Prudential Financial, Inc. 5.62 (PRS) 8-K Regulation FD Disclosure

Exhibit 99.1

Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

THIRD QUARTER 2003

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.

November 4, 2003

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Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

CONTENTS

	Page
HIGHLIGHTS
Financial Highlights	1-2
Operations Highlights	3
FINANCIAL SERVICES BUSINESSES
Combined Statements of Operations	4
Combined Balance Sheets	5
Combining Statements of Operations by Division (Quarter)	6
Combining Statements of Operations by Division (Year-to-Date)	7
Combining Balance Sheets by Division	8
Short-Term Debt	9
Long-Term Debt	10
INSURANCE DIVISION
Combined Statements of Operations	11
Combining Statements of Operations (Quarter)	12
Combining Statements of Operations (Year-to-Date)	13
Individual Life and Annuities Sales Results and Account Values	14
Individual Life and Annuities Segment Account Value Activity	15
Deferred Policy Acquisition Costs	16
Supplementary Information for Individual Life Insurance	17
Supplementary Information for Group Insurance	18
INVESTMENT DIVISION
Combined Statements of Operations	19
Combining Statements of Operations (Quarter)	20
Combining Statements of Operations (Year-to-Date)	21
Supplementary Revenue Information for Investment Management Segment	22
Supplementary Revenue Information for Financial Advisory Segment	23
Assets Under Management for Investment Management and Advisory Services operations	24
Mutual Funds and Wrap-fee Products Sales Results and Assets Under Management	25
Retirement Sales Results and Account Values	26
INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations	27
Combining Statements of Operations	28
Sales Results and Supplementary Information	29-30
INVESTMENT PORTFOLIO
Investment Portfolio Composition	31
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations	32
Financial Services Businesses Investment Results	33
Financial Services Businesses Investment Results - Japanese Insurance Operations	34
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations	35
RECLASSIFIED STATEMENTS OF OPERATIONS	36-39
FINANCIAL SERVICES BUSINESSES RECONCILIATION OF ADJUSTED OPERATING INCOME TO INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	40
KEY DEFINITIONS AND FORMULAS	41-43
RATINGS AND INVESTOR INFORMATION	44

ii

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

This Quarterly Financial Supplement reflects the classification of results of operations of our consumer banking business, formerly reported within the Financial Advisory segment, as discontinued operations for all periods presented, as a result of the company’s decision to exit these operations.

iii

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date				% Change			2002				2003
2003		2002					3Q		4Q		1Q		2Q		3Q
						Financial Services Businesses:
						Pre-tax adjusted operating income by division:
596		408		46	%	Insurance Division	76		137		163		236		197
233		247		-6	%	Investment Division	51		35		73		77		83
618		575		7	%	International Insurance and Investments Division	188		176		178		217		223
49		161		-70	%	Corporate and other operations	112		(1	)	18		(1	)	32
1,496		1,391		8	%	Total pre-tax adjusted operating income	427		347		432		529		535
486		485		—		Income taxes, applicable to adjusted operating income	124		99		140		172		174
1,010		906		11	%	Financial Services Businesses after-tax adjusted operating income	303		248		292		357		361
						Items excluded from adjusted operating income:
(170	)	(583	)	71	%	Realized investment losses, net, and related charges and adjustments	(143	)	(284	)	(113	)	(11	)	(46	)
—		—		—		Sales practices remedies and costs	—		(20	)	—		—		—
(419	)	36		-1264	%	Divested businesses	(13	)	(59	)	3		(402	)	(20	)
(589	)	(547	)	-8	%	Total items excluded from adjusted operating income, before income taxes	(156	)	(363	)	(110	)	(413	)	(66	)
(176	)	(383	)	54	%	Income taxes, applicable to items excluded from adjusted operating income	(231	)	(120	)	(36	)	(169	)	29
(413	)	(164	)	-152	%	Total items excluded from adjusted operating income, after income taxes	75		(243	)	(74	)	(244	)	(95	)
597		742		-20	%	Income from continuing operations (after-tax) of Financial Services Businesses	378		5		218		113		266
(43	)	8		-638	%	Income (loss) from discontinued operations, net of taxes	14		(76	)	(21	)	14		(36	)
554		750		-26	%	Net income (loss) of Financial Services Businesses	392		(71	)	197		127		230
						Earnings per share of Common Stock (diluted):
1.92		1.61				Financial Services Businesses after-tax adjusted operating income	0.54		0.46		0.56		0.66		0.70
						Items excluded from adjusted operating income:
(0.31	)	(1.00	)			Realized investment losses, net, and related charges and adjustments	(0.25	)	(0.50	)	(0.20	)	(0.02	)	(0.08	)
—		—				Sales practices remedies and costs	—		(0.04	)	—		—		—
(0.76	)	0.06				Divested businesses	(0.02	)	(0.10	)	—		(0.73	)	(0.04	)
(1.07	)	(0.94	)			Total items excluded from adjusted operating income, before income taxes	(0.27	)	(0.64	)	(0.20	)	(0.75	)	(0.12	)
(0.32	)	(0.66	)			Income taxes, applicable to items excluded from adjusted operating income	(0.40	)	(0.21	)	(0.06	)	(0.31	)	0.06
(0.75	)	(0.28	)			Total items excluded from adjusted operating income, after income taxes	0.13		(0.43	)	(0.14	)	(0.44	)	(0.18	)
1.17		1.33				Income from continuing operations (after-tax) of Financial Services Businesses	0.67		0.03		0.42		0.22		0.52
(0.08	)	0.01				Income (loss) from discontinued operations, net of taxes	0.03		(0.13	)	(0.03	)	0.03		(0.06	)
1.09		1.34				Net income (loss) of Financial Services Businesses	0.70		(0.10	)	0.39		0.25		0.46
550.5		582.3				Weighted average number of outstanding Common shares (diluted basis)	576.8		565.0		556.5		549.4		545.9
7.65	%	6.58	%			Operating Return on Average Equity (based on adjusted operating income)	6.56	%	5.59	%	6.74	%	7.96	%	8.28	%
						Reconciliation to Consolidated Net Income of Prudential Financial, Inc:
554		750				Net income (loss) of Financial Services Businesses (above)	392		(71	)	197		127		230
145		(363	)			Net income (loss) of Closed Block Business	(90	)	(122	)	(1	)	69		77
699		387				Consolidated net income (loss)	302		(193	)	196		196		307
45		30				Direct equity adjustments for earnings per share calculations	9		13		18		8		19

Page 1

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date			2002		2003
2003	2002		3Q	4Q	1Q	2Q	3Q
		Financial Services Businesses Capitalization Data (1):
		Short-term debt	3,852	3,469	4,212	5,416	5,117
		Long-term debt (2)	3,077	3,007	2,582	2,663	4,330
		Equity Security Units (2)	690	690	690	690	—
		Attributed Equity:
		Including accumulated other comprehensive income	21,039	20,562	21,059	21,768	20,551
		Excluding unrealized gains and losses on investments	18,931	18,394	18,388	18,318	18,406
		Excluding accumulated other comprehensive income	19,153	18,621	18,596	18,523	18,574
		Total Capitalization:
		Including accumulated other comprehensive income	24,806	24,259	24,331	25,121	24,881
		Excluding unrealized gains and losses on investments	22,698	22,091	21,660	21,671	22,736
		Excluding accumulated other comprehensive income	22,920	22,318	21,868	21,876	22,904
		Book value per share of Common Stock:
		Including accumulated other comprehensive income	37.03	36.67	38.12	39.83	37.83
		Excluding unrealized gains and losses on investments	33.32	32.80	33.28	33.52	33.88
		Excluding accumulated other comprehensive income	33.71	33.20	33.66	33.89	34.19
		Number of diluted shares at end of period	568.1	560.8	552.5	546.5	543.3
		Common Stock Price Range (based on closing price):
38.06	35.75	High	32.99	32.10	33.93	34.50	38.06
27.56	27.35	Low	27.35	25.50	27.56	29.84	34.00
37.36	28.56	Close	28.56	31.74	29.25	33.65	37.36
		Common Stock market capitalization (1)	16,235	17,782	16,153	18,405	20,202

(1) As of end of period.

(2) Guaranteed beneficial interest in Trust holding solely debentures of Parent, as reported in combined balance sheet for periods ended on or before June 30, 2003. Effective for the third quarter of 2003, this balance has been reclassified to Long-term debt in connection with the implementation of Statement of Financial Accounting Standards No. 150. Accordingly, long-term debt as of September 30, 2003 includes $690 million related to the Company’s Equity Security Units.

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Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

OPERATIONS HIGHLIGHTS

Year-to-date			2002		2003
2003	2002		3Q	4Q	1Q	2Q	3Q
		Assets Under Management and Administration ($ billions) (1)(2):
		Assets Under Management :
		Managed by Investment Division:
		Investment Management Segment - Investment Management & Advisory Services
		Retail customers	77.3	79.9	78.9	82.5	82.1
		Institutional customers	79.8	85.2	84.2	89.2	89.7
		General account	119.5	122.9	123.6	127.1	130.3
		Total Investment Management and Advisory Services	276.6	288.0	286.7	298.8	302.1
		Non-proprietary wrap-fee and other assets under management	32.7	33.0	32.7	40.7	36.6
		Total managed by Investment Division	309.3	321.0	319.4	339.5	338.7
		Managed by International Insurance and Investments Division	46.6	47.9	47.6	50.0	50.7
		Managed by Insurance Division	7.2	8.8	8.5	32.9	31.4
		Total assets under management	363.1	377.7	375.5	422.4	420.8
		Client assets under administration (3)	173.7	177.9	174.4	186.5	30.7
		Total assets under management and administration	536.8	555.6	549.9	608.9	451.5
		Assets managed or administered for customers outside of the United States at end of period (3)	77.9	83.6	83.4	89.6	81.0
		Distribution Representatives (1):
		Prudential Agents	4,478	4,389	4,327	4,290	4,281
		International Life Planners	4,353	4,505	4,552	4,689	4,875
		Gibraltar Life Advisors	5,233	5,155	4,993	4,877	4,848
37	37	Prudential Agent productivity ($ thousands)	36	43	34	39	38
		Third Party Distribution - Retail Products ($ millions) (4):
56	48	Individual life insurance (5)	15	24	21	20	15
20	106	Corporate-owned life insurance sales	21	15	4	14	2
1,882	85	Individual annuities (6)	50	48	58	699	1,125
3,916	2,445	Mutual funds and wrap-fee products (6)	970	1,207	616	783	2,517

(1) As of end of period.

