August 6, 2014 - EX-99.2 - 8-K: Current report | Prudential Financial, Inc. (PRU)

Exhibit 99.2

Prudential Financial, Inc. (PRU)

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Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

SECOND QUARTER 2014

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

August 6, 2014

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

CONTENTS


	Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4

FINANCIAL SERVICES BUSINESSES
Combined Statements of Operations		5
Combined Balance Sheets		6
Combining Statements of Operations by Division (Quarter)		7
Combining Statements of Operations by Division		8
Combining Balance Sheets by Division		9
Short-Term and Long-Term Debt		10

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
Combined Statements of Operations		11
Combining Statements of Operations		12
Individual Annuities Sales Results and Account Values		13
Individual Annuities Account Value Activity		14
Individual Annuities Living Benefit Features		15
Individual Annuities Death Benefit Features		16
Retirement Segment Sales Results and Account Values		17
Supplementary Revenue and Assets Under Management Information for Asset Management Segment		18
Supplementary Assets Under Management Information for Asset Management Segment		19

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		20
Combining Statements of Operations		21
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force		22
Supplementary Information for Individual Life Insurance		23
Supplementary Information for Group Insurance		24

DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE		25

INTERNATIONAL INSURANCE DIVISION
Combined Statements of Operations		26
Combining Statements of Operations		27
Sales Results and Supplementary Information		28-29

INVESTMENT PORTFOLIO
Investment Portfolio Composition		30
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		31
Financial Services Businesses Investment Results		32
Financial Services Businesses Investment Results - Japanese Insurance Operations		33
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		34

KEY DEFINITIONS AND FORMULAS		35-37

RATINGS AND INVESTOR INFORMATION		38

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						% Change			2013									2014
2014			2013			% Change			2Q			3Q			4Q			1Q			2Q

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	1,821			1,620			12%	U.S. Retirement Solutions and Investment Management Division		851			1,231			996			945			876
	335			309			8%	U.S. Individual Life and Group Insurance Division		163			216			215			131			204
	1,721			1,727			0%	International Insurance Division		850			778			647			837			884
	(683	)		(661	)		-3%	Corporate and other operations		(347	)		(312	)		(397	)		(342	)		(341	)

	3,194			2,995			7%	Total pre-tax adjusted operating income		1,517			1,913			1,461			1,571			1,623
	881			830			6%	Income taxes, applicable to adjusted operating income		424			540			413			434			447

	2,313			2,165			7%	Financial Services Businesses after-tax adjusted operating income		1,093			1,373			1,048			1,137			1,176


								Reconciling items:
	(281	)		(5,233	)		95%	Realized investment losses, net, and related charges and adjustments		(2,230	)		(556	)		(2,360	)		(8	)		(273	)
	326			(376	)		187%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		(471	)		103			23			101			225
	(232	)		328			-171%	Change in experience-rated contractholder liabilities due to asset value changes		471			(73	)		(28	)		(43	)		(189	)
	120			(55	)		318%	Divested businesses		(84	)		43			41			73			47
	29			(10	)		390%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		24			11			27			11			18

	(38	)		(5,346	)		99%	Total reconciling items, before income taxes		(2,290	)		(472	)		(2,297	)		134			(172	)
	(19	)		(1,937	)		99%	Income taxes, not applicable to adjusted operating income		(700	)		(67	)		(853	)		39			(58	)

	(19	)		(3,409	)		99%	Total reconciling items, after income taxes		(1,590	)		(405	)		(1,444	)		95			(114	)

	2,294			(1,244	)		284%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		(497	)		968			(396	)		1,232			1,062
	(28	)		(11	)		-155%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(22	)		(10	)		(27	)		(11	)		(17	)

	2,266			(1,255	)		281%	Income (loss) from continuing operations attributable to Prudential Financial, Inc.		(519	)		958			(423	)		1,221			1,045
	34			62			-45%	Earnings attributable to noncontrolling interests		27			13			32			11			23

	2,300			(1,193	)		293%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses		(492	)		971			(391	)		1,232			1,068
	8			3			167%	Income (loss) from discontinued operations, net of taxes		2			8			(4	)		4			4

	2,308			(1,190	)		294%	Net income (loss) of Financial Services Businesses		(490	)		979			(395	)		1,236			1,072
	34			62			-45%	Less: Income attributable to noncontrolling interests		27			13			32			11			23

	2,274			(1,252	)		282%	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		(517	)		966			(427	)		1,225			1,049

	17.7%			16.6%				Operating Return on Average Equity (based on adjusted operating income)		17.0%			21.4%			16.3%			17.7%			17.7%

								*Reconciliation to Consolidated Net Income (Loss) Attributable to Prudential Financial, Inc:*
	2,274			(1,252	)			Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		(517	)		966			(427	)		1,225			1,049
	54			18				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		3			61			(33	)		13			41

	2,328			(1,234	)			Consolidated net income (loss) attributable to Prudential Financial, Inc.		(514	)		1,027			(460	)		1,238			1,090

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2013									2014
2014			2013				2Q			3Q			4Q			1Q			2Q

						Earnings per share of Common Stock (diluted): (1)
	4.89			4.57		Financial Services Businesses after-tax adjusted operating income		2.30			2.89			2.20			2.40			2.49

						Reconciling items:
	(0.60	)		(11.09	)	Realized investment losses, net, and related charges and adjustments		(4.72	)		(1.18	)		(5.01	)		(0.02	)		(0.58	)
	0.69			(0.80	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net		(1.00	)		0.22			0.05			0.21			0.48
	(0.49	)		0.70		Change in experience-rated contractholder liabilities due to asset value changes		1.00			(0.15	)		(0.06	)		(0.09	)		(0.40	)
	0.26			(0.12	)	Divested businesses		(0.18	)		0.09			0.09			0.16			0.10
	—			0.04		Difference in earnings allocated to participating unvested share-based payment awards		0.02			0.01			0.01			—			—

	(0.14	)		(11.27	)	Total reconciling items, before income taxes		(4.88	)		(1.01	)		(4.92	)		0.26			(0.40	)
	(0.04	)		(4.00	)	Income taxes, not applicable to adjusted operating income		(1.46	)		(0.14	)		(1.79	)		0.08			(0.12	)

	(0.10	)		(7.27	)	Total reconciling items, after income taxes		(3.42	)		(0.87	)		(3.13	)		0.18			(0.28	)

	4.79			(2.70	)	Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		(1.12	)		2.02			(0.93	)		2.58			2.21
	0.02			0.01		Income (loss) from discontinued operations, net of taxes		—			0.02			(0.01	)		0.01			0.01

	4.81			(2.69	)	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		(1.12	)		2.04			(0.94	)		2.59			2.22


	460.1			464.2		Weighted average number of outstanding Common shares (basic)		464.1			462.6			461.5			460.9			459.4

	469.4			471.9		Weighted average number of outstanding Common shares (diluted)		472.2			472.0			471.2			470.3			468.5

	(5	)		5		Direct equity adjustments for earnings per share calculation		1			2			(5	)		(2	)		(3	)

	9			9		Earnings related to interest, net of tax, on exchangeable surplus notes		5			4			4			4			5

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	22			21		Financial Services Businesses after-tax adjusted operating income		11			13			9			10			12
	21			4		Income from continuing operations (after-tax) of Financial Services Businesses		2			9			2			11			10

(1)

Diluted share count used in the diluted earnings per share calculation for GAAP measures is equal to weighted average basic common shares for the three months ended June 30, 2013 and December 31, 2013, as well as for the six months ended June 30, 2013, as all potential common shares are antidilutive due to the loss from continuing operations available to holders of Common Stock after direct equity adjustment.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2013									2014
2014		2013			2Q			3Q			4Q			1Q			2Q

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		2,545			3,043			2,594			3,944			3,729
				Long-term debt		17,083			17,083			17,069			16,081			17,004
				Junior Subordinated Long-Term Debt		4,884			4,884			4,884			4,884			4,884

				Attributed Equity:
				Including accumulated other comprehensive income		33,669			32,818			33,885			36,770			39,663
				Excluding accumulated other comprehensive income (3)		25,343			26,034			25,299			26,117			26,771
				Amount included above for foreign currency exchange rate remeasurement (4)		(2,796	)		(2,036	)		(2,818	)		(2,668	)		(2,818	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (4)		28,139			28,070			28,117			28,785			29,589


				Book value per share of Common Stock:
				Including accumulated other comprehensive income		71.76			70.05			72.30			78.87			85.35
				Excluding accumulated other comprehensive income (3)		54.01			55.57			53.98			56.02			57.61
				Amount included above for foreign currency exchange rate remeasurement (4)		(5.96	)		(4.35	)		(6.01	)		(5.72	)		(6.06	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (4)		59.97			59.92			59.99			61.74			63.67


				Number of diluted shares at end of period (2)		469.2			468.5			468.7			466.2			464.7

				*Common Stock Price Range (based on closing price):*
	91.23		73.03	High		73.03			82.62			92.43			91.23			91.10
	77.61		54.64	Low		54.91			73.30			75.99			80.45			77.61
	88.77		73.03	Close		73.03			77.98			92.22			84.65			88.77

				*Common Stock market capitalization (1)*		33,813			36,019			42,523			38,973			40,692

(1)	As of end of period.

