for the

insurance operating entities. 

2)

Excludes total accumulated other comprehensive income.

3)

Based on targeted Risk Based Capital (“RBC”) ratio of 400% for the Prudential Insurance Company of America (“PICA” or “Prudential Insurance”)

and equivalent levels of capital at other insurance operating entities.

STRENGTHENED FSB CAPITAL STRUCTURE AND

REDUCED LEVERAGE

6

Financial Strength Symposium 6.9.2014

Composition of Outstanding Capital and Leverage Ratios

(1)

(1) (2)

(3)

69%

71%

73%

4%

13%

13%

27%

16%

14%

29.7%

25.8%

23.5%

December 31, 2011

December 31, 2012

December 31, 2013

Capital Debt

Hybrids

Financial Leverage Ratio

1)

Excludes the impact of Foreign Exchange Remeasurement, Non-Performance Risk (net of deferred policy acquisition costs), and Accumulated Other

Comprehensive Income on GAAP equity totaling $7.9 billion, $11.5 billion and $6.3 billion for 2011, 2012, and 2013, respectively. 

2)

Assumes 25% equity credit for Hybrids.

3)

Reflects the retrospective adoption of amended accounting guidance for deferred policy acquisition costs effective January 1, 2012, which reduced

equity by $2.8 billion. Also reflects a discretionary change in accounting principle related to the Company's pension plans.

GAAP Equity

REGULATORY CAPITAL RATIOS

7

Financial Strength Symposium 6.9.2014

Risk Based Capital Ratio (“RBC”)

(1)

Target

December 31, 2013

Prudential Insurance

400%

456%

Solvency Margin Ratio

Target

March 31, 2014

Prudential of Japan

(2)

600 -

700%

777%

Gibraltar Life

(2)(3)

600 -

700%

955%

1)

The inclusion of RBC measures is intended solely for the information of investors and is not intended for the purpose of ranking any insurance company or for use

in connection with any marketing, advertising or promotional activities.

2)

Based on Japanese statutory accounting and risk measurement standards applicable to regulatory filings as of March 31, 2014.

3)

Gibraltar Life consolidated basis.

CAPITAL

PROTECTION

FRAMEWORK

8

Financial Strength Symposium 6.9.2014

Our Toolbox

Stress Parameters

On Balance

Sheet Capital

Capacity

Derivatives

Reinsurance

Contingent

Capital

Equity Market

Decline

Interest Rate

Shock

Credit Shock

Currency Shock

1.

Five Corners Funding Trust issues 

10-year 144A securities to Institutional

investors

2.

Proceeds from the issuance are

invested in 10-year Treasury Strips

3.

PFI pays a put premium for the option

to issue senior debt to the Trust in

exchange for the Treasury Strips

In November 2013, we created a $1.5 billion fixed income contingent capital

facility as a part of our Capital Protection Framework

Institutional

Investors

Five

Corners

Trust

Put Premium

(3)

Option to

Issue Senior Debt

Securities

(1)

10-Year

Securities

(P-Caps)

Cash

10-Yr UST

Strips

(2)

9

Financial Strength Symposium 6.9.2014

PFI

CONTINGENT CAPITAL FACILITY -

BEFORE EXERCISING PUT OPTION

In November 2013, we created a $1.5 billion fixed income contingent capital

facility as a part of our Capital Protection Framework

Institutional

Investors

Five

Corners

Trust

10-Year

Securities

(P-Caps)

Cash

10

Financial Strength Symposium 6.9.2014

PFI

(4)

Senior Debt

10 -Yr UST

Strips

1.

Five Corners Funding Trust issues 

10-year 144A securities to Institutional

investors

2.

Proceeds from issuance are invested

in 10-year Treasury Strips

3.

PFI pays a put premium for the option

to issue senior debt to the Trust in

exchange for the Treasury Strips

4.

Upon exercise of the option, PFI

issues Senior Debt to the trust in

exchange for Treasury Strips

5.