(2) At fair market value.

(3) Assets under administration and Assets managed or administered for customers outside of the United States at the end of the period at June 30, 2003 include approximately $155 billion and $8 billion respectively, associated with businesses that were combined into Wachovia Securities, LLC on July 1, 2003. As a result, Prudential Financial no longer reports these assets as a component of its assets under management and administration.

(4) Represents statutory first year premiums and deposits for Individual Life Insurance, including corporate-owned life insurance, and gross sales for Individual Annuities, Mutual Funds and Wrap-fee products.

(5) Excludes corporate-owned life insurance sales.

(6) Includes, effective July 1, 2003, production through Financial Advisors formerly associated with Prudential Securities, who became associated with Wachovia Securities, LLC as a result of the combination of Prudential’s retail securities brokerage operation with Wachovia Securities, LLC as of that date.

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Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)

Year-to-date				% Change			2002				2003
2003		2002					3Q		4Q		1Q		2Q		3Q
						Revenues (1):
5,982		5,470		9	%	Premiums	1,870		1,991		2,015		1,983		1,984
1,342		1,246		8	%	Policy charges and fee income	400		407		416		451		475
3,724		3,776		-1	%	Net investment income	1,273		1,247		1,246		1,243		1,235
2,636		3,096		-15	%	Commissions, investment management fees, and other income	993		973		897		1,064		675
13,684		13,588		1	%	Total revenues	4,536		4,618		4,574		4,741		4,369
						Benefits and Expenses (1):
6,099		5,663		8	%	Insurance and annuity benefits	1,913		2,130		2,107		1,983		2,009
1,263		1,263		—		Interest credited to policyholders’ account balances	434		444		418		421		424
130		134		-3	%	Interest expense	43		36		37		37		56
(917	)	(780	)	-18	%	Deferral of acquisition costs	(275	)	(284	)	(285	)	(320	)	(312	)
452		581		-22	%	Amortization of acquisition costs	263		158		160		142		150
5,161		5,336		-3	%	General and administrative expenses	1,731		1,787		1,705		1,949		1,507
12,188		12,197		—		Total benefits and expenses	4,109		4,271		4,142		4,212		3,834
1,496		1,391		8	%	Adjusted operating income before income taxes	427		347		432		529		535
						Items excluded from adjusted operating income before income taxes:
(145	)	(583	)	75	%	Realized investment gains (losses), net, and related adjustments	(142	)	(290	)	(114	)	9		(40	)
(25	)	—		—		Related charges	(1	)	6		1		(20	)	(6	)
(170	)	(583	)	71	%	Total realized investment losses, net, and related charges and adjustments	(143	)	(284	)	(113	)	(11	)	(46	)
—		—		—		Sales practices remedies and costs	—		(20	)	—		—		—
(419	)	36		-1264	%	Divested businesses	(13	)	(59	)	3		(402	)	(20	)
(589	)	(547	)	-8	%	Total items excluded from adjusted operating income before income taxes	(156	)	(363	)	(110	)	(413	)	(66	)
907		844		7	%	Income (loss) from continuing operations before income taxes	271		(16	)	322		116		469
310		102		204	%	Income tax expense (benefit)	(107	)	(21	)	104		3		203
597		742		-20	%	Income from continuing operations, after-tax	378		5		218		113		266

(1) Revenues exclude realized investment gains, net of losses and related adjustments, and revenues of divested businesses and discontinued operations. Benefits and expenses exclude charges related to realized investment gains, net of losses, sales practices remedies and costs, and benefits and expenses of divested businesses and discontinued operations.

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Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

COMBINED BALANCE SHEETS - - FINANCIAL SERVICES BUSINESSES

(in millions)

	9/30/2002	12/31/2002	3/31/2003	6/30/2003	9/30/2003
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $72,962; $74,665; $76,766; $77,995; $79,964)	76,815	79,230	82,311	85,283	84,725
Fixed maturities, held to maturity, at amortized cost (fair value $2,385; $2,673; $2,859; $2,867; $2,954)	2,376	2,612	2,772	2,793	2,954
Trading account assets, at fair value	4,419	3,449	3,359	3,831	3,852
Equity securities, available for sale, at fair value (cost $1,815; $1,313; $1,101; $991; $950)	1,714	1,286	1,038	1,044	1,106
Commercial loans	12,649	12,300	12,234	12,040	12,100
Policy loans	3,036	3,146	2,923	2,992	2,732
Securities purchased under agreements to resell	5,256	4,844	5,990	5,424	1,276
Cash collateral for borrowed securities	5,691	4,978	4,429	5,440	—
Other long-term investments	4,329	4,333	4,476	4,546	5,840
Short-term investments	2,082	2,840	1,671	1,960	3,758
Total investments	118,367	119,018	121,203	125,353	118,343
Cash and cash equivalents	9,115	7,470	7,339	6,743	6,252
Accrued investment income	1,084	1,021	1,095	1,095	1,139
Broker-dealer related receivables	5,486	5,631	5,126	6,425	908
Deferred policy acquisition costs	5,750	5,875	5,926	5,997	6,348
Other assets	14,699	13,730	15,001	17,369	14,285
Separate account assets	69,900	70,555	70,710	99,116	101,841
Total assets	224,401	223,300	226,400	262,098	249,116
Liabilities:
Future policy benefits	41,395	42,213	43,243	43,792	44,608
Policyholders’ account balances	40,325	40,799	41,487	42,345	42,766
Unpaid claims and claim adjustment expenses	3,363	3,428	3,513	3,494	3,201
Securities sold under agreements to repurchase	10,675	10,250	10,907	9,835	5,454
Cash collateral for loaned securities	7,645	7,517	7,300	7,289	3,563
Income taxes payable	1,967	1,910	2,259	2,352	2,023
Broker-dealer related payables	4,498	4,838	4,915	6,099	1,951
Securities sold but not yet purchased	2,417	1,996	2,076	2,220	1,620
Short-term debt	3,852	3,469	4,212	5,416	5,117
Long-term debt (1)	3,077	3,007	2,582	2,663	4,330
Other liabilities	13,558	12,066	11,447	15,019	12,091
Separate account liabilities	69,900	70,555	70,710	99,116	101,841
Total liabilities	202,672	202,048	204,651	239,640	228,565
Guaranteed beneficial interest in Trust holding solely debentures of Parent (1)	690	690	690	690	—
Attributed Equity:
Accumulated other comprehensive income	1,886	1,941	2,463	3,245	1,977
Other attributed equity	19,153	18,621	18,596	18,523	18,574
Total attributed equity	21,039	20,562	21,059	21,768	20,551
Total liabilities and attributed equity	224,401	223,300	226,400	262,098	249,116

(1) As a result of the Company’s implementation of Statement of Financial Accounting Standards No. 150, long-term debt as of September 30, 2003 includes $690 million related to the Company’s Equity Security Units which were previously classified as “Guaranteed beneficial interest in Trust holding solely debentures of Parent”.

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Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)

	Quarter Ended September 30, 2003
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	1,984		813		1		1,170		—
Policy charges and fee income	475		407		17		54		(3	)
Net investment income	1,235		347		542		212		134
Commissions, investment management fees, and other income	675		111		454		85		25
Total revenues	4,369		1,678		1,014		1,521		156
Benefits and Expenses (1):
Insurance and annuity benefits	2,009		904		187		894		24
Interest credited to policyholders’ account balances	424		158		239		27		—
Interest expense	56		(1	)	8		1		48
Deferral of acquisition costs	(312	)	(161	)	(6	)	(157	)	12
Amortization of acquisition costs	150		80		15		69		(14	)
General and administrative expenses	1,507		501		488		464		54
Total benefits and expenses	3,834		1,481		931		1,298		124
Adjusted operating income before income taxes	535		197		83		223		32
	Quarter Ended September 30, 2002
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	1,870		802		10		1,061		(3	)
Policy charges and fee income	400		342		15		46		(3	)
Net investment income	1,273		359		563		195		156
Commissions, investment management fees, and other income	993		58		890		68		(23	)
Total revenues	4,536		1,561		1,478		1,370		127
Benefits and Expenses (1):
Insurance and annuity benefits	1,913		863		220		830		—
Interest credited to policyholders’ account balances	434		163		247		24		—
Interest expense	43		(2	)	4		—		41
Deferral of acquisition costs	(275	)	(117	)	(8	)	(162	)	12
Amortization of acquisition costs	263		198		21		65		(21	)
General and administrative expenses	1,731		380		943		425		(17	)
Total benefits and expenses	4,109		1,485		1,427		1,182		15
Adjusted operating income before income taxes	427		76		51		188		112

(1) Revenues exclude realized investment gains, net of losses and related adjustments, and revenues of divested businesses and discontinued operations. Benefits and expenses exclude charges related to realized investment gains, net of losses, and benefits and expenses of divested businesses and discontinued operations.