(2)	The number of diluted shares at end of period excludes the impact of exchangeable surplus notes due to the antidilutive impact of conversion.

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

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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OPERATIONS HIGHLIGHTS


Year-to-date					2013						2014
2014		2013			2Q		3Q		4Q		1Q		2Q

				*Assets Under Management and Administration ($ billions) (1) (2):*
				Assets Under Management:
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
				Institutional customers		319.1		330.3		341.7		352.2		367.0
				Retail customers		152.4		159.1		170.7		172.9		180.1
				General account		354.5		358.7		357.5		365.8		374.4

				Total Investment Management and Advisory Services		826.0		848.1		869.9		890.9		921.5
				Non-proprietary assets under management		174.4		186.9		195.9		197.8		200.6

				Total managed by U.S. Retirement Solutions and Investment Management Division		1,000.4		1,035.0		1,065.8		1,088.7		1,122.1
				Managed by U.S. Individual Life and Group Insurance Division		21.5		21.9		22.3		23.1		23.4
				Managed by International Insurance Division		21.8		19.3		19.0		19.1		20.1

				Total assets under management		1,043.7		1,076.2		1,107.1		1,130.9		1,165.6
				Client assets under administration		106.2		111.1		116.6		120.5		125.4

				Total assets under management and administration		1,149.9		1,187.3		1,223.7		1,251.4		1,291.0


				Assets managed or administered for customers outside of the United States at end of period		236.7		244.2		242.9		251.7		262.2

				*Distribution Representatives (1):*
				Prudential Agents		2,724		2,780		2,722		2,759		2,795
				International Life Planners		7,113		7,208		7,248		7,194		7,074
				Gibraltar Life Consultants		9,795		9,298		9,327		8,806		8,670

	48		48	*Prudential Agent productivity ($ thousands)*		49		50		67		44		51

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date						%			2013									2014
2014			2013			Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	10,391			12,444			-16%	Premiums		6,115			5,414			5,257			5,130			5,261
	3,032			2,885			5%	Policy charges and fee income		1,460			1,284			1,445			1,509			1,523
	5,985			5,722			5%	Net investment income		2,901			2,873			2,935			3,017			2,968
	2,641			2,469			7%	Asset management fees, commissions and other income		1,244			1,212			1,341			1,280			1,361

	22,049			23,520			-6%	Total revenues		11,720			10,783			10,978			10,936			11,113


								Benefits and Expenses (1):
	10,836			12,503			-13%	Insurance and annuity benefits		6,171			5,420			5,387			5,417			5,419
	1,859			1,895			-2%	Interest credited to policyholders’ account balances		929			886			921			925			934
	640			658			-3%	Interest expense		331			296			306			321			319
	(1,347	)		(1,570	)		14%	Deferral of acquisition costs		(706	)		(646	)		(686	)		(668	)		(679	)
	951			977			-3%	Amortization of acquisition costs		502			31			386			469			482
	5,916			6,062			-2%	General and administrative expenses		2,976			2,883			3,203			2,901			3,015

	18,855			20,525			-8%	Total benefits and expenses		10,203			8,870			9,517			9,365			9,490

	3,194			2,995			7%	Adjusted operating income before income taxes		1,517			1,913			1,461			1,571			1,623


								Reconciling items:
	(153	)		(6,003	)		97%	Realized investment gains (losses), net, and related adjustments		(2,698	)		(1,319	)		(2,634	)		49			(202	)
	(128	)		770			-117%	Related charges		468			763			274			(57	)		(71	)

	(281	)		(5,233	)		95%	Total realized investment losses, net, and related charges and adjustments		(2,230	)		(556	)		(2,360	)		(8	)		(273	)

	326			(376	)		187%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		(471	)		103			23			101			225
	(232	)		328			-171%	Change in experience-rated contractholder liabilities due to asset value changes		471			(73	)		(28	)		(43	)		(189	)
	120			(55	)		318%	Divested businesses		(84	)		43			41			73			47
	29			(10	)		390%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		24			11			27			11			18

	(38	)		(5,346	)		99%	Total reconciling items, before income taxes		(2,290	)		(472	)		(2,297	)		134			(172	)


	3,156			(2,351	)		234%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		(773	)		1,441			(836	)		1,705			1,451
	862			(1,107	)		178%	Income tax expense (benefit)		(276	)		473			(440	)		473			389

	2,294			(1,244	)		284%	Income (loss) from continuing operations before equity in earnings of operating joint ventures		(497	)		968			(396	)		1,232			1,062

(1)

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	06/30/2013		09/30/2013		12/31/2013		03/31/2014		06/30/2014

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $226,247; $231,616; $228,099; $232,097; $236,069)		242,059		245,032		243,654		251,059		258,673
Fixed maturities, held to maturity, at amortized cost (fair value $3,769; $3,872; $3,553; $3,537; $3,464)		3,562		3,629		3,312		3,275		3,171
Trading account assets supporting insurance liabilities, at fair value		20,658		21,131		20,827		20,935		21,273
Other trading account assets, at fair value		5,809		6,121		6,111		7,692		8,351
Equity securities, available for sale, at fair value (cost $4,102; $4,279; $4,561; $4,785; $4,867)		5,289		5,488		6,026		6,249		6,433
Commercial mortgage and other loans		28,320		29,709		31,335		32,471		33,000
Policy loans		6,679		6,827		6,753		6,862		7,021
Other long-term investments		7,847		7,904		8,304		8,393		8,309
Short-term investments		6,344		6,404		5,837		4,625		4,278

Total investments		326,567		332,245		332,159		341,561		350,509
Cash and cash equivalents		12,425		11,950		10,797		11,294		11,335
Accrued investment income		2,528		2,533		2,505		2,532		2,583
Deferred policy acquisition costs		14,547		15,812		16,101		16,229		16,300
Value of business acquired		3,846		3,837		3,675		3,610		3,499
Other assets		13,050		12,677		13,082		13,412		13,224
Separate account assets		264,054		275,091		285,060		288,161		296,801

Total assets		637,017		654,145		663,379		676,799		694,251


Liabilities:
Future policy benefits		153,683		158,857		156,601		161,466		165,179
Policyholders’ account balances		131,222		132,202		131,298		131,899		133,217
Securities sold under agreements to repurchase		3,707		3,530		4,128		4,864		4,895
Cash collateral for loaned securities		4,927		4,988		4,230		4,035		3,596
Income taxes		5,581		5,367		6,010		7,328		8,929
Senior short-term debt		2,545		3,043		2,594		3,944		3,729
Senior long-term debt		17,083		17,083		17,069		16,081		17,004
Junior subordinated long-term debt		4,884		4,884		4,884		4,884		4,884
Notes issued by consolidated variable interest entities		2,147		2,423		3,302		4,101		4,573
Other liabilities		12,877		13,229		13,715		12,625		11,169
Separate account liabilities		264,054		275,091		285,060		288,161		296,801

Total liabilities		602,710		620,697		628,891		639,388		653,976


Attributed Equity:
Accumulated other comprehensive income		8,326		6,784		8,586		10,653		12,892
Other attributed equity		25,343		26,034		25,299		26,117		26,771

Total attributed equity		33,669		32,818		33,885		36,770		39,663

Noncontrolling Interest		638		630		603		641		612

Total Equity		34,307		33,448		34,488		37,411		40,275

Total liabilities and equity		637,017		654,145		663,379		676,799		694,251

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended June 30, 2014
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		5,261			201			1,241			3,822			(3	)
Policy charges and fee income		1,523			715			681			138			(11	)
Net investment income		2,968			1,193			540			1,128			107
Asset management fees, commissions and other income		1,361			1,244			198			164			(245	)

Total revenues		11,113			3,353			2,660			5,252			(152	)


Benefits and Expenses (1):
Insurance and annuity benefits		5,419			651			1,550			3,217			1
Interest credited to policyholders’ account balances		934			481			211			242			—
Interest expense		319			35			129			2			153
Deferral of acquisition costs		(679	)		(147	)		(130	)		(420	)		18
Amortization of acquisition costs		482			139			100			256			(13	)
General and administrative expenses		3,015			1,318			596			1,071			30

Total benefits and expenses		9,490			2,477			2,456			4,368			189


Adjusted operating income (loss) before income taxes		1,623			876			204			884			(341	)


	Quarter Ended June 30, 2013
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		6,115			256			1,294			4,570			(5	)
Policy charges and fee income		1,460			654			654			162			(10	)
Net investment income		2,901			1,236			504			1,067			94
Asset management fees, commissions and other income		1,244			1,156			159			141			(212	)

Total revenues		11,720			3,302			2,611			5,940			(133	)


Benefits and Expenses (1):
Insurance and annuity benefits		6,171			683			1,578			3,904			6
Interest credited to policyholders’ account balances		929			495			201			233			—
Interest expense		331			31			98			—			202
Deferral of acquisition costs		(706	)		(141	)		(186	)		(397	)		18
Amortization of acquisition costs		502			137			102			275			(12	)
General and administrative expenses		2,976			1,246			655			1,075			—