Treasury Strips may be sold for cash

proceeds

(5)

Sell UST Strips;

Receive cash

CONTINGENT CAPITAL FACILITY -

AFTER EXERCISING PUT OPTION

LIQUIDITY MANAGEMENT PHILOSOPHY

11

Financial Strength Symposium 6.9.2014

•

Liquidity is managed for each legal entity separately with a robust

asset/liability management discipline

•

We manage holding company cash to a Board-approved minimum

balance of $1.3 billion

•

We maintain access to significant alternative liquidity sources

In November 2013, we created a $1.5 billion fixed income

contingent 

capital facility as a part of our Capital Protection Framework

In November 2013, we extended our 3-

and 5-year credit facilities to  

2016 and 2018

•

We have a modest amount of outstanding commercial paper

•

We opportunistically pre-fund upcoming debt maturities up to one

year in advance

12

Financial Strength Symposium 6.9.2014

1)

Reflects dividends and returns of capital to PFI.

2007

2008

2009

2010

2011

2012

2013

Prudential Annuities

Asset Management

International

Prudential Insurance

Other

$ in Billions

$3.2

$1.3

$4.0

$3.2

$2.9

$3.3

$3.0

CASH FLOWS FROM SUBSIDIARIES

(1)

HOLDING COMPANY LIQUIDITY

13

Financial Strength Symposium 6.9.2014

1)

PFI cash, cash equivalents and short-term investments, less short-term intercompany borrowings and commercial paper. 

2)

PFI has access to liquid assets through a 10-year contingent funding facility, established in November 2013, that can be used to meet liquidity needs and/or to

downstream as capital to operating subsidiaries.

3)

Includes $1.8 billion shared with Prudential Funding, LLC (“PFLLC”), a subsidiary of PICA.

4)

Primarily includes the Enterprise Liquidity Account, an intercompany liquidity account designed to optimize use of cash by facilitating the lending and borrowing

of funds between PFI and its subsidiaries.

5)

Represents estimated total capacity. $226 million of PFI commercial paper was outstanding as of 3/31/14.

Minimum Cash Level

$1.3

Minimum Cash Level

$1.3

$1.9

$9.2

$1.5

$3.8

$1.0

$1.0

Net Cash

(1)

Contingent Capital

(2)

Facility

Committed Credit Lines

Internal Sources

(4)

Commercial Paper

(5)

Capacity

Total Liquidity

Resources

PFI Alternate Sources of Liquidity

As of March 31, 2014

($ in Billions)

$3.2

$10.5

(3)

PICA LIQUIDITY

14

Financial Strength Symposium 6.9.2014

1)

2)

As of 3/31/14, $2.2 billion of capacity from the Federal Home Loan Bank of New York (“FHLBNY”) was used in the form of advances and funding agreements.

Borrowings are subject to the availability of qualifying assets at PICA.

3)

Credit facility shared between PFI and PFLLC, a subsidiary of PICA.

4)

Represents estimated total capacity.  $747 million of PFLLC commercial paper was outstanding as of 3/31/14.

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

(1)

(2)

(3)

(4)

$5.5

$15.0

$1.8

$3.0

Cash

Additional FHLBNY Capacity

Committed

Credit

Lines

Commercial

Paper

Capacity

Total Liquidity Resources

PICA Alternate Sources of Liquidity

As of March 31, 2014

($ in Billions)

$4.7

Represents cash, cash equivalents and short-term investments of the Financial Services Businesses and Closed Block Business as of 3/31/14.

SUMMARY

15

Financial Strength Symposium 6.9.2014

•

Our capital and liquidity management programs are aligned to support

Prudential’s value proposition through:

–

Financial Strength

–

Strong Ratings

–

Attractive Returns

•

Our financial profile is strong and continues to be enhanced by:

–

Capital generated from our well-positioned and balanced business mix

–

Additional access to capital and liquidity resources

CHRISTINE MARCKS

PRESIDENT

PRUDENTIAL RETIREMENT

PRUDENTIAL FINANCIAL, INC.

FINANCIAL STRENGTH SYMPOSIUM