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Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)

	Nine Months Ended September 30, 2003
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	5,982		2,531		23		3,440		(12	)
Policy charges and fee income	1,342		1,132		54		166		(10	)
Net investment income	3,724		1,071		1,643		610		400
Commissions, investment management fees, and other income	2,636		250		2,174		246		(34	)
Total revenues	13,684		4,984		3,894		4,462		344
Benefits and Expenses (1):
Insurance and annuity benefits	6,099		2,751		601		2,665		82
Interest credited to policyholders’ account balances	1,263		476		708		79		—
Interest expense	130		(3	)	16		2		115
Deferral of acquisition costs	(917	)	(422	)	(21	)	(509	)	35
Amortization of acquisition costs	452		234		51		214		(47	)
General and administrative expenses	5,161		1,352		2,306		1,393		110
Total benefits and expenses	12,188		4,388		3,661		3,844		295
Adjusted operating income before income taxes	1,496		596		233		618		49
	Nine Months Ended September 30, 2002
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	5,470		2,351		39		3,083		(3	)
Policy charges and fee income	1,246		1,050		53		152		(9	)
Net investment income	3,776		1,048		1,719		534		475
Commissions, investment management fees, and other income	3,096		174		2,812		259		(149	)
Total revenues	13,588		4,623		4,623		4,028		314
Benefits and Expenses (1):
Insurance and annuity benefits	5,663		2,545		648		2,412		58
Interest credited to policyholders’ account balances	1,263		463		728		72		—
Interest expense	134		(3	)	12		—		125
Deferral of acquisition costs	(780	)	(336	)	(36	)	(460	)	52
Amortization of acquisition costs	581		404		69		174		(66	)
General and administrative expenses	5,336		1,142		2,955		1,255		(16	)
Total benefits and expenses	12,197		4,215		4,376		3,453		153
Adjusted operating income before income taxes	1,391		408		247		575		161

(1) Revenues exclude realized investment gains, net of losses and related adjustments, and revenues of divested businesses and discontinued operations. Benefits and expenses exclude charges related to realized investment gains, net of losses, and benefits and expenses of divested businesses and discontinued operations.

Page 7

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)

	As of September 30, 2003
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	118,343	27,406	38,696	37,738	14,503
Broker-dealer related receivables	908	—	85	714	109
Deferred policy acquisition costs	6,348	3,734	18	2,583	13
Other assets	21,676	4,252	6,977	4,409	6,038
Separate account assets	101,841	59,603	42,612	603	(977	)
Total assets	249,116	94,995	88,388	46,047	19,686
Liabilities:
Future policy benefits	44,608	4,698	13,032	25,846	1,032
Policyholders’ account balances	42,766	15,817	16,857	10,085	7
Debt (1)	9,447	390	2,093	484	6,480
Other liabilities	29,903	7,735	9,642	5,385	7,141
Separate account liabilities	101,841	59,603	42,612	603	(977	)
Total liabilities	228,565	88,243	84,236	42,403	13,683
Guaranteed beneficial interest in Trust holding solely debentures of Parent (1)	—	—	—	—	—
Attributed Equity:
Accumulated other comprehensive income	1,977	698	694	286	299
Other attributed equity	18,574	6,054	3,458	3,358	5,704
Total attributed equity	20,551	6,752	4,152	3,644	6,003
Total liabilities and attributed equity	249,116	94,995	88,388	46,047	19,686
	As of December 31, 2002
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	119,018	25,091	43,919	36,358	13,650
Broker-dealer related receivables	5,631	—	4,516	399	716
Deferred policy acquisition costs	5,875	3,640	28	2,158	49
Other assets	22,221	3,128	7,863	4,141	7,089
Separate account assets	70,555	31,175	39,715	499	(834	)
Total assets	223,300	63,034	96,041	43,555	20,670
Liabilities:
Future policy benefits	42,213	4,634	12,835	23,624	1,120
Policyholders’ account balances	40,799	14,947	16,252	9,598	2
Debt (1)	6,476	—	3,222	849	2,405
Other liabilities	42,005	6,789	20,302	5,484	9,430
Separate account liabilities	70,555	31,175	39,715	499	(834	)
Total liabilities	202,048	57,545	92,326	40,054	12,123
Guaranteed beneficial interest in Trust holding solely debentures of Parent (1)	690	—	—	—	690
Attributed Equity:
Accumulated other comprehensive income (loss)	1,941	885	587	480	(11	)
Other attributed equity	18,621	4,604	3,128	3,021	7,868
Total attributed equity	20,562	5,489	3,715	3,501	7,857
Total liabilities and attributed equity	223,300	63,034	96,041	43,555	20,670

(1) As a result of the Company’s implementation of Statement of Financial Accounting Standards No. 150, long-term debt as of September 30, 2003 includes $690 million related to the Company’s Equity Security Units which were previously classified as “Guaranteed beneficial interest in Trust holding solely debentures of Parent”.

Page 8

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

SHORT TERM DEBT - FINANCIAL SERVICES BUSINESSES

(in millions)

	As of September 30, 2003				As of December 31, 2002
	Prudential Financial, Inc.	The Prudential Insurance Co. of America (1)	Other Affiliates	Total	Prudential Financial, Inc.	The Prudential Insurance Co. of America (1)	Other Affiliates	Total
Borrowings by use of proceeds:
General corporate purposes	—	53	—	53	—	306	—	306
Investment related	389	1,165	—	1,554	—	154	—	154
Securities business related	—	1,666	965	2,631	—	959	1,256	2,215
Specified other businesses	—	743	135	878	—	514	279	793
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1
Total short-term debt	389	3,627	1,101	5,117	—	1,933	1,536	3,469
Borrowings by type:
Long-term debt due within one year	—	548	—	548	—	637	—	637
Commercial paper	389	3,063	—	3,452	—	1,265	—	1,265
Bank borrowings	—	—	624	624	—	—	913	913
Other short-term debt	—	16	476	492	—	31	622	653
Total general obligations	389	3,627	1,100	5,116	—	1,933	1,535	3,468
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1
Total short-term debt	389	3,627	1,101	5,117	—	1,933	1,536	3,469

(1) Includes Prudential Funding, LLC.

Page 9

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

LONG TERM DEBT

(in millions)

	As of September 30, 2003
	General Corporate Purposes		Investment Related	Securities Business Related	Specified Other Businesses	Total General Obligations	Limited Recourse and non-Recourse	Total Borrowing
Financial Services Businesses:
Prudential Financial, Inc. (1):
Long-term fixed and floating rate notes	1,132		225	—	141	1,498	—	1,498
Hybrid notes	—		—	—	—	—	—	—
Total	1,132		225	—	141	1,498	—	1,498
The Prudential Insurance Company of America (2):
Surplus notes	691		—	—	—	691	—	691
Long-term fixed and floating rate notes	600		291	—	—	891	—	891
Commercial paper backed by long-term credit agreements	—		—	—	—	—	—	—
Total	1,291		291	—	—	1,582	—	1,582
Long-term debt of other affiliated companies	—		17	—	—	17	543	560
Total long-term debt of Financial Services Businesses, excluding Equity Security Units	2,423		533	—	141	3,097	543	3,640
Equity Security Units (3)	690		—	—	—	690	—	690
Total long-term debt of Financial Services Businesses	3,113		533	—	141	3,787	543	4,330
Ratio of long-term and short-term corporate debt to capitalization	12.1	%
Closed Block Business:
Limited recourse notes of Prudential Holdings, LLC	—		—	—	—	—	1,750	1,750
	As of December 31, 2002
	General Corporate Purposes		Investment Related	Securities Business Related	Specified Other Businesses	Total General Obligations	Limited Recourse and non-Recourse	Total Borrowing
Financial Services Businesses:
Prudential Financial, Inc.:
Long-term fixed and floating rate notes	—		—	—	—	—	—	—
Hybrid notes	—		—	—	—	—	—	—
Total	—		—	—	—	—	—	—
The Prudential Insurance Company of America (2):
Surplus notes	690		—	—	—	690	—	690
Long-term fixed and floating rate notes	600		745	399	—	1,744	—	1,744
Commercial paper backed by long-term credit agreements	—		—	—	—	—	—	—
Total	1,290		745	399	—	2,434	—	2,434
Long-term debt of other affiliated companies	—		—	—	—	—	573	573
Total long-term debt of Financial Services Businesses	1,290		745	399	—	2,434	573	3,007
Ratio of long-term and short-term corporate debt to capitalization	8.4	%
Closed Block Business:
Limited recourse notes of Prudential Holdings, LLC	—		—	—	—	—	1,750	1,750

(1) Excluding obligations related to Equity Security Units.

(2) Includes Prudential Funding, LLC.

(3) As a result of the Company’s implementation of Statement of Financial Accounting Standards No. 150, long-term debt as of September 30, 2003 includes $690 million related to the Company’s Equity Security Units which were previously classified as “Guaranteed beneficial interest in Trust holding solely debentures of Parent” on the balance sheet.

Page 10

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

Year-to-date				% Change			2002				2003
2003		2002					3Q		4Q		1Q		2Q		3Q
						Revenues (1):
2,531		2,351		8	%	Premiums	802		899		866		852		813
1,132		1,050		8	%	Policy charges and fee income	342		347		347		378		407
1,071		1,048		2	%	Net investment income	359		363		359		365		347
250		174		44	%	Commissions, investment management fees, and other income	58		54		55		84		111
4,984		4,623		8	%	Total revenues	1,561		1,663		1,627		1,679		1,678
						Benefits and Expenses (1):
2,751		2,545		8	%	Insurance and annuity benefits	863		989		956		891		904
476		463		3	%	Interest credited to policyholders’ account balances	163		170		157		161		158
(3	)	(3	)	-1	%	Interest expense	(2	)	(2	)	(1	)	(1	)	(1	)
(422	)	(336	)	-26	%	Deferral of acquisition costs	(117	)	(116	)	(112	)	(149	)	(161	)
234		404		-42	%	Amortization of acquisition costs	198		94		85		69		80
1,352		1,142		18	%	General and administrative expenses	380		391		379		472		501
4,388		4,215		4	%	Total benefits and expenses	1,485		1,526		1,464		1,443		1,481
596		408		46	%	Adjusted operating income before income taxes	76		137		163		236		197

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

Page 11

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

	Quarter Ended September 30, 2003
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
							Individual Life		Individual Annuities
Revenues (1):
Premiums	813		94		719		77		17
Policy charges and fee income	407		390		17		255		135
Net investment income	347		209		138		100		109
Commissions, investment management fees, and other income	111		103		8		35		68
Total revenues	1,678		796		882		467		329
Benefits and Expenses (1):
Insurance and annuity benefits	904		229		675		179		50
Interest credited to policyholders’ account balances	158		108		50		39		69
Interest expense	(1	)	(1	)	—		—		(1	)
Deferral of acquisition costs	(161	)	(153	)	(8	)	(68	)	(85	)
Amortization of acquisition costs	80		79		1		56		23
General and administrative expenses (2)	501		367		134		172		195
Total benefits and expenses	1,481		629		852		378		251
Adjusted operating income before income taxes	197		167		30		89		78
	Quarter Ended September 30, 2002
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
							Individual Life		Individual Annuities
Revenues (1):
Premiums	802		123		679		109		14
Policy charges and fee income	342		296		46		248		48
Net investment income	359		212		147		104		108
Commissions, investment management fees, and other income	58		48		10		34		14
Total revenues	1,561		679		882		495		184
Benefits and Expenses (1):
Insurance and annuity benefits	863		189		674		152		37
Interest credited to policyholders’ account balances	163		103		60		37		66
Interest expense	(2	)	(2	)	—		(1	)	(1	)
Deferral of acquisition costs	(117	)	(110	)	(7	)	(76	)	(34	)
Amortization of acquisition costs	198		197		1		92		105
General and administrative expenses	380		256		124		176		80
Total benefits and expenses	1,485		633		852		380		253
Adjusted operating income before income taxes	76		46		30		115		(69	)

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

(2) General and administrative expenses for Individual Annuities include $13 million for the quarter ended September 30, 2003 for the amortization of value of business acquired (VOBA) associated with the May 1, 2003 acquisition of American Skandia.