Total benefits and expenses		10,203			2,451			2,448			5,090			214


Adjusted operating income (loss) before income taxes		1,517			851			163			850			(347	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Six Months Ended June 30, 2014
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		10,391			398			2,481			7,518			(6	)
Policy charges and fee income		3,032			1,410			1,369			276			(23	)
Net investment income		5,985			2,469			1,098			2,212			206
Asset management fees, commissions and other income		2,641			2,431			370			321			(481	)

Total revenues		22,049			6,708			5,318			10,327			(304	)


Benefits and Expenses (1):
Insurance and annuity benefits		10,836			1,311			3,171			6,330			24
Interest credited to policyholders’ account balances		1,859			957			421			481			—
Interest expense		640			71			253			2			314
Deferral of acquisition costs		(1,347	)		(275	)		(273	)		(832	)		33
Amortization of acquisition costs		951			271			199			506			(25	)
General and administrative expenses		5,916			2,552			1,212			2,119			33

Total benefits and expenses		18,855			4,887			4,983			8,606			379


Adjusted operating income (loss) before income taxes		3,194			1,821			335			1,721			(683	)


	Six Months Ended June 30, 2013
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		12,444			401			2,573			9,484			(14	)
Policy charges and fee income		2,885			1,273			1,311			321			(20	)
Net investment income		5,722			2,396			977			2,160			189
Asset management fees, commissions and other income		2,469			2,278			307			325			(441	)

Total revenues		23,520			6,348			5,168			12,290			(286	)


Benefits and Expenses (1):
Insurance and annuity benefits		12,503			1,207			3,183			8,107			6
Interest credited to policyholders’ account balances		1,895			1,001			394			500			—
Interest expense		658			64			194			1			399
Deferral of acquisition costs		(1,570	)		(376	)		(406	)		(824	)		36
Amortization of acquisition costs		977			282			175			545			(25	)
General and administrative expenses		6,062			2,550			1,319			2,234			(41	)

Total benefits and expenses		20,525			4,728			4,859			10,563			375


Adjusted operating income (loss) before income taxes		2,995			1,620			309			1,727			(661	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of June 30, 2014
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		350,509		124,203		49,651		162,111		14,544
Deferred policy acquisition costs		16,300		5,754		4,235		6,636		(325	)
Other assets		30,641		11,450		11,124		9,391		(1,324	)
Separate account assets		296,801		251,205		46,164		2,327		(2,895	)

Total assets		694,251		392,612		111,174		180,465		10,000


Liabilities:
Future policy benefits		165,179		52,044		13,246		96,246		3,643
Policyholders’ account balances		133,217		55,421		29,295		48,498		3
Debt		25,617		5,832		10,155		44		9,586
Other liabilities		33,162		12,256		6,990		13,190		726
Separate account liabilities		296,801		251,205		46,164		2,327		(2,895	)

Total liabilities		653,976		376,758		105,850		160,305		11,063


Attributed Equity:
Accumulated other comprehensive income (loss)		12,892		2,245		1,211		10,045		(609	)
Other attributed equity		26,771		13,019		4,113		10,056		(417	)

Total attributed equity		39,663		15,264		5,324		20,101		(1,026	)

Noncontrolling Interest		612		590		—		59		(37	)

Total Equity		40,275		15,854		5,324		20,160		(1,063	)


Total liabilities and equity		694,251		392,612		111,174		180,465		10,000


	As of December 31, 2013
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		332,159		117,314		46,351		152,219		16,275
Deferred policy acquisition costs		16,101		5,715		4,295		6,407		(316	)
Other assets		30,059		11,207		10,088		8,102		662
Separate account assets		285,060		242,344		43,441		1,949		(2,674	)

Total assets		663,379		376,580		104,175		168,677		13,947


Liabilities:
Future policy benefits		156,601		49,521		12,520		91,145		3,415
Policyholders’ account balances		131,298		55,510		28,918		46,858		12
Debt		24,547		5,523		9,245		55		9,724
Other liabilities		31,385		9,800		5,629		11,821		4,135
Separate account liabilities		285,060		242,344		43,441		1,949		(2,674	)

Total liabilities		628,891		362,698		99,753		151,828		14,612


Attributed Equity:
Accumulated other comprehensive income (loss)		8,586		689		413		8,251		(767	)
Other attributed equity		25,299		12,590		4,009		8,588		112

Total attributed equity		33,885		13,279		4,422		16,839		(655	)

Noncontrolling Interest		603		603		—		10		(10	)

Total Equity		34,488		13,882		4,422		16,849		(665	)


Total liabilities and equity		663,379		376,580		104,175		168,677		13,947

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of June 30, 2014								As of December 31, 2013
	Senior debt				Junior Subordinated Long-term Debt		Total Debt		Senior debt				Junior Subordinated Long-term Debt		Total Debt
	Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt		Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt		421		5,536		4,884		10,841		309		5,036		4,884		10,229
Operating Debt - Investment related		2,372		7,993		—		10,365		1,867		8,035		—		9,902
Operating Debt - Specified businesses		936		3,181		—		4,117		418		3,802		—		4,220
Limited recourse and non-recourse borrowing		—		294		—		294		—		196		—		196

Total debt - Financial Services Businesses		3,729		17,004		4,884		25,617		2,594		17,069		4,884		24,547

Closed Block Business
Investment related		—		—		—		—		—		—		—		—
Limited recourse and non-recourse borrowing		75		1,600		—		1,675		75		1,600		—		1,675

Total debt		75		1,600		—		1,675		75		1,600		—		1,675


	As of June 30, 2014								As of December 31, 2013
	Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total		Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total
Financial Services Businesses
*Borrowings by sources:*
Capital Debt		9,417		1,042		382		10,841		8,817		1,042		370		10,229
Operating Debt - Investment related		6,363		789		3,213		10,365		6,281		411		3,210		9,902
Operating Debt - Specified businesses		3,043		1,074		—		4,117		2,969		1,251		—		4,220
Limited recourse and non-recourse borrowing		—		294		—		294		—		196		—		196

Total debt - Financial Services Businesses		18,823		3,199		3,595		25,617		18,067		2,900		3,580		24,547

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $941 million of surplus notes at both June 30, 2014 and December 31, 2013.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

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

(in millions)


Year-to-date						% Change			2013									2014
2014			2013			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	398			401			-1%	Premiums		256			276			331			197			201
	1,410			1,273			11%	Policy charges and fee income		654			665			690			695			715
	2,469			2,396			3%	Net investment income		1,236			1,196			1,255			1,276			1,193
	2,431			2,278			7%	Asset management fees, commissions and other income		1,156			1,157			1,253			1,187			1,244

	6,708			6,348			6%	Total revenues		3,302			3,294			3,529			3,355			3,353


								Benefits and Expenses (1):
	1,311			1,207			9%	Insurance and annuity benefits		683			598			733			660			651
	957			1,001			-4%	Interest credited to policyholders’ account balances		495			433			476			476			481
	71			64			11%	Interest expense		31			31			33			36			35
	(275	)		(376	)		27%	Deferral of acquisition costs		(141	)		(136	)		(137	)		(128	)		(147	)
	271			282			-4%	Amortization of acquisition costs		137			(92	)		107			132			139
	2,552			2,550			0%	General and administrative expenses		1,246			1,229			1,321			1,234			1,318

	4,887			4,728			3%	Total benefits and expenses		2,451			2,063			2,533			2,410			2,477

	1,821			1,620			12%	Adjusted operating income before income taxes		851			1,231			996			945			876

(1)

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

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

(in millions)


	Six Months Ended June 30, 2014												Quarter Ended June 30, 2014
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management			Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		398			57			341			—			201			28			173			—
Policy charges and fee income		1,410			1,302			108			—			715			660			55			—
Net investment income		2,469			318			2,106			45			1,193			153			1,019			21
Asset management fees, commissions and other income		2,431			651			445			1,335			1,244			330			222			692

Total revenues		6,708			2,328			3,000			1,380			3,353			1,171			1,469			713


Benefits and Expenses (1):
Insurance and annuity benefits		1,311			214			1,097			—			651			99			552			—
Interest credited to policyholders’ account balances		957			212			745			—			481			107			374			—
Interest expense		71			53			12			6			35			26			6			3
Deferral of acquisition costs		(275	)		(248	)		(17	)		(10	)		(147	)		(132	)		(10	)		(5	)
Amortization of acquisition costs		271			251			10			10			139			129			5			5
General and administrative expenses		2,552			1,068			503			981			1,318			552			256			510

Total benefits and expenses		4,887			1,550			2,350			987			2,477			781			1,183			513

Adjusted operating income before income taxes		1,821			778			650			393			876			390			286			200


	Six Months Ended June 30, 2013												Quarter Ended June 30, 2013
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management			Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		401			53			348			—			256			29			227			—
Policy charges and fee income		1,273			1,171			102			—			654			600			54			—
Net investment income		2,396			357			2,001			38			1,236			181			1,035			20
Asset management fees, commissions and other income		2,278			606			406			1,266			1,156			309			205			642

Total revenues		6,348			2,187			2,857			1,304			3,302			1,119			1,521			662


Benefits and Expenses (1):
Insurance and annuity benefits		1,207			115			1,092			—			683			73			610			—
Interest credited to policyholders’ account balances		1,001			231			770			—			495			113			382			—
Interest expense		64			45			13			6			31			22			6			3
Deferral of acquisition costs		(376	)		(350	)		(13	)		(13	)		(141	)		(127	)		(8	)		(6	)
Amortization of acquisition costs		282			258			11			13			137			124			6			7
General and administrative expenses		2,550			1,116			477			957			1,246			514			246			486

Total benefits and expenses		4,728			1,415			2,350			963			2,451			719			1,242			490

Adjusted operating income before income taxes		1,620			772			507			341			851			400			279			172

(1)

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

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

(in millions)


Year-to-date							2013									2014
2014			2013				2Q			3Q			4Q			1Q			2Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	150,467			131,608		Beginning total account value		139,034			137,775			143,697			150,467			151,620
	3,471			5,996		Sales: Highest Daily Suite (1)		2,098			1,913			1,714			1,606			1,865
	1,484			651		Other variable annuities (2)		341			475			698			698			786

	4,955			6,647		Total sales		2,439			2,388			2,412			2,304			2,651
	(4,345	)		(3,674	)	Surrenders and withdrawals		(1,898	)		(1,824	)		(2,069	)		(2,158	)		(2,187	)

	610			2,973		Net sales		541			564			343			146			464
	(746	)		(636	)	Benefit payments		(326	)		(310	)		(336	)		(340	)		(406	)

	(136	)		2,337		Net flows		215			254			7			(194	)		58
	7,275			5,373		Change in market value, interest credited, and other		(666	)		6,479			7,603			2,194			5,081
	(1,716	)		(1,543	)	Policy charges		(808	)		(811	)		(840	)		(847	)		(869	)

	155,890			137,775		Ending total account value		137,775			143,697			150,467			151,620			155,890


						Variable Annuities Account Value by Product:
	117,596			101,589		Highest Daily suite (1)		101,589			106,772			112,454			113,804			117,596
	38,294			36,186		Other variable annuities (2)		36,186			36,925			38,013			37,816			38,294

	155,890			137,775		Ending total account value		137,775			143,697			150,467			151,620			155,890


						Fixed Annuities and other products (3):
	3,673			3,734		Beginning total account value		3,714			3,699			3,681			3,673			3,656
	30			30		Sales		14			16			20			17			13
	(69	)		(79	)	Surrenders and withdrawals		(38	)		(40	)		(41	)		(35	)		(34	)

	(39	)		(49	)	Net redemptions		(24	)		(24	)		(21	)		(18	)		(21	)
	(146	)		(167	)	Benefit payments		(96	)		(83	)		(85	)		(71	)		(75	)

	(185	)		(216	)	Net flows		(120	)		(107	)		(106	)		(89	)		(96	)
	151			182		Interest credited and other		105			91			98			73			78
	(1	)		(1	)	Policy charges		—			(2	)		—			(1	)		—

	3,638			3,699		Ending total account value		3,699			3,681			3,673			3,656			3,638


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (4):
	1,252			1,250		Insurance Agents		547			575			600			604			648
	965			1,387		Wirehouses		464			433			426			440			525
	2,038			2,944		Independent Financial Planners		1,009			1,001			1,033			940			1,098
	730			1,096		Bank Distribution		433			395			373			337			393

	4,985			6,677		Total		2,453			2,404			2,432			2,321			2,664

(1)	Includes variable annuities with “Highest Daily” optional living benefits and predecessor “Lifetime Five” feature.

(2)	Includes Prudential Defined Income (PDI) and products without guaranteed minimum income and withdrawal benefits.

(3)	Includes single premium immediate annuities.

(4)	Amounts represent gross sales.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

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

(in millions)


Year-to-date							2013									2014
2014			2013				2Q			3Q			4Q			1Q			2Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	10,054			11,564		Beginning balance		11,148			10,903			10,409			10,054			9,881
	621			746		Premiums and deposits		258			230			222			251			370
	(442	)		(513	)	Surrenders and withdrawals		(245	)		(217	)		(233	)		(220	)		(222	)

	179			233		Net sales (redemptions)		13			13			(11	)		31			148
	(185	)		(205	)	Benefit payments		(116	)		(102	)		(101	)		(91	)		(94	)

	(6	)		28		Net flows		(103	)		(89	)		(112	)		(60	)		54
	201			178		Interest credited and other		92			81			78			98			103
	(437	)		(866	)	Net transfers to separate account		(234	)		(484	)		(321	)		(210	)		(227	)
	(1	)		(1	)	Policy charges		—			(2	)		—			(1	)		—

	9,811			10,903		Ending balance		10,903			10,409			10,054			9,881			9,811


						Account Values in Separate Account (1):
	144,086			123,778		Beginning balance		131,600			130,571			136,969			144,086			145,395
	4,364			5,931		Premiums and deposits		2,195			2,174			2,210			2,070			2,294
	(3,972	)		(3,240	)	Surrenders and withdrawals		(1,691	)		(1,647	)		(1,877	)		(1,973	)		(1,999	)

	392			2,691		Net sales		504			527			333			97			295
	(707	)		(598	)	Benefit payments		(306	)		(291	)		(320	)		(320	)		(387	)

	(315	)		2,093		Net flows		198			236			13			(223	)		(92	)
	7,225			5,377		Change in market value, interest credited and other		(653	)		6,489			7,623			2,169			5,056
	437			866		Net transfers from general account		234			484			321			210			227
	(1,716	)		(1,543	)	Policy charges		(808	)		(811	)		(840	)		(847	)		(869	)

	149,717			130,571		Ending balance		130,571			136,969			144,086			145,395			149,717

(1)

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

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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

(in millions)


	2013						2014
	2Q		3Q		4Q		1Q		2Q

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		7,290		7,037		6,799		6,514		6,322
Guaranteed minimum withdrawal benefits		895		889		886		851		829
Guaranteed minimum income benefits		3,519		3,583		3,667		3,578		3,545
Guaranteed minimum withdrawal & income benefits		101,686		107,109		113,246		115,079		119,442

Total		113,390		118,618		124,598		126,022		130,138


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		98,119		102,783		107,910		109,139		112,695
Account Values without Auto-Rebalancing Feature		15,271		15,835		16,688		16,883		17,443

Total		113,390		118,618		124,598		126,022		130,138


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		3,134		2,378		1,735		1,761		1,504
Net Amount at Risk without Auto-Rebalancing Feature		1,434		1,176		910		895		781

Total		4,568		3,554		2,645		2,656		2,285

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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

(in millions)


	2013						2014
	2Q		3Q		4Q		1Q		2Q

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

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		102,277		107,025		112,445		113,733		117,486
Net amount at risk		677		532		465		440		402
Minimum return, anniversary contract value, or maximum contract value:
Account value		32,511		33,592		34,846		34,750		35,230
Net amount at risk		3,931		3,330		2,817		2,806		2,572

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		98,119		102,783		107,910		109,139		112,695
Account Values without Auto-Rebalancing Feature		36,669		37,834		39,381		39,344		40,021

Total		134,788		140,617		147,291		148,483		152,716


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,064		774		613		624		546
Net Amount at Risk without Auto-Rebalancing Feature		3,544		3,088		2,669		2,622		2,428

Total		4,608		3,862		3,282		3,246		2,974

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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

(in millions)


Year-to-date							2013									2014
2014			2013				2Q			3Q			4Q			1Q			2Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	173,502			148,405		Beginning total account value		156,380			157,738			165,364			173,502			178,150
	13,115			9,376		Deposits and sales		3,697			5,455			5,846			8,587			4,528
	(12,069	)		(8,298	)	Withdrawals and benefits		(3,622	)		(4,627	)		(5,786	)		(6,003	)		(6,066	)
	7,029			8,255		Change in market value, interest credited, interest income and other activity		1,283			6,798			8,078			2,064			4,965

	181,577			157,738		Ending total account value		157,738			165,364			173,502			178,150			181,577


	1,046			1,078		Net additions (withdrawals)		75			828			60			2,584			(1,538	)


						Stable value account values included above		43,365			44,186			44,013			44,461			44,174

						Institutional Investment Products:
	149,402			141,435		Beginning total account value		143,011			144,101			147,100			149,402			149,661
	3,808			8,205		Additions		4,360			5,034			4,055			1,733			2,075
	(7,619	)		(4,781	)	Withdrawals and benefits		(2,462	)		(2,487	)		(2,683	)		(3,017	)		(4,602	)
	3,269			(460	)	Change in market value, interest credited and interest income		(662	)		547			979			1,456			1,813
	111			(298	)	Other (1)		(146	)		(95	)		(49	)		87			24

	148,971			144,101		Ending total account value		144,101			147,100			149,402			149,661			148,971


	(3,811	)		3,424		Net additions (withdrawals)		1,898			2,547			1,372			(1,284	)		(2,527	)

(1)	“Other” activity primarily represents changes in asset balances for externally managed accounts.