Page 12

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

	Nine Months Ended September 30, 2003
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
							Individual Life		Individual Annuities
Revenues (1):
Premiums	2,531		318		2,213		267		51
Policy charges and fee income	1,132		1,054		78		767		287
Net investment income	1,071		632		439		302		330
Commissions, investment management fees, and other income	250		227		23		100		127
Total revenues	4,984		2,231		2,753		1,436		795
Benefits and Expenses (1):
Insurance and annuity benefits	2,751		664		2,087		530		134
Interest credited to policyholders’ account balances	476		309		167		113		196
Interest expense	(3	)	(3	)	—		(2	)	(1	)
Deferral of acquisition costs	(422	)	(396	)	(26	)	(219	)	(177	)
Amortization of acquisition costs	234		232		2		172		60
General and administrative expenses (2)	1,352		951		401		534		417
Total benefits and expenses	4,388		1,757		2,631		1,128		629
Adjusted operating income before income taxes	596		474		122		308		166
	Nine Months Ended September 30, 2002
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
							Individual Life		Individual Annuities
Revenues (1):
Premiums	2,351		274		2,077		230		44
Policy charges and fee income	1,050		910		140		750		160
Net investment income	1,048		618		430		310		308
Commissions, investment management fees, and other income	174		150		24		103		47
Total revenues	4,623		1,952		2,671		1,393		559
Benefits and Expenses (1):
Insurance and annuity benefits	2,545		511		2,034		409		102
Interest credited to policyholders’ account balances	463		292		171		106		186
Interest expense	(3	)	(2	)	(1	)	(1	)	(1	)
Deferral of acquisition costs	(336	)	(319	)	(17	)	(222	)	(97	)
Amortization of acquisition costs	404		406		(2	)	208		198
General and administrative expenses	1,142		759		383		531		228
Total benefits and expenses	4,215		1,647		2,568		1,031		616
Adjusted operating income before income taxes	408		305		103		362		(57	)

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

(2) General and administrative expenses for Individual Annuities include $24 million for the nine months ended September 30, 2003 for the amortization of value of business acquired (VOBA) associated with the May 1, 2003 acquisition of American Skandia.

Page 13

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INSURANCE DIVISION - INDIVIDUAL LIFE AND ANNUITIES SALES RESULTS AND ACCOUNT VALUES

(in millions)

Year-to-date					2002				2003
2003		2002			3Q		4Q		1Q		2Q		3Q
				INDIVIDUAL LIFE INSURANCE SALES (1):
				Excluding corporate-owned life insurance:
70		120		Variable life	35		33		25		26		19
71		43		Universal life	16		27		26		23		22
73		45		Term life	17		17		23		25		25
214		208		Total excluding corporate-owned life insurance	68		77		74		74		66
20		107		Corporate-owned life insurance	21		15		4		14		2
234		315		Total	89		92		78		88		68
				ANNUITY SALES AND ACCOUNT VALUES
				Variable Annuities:
15,338		18,689		Beginning total account value	16,802		14,961		15,338		14,965		39,780
2,870		1,119		Sales	339		276		331		1,070		1,469
(2,668	)	(1,770	)	Surrenders and withdrawals	(546	)	(497	)	(473	)	(987	)	(1,208	)
2,844		(3,077	)	Change in market value, interest credited, and other activity	(1,634	)	598		(231	)	2,301		774
22,431		—		Acquisition	—		—		—		22,431		—
40,815		14,961		Ending total account value	14,961		15,338		14,965		39,780		40,815
202		(651	)	Net sales (redemptions)	(207	)	(221	)	(142	)	83		261
				Fixed Annuities:
3,396		2,975		Beginning total account value	3,048		3,260		3,396		3,473		3,498
214		442		Sales	224		163		110		57		47
(146	)	(137	)	Surrenders and withdrawals	(42	)	(47	)	(49	)	(51	)	(46	)
59		(20	)	Interest credited and other activity	30		20		16		19		24
3,523		3,260		Ending account value	3,260		3,396		3,473		3,498		3,523
68		305		Net sales	182		116		61		6		1
				SALES BY DISTRIBUTION CHANNEL
				Life Insurance (1):
				Excluding corporate-owned life insurance:
158		160		Prudential Agents	53		53		53		54		51
56		48		Third party distribution	15		24		21		20		15
20		107		Corporate-owned life insurance	21		15		4		14		2
234		315		Total	89		92		78		88		68
				Variable and Fixed Annuities (2):
1,097		1,134		Prudential Agents	392		315		326		380		391
303		371		Wirehouses	141		101		79		109		115
1,684		56		Independent Financial Planners (3)	30		23		36		638		1,010
3,084		1,561		Total	563		439		441		1,127		1,516

(1) Statutory first year premiums and deposits.

(2) Amounts represent gross sales.

(3) Including bank distribution.

Page 14

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INSURANCE DIVISION - INDIVIDUAL LIFE AND ANNUITIES SEGMENT ACCOUNT VALUE ACTIVITY

(in millions)

Year-to-date					2002				2003
2003		2002			3Q		4Q		1Q		2Q		3Q
				INDIVIDUAL LIFE INSURANCE:
				Policyholders’ Account Balances:
4,112		3,826		Beginning balance	3,992		4,033		4,112		4,205		4,275
734		676		Premiums and deposits	223		226		249		237		248
74		68		Interest credited	25		24		23		26		25
(402	)	(430	)	Surrenders and withdrawals	(157	)	(137	)	(122	)	(143	)	(137	)
(10	)	33		Net transfers (to) from separate account	5		(4	)	(7	)	(2	)	(1	)
(80	)	(59	)	Policy charges	(21	)	(19	)	(25	)	(29	)	(26	)
(55	)	(81	)	Benefits and other	(34	)	(11	)	(25	)	(19	)	(11	)
4,373		4,033		Ending balance	4,033		4,112		4,205		4,275		4,373
				Separate Account Liabilities:
11,412		13,010		Beginning balance	12,117		10,702		11,412		11,235		12,511
1,106		1,294		Premiums and deposits	430		563		373		379		354
1,497		(2,371	)	Change in market value and interest credited	(1,385	)	624		(154	)	1,311		340
(466	)	(465	)	Surrenders and withdrawals	(209	)	(245	)	(157	)	(177	)	(132	)
(73	)	(119	)	Net transfers to general account	(44	)	(14	)	(29	)	(23	)	(21	)
(615	)	(621	)	Policy charges	(203	)	(209	)	(205	)	(206	)	(204	)
(18	)	(26	)	Benefits and other	(4	)	(9	)	(5	)	(8	)	(5	)
12,843		10,702		Ending balance	10,702		11,412		11,235		12,511		12,843
				INDIVIDUAL ANNUITIES:
				Account Values in General Account (1):
6,795		6,152		Beginning balance	6,093		6,533		6,795		7,073		7,457
868		1,003		Premiums and deposits	403		292		270		330		268
229		220		Interest credited	77		80		72		77		80
(382	)	(381	)	Surrenders and withdrawals	(119	)	(127	)	(129	)	(123	)	(130	)
33		(240	)	Net transfers (to) from separate account	105		52		100		(15	)	(52	)
(6	)	(5	)	Policy charges	(2	)	(2	)	(2	)	(2	)	(2	)
(81	)	(216	)	Benefits and other	(24	)	(33	)	(33	)	(41	)	(7	)
158		—		Acquisition	—		—		—		158		—
7,614		6,533		Ending balance	6,533		6,795		7,073		7,457		7,614
				Account Values in Separate Account:
11,939		15,512		Beginning balance	13,757		11,688		11,939		11,365		35,821
2,216		558		Premiums and deposits	160		147		171		797		1,248
3,155		(2,954	)	Change in market value and interest credited	(1,613	)	614		(213	)	2,434		934
(2,432	)	(1,526	)	Surrenders and withdrawals	(469	)	(417	)	(393	)	(915	)	(1,124	)
(33	)	240		Net transfers (to) from general account	(105	)	(52	)	(100	)	15		52
(261	)	(142	)	Policy charges	(42	)	(41	)	(39	)	(94	)	(128	)
(133	)	—		Benefits and other	—		—		—		(54	)	(79	)
22,273		—		Acquisition	—		—		—		22,273		—
36,724		11,688		Ending balance	11,688		11,939		11,365		35,821		36,724

(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. Activity for periods prior to the second quarter of 2003 has been reclassified to conform to the current presentation.