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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


						Supplementary Revenue Information (in millions):
Year-to-date				% Change			2013						2014
2014		2013		% Change			2Q		3Q		4Q		1Q		2Q

						Analysis of revenues by type:
	996		918		8%	Asset management fees		467		472		491		489		507
	133		108		23%	Other related revenues		57		52		94		66		67
	251		278		-10%	Service, distribution and other revenues		138		125		140		112		139

	1,380		1,304		6%	Total Asset Management segment revenues		662		649		725		667		713


						Analysis of asset management fees by source:
	439		410		7%	Institutional customers		207		210		218		214		225
	350		299		17%	Retail customers		154		161		171		173		177
	207		209		-1%	General account		106		101		102		102		105

	996		918		8%	Total asset management fees		467		472		491		489		507


Supplementary Assets Under Management Information (in billions):
	June 30, 2014
	Equity		Fixed Income		Real Estate		Total
Institutional customers		66.2		264.7		36.1	367.0
Retail customers		122.2		55.7		2.2	180.1
General account		8.1		364.6		1.7	374.4

Total		196.5		685.0		40.0	921.5


	June 30, 2013
	Equity		Fixed Income		Real Estate		Total
Institutional customers		57.1		229.3		32.7	319.1
Retail customers		98.9		51.3		2.2	152.4
General account		7.9		345.2		1.4	354.5

Total		163.9		625.8		36.3	826.0

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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

(in billions)


Year-to-date							2013									2014
2014			2013				2Q			3Q			4Q			1Q			2Q

						Institutional Customers - Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	300.5			274.6		Beginning assets under management		282.9			279.6			290.0			300.5			310.4
	21.4			29.2		Additions		14.8			14.1			13.8			10.9			10.5
	(16.8	)		(19.2	)	Withdrawals		(11.7	)		(10.0	)		(8.5	)		(9.0	)		(7.8	)
	18.3			(4.2	)	Change in market value		(6.1	)		6.0			6.0			8.0			10.3
	—			(0.2	)	Net money market flows		—			0.2			(0.5	)		(0.1	)		0.1
	0.1			(0.6	)	Other (1)		(0.3	)		0.1			(0.3	)		0.1			—

	323.5			279.6		Ending assets under management		279.6			290.0			300.5			310.4			323.5
	43.5			39.5		Affiliated institutional assets under management		39.5			40.3			41.2			41.8			43.5

	367.0			319.1		Total assets managed for institutional customers at end of period		319.1			330.3			341.7			352.2			367.0


	4.6			10.0		Net institutional additions, excluding money market activity		3.1			4.1			5.3			1.9			2.7


						Retail Customers - Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	115.0			91.1		Beginning assets under management		97.9			100.4			106.5			115.0			117.0
	16.4			23.3		Additions		12.4			7.1			9.8			8.0			8.4
	(15.5	)		(19.0	)	Withdrawals		(9.9	)		(8.5	)		(8.3	)		(7.8	)		(7.7	)
	6.6			5.0		Change in market value		—			7.5			7.0			1.8			4.8
	—			—		Net money market flows		—			—			—			—			—
	—			—		Other		—			—			—			—			—

	122.5			100.4		Ending assets under management		100.4			106.5			115.0			117.0			122.5
	57.6			52.0		Affiliated retail assets under management		52.0			52.6			55.7			55.9			57.6

	180.1			152.4		Total assets managed for retail customers at end of period		152.4			159.1			170.7			172.9			180.1


	0.9			4.3		Net retail additions (withdrawals), excluding money market activity		2.5			(1.4	)		1.5			0.2			0.7

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

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

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

(in millions)


Year-to-date						% Change			2013									2014
2014			2013			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	2,481			2,573			-4%	Premiums		1,294			1,256			1,269			1,240			1,241
	1,369			1,311			4%	Policy charges and fee income		654			487			634			688			681
	1,098			977			12%	Net investment income		504			497			517			558			540
	370			307			21%	Asset management fees, commissions and other income		159			143			167			172			198

	5,318			5,168			3%	Total revenues		2,611			2,383			2,587			2,658			2,660


								Benefits and Expenses (1):
	3,171			3,183			0%	Insurance and annuity benefits		1,578			1,496			1,522			1,621			1,550
	421			394			7%	Interest credited to policyholders’ account balances		201			208			206			210			211
	253			194			30%	Interest expense		98			108			112			124			129
	(273	)		(406	)		33%	Deferral of acquisition costs		(186	)		(177	)		(190	)		(143	)		(130	)
	199			175			14%	Amortization of acquisition costs		102			(111	)		57			99			100
	1,212			1,319			-8%	General and administrative expenses		655			643			665			616			596

	4,983			4,859			3%	Total benefits and expenses		2,448			2,167			2,372			2,527			2,456


	335			309			8%	Adjusted operating income before income taxes		163			216			215			131			204

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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

(in millions)


	Six Months Ended June 30, 2014								Quarter Ended June 30, 2014
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance		Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		2,481			433			2,048		1,241			219			1,022
Policy charges and fee income		1,369			1,079			290		681			538			143
Net investment income		1,098			794			304		540			395			145
Asset management fees, commissions and other income		370			308			62		198			166			32

Total revenues		5,318			2,614			2,704		2,660			1,318			1,342


Benefits and Expenses (1):
Insurance and annuity benefits		3,171			1,068			2,103		1,550			520			1,030
Interest credited to policyholders’ account balances		421			300			121		211			151			60
Interest expense		253			249			4		129			127			2
Deferral of acquisition costs		(273	)		(273	)		—		(130	)		(130	)		—
Amortization of acquisition costs		199			194			5		100			98			2
General and administrative expenses		1,212			793			419		596			394			202

Total benefits and expenses		4,983			2,331			2,652		2,456			1,160			1,296

Adjusted operating income before income taxes		335			283			52		204			158			46


	Six Months Ended June 30, 2013								Quarter Ended June 30, 2013
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance		Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		2,573			397			2,176		1,294			204			1,090
Policy charges and fee income		1,311			1,038			273		654			523			131
Net investment income		977			684			293		504			354			150
Asset management fees, commissions and other income		307			248			59		159			131			28

Total revenues		5,168			2,367			2,801		2,611			1,212			1,399


Benefits and Expenses (1):
Insurance and annuity benefits		3,183			934			2,249		1,578			466			1,112
Interest credited to policyholders’ account balances		394			281			113		201			145			56
Interest expense		194			189			5		98			95			3
Deferral of acquisition costs		(406	)		(408	)		2		(186	)		(188	)		2
Amortization of acquisition costs		175			170			5		102			99			3
General and administrative expenses		1,319			923			396		655			454			201

Total benefits and expenses		4,859			2,089			2,770		2,448			1,071			1,377

Adjusted operating income before income taxes		309			278			31		163			141			22

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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

(in millions)


Year-to-date							2013									2014
2014			2013				2Q			3Q			4Q			1Q			2Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1):

	20			16		Variable life		7			9			13			9			11
	117			281		Universal life		124			107			109			71			46
	88			103		Term life		53			49			44			42			46

	225			400		Total		184			165			166			122			103


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	47			50		Prudential Agents		25			22			23			22			25
	178			350		Third party distribution		159			143			143			100			78

	225			400		Total		184			165			166			122			103


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2)(3):*
	21,842			10,583		Beginning balance		20,026			20,710			21,367			21,842			22,119
	1,450			2,073		Premiums and deposits		965			892			834			769			681
	(548	)		(545	)	Surrenders and withdrawals		(305	)		(266	)		(252	)		(237	)		(311	)

	902			1,528		Net sales		660			626			582			532			370
	(215	)		(219	)	Benefit payments		(86	)		(91	)		(109	)		(105	)		(110	)

	687			1,309		Net flows		574			535			473			427			260
	131			575		Interest credited and other		299			360			235			65			66
	215			186		Net transfers from separate account		98			84			98			105			110
	(636	)		(627	)	Policy charges		(287	)		(322	)		(331	)		(320	)		(316	)
	—			8,684		Acquisition		—			—			—			—			—

	22,239			20,710		Ending balance		20,710			21,367			21,842			22,119			22,239


						*Separate Account Liabilities (3):*
	26,916			17,817		Beginning balance		24,611			24,555			25,380			26,916			27,153
	652			689		Premiums and deposits		384			196			392			369			283
	(442	)		(548	)	Surrenders and withdrawals		(315	)		(122	)		(232	)		(239	)		(203	)

	210			141		Net sales		69			74			160			130			80
	(60	)		(93	)	Benefit payments		(52	)		1			(29	)		(32	)		(28	)

	150			48		Net flows		17			75			131			98			52
	1,594			1,840		Change in market value, interest credited and other		353			991			1,744			484			1,110
	(215	)		(186	)	Net transfers to general account		(98	)		(84	)		(98	)		(105	)		(110	)
	(477	)		(571	)	Policy charges		(328	)		(157	)		(241	)		(240	)		(237	)
	—			5,607		Acquisition		—			—			—			—			—

	27,968			24,555		Ending balance		24,555			25,380			26,916			27,153			27,968


						FACE AMOUNT IN FORCE (4):

						Variable life		173,991			173,142			172,870			173,382			171,043
						Universal life		135,686			139,808			144,533			147,519			149,274
						Term life		606,212			614,032			621,289			627,425			634,132

						Total		915,889			926,982			938,692			948,326			954,449

(1)	Excludes corporate-owned life insurance.

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

(3)	Includes reclassifications during the second quarter of 2013 to conform presentation of certain acquired liabilities.

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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

(dollar amounts in millions)


Year-to-date					2013						2014
2014		2013			2Q		3Q		4Q		1Q		2Q

				Individual Life Insurance:

				Policy Surrender Experience:
	564		598	Cash value of surrenders		295		284		291		286		278
	2.5%		3.0%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		2.9%		2.7%		2.7%		2.6%		2.5%

				Death benefits per $1,000 of in force (1):
	4.87		4.27	Variable and universal life		4.19		5.31		4.41		5.06		4.61
	1.25		1.31	Term life		1.34		1.01		1.55		1.31		1.20
	3.33		3.07	Total, Individual Life Insurance		3.05		3.53		3.25		3.51		3.13

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

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

(dollar amounts in millions)


Year-to-date					2013									2014
2014		2013			2Q			3Q			4Q			1Q			2Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	147		163	Group life		15			33			44			137			10
	45		52	Group disability		7			13			8			33			12

	192		215	Total		22			46			52			170			22


				Future Policy Benefits (1)(2):
				Group life		2,292			2,123			2,281			2,198			2,132
				Group disability		23			13			3			30			21

				Total		2,315			2,136			2,284			2,228			2,153


				Policyholders’ Account Balances (1):
				Group life		7,696			7,822			7,928			7,853			7,923
				Group disability		214			233			251			254			217

				Total		7,910			8,055			8,179			8,107			8,140


				Separate Account Liabilities (1):
				Group life		22,352			22,017			22,706			22,938			24,525
				Group disability		—			—			—			—			—

				Total		22,352			22,017			22,706			22,938			24,525


				Group Life Insurance:
	2,006		2,126	Gross premiums, policy charges and fee income (3)		1,052			960			1,013			1,004			1,002
	1,939		1,998	Earned premiums, policy charges and fee income		1,001			948			969			973			966
	89.5%		91.4%	Benefits ratio		90.6	%		84.8	%		86.2	%		89.6	%		89.3	%
	10.5%		9.4%	Administrative operating expense ratio		9.6	%		11.1	%		10.8	%		11.2	%		9.9	%
				Persistency ratio		94.7	%		93.8	%		93.7	%		94.9	%		94.2	%

				Group Disability Insurance:
	442		482	Gross premiums, policy charges and fee income (3)		242			243			242			221			221
	399		451	Earned premiums, policy charges and fee income		220			223			225			200			199
	92.2%		93.8%	Benefits ratio		93.2	%		91.9	%		91.6	%		100.5	%		83.9	%
	29.2%		26.1%	Administrative operating expense ratio		25.6	%		25.9	%		28.1	%		29.0	%		29.4	%
				Persistency ratio		89.7	%		88.1	%		87.0	%		87.0	%		85.6	%

(1)	As of end of period.

(2)	The amounts shown exclude liabilities for unpaid claims and claim adjustment expenses.

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

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

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

(in millions)


Year-to-date							2013									2014
2014			2013				2Q			3Q			4Q			1Q			2Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	5,490			3,829		Beginning balance		4,223			4,577			5,314			5,490			5,513
	248			350		Capitalization		127			124			124			116			132
	(251	)		(258	)	Amortization - operating results		(124	)		99			(98	)		(122	)		(129	)
	50			562		Amortization - realized investment gains and losses		291			510			142			41			9
	(16	)		94		Impact of unrealized (gains) or losses on AFS securities		60			4			8			(12	)		(4	)
	—			—		Other		—			—			—			—			—

	5,521			4,577		Ending balance		4,577			5,314			5,490			5,513			5,521


						INDIVIDUAL LIFE INSURANCE:
	4,112			3,116		Beginning balance		3,317			3,646			3,952			4,112			4,089
	273			408		Capitalization		188			173			181			143			130
	(194	)		(170	)	Amortization - operating results		(99	)		113			(54	)		(96	)		(98	)
	3			7		Amortization - realized investment gains and losses		5			4			4			2			1
	(137	)		285		Impact of unrealized (gains) or losses on AFS securities		235			16			29			(72	)		(65	)

	4,057			3,646		Ending balance		3,646			3,952			4,112			4,089			4,057


						GROUP INSURANCE:
	183			182		Beginning balance		180			175			177			183			180
	—			(2	)	Capitalization		(2	)		4			9			—			—
	(5	)		(5	)	Amortization - operating results		(3	)		(2	)		(3	)		(3	)		(2	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	178			175		Ending balance		175			177			183			180			178


						DEFERRED SALES INDUCEMENTS
						INDIVIDUAL ANNUITIES:
	1,813			1,357		Beginning balance		1,425			1,506			1,764			1,813			1,756
	14			31		Capitalization		15			13			9			7			7
	(102	)		(106	)	Amortization - operating results		(52	)		8			(39	)		(50	)		(52	)
	(32	)		193		Amortization - realized investment gains and losses		101			235			76			(11	)		(21	)
	(6	)		31		Impact of unrealized (gains) or losses on AFS securities		17			2			3			(3	)		(3	)
	—			—		Other		—			—			—			—			—

	1,687			1,506		Ending balance		1,506			1,764			1,813			1,756			1,687

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


Year-to-date						% Change			2013									2014
2014			2013			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	7,518			9,484			-21%	Premiums		4,570			3,889			3,664			3,696			3,822
	276			321			-14%	Policy charges and fee income		162			142			136			138			138
	2,212			2,160			2%	Net investment income		1,067			1,086			1,060			1,084			1,128
	321			325			-1%	Asset management fees, commissions and other income		141			142			131			157			164

	10,327			12,290			-16%	Total revenues		5,940			5,259			4,991			5,075			5,252


								Benefits and Expenses (1):
	6,330			8,107			-22%	Insurance and annuity benefits		3,904			3,349			3,150			3,113			3,217
	481			500			-4%	Interest credited to policyholders’ account balances		233			245			239			239			242
	2			1			100%	Interest expense		—			—			2			—			2
	(832	)		(824	)		-1%	Deferral of acquisition costs		(397	)		(347	)		(372	)		(412	)		(420	)
	506			545			-7%	Amortization of acquisition costs		275			234			232			250			256
	2,119			2,234			-5%	General and administrative expenses		1,075			1,000			1,093			1,048			1,071

	8,606			10,563			-19%	Total benefits and expenses		5,090			4,481			4,344			4,238			4,368


	1,721			1,727			0%	Adjusted operating income before income taxes		850			778			647			837			884

(1)

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

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Six Months Ended June 30, 2014									Quarter Ended June 30, 2014
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		7,518			3,570			3,948			3,822			1,686			2,136
Policy charges and fee income		276			180			96			138			89			49
Net investment income		2,212			862			1,350			1,128			431			697
Asset management fees, commissions and other income		321			128			193			164			55			109

Total revenues		10,327			4,740			5,587			5,252			2,261			2,991


Benefits and Expenses (1):
Insurance and annuity benefits		6,330			3,094			3,236			3,217			1,457			1,760
Interest credited to policyholders’ account balances		481			113			368			242			53			189
Interest expense		2			1			1			2			1			1
Deferral of acquisition costs		(832	)		(400	)		(432	)		(420	)		(191	)		(229	)
Amortization of acquisition costs		506			253			253			256			119			137
General and administrative expenses		2,119			878			1,241			1,071			440			631

Total benefits and expenses		8,606			3,939			4,667			4,368			1,879			2,489


Adjusted operating income before income taxes		1,721			801			920			884			382			502


	Six Months Ended June 30, 2013									Quarter Ended June 30, 2013
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		9,484			3,513			5,971			4,570			1,623			2,947
Policy charges and fee income		321			175			146			162			85			77
Net investment income		2,160			793			1,367			1,067			390			677
Asset management fees, commissions and other income		325			120			205			141			60			81

Total revenues		12,290			4,601			7,689			5,940			2,158			3,782


Benefits and Expenses (1):
Insurance and annuity benefits		8,107			2,972			5,135			3,904			1,381			2,523
Interest credited to policyholders’ account balances		500			124			376			233			55			178
Interest expense		1			1			—			—			—			—
Deferral of acquisition costs		(824	)		(376	)		(448	)		(397	)		(166	)		(231	)
Amortization of acquisition costs		545			237			308			275			117			158
General and administrative expenses		2,234			853			1,381			1,075			403			672

Total benefits and expenses		10,563			3,811			6,752			5,090			1,790			3,300


Adjusted operating income before income taxes		1,727			790			937			850			368			482

(1)

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2013						2014
2014		2013			2Q		3Q		4Q		1Q		2Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	2,841		2,851	Japan, excluding Gibraltar Life		1,292		1,271		1,273		1,538		1,303
	4,044		6,117	Gibraltar Life		3,024		2,337		2,063		1,859		2,185
	909		837	All other countries		416		423		464		437		472