Page 15

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)

Year-to-date					2002				2003
2003		2002			3Q		4Q		1Q		2Q		3Q
				INDIVIDUAL LIFE INSURANCE:
3,110		3,133		Beginning balance	3,155		3,111		3,110		3,104		3,102
219		222		Capitalization	76		79		77		74		68
(172	)	(208	)	Amortization - operating results	(92	)	(71	)	(67	)	(49	)	(56	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
(26	)	(36	)	Impact of unrealized (gains) or losses on AFS securities	(28	)	(9	)	(16	)	(27	)	17
3,131		3,111		Ending balance	3,111		3,110		3,104		3,102		3,131
				INDIVIDUAL ANNUITIES:
473		628		Beginning balance	598		485		473		471		471
177		97		Capitalization	34		25		27		65		85
(60	)	(198	)	Amortization - operating results	(105	)	(23	)	(17	)	(20	)	(23	)
(6	)	5		Amortization - realized investment gains and losses	3		10		(2	)	(1	)	(3	)
(62	)	(47	)	Impact of unrealized gains on AFS securities	(45	)	(24	)	(10	)	(44	)	(8	)
522		485		Ending balance	485		473		471		471		522
				GROUP INSURANCE (1):
57		26		Beginning balance	39		45		57		64		74
26		17		Capitalization	7		12		8		10		8
(2	)	2		Amortization - operating results	(1	)	—		(1	)	—		(1	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—
81		45		Ending balance	45		57		64		74		81
				TOTAL INSURANCE DIVISION:
3,640		3,787		Beginning balance	3,792		3,641		3,640		3,639		3,647
422		336		Capitalization	117		116		112		149		161
(234	)	(404	)	Amortization - operating results	(198	)	(94	)	(85	)	(69	)	(80	)
(6	)	5		Amortization - realized investment gains and losses	3		10		(2	)	(1	)	(3	)
(88	)	(83	)	Impact of unrealized (gains) or losses on AFS securities	(73	)	(33	)	(26	)	(71	)	9
3,734		3,641		Ending balance	3,641		3,640		3,639		3,647		3,734

(1) Represents long-term care products.

Page 16

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)

Year-to-date				2002				2003
2003	2002			3Q		4Q		1Q		2Q		3Q
			Individual Life Insurance:
			Policy Surrender Experience:
506	495		Cash value of surrenders	185		197		170		182		154
4.0%	4.1	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	4.7	%	5.0	%	4.2	%	4.4	%	3.5	%
			Death claims per $1,000 of in force (1):
2.33	2.00		Variable and universal life	1.85		3.30		2.13		2.59		2.27
1.37	1.63		Term life	1.92		2.12		1.36		0.88		1.84
2.02	1.93		Total, Individual Life Insurance	1.96		2.90		1.93		1.99		2.16

(1) Annualized, for interim reporting periods.

Page 17

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)

Year-to-date					2002				2003
2003		2002			3Q		4Q		1Q		2Q		3Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
153		225		Group life	36		44		88		35		30
120		111		Group disability (1)	25		49		67		29		24
273		336		Total	61		93		155		64		54
				Future Policy Benefits (2):
				Group life	1,580		1,742		1,754		1,730		1,656
				Group disability (1)	148		151		191		201		217
				Total	1,728		1,893		1,945		1,931		1,873
				Policyholders’ Account Balances (2):
				Group life	4,512		4,684		4,471		4,729		4,499
				Group disability (1)	68		67		61		60		61
				Total	4,580		4,751		4,532		4,789		4,560
				Separate Account Liabilities (2):
				Group life	7,260		7,824		8,977		9,994		9,970
				Group disability (1)	—		—		—		—		—
				Total	7,260		7,824		8,977		9,994		9,970
				Group Life Insurance:
1,930		1,985		Gross premiums, policy charges and fee income (3)	654		677		691		636		603
1,806		1,781		Earned premiums, policy charges and fee income	578		607		638		591		577
91.0	%	92.6	%	Benefits ratio	93.3	%	88.8	%	91.9	%	89.9	%	91.2	%
9.4	%	10.0	%	Administrative operating expense ratio	9.6	%	9.9	%	9.1	%	9.1	%	10.0	%
				Persistency ratio	95.2	%	94.5	%	96.4	%	95.6	%	93.7	%
				Group Disability Insurance (1):
497		452		Gross premiums, policy charges and fee income (3)	153		152		171		161		165
485		436		Earned premiums, policy charges and fee income	147		149		164		162		159
91.3	%	88.1	%	Benefits ratio	91.8	%	87.3	%	93.9	%	87.0	%	93.1	%
21.9	%	22.4	%	Administrative operating expense ratio	21.6	%	21.1	%	20.5	%	23.0	%	22.4	%
				Persistency ratio	90.1	%	86.8	%	92.1	%	89.2	%	87.5	%

(1) Group disability amounts include long-term care products.

(2) As of end of period.

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

Page 18

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)

Year-to-date			% Change			2002				2003
2003	2002					3Q		4Q		1Q		2Q		3Q
					Revenues (1):
23	39		-41	%	Premiums	10		38		14		8		1
54	53		2	%	Policy charges and fee income	15		18		18		19		17
1,643	1,719		-4	%	Net investment income	563		563		552		549		542
2,174	2,812		-23	%	Commissions, investment management fees, and other income	890		863		814		906		454
3,894	4,623		-16	%	Total revenues	1,478		1,482		1,398		1,482		1,014
					Benefits and Expenses (1):
601	648		-7	%	Insurance and annuity benefits	220		232		210		204		187
708	728		-3	%	Interest credited to policyholders’ account balances	247		250		236		233		239
16	12		33	%	Interest expense	4		2		4		4		8
(21)	(36	)	42	%	Deferral of acquisition costs	(8	)	(8	)	(7	)	(8	)	(6	)
51	69		-26	%	Amortization of acquisition costs	21		23		19		17		15
2,306	2,955		-22	%	General and administrative expenses	943		948		863		955		488
3,661	4,376		-16	%	Total benefits and expenses	1,427		1,447		1,325		1,405		931
233	247		-6	%	Adjusted operating income before income taxes	51		35		73		77		83

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

Page 19

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)

	Quarter Ended September 30, 2003
	Total Investment Division		Investment Management		Financial Advisory		Retirement		Other Asset Management
Revenues (1):
Premiums	1		—		—		1		—
Policy charges and fee income	17		—		—		17		—
Net investment income	542		9		27		497		9
Commissions, investment management fees, and other income	454		314		95		35		10
Total revenues	1,014		323		122		550		19
Benefits and Expenses (1):
Insurance and annuity benefits	187		—		—		187		—
Interest credited to policyholders’ account balances	239		—		—		239		—
Interest expense	8		1		—		2		5
Deferral of acquisition costs	(6	)	(4	)	—		(2	)	—
Amortization of acquisition costs	15		12		—		3		—
General and administrative expenses	488		278		120		82		8
Total benefits and expenses	931		287		120		511		13
Adjusted operating income before income taxes	83		36		2		39		6
	Quarter Ended September 30, 2002
	Total Investment Division		Investment Management		Financial Advisory		Retirement		Other Asset Management
Revenues (1):
Premiums	10		—		—		10		—
Policy charges and fee income	15		—		—		15		—
Net investment income	563		7		31		515		10
Commissions, investment management fees, and other income	890		286		555		35		14
Total revenues	1,478		293		586		575		24
Benefits and Expenses (1):
Insurance and annuity benefits	220		—		—		220		—
Interest credited to policyholders’ account balances	247		—		—		247		—
Interest expense	4		1		—		—		3
Deferral of acquisition costs	(8	)	(5	)	—		(3	)	—
Amortization of acquisition costs	21		19		—		2		—
General and administrative expenses	943		249		601		85		8
Total benefits and expenses	1,427		264		601		551		11
Adjusted operating income before income taxes	51		29		(15	)	24		13

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

Page 20

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)

	Nine Months Ended September 30, 2003
	Total Investment Division		Investment Management		Financial Advisory		Retirement		Other Asset Management
Revenues (1):
Premiums	23		—		—		23		—
Policy charges and fee income	54		—		—		54		—
Net investment income	1,643		23		80		1,521		19
Commissions, investment management fees, and other income	2,174		888		1,137		98		51
Total revenues	3,894		911		1,217		1,696		70
Benefits and Expenses (1):
Insurance and annuity benefits	601		—		—		601		—
Interest credited to policyholders’ account balances	708		—		—		708		—
Interest expense	16		3		—		3		10
Deferral of acquisition costs	(21	)	(14	)	—		(7	)	—
Amortization of acquisition costs	51		42		—		9		—
General and administrative expenses	2,306		771		1,261		245		29
Total benefits and expenses	3,661		802		1,261		1,559		39
Adjusted operating income before income taxes	233		109		(44	)	137		31
	Nine Months Ended September 30, 2002
	Total Investment Division		Investment Management		Financial Advisory		Retirement		Other Asset Management
Revenues (1):
Premiums	39		—		—		39		—
Policy charges and fee income	53		—		—		53		—
Net investment income	1,719		20		115		1,559		25
Commissions, investment management fees, and other income	2,812		906		1,752		105		49
Total revenues	4,623		926		1,867		1,756		74
Benefits and Expenses (1):
Insurance and annuity benefits	648		—		—		648		—
Interest credited to policyholders’ account balances	728		—		—		728		—
Interest expense	12		4		—		3		5
Deferral of acquisition costs	(36	)	(27	)	—		(9	)	—
Amortization of acquisition costs	69		56		—		13		—
General and administrative expenses	2,955		781		1,881		265		28
Total benefits and expenses	4,376		814		1,881		1,648		33
Adjusted operating income before income taxes	247		112		(14	)	108		41

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

Page 21

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE INFORMATION FOR INVESTMENT MANAGEMENT SEGMENT

(dollar amounts in millions unless otherwise noted)

Year-to-date			% Change			2002		2003
2003	2002					3Q	4Q	1Q	2Q	3Q
					Investment Management Segment:
					Analysis of revenues by source:
		��			Investment Management and Advisory Services:
138	140		-1	%	Retail customers	43	44	43	45	50
258	250		3	%	Institutional customers	79	85	79	87	92
161	162		-1	%	General account	51	59	55	50	56
557	552		1	%	Subtotal	173	188	177	182	198
354	374		-5	%	Mutual Fund revenues (1)	120	121	108	121	125
911	926		-2	%	Total Investment Management segment revenues	293	309	285	303	323
					Analysis of commissions, investment management fees and other revenues by type:
					Investment Management and Advisory Services:
500	514		-3	%	Asset-based fees	160	167	165	162	173
35	20		75	%	Transaction-based and other revenues	7	11	5	14	16
535	534		—		Subtotal	167	178	170	176	189
353	372		-5	%	Mutual Fund revenues (1)	119	121	108	120	125
888	906		-2	%	Total	286	299	278	296	314

(1) Represents mutual fund revenues other than asset management fees paid to affiliates, which are included in appropriate categories above.