	7,794		9,805	Total		4,732		4,031		3,800		3,834		3,960


				Annualized new business premiums:
	384		428	Japan, excluding Gibraltar Life		179		152		183		227		157
	798		957	Gibraltar Life		498		407		392		361		437
	219		172	All other countries		76		85		108		104		115

	1,401		1,557	Total		753		644		683		692		709


				Annualized new business premiums by distribution channel:
	603		600	Life Planner Operations		255		237		291		331		272
	368		436	Gibraltar Life Consultants		232		176		167		158		210
	300		406	Banks		197		182		169		144		156
	130		115	Independent Agency		69		49		56		59		71

	1,401		1,557	Total		753		644		683		692		709


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	3,338		3,172	Japan, excluding Gibraltar Life		1,468		1,460		1,479		1,815		1,523
	4,784		6,810	Gibraltar Life		3,484		2,695		2,378		2,200		2,584
	854		795	All other countries		403		408		436		416		438

	8,976		10,777	Total		5,355		4,563		4,293		4,431		4,545


				Annualized new business premiums:
	455		480	Japan, excluding Gibraltar Life		206		177		212		270		185
	882		1,026	Gibraltar Life		550		450		428		403		479
	204		162	All other countries		71		81		102		99		105

	1,541		1,668	Total		827		708		742		772		769


				Annualized new business premiums by distribution channel:
	659		642	Life Planner Operations		277		258		314		369		290
	414		468	Gibraltar Life Consultants		256		195		186		182		232
	321		435	Banks		218		200		182		154		167
	147		123	Independent Agency		76		55		60		67		80

	1,541		1,668	Total		827		708		742		772		769

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

(2)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 82 per U.S. dollar and Korean won 1150 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2013									2014
	2Q			3Q			4Q			1Q			2Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		359			361			364			368			371
Gibraltar Life		405			406			406			406			406
All other countries		107			108			110			111			113

Total		871			875			880			885			890


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,911			2,936			2,969			3,015			3,043
Gibraltar Life		7,340			7,307			7,274			7,217			7,161
All other countries		1,697			1,715			1,742			1,766			1,794

Total		11,948			11,958			11,985			11,998			11,998


International life insurance policy persistency:

Life Planner Operations:
13 months		93.2	%		93.1	%		93.0	%		93.0	%		92.9	%
25 months		86.3	%		85.9	%		85.6	%		85.9	%		86.0	%

Gibraltar Life (3):
13 months		89.6	%		90.8	%		90.9	%		91.0	%		91.0	%
25 months		81.9	%		83.0	%		82.4	%		81.8	%		81.9	%

Number of Life Planners at end of period:
Japan		3,243			3,274			3,258			3,298			3,212
All other countries		3,870			3,934			3,990			3,896			3,862

Total Life Planners		7,113			7,208			7,248			7,194			7,074


Gibraltar Life Consultants		9,795			9,298			9,327			8,806			8,670

(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 and Korean won 1150 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

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

(3)	Reflects business sold by Life Consultants and Independent Agents.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2014									December 31, 2013
	Consolidated Portfolio		Closed Block Business		Financial Services Businesses					Consolidated Portfolio		Closed Block Business		Financial Services Businesses
	Consolidated Portfolio		Closed Block Business		Amount		% of Total			Consolidated Portfolio		Closed Block Business		Amount		% of Total
Fixed maturities:
Public, available-for-sale, at fair value		255,585		29,792		225,793		66.1	%		240,090		27,401		212,689		65.4	%
Public, held-to-maturity, at amortized cost		2,448		—		2,448		0.7	%		2,500		—		2,500		0.8	%
Private, available-for-sale, at fair value		48,587		16,007		32,580		9.5	%		46,461		15,811		30,650		9.4	%
Private, held-to-maturity, at amortized cost		723		—		723		0.2	%		812		—		812		0.2	%
Trading account assets supporting insurance liabilities, at fair value		21,273		—		21,273		6.2	%		20,827		—		20,827		6.4	%
Other trading account assets, at fair value		1,674		314		1,360		0.4	%		1,683		342		1,341		0.4	%
Equity securities, available-for-sale, at fair value		10,214		3,789		6,425		1.9	%		9,903		3,884		6,019		1.8	%
Commercial mortgage and other loans, at book value		42,719		9,964		32,755		9.6	%		40,806		9,673		31,133		9.6	%
Policy loans, at outstanding balance		11,966		4,945		7,021		2.1	%		11,766		5,013		6,753		2.1	%
Other long-term investments (1)		9,817		2,614		7,203		2.1	%		9,196		2,024		7,172		2.2	%
Short-term investments		5,604		1,385		4,219		1.2	%		7,311		1,866		5,445		1.7	%

Subtotal (2)		410,610		68,810		341,800		100.0	%		391,355		66,014		325,341		100.0	%

Invested assets of other entities and operations (3)		8,709		—		8,709					6,818		—		6,818

Total investments		419,319		68,810		350,509					398,173		66,014		332,159

Fixed Maturities by Credit Quality (2):


	June 30, 2014											December 31, 2013
	Financial Services Businesses											Financial Services Businesses
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total
Public Fixed Maturities:
NAIC Rating (4)
1		178,474		18,545		1,001		196,018		85.8	%		171,777		14,808		2,719		183,866		85.4	%
2		23,920		2,468		237		26,151		11.4	%		24,281		2,029		781		25,529		11.8	%

Subtotal - High or Highest Quality Securities		202,394		21,013		1,238		222,169		97.2	%		196,058		16,837		3,500		209,395		97.2	%

3		4,100		252		50		4,302		1.9	%		4,078		256		136		4,198		1.9	%
4		1,460		119		23		1,556		0.7	%		1,391		162		33		1,520		0.7	%
5		167		82		4		245		0.1	%		125		22		9		138		0.1	%
6		194		24		2		216		0.1	%		116		20		3		133		0.1	%

Subtotal - Other Securities		5,921		477		79		6,319		2.8	%		5,710		460		181		5,989		2.8	%

Total		208,315		21,490		1,317		228,488		100.0	%		201,768		17,297		3,681		215,384		100.0	%


Private Fixed Maturities:
NAIC Rating (4)
1		8,349		832		47		9,134		27.4	%		7,766		712		92		8,386		26.6	%
2		18,767		1,742		77		20,432		61.3	%		18,378		1,534		157		19,755		62.7	%

Subtotal - High or Highest Quality Securities		27,116		2,574		124		29,566		88.7	%		26,144		2,246		249		28,141		89.3	%

3		2,677		212		7		2,882		8.6	%		2,243		156		16		2,383		7.6	%
4		552		25		8		569		1.7	%		667		29		18		678		2.2	%
5		248		14		5		257		0.8	%		197		9		7		199		0.6	%
6		58		17		—		75		0.2	%		97		11		1		107		0.3	%

Subtotal - Other Securities		3,535		268		20		3,783		11.3	%		3,204		205		42		3,367		10.7	%

Total		30,651		2,842		144		33,349		100.0	%		29,348		2,451		291		31,508		100.0	%

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

(2)	Excludes (i) assets of our 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.

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

(4)

Reflects equivalent ratings for investments of the international insurance operations. Includes, as of June 30, 2014 and December 31, 2013, respectively, 381 securities with amortized cost of $1,413 million (fair value $1,462 million) and 306 securities with amortized cost of $806 million (fair value, $831 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2014					December 31, 2013
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		120,074		81.7	%		112,501		81.0	%
Public, held-to-maturity, at amortized cost		2,448		1.7	%		2,500		1.8	%
Private, available-for-sale, at fair value		7,402		5.0	%		6,762		4.9	%
Private, held-to-maturity, at amortized cost		723		0.5	%		812		0.6	%
Trading account assets supporting insurance liabilities, at fair value		2,007		1.4	%		1,925		1.4	%
Other trading account assets, at fair value		791		0.5	%		884		0.6	%
Equity securities, available-for-sale, at fair value		2,683		1.8	%		2,557		1.9	%
Commercial mortgage and other loans, at book value		6,918		4.7	%		6,581		4.7	%
Policy loans, at outstanding balance		2,416		1.6	%		2,280		1.6	%
Other long-term investments (2)		1,214		0.8	%		1,576		1.1	%
Short-term investments		441		0.3	%		541		0.4	%

Total		147,117		100.0	%		138,919		100.0	%


	June 30, 2014					December 31, 2013
	Amount		% of Total			Amount		% of Total
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		105,719		54.3	%		100,188		53.8	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		25,178		12.9	%		23,888		12.8	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		19,266		9.9	%		18,902		10.1	%
Other trading account assets, at fair value		569		0.3	%		457		0.2	%
Equity securities, available-for-sale, at fair value		3,742		1.9	%		3,462		1.9	%
Commercial mortgage and other loans, at book value		25,837		13.3	%		24,552		13.2	%
Policy loans, at outstanding balance		4,605		2.4	%		4,473		2.4	%
Other long-term investments (2)		5,989		3.1	%		5,596		3.0	%
Short-term investments		3,778		1.9	%		4,904		2.6	%

Total		194,683		100.0	%		186,422		100.0	%

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

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

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended June 30
	2014									2013
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (3)			Amount			(Losses)			Yield (3)			Amount			(Losses)
Financial Services Businesses (1):
Fixed maturities		3.82	%		2,210			178			3.74	%		2,136			265
Equity securities		6.64	%		80			31			6.82	%		69			31
Commercial mortgage and other loans		4.82	%		331			(3	)		4.99	%		291			6
Policy loans		4.93	%		85			—			4.65	%		78			—
Short-term investments and cash equivalents		0.22	%		6			—			0.22	%		8			—
Other investments		5.99	%		129			14			8.39	%		165			(1,327	)

Gross investment income before investment expenses		3.94	%		2,841			220			3.88	%		2,747			(1,025	)
Investment expenses		-0.14	%		(101	)		—			-0.13	%		(77	)		—

Subtotal		3.80	%		2,740			220			3.75	%		2,670			(1,025	)

Investment results of other entities and operations (2)					279			21						271			23
Less, investment income related to adjusted operating income reconciling items					(51	)								(40	)

Total					2,968			241						2,901			(1,002	)

	Six Months Ended June 30
	2014									2013
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (3)			Amount			(Losses)			Yield (3)			Amount			(Losses)
Financial Services Businesses (1):
Fixed maturities		3.83	%		4,367			373			3.73	%		4,283			319
Equity securities		6.12	%		143			64			6.27	%		128			64
Commercial mortgage and other loans		4.73	%		638			(7	)		5.04	%		573			(5	)
Policy loans		4.92	%		167			—			4.68	%		154			—
Short-term investments and cash equivalents		0.23	%		12			—			0.20	%		16			1
Other investments		8.97	%		379			(160	)		6.41	%		253			(2,263	)

Gross investment income before investment expenses		4.00	%		5,706			270			3.79	%		5,407			(1,884	)
Investment expenses		-0.14	%		(173	)		—			-0.13	%		(157	)		—

Subtotal		3.86	%		5,533			270			3.66	%		5,250			(1,884	)

Investment results of other entities and operations (2)					549			42						566			62
Less, investment income related to adjusted operating income reconciling items					(97	)								(94	)

Total					5,985			312						5,722			(1,822	)

(1)

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

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

(3)

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

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2014								2013
	Investment Income						Realized Gains /		Investment Income						Realized Gains /
	Yield (1)			Amount			(Losses)		Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		2.99	%		844			181		2.95	%		820			248
Equity securities		5.97	%		27			24		5.42	%		23			20
Commercial mortgage and other loans		4.72	%		80			3		4.20	%		64			3
Policy loans		3.81	%		23			—		3.66	%		21			—
Short-term investments and cash equivalents		0.21	%		1			—		0.17	%		1			—
Other investments (2)		5.53	%		31			92		4.93	%		35			(483	)

Gross investment income before investment expenses		3.16	%		1,006			300		3.06	%		964			(212	)
Investment expenses		-0.13	%		(41	)		—		-0.11	%		(36	)		—

Total		3.03	%		965			300		2.95	%		928			(212	)

	Six Months Ended June 30
	2014								2013
	Investment Income						Realized Gains /		Investment Income						Realized Gains /
	Yield (1)			Amount			(Losses)		Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		2.97	%		1,647			404		2.87	%		1,653			375
Equity securities		5.03	%		45			36		4.72	%		42			49
Commercial mortgage and other loans		4.39	%		147			1		4.26	%		129			4
Policy loans		3.78	%		44			—		3.52	%		43			—
Short-term investments and cash equivalents		0.26	%		2			—		0.15	%		2			—
Other investments (2)		6.91	%		79			228		5.46	%		82			(778	)

Gross investment income before investment expenses		3.13	%		1,964			669		2.98	%		1,951			(350	)
Investment expenses		-0.13	%		(80	)		—		-0.12	%		(78	)		—

Total		3.00	%		1,884			669		2.86	%		1,873			(350	)

(1)

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

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2014									2013
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (2)			Amount			(Losses)			Yield (2)			Amount			(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		4.62	%		1,366			(3	)		4.49	%		1,316			17
Equity securities		7.06	%		53			7			7.83	%		46			11
Commercial mortgage and other loans		4.85	%		251			(6	)		5.27	%		227			3
Policy loans		5.53	%		62			—			5.18	%		57			—
Short-term investments and cash equivalents		0.23	%		5			—			0.24	%		7			—
Other investments		6.15	%		98			(78	)		10.30	%		130			(844	)

Gross investment income before investment expenses		4.55	%		1,835			(80	)		4.55	%		1,783			(813	)
Investment expenses		-0.16	%		(60	)		—			0.13	%		(41	)		—

Total		4.39	%		1,775			(80	)		4.42	%		1,742			(813	)

	Six Months Ended June 30
	2014									2013
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (2)			Amount			(Losses)			Yield (2)			Amount			(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		4.64	%		2,720			(31	)		4.60	%		2,630			(56	)
Equity securities		6.80	%		98			28			7.46	%		86			15
Commercial mortgage and other loans		4.84	%		491			(8	)		5.33	%		444			(9	)
Policy loans		5.51	%		123			—			5.37	%		111			—
Short-term investments and cash equivalents		0.23	%		10			—			0.21	%		14			1
Other investments		9.73	%		300			(388	)		6.98	%		171			(1,485	)

Gross investment income before investment expenses		4.69	%		3,742			(399	)		4.48	%		3,456			(1,534	)
Investment expenses		-0.15	%		(93	)		—			-0.14	%		(79	)		—

Total		4.54	%		3,649			(399	)		4.34	%		3,377			(1,534	)

(1)

(2)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

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

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

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

2. After-tax adjusted operating income:

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

3. Annualized New Business Premiums:

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

4. Assets Under Management:

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

5. Attributed Equity:

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

6. Book value per share of Common Stock:

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

7. Borrowings - Capital Debt:

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

8. Borrowings - Operating Debt - Investment Related:

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

9. Borrowings - Operating Debt - Specified Businesses:

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

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

KEY DEFINITIONS AND FORMULAS

10. Client Assets:

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

11. Earned Premiums:

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

12. Earnings Per Share of Common Stock:

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

13. Full Service:

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

14. Full Service Stable Value:

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

15. General Account:

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

16. Gibraltar Life:

Includes results from consolidated joint venture operation of Gibraltar Life and Other Operations.

17. Gibraltar Life Consultants:

Captive insurance agents for Gibraltar Life. Count and policy persistency do not include captive agents associated with consolidated joint venture of Gibraltar Life and Other Operations.

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

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

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

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

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

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

21. Individual Annuities - Net Amounts at Risk:

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

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

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

KEY DEFINITIONS AND FORMULAS

22. Insurance and Annuity Benefits:

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

23. International Life Planners:

Captive insurance agents in our Life Planner Operations.

24. Non-recourse and Limited-recourse Debt:

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

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

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

An alternative measure to operating return on average equity (based on adjusted operating income) is return on average equity (based on income from continuing operations). Return on average equity (based on income from continuing operations) represents income from continuing operations after-tax, for the Financial Services Businesses, attributable to Prudential Financial, Inc. as determined in accordance with GAAP (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average total attributed equity for the Financial Services Businesses. Return on average equity (based on income from continuing operations) is 10.9% for the three months ended June 30, 2014, 13.8% for the three months ended March 31, 2014, (5.1)% for the three months ended December 31, 2013, 11.6% for the three months ended September 30, 2013, and (5.8)% for the three months ended June 30, 2013.

26. Policy Persistency - Group Insurance:

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

27. Policy Persistency - International Insurance:

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

28. Prudential Agents:

Captive insurance agents in our insurance operations in the United States.

29. Prudential Agent productivity:

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

30. Separate Accounts:

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

31. Wrap-Fee Products:

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

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2014

LOGO

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of August 6, 2014


	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+	AA-	A1	A+
PRUCO Life Insurance Company	A+	AA-	A1	A+
PRUCO Life Insurance Company of New Jersey	A+	AA-	NR *	A+
Prudential Annuities Life Assurance Corporation	A+	AA-	NR	A+
Prudential Retirement Insurance and Annuity Company	A+	AA-	A1	A+
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	NR	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA-	NR	NR
The Prudential Gibraltar Financial Life Insurance Co. Ltd.	NR	AA-	NR	NR
Prudential Life Insurance Co. of Taiwan, Inc.	NR	twAA+	NR	NR

CREDIT RATINGS:
as of August 6, 2014

Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-1	P-2	F2
Long-Term Senior Debt	a-	A	Baa1	BBB+
Junior Subordinated Long-Term Debt	bbb	BBB+	Baa2	BBB-

The Prudential Insurance Company of America:
Capital and surplus notes	a	A	A3	A-

Prudential Funding, LLC:
Short-Term Debt	AMB-1	A-1+	P-1	F1
Long-Term Senior Debt	a+	AA-	A2	A

PRICOA Global Funding I
Long-Term Senior Debt	aa-	AA-	A1	A+

*	NR indicates not rated.

(1)	Prudential Life Insurance Co. of Taiwan was assigned a financial strength rating by Taiwan Ratings Corporation, a partner of Standard and Poor’s.

INVESTOR INFORMATION:


Corporate Offices:		Investor Information Hotline:

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

Common Stock:

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

Page 38

Form: 8-K

Documents