Page 22

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)

	2003
	3Q
Information pertaining to Wachovia Securities, LLC:
Revenues:
Net investment income	53
Commissions	612
Fees	351
Other non-interest revenues	59
Total revenues	1,075
Expenses:
Expenses before transition costs	939
Transition costs	41
Total expenses	980
Income before income taxes	95
Prudential Financial, Inc., 38% share of Wachovia Securities, LLC	36
Wachovia Securities, LLC adjustments to Prudential Financial, Inc. minority interest	2
Prudential Financial, Inc., minority interest as reported by Wachovia Securities, LLC	38
Prudential Financial, Inc., purchase accounting adjustments	(7	)
Prudential Financial, Inc., equity income from Wachovia Securities, LLC	31
Recurring revenue as a percentage of total non-interest revenue (1)	43.0	%
Total client assets ($ in billions) (2)	568.5
Distribution representatives (2):
Series 7 Financial Advisors	8,309
Series 6 Financial Representatives	3,316
Average customer debit balances ($ in billions)	5.8
Prudential Financial, Inc. income from investment in Wachovia Securities, LLC, including 38% interest in results, costs incurred at Prudential level, and purchase accounting adjustments	4

(1) Calculated on year-to-date basis for July through September.

(2) As of end of period.

Page 23

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INVESTMENT DIVISION - ASSETS UNDER MANAGEMENT FOR INVESTMENT MANAGEMENT AND ADVISORY SERVICES OPERATIONS

(in billions)

	September 30, 2003
	Equity	Fixed Income	Real Estate	Total
Retail customers	37.9	43.0	1.2	82.1
Institutional customers	27.6	49.3	12.8	89.7
General account	3.0	126.1	1.2	130.3
Total	68.5	218.4	15.2	302.1
	September 30, 2002
	Equity	Fixed Income	Real Estate	Total
Retail customers	30.6	46.6	0.1	77.3
Institutional customers	23.6	46.1	10.1	79.8
General account	2.2	116.0	1.3	119.5
Total	56.4	208.7	11.5	276.6

Year-to-date				2002				2003
2003	2002			3Q		4Q		1Q		2Q		3Q
			Institutional Assets Under Management (1):
			Assets gathered by Investment Management & Advisory Services sales force (2):
62.0	67.9		Beginning assets under management	60.2		56.9		62.0		60.8		64.4
7.8	8.8		Additions to managed portfolio	2.9		7.2		2.6		2.1		3.1
(8.8)	(14.0	)	Withdrawals	(3.1	)	(4.3	)	(3.1	)	(2.6	)	(3.1	)
5.5	(4.3	)	Change in market value	(2.0	)	1.7		—		4.2		1.3
(0.9)	2.5		Net money market flows	(1.1	)	0.5		(0.7	)	(0.1	)	(0.1	)
—	(4.0	)	Other (2)	—		—		—		—		—
65.6	56.9		Ending assets under management	56.9		62.0		60.8		64.4		65.6
24.1	22.9		Other institutional assets under management (2)	22.9		23.2		23.4		24.8		24.1
89.7	79.8		Total assets managed for institutional customers at end of period	79.8		85.2		84.2		89.2		89.7

(1) Reflects reclassification of amounts by client category as of January 1, 2002, based on internal management criteria which increased the amounts attributable to institutional customers by $2.8 billion.

(2) Reflects reclassification of amounts by asset gatherer category as of January 1, 2002, based on internal management criteria, which reduced the amount attributed to assets gathered by Investment Management & Advisory Services sales force and increased the amount attributed to other institutional assets under management by $4.0 billion.

Page 24

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INVESTMENT DIVISION - MUTUAL FUNDS AND WRAP-FEE PRODUCTS SALES RESULTS AND ASSETS UNDER MANAGEMENT

(in millions)

Year-to-date				2002				2003
2003	2002			3Q		4Q		1Q		2Q		3Q
			MUTUAL FUNDS AND WRAP-FEE PRODUCTS SALES AND ASSETS UNDER MANAGEMENT
			Mutual Funds:
49,756	57,809		Beginning total mutual funds assets	52,459		48,639		49,756		48,170		51,835
3,149	3,520		Sales (other than money market)	1,146		1,356		1,086		1,100		963
(4,069)	(3,714	)	Redemptions (other than money market)	(1,259	)	(1,421	)	(962	)	(1,358	)	(1,749	)
3,443	(5,038	)	Reinvestment of distributions and change in market value	(2,620	)	1,188		103		2,583		757
(5,395)	(3,938	)	Net money market sales	(1,087	)	(6	)	(1,813	)	(2,792	)	(790	)
4,132	—		Acquisition	—		—		—		4,132		—
51,016	48,639		Ending total mutual funds assets	48,639		49,756		48,170		51,835		51,016
(920)	(194	)	Net Mutual Funds sales (redemptions) other than money market	(113	)	(65	)	124		(258	)	(786	)
			Wrap-fee Products (1):
15,153	17,955		Beginning total wrap-fee product assets	16,676		14,383		15,153		14,860		16,702
4,503	4,766		Sales (2)	1,223		1,361		1,287		1,462		1,754
(3,893)	(4,419	)	Redemptions	(1,440	)	(1,275	)	(1,178	)	(1,345	)	(1,370	)
2,197	(3,919	)	Reinvestment of distributions and change in market value (2)	(2,076	)	684		(402	)	1,725		874
17,960	14,383		Ending total wrap-fee product assets	14,383		15,153		14,860		16,702		17,960
804	15,424		Other managed accounts at end of period (3)	15,424		16,394		16,712		18,089		804
18,764	29,807		Total wrap-fee products and other managed accounts at end of period	29,807		31,547		31,572		34,791		18,764
610	347		Net wrap-fee product sales (redemptions) (1)	(217	)	86		109		117		384
			MUTUAL FUNDS AND WRAP-FEE PRODUCTS GROSS SALES BY DISTRIBUTION CHANNEL
			Mutual funds, excluding wrap-fee products (4):
311	421		Prudential Agents	107		98		99		119		93
826	914		Financial Advisors	168		162		469		357		—
1,982	2,143		Third party distributors (5)	866		1,090		501		616		865
30	42		Other	5		6		17		8		5
3,149	3,520		Total	1,146		1,356		1,086		1,100		963
			Wrap-fee products (1):
300	351		Prudential Agents	104		90		118		80		102
2,269	4,113		Financial Advisors	1,015		1,154		1,054		1,215		—
1,934	302		Third party distributors (5)	104		117		115		167		1,652
4,503	4,766		Total	1,223		1,361		1,287		1,462		1,754

(1) Excludes other managed accounts.

(2) As a result of the combination of the company’s retail securities brokerage business with Wachovia Securities, LLC, the Investment management segment assumed responsibility for management of Latin American wrap-fee assets amounting to $383 million as of July 1, 2003 which were formerly managed within the International Investments segment. This balance is included in “Reinvestment of distributions and change in market value”. New sales related to this business are included in the Investment Management segment’s wrap-fee sales data commencing with the third quarter of 2003.

(3) Other managed accounts which were associated with businesses that were combined into Wachovia Securities, LLC on July 1, 2003 are no longer reported by Prudential Financial as a component of its wrap-fee products and other managed accounts, commencing as of that date. These managed accounts amounted to $17.3 billion as of June 30, 2003.

(4) Other than money market.

(5) Includes, effective July 1, 2003, production through Financial Advisors formerly associated with Prudential Securities, who became associated with Wachovia Securities, LLC as a result of the combination of Prudential’s retail securities brokerage operation with Wachovia Securities, LLC as of that date.

Page 25

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)

Year-to-date				2002				2003
2003	2002			3Q		4Q		1Q		2Q		3Q
			RETIREMENT SALES AND ACCOUNT VALUES
			Defined Contribution:
22,914	24,640		Beginning total account value	24,036		21,911		22,914		22,757		24,315
4,388	2,773		Sales	859		1,085		1,028		876		2,484
(2,521)	(2,342	)	Withdrawals	(770	)	(906	)	(638	)	(1,270	)	(613	)
1,985	(3,160	)	Change in market value and interest credited (1)	(2,214	)	824		(547	)	1,952		580
26,766	21,911		Ending total account value	21,911		22,914		22,757		24,315		26,766
1,867	431		Net sales (withdrawals)	89		179		390		(394	)	1,871
			Asset management of ending total account value:
			Proprietary	15,752		16,152		15,927		17,023		17,331
			Non-proprietary	6,159		6,762		6,830		7,292		9,435
			Total	21,911		22,914		22,757		24,315		26,766
			Guaranteed Products:
39,058	39,825		Beginning total account value	39,172		38,647		39,058		38,925		40,372
2,168	1,056		Sales	291		411		554		648		966
(3,110)	(2,632	)	Withdrawals and benefits	(775	)	(958	)	(1,045	)	(1,020	)	(1,045	)
2,382	1,303		Change in market value and interest income	553		863		481		1,520		381
229	(905	)	Other (2)	(594	)	95		(123	)	299		53
40,727	38,647		Ending total account value	38,647		39,058		38,925		40,372		40,727
(942)	(1,576	)	Net withdrawals	(484	)	(547	)	(491	)	(372	)	(79	)
			Product composition of ending total account value:
			Spread-based products	18,702		18,729		18,791		18,994		18,853
			Fee-based products	19,945		20,329		20,134		21,378		21,874
			Total	38,647		39,058		38,925		40,372		40,727

(1) Includes increases to account values of $8 million in the quarter ended December 31, 2002, $4 million in the quarter ended September 30, 2002, $247 million in the quarter ended June 30, 2002 and $101 million in the quarter ended March 31, 2002, added to customer accounts due to Common Stock received as demutualization consideration. Year-to-date 2002 results also includes $448 million added to customer accounts from inclusion of amounts not previously reflected in this segment.

(2) Represents changes in asset balances for externally managed accounts.

Page 26

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)

Year-to-date			% Change			2002				2003
2003	2002					3Q		4Q		1Q		2Q		3Q
					Revenues (1):
3,440	3,083		12	%	Premiums	1,061		1,054		1,141		1,129		1,170
166	152		9	%	Policy charges and fee income	46		52		54		58		54
610	534		14	%	Net investment income	195		185		193		205		212
246	259		-5	%	Commissions, investment management fees, and other income	68		79		74		87		85
4,462	4,028		11	%	Total revenues	1,370		1,370		1,462		1,479		1,521
					Benefits and Expenses (1):
2,665	2,412		10	%	Insurance and annuity benefits	830		866		906		865		894
79	72		10	%	Interest credited to policyholders’ account balances	24		24		25		27		27
2	—		—		Interest expense	—		1		—		1		1
(509)	(460	)	-11	%	Deferral of acquisition costs	(162	)	(170	)	(177	)	(175	)	(157	)
214	174		23	%	Amortization of acquisition costs	65		60		74		71		69
1,393	1,255		11	%	General and administrative expenses	425		413		456		473		464
3,844	3,453		11	%	Total benefits and expenses	1,182		1,194		1,284		1,262		1,298
618	575		7	%	Adjusted operating income before income taxes	188		176		178		217		223

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

Page 27

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)

	Nine Months Ended September 30, 2003								Quarter Ended September 30, 2003
	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments		Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	3,440		1,892		1,548		—		1,170		663		507		—
Policy charges and fee income	166		99		67		—		54		34		20		—
Net investment income	610		163		415		32		212		60		143		9
Commissions, investment management fees, and other income	246		(8	)	(3	)	257		85		(7	)	(1	)	93
Total revenues	4,462		2,146		2,027		289		1,521		750		669		102
Benefits and Expenses (1):
Insurance and annuity benefits	2,665		1,405		1,260		—		894		480		414		—
Interest credited to policyholders’ account balances	79		9		70		—		27		3		24		—
Interest expense	2		9		(7	)	—		1		3		(2	)	—
Deferral of acquisition costs	(509	)	(364	)	(145	)	—		(157	)	(111	)	(46	)	—
Amortization of acquisition costs	214		180		34		—		69		54		15		—
General and administrative expenses	1,393		587		538		268		464		210		160		94
Total benefits and expenses	3,844		1,826		1,750		268		1,298		639		565		94
Adjusted operating income before income taxes	618		320		277		21		223		111		104		8
	Nine Months Ended September 30, 2002								Quarter Ended September 30, 2002
	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments		Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	3,083		1,532		1,551		—		1,061		551		510		—
Policy charges and fee income	152		78		74		—		46		28		18		—
Net investment income	534		134		373		27		195		48		138		9
Commissions, investment management fees, and other income	259		9		33		217		68		(5	)	(1	)	74
Total revenues	4,028		1,753		2,031		244		1,370		622		665		83
Benefits and Expenses (1):
Insurance and annuity benefits	2,412		1,138		1,274		—		830		408		422		—
Interest credited to policyholders’ account balances	72		5		67		—		24		2		22		—
Interest expense	—		3		(3	)	—		—		1		(1	)	—
Deferral of acquisition costs	(460	)	(339	)	(121	)	—		(162	)	(115	)	(47	)	—
Amortization of acquisition costs	174		158		15		1		65		58		6		1
General and administrative expenses	1,255		518		492		245		425		184		161		80
Total benefits and expenses	3,453		1,483		1,724		246		1,182		538		563		81
Adjusted operating income before income taxes	575		270		307		(2	)	188		84		102		2

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

Page 28

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(dollar amounts in millions unless otherwise noted)

Year-to-date			2002		2003
2003	2002		3Q	4Q	1Q	2Q	3Q
		INTERNATIONAL INSURANCE OPERATING DATA:
		Actual exchange rate basis (1):
		Net premiums, policy charges and fee income:
1,434	1,193	Japan, excluding Gibraltar Life	424	413	484	451	499
1,615	1,625	Gibraltar Life	528	525	536	552	527
557	417	All other countries	155	168	175	184	198
3,606	3,235	Total	1,107	1,106	1,195	1,187	1,224
		Annualized new business premiums:
286	223	Japan, excluding Gibraltar Life	79	84	106	85	95
228	170	Gibraltar Life	62	63	64	89	75
149	148	All other countries	44	55	50	46	53
663	541	Total	185	202	220	220	223
		Constant exchange rate basis (2):
		Net premiums, policy charges and fee income:
1,356	1,202	Japan, excluding Gibraltar Life	405	404	462	426	468
1,539	1,650	Gibraltar Life	506	513	512	526	501
535	419	All other countries	150	166	171	179	185
3,430	3,271	Total	1,061	1,083	1,145	1,131	1,154
		Annualized new business premiums:
271	224	Japan, excluding Gibraltar Life	75	83	101	81	89
217	172	Gibraltar Life	60	62	62	84	71
144	150	All other countries	43	53	49	45	50
632	546	Total	178	198	212	210	210

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

(2) Translated based on average exchange rates for the year ended December 31, 2002.

Page 29

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

	2002				2003
	3Q		4Q		1Q		2Q		3Q
Face amount of individual policies in force at end of period (in billions) (1):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	138		141		145		147		151
Gibraltar Life	217		213		208		204		200
All other countries	47		49		52		55		57
Total	402		403		405		406		408
Number of individual policies in force at end of period (in thousands):
Japan, excluding Gibraltar Life	1,011		1,037		1,069		1,099		1,137
Gibraltar Life	4,602		4,537		4,461		4,380		4,334
All other countries	643		682		716		745		786
Total	6,256		6,256		6,246		6,224		6,257
International insurance policy persistency (2):
13 months	93.2	%	93.0	%	93.3	%	93.1	%	92.9	%
25 months	86.4	%	86.3	%	86.9	%	87.1	%	87.1	%
Number of Life Planners at end of period (3):
Japan	2,055		2,119		2,159		2,175		2,293
All other countries	2,298		2,386		2,393		2,514		2,582
Total	4,353		4,505		4,552		4,689		4,875

(1) Translated based on exchange rates as of December 31, 2002.

(2) Excluding Gibraltar Life.

(3) Excluding Gibraltar Life Advisors.

Page 30

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

INVESTMENT PORTFOLIO COMPOSITION

(in millions)

	September 30, 2003					December 31, 2002
	Consolidated Portfolio (1)	Closed Block Business	Financial Services Businesses			Consolidated Portfolio (1)	Closed Block Business	Financial Services Businesses
			Amount	% of Total				Amount	% of Total
Fixed maturities:
Public, available for sale, at fair value	99,861	32,559	67,302	60.8	%	92,966	30,991	61,975	59.0	%
Public, held to maturity, at amortized cost	2,898	—	2,898	2.6	%	2,563	—	2,563	2.5	%
Private, available for sale, at fair value	32,508	15,088	17,420	15.7	%	32,490	15,242	17,248	16.4	%
Private, held to maturity, at amortized cost	56	—	56	0.1	%	46	—	46	0.0	%
Trading account assets, at fair value	209	—	209	0.2	%	96	—	96	0.1	%
Equity securities, available for sale, at fair value	3,163	2,075	1,088	1.0	%	2,788	1,521	1,267	1.2	%
Commercial loans	18,402	7,031	11,371	10.3	%	18,593	6,987	11,606	11.1	%
Policy loans	8,288	5,556	2,732	2.5	%	8,827	5,681	3,146	3.0	%
Cash collateral for borrowed securities	—	—	—	0.0	%	323	—	323	0.3	%
Other long-term investments (2)	4,858	1,081	3,777	3.4	%	4,951	1,075	3,876	3.7	%
Short-term investments	7,661	3,903	3,758	3.4	%	5,420	2,579	2,841	2.7	%
Subtotal	177,904	67,293	110,611	100.0	%	169,063	64,076	104,987	100.0	%
Invested assets of other entities and operations (3)	7,732	—	7,732			14,031	—	14,031
Total investments	185,636	67,293	118,343			183,094	64,076	119,018

Fixed Maturities by Credit Quality (1):		September 30, 2003						December 31, 2002
		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)	Rating Agency Equivalent
1	Aaa, Aa, A	51,048	2,451	214	53,285	75.9	%	47,430	2,968	35	50,363	78.0	%
2	Baa	13,326	976	58	14,244	20.3	%	11,281	671	110	11,842	18.3	%
3	Ba	1,662	141	20	1,783	2.5	%	1,730	68	56	1,742	2.7	%
4	B	690	68	8	750	1.1	%	519	20	23	516	0.8	%
5	C and lower	72	26	1	97	0.1	%	94	5	17	82	0.1	%
6	In or near default	38	4	1	41	0.1	%	50	3	1	52	0.1	%
Total		66,836	3,666	302	70,200	100.0	%	61,104	3,735	242	64,597	100.0	%
Private Fixed Maturities:
NAIC Rating (4)	Rating Agency Equivalent
1	Aaa, Aa, A	4,725	449	7	5,167	29.6	%	4,945	457	5	5,397	31.2	%
2	Baa	7,987	776	10	8,753	50.1	%	7,519	632	23	8,128	47.0	%
3	Ba	2,054	149	26	2,177	12.4	%	2,275	99	41	2,333	13.5	%
4	B	512	36	7	541	3.1	%	597	21	13	605	3.5	%
5	C and lower	500	40	12	528	3.0	%	700	20	24	696	4.0	%
6	In or near default	301	12	3	310	1.8	%	135	4	3	136	0.8	%
Total		16,079	1,462	65	17,476	100.0	%	16,171	1,233	109	17,295	100.0	%

(1) Excludes investments of securities brokerage operations (including our equity investment in Wachovia Securities, LLC in the current period), securities trading operations, banking operations, assets of our asset management operations managed for third parties, and separate account assets for which the customer assumes risks of ownership.

(2) Other long-term investments consist of real estate and non-real estate related investments in joint ventures (other than our investment in Wachovia Securities, LLC) and partnerships, investment real estate held through direct ownership, our interest in separate account investments and other miscellaneous investments.

(3) Includes invested assets of securities brokerage operations (including our equity investment in Wachovia Securities, LLC in the current period) securities trading operations, and banking operations. Excludes assets of our asset management operations managed for third parties, and separate account assets for which the customer assumes risks of ownership.

(4) Reflects equivalent ratings for investments of international insurance operations that are not rated by United States insurance regulatory authorities. Includes, as of September 30, 2003 and December 31, 2002, respectively, 400 securities with amortized cost of $3,150 million (fair value $3,220 million) and 345 securities with amortized cost of $2,683 million (fair value, $2,727 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 31

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)

	September 30, 2003			December 31, 2002
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	26,408	74.6	%	25,288	73.2	%
Public, held to maturity, at amortized cost	2,898	8.2	%	2,563	7.4	%
Private, available for sale, at fair value	254	0.7	%	387	1.1	%
Private, held to maturity, at amortized cost	56	0.2	%	46	0.1	%
Trading account assets, at fair value	83	0.2	%	75	0.2	%
Equity securities, available for sale, at fair value	891	2.5	%	901	2.6	%
Commercial loans	2,814	8.0	%	3,158	9.1	%
Policy loans	798	2.3	%	685	2.0	%
Cash collateral for borrowed securities	—	0.0	%	318	1.0	%
Other long-term investments (2)	1,133	3.2	%	1,125	3.3	%
Short-term investments	21	0.1	%	6	0.0	%
Total	35,356	100.0	%	34,552	100.0	%
	September 30, 2003			December 31, 2002
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities:
Public, available for sale, at fair value	40,894	54.2	%	36,687	52.1	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	17,166	22.8	%	16,861	24.0	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets, at fair value	126	0.2	%	21	0.0	%
Equity securities, available for sale, at fair value	197	0.3	%	366	0.5	%
Commercial loans	8,557	11.4	%	8,448	12.0	%
Policy loans	1,934	2.6	%	2,461	3.5	%
Cash collateral for borrowed securities	—	0.0	%	5	0.0	%
Other long-term investments (2)	2,644	3.5	%	2,751	3.9	%
Short-term investments	3,737	5.0	%	2,835	4.0	%
Total	75,255	100.0	%	70,435	100.0	%

(1) Excludes investments of securities brokerage operations (including our equity investment in Wachovia Securities, LLC in the current period), securities trading operations, banking operations, assets of our asset management operations managed for third parties, and separate account assets for which the customer assumes risks of ownership.

(2) Other long-term investments consist of real estate and non-real estate related investments in joint ventures (other than our investment in Wachovia Securities, LLC) and partnerships, investment real estate held through direct ownership, our interest in separate account investments and other miscellaneous investments.

Page 32

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)

	Quarter Ended September 30
	2003						2002
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1):
Fixed maturities	4.68	%	933		25		5.01	%	901		(120	)
Equity securities	1.98	%	5		17		4.14	%	20		(12	)
Commercial loans	6.95	%	196		29		7.00	%	209		16
Policy loans	4.67	%	33		—		5.89	%	44		—
Short-term investments and cash equivalents	1.87	%	31		2		2.22	%	46		2
Other investments	8.21	%	74		(110	)	7.77	%	84		(5	)
Gross investment income before investment expenses	4.95	%	1,272		(37	)	5.21	%	1,304		(119	)
Investment expenses	-0.13	%	(51	)	—		-0.17	%	(64	)	—
Subtotal	4.82	%	1,221		(37	)	5.04	%	1,240		(119	)
Investment results of other entities and operations (2)			45		—				64		—
Less, investment income relating to divested businesses			(31	)					(31	)
Total			1,235		(37	)			1,273		(119	)
	Nine Months Ended September 30
	2003						2002
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1):
Fixed maturities	4.85	%	2,800		(38	)	5.25	%	2,696		(314	)
Equity securities	1.50	%	12		(79	)	2.50	%	33		(65	)
Commercial loans	7.06	%	591		47		7.47	%	676		34
Policy loans	5.39	%	117		—		5.78	%	124		—
Short-term investments and cash equivalents	1.78	%	84		2		2.02	%	163		10
Other investments	8.49	%	262		(69	)	5.92	%	206		(168	)
Gross investment income before investment expenses	5.11	%	3,866		(137	)	5.25	%	3,898		(503	)
Investment expenses	-0.17	%	(181	)	—		-0.17	%	(182	)	—
Subtotal	4.94	%	3,685		(137	)	5.08	%	3,716		(503	)
Investment results of other entities and operations (2)			136		—				173		—
Less, investment income relating to divested businesses			(97	)					(113	)
Total			3,724		(137	)			3,776		(503	)

(1) Excludes investments of securities brokerage operations (including our equity investment in Wachovia Securities, LLC in the current period), securities trading operations, assets of our asset management operations managed for third parties, and separate account assets for which the customer assumes risks of ownership.

(2) Investment income of securities brokerage and securities trading operations.

(3) Yields are annualized, for interim periods, and 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 securities lending activity are calculated net of corresponding liabilities and rebate expenses. Yields for periods prior to the fourth quarter of 2002 are presented on a basis consistent with our current reporting practices, including reclassification of investment income among certain investment categories.

Page 33

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)

	Quarter Ended September 30
	2003						2002
	Investment Income				Realized Gains / (Losses) (2)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	1.79	%	128		3		1.75	%	116		(4	)
Equity securities	1.72	%	4		—		1.43	%	4		(42	)
Commercial loans	5.26	%	37		2		4.56	%	40		4
Policy loans	3.13	%	6		—		2.80	%	5		—
Short-term investments and cash equivalents	6.07	%	—		1		0.22	%	1		2
Other investments	6.36	%	22		8		5.79	%	18		13
Gross investment income before investment expenses	2.30	%	197		14		2.19	%	184		(27	)
Investment expenses	-0.22	%	(19	)	—		-0.17	%	(15	)	—
Total	2.08	%	178		14		2.02	%	169		(27	)
	Nine Months Ended September 30
	2003						2002
	Investment Income				Realized Gains / (Losses) (2)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	1.77	%	371		12		1.59	%	290		(8	)
Equity securities	1.18	%	8		(96	)	0.90	%	7		(115	)
Commercial loans	4.97	%	110		22		4.56	%	126		18
Policy loans	2.96	%	16		—		2.72	%	13		—
Short-term investments and cash equivalents	1.47	%	1		1		0.51	%	6		10
Other investments	6.69	%	68		—		6.29	%	53		(41	)
Gross investment income before investment expenses	2.26	%	574		(61	)	2.05	%	495		(136	)
Investment expenses	-0.25	%	(63	)	—		-0.14	%	(32	)	—
Total	2.01	%	511		(61	)	1.91	%	463		(136	)

(1) Yields are annualized, for interim periods, and 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 securities lending activity are calculated net of corresponding liabilities and rebate expenses. Yields for periods prior to the fourth quarter of 2002 are presented on a basis consistent with our current reporting practices, including reclassification of investment income among certain investment categories.

(2) Realized gains/(losses) for 2003 reflect the reclassification of certain market value changes of hedging instruments between Japanese Insurance Operations and Financial Services Businesses excluding Japanese Insurance Operations, to conform to current presentation.

Page 34

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)

	Quarter Ended September 30
	2003						2002
	Investment Income				Realized Gains / (Losses) (3)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount				Yield (2)		Amount
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	6.32	%	805		22		6.94	%	785		(116	)
Equity securities	3.78	%	1		17		7.81	%	16		30
Commercial loans	7.52	%	159		27		8.00	%	169		12
Policy loans	5.23	%	27		—		6.75	%	39		—
Short-term investments and cash equivalents	1.83	%	31		1		2.36	%	45		—
Other investments	9.11	%	52		(118	)	8.69	%	66		(18	)
Gross investment income before investment expenses	6.31	%	1,075		(51	)	6.79	%	1,120		(92	)
Investment expenses	-0.09	%	(32	)	—		-0.18	%	(49	)	—
Total	6.22	%	1,043		(51	)	6.61	%	1,071		(92	)
	Nine Months Ended September 30
	2003						2002
	Investment Income				Realized Gains / (Losses) (3)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount				Yield (2)		Amount
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	6.63	%	2,429		(50	)	7.29	%	2,406		(306	)
Equity securities	2.85	%	4		17		5.04	%	26		50
Commercial loans	7.81	%	481		25		8.74	%	550		16
Policy loans	6.21	%	101		—		6.63	%	111		—
Short-term investments and cash equivalents	1.79	%	83		1		2.35	%	157		—
Other investments	9.36	%	194		(69	)	5.78	%	153		(127	)
Gross investment income before investment expenses	6.59	%	3,292		(76	)	6.85	%	3,403		(367	)
Investment expenses	-0.14	%	(118	)	—		-0.18	%	(150	)	—
Total	6.45	%	3,174		(76	)	6.67	%	3,253		(367	)

(1) Excludes investments of securities brokerage operations (including our equity investment in Wachovia Securities, LLC in the current period), securities trading operations, assets of our asset management operations managed for third parties, and separate account assets for which the customer assumes risks of ownership.

(2) Yields are annualized, for interim periods, and 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 securities lending activity are calculated net of corresponding liabilities and rebate expenses. Yields for periods prior to the fourth quarter of 2002 are presented on a basis consistent with our current reporting practices, including reclassification of investment income among certain investment categories.

(3) Realized gains/(losses) for 2003 reflect the reclassification of certain market value changes of hedging instruments between Japanese Insurance Operations and Financial Services Businesses excluding Japanese Insurance Operations, to conform to current presentation.

Page 35

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)

Year ended December 31					2002								2003
2000		2001			1Q		2Q		3Q		4Q		1Q		2Q
				Revenues (1):
4,227		6,343		Premiums	1,785		1,815		1,870		1,991		2,015		1,983
1,639		1,803		Policy charges and fee income	434		412		400		407		416		451
4,941		5,003		Net investment income	1,197		1,306		1,273		1,247		1,246		1,243
4,990		4,239		Commissions, investment management fees, and other income	1,074		1,029		993		973		897		1,064
15,797		17,388		Total revenues	4,490		4,562		4,536		4,618		4,574		4,741
				Benefits and Expenses (1):
5,058		6,925		Insurance and annuity benefits	1,838		1,912		1,913		2,130		2,107		1,983
1,618		1,670		Interest credited to policyholders’ account balances	414		415		434		444		418		421
448		326		Interest expense	48		43		43		36		37		37
(821	)	(935	)	Deferral of acquisition costs	(242	)	(263	)	(275	)	(284	)	(285	)	(320	)
469		538		Amortization of acquisition costs	139		179		263		158		160		142
7,576		7,706		General and administrative expenses	1,792		1,813		1,731		1,787		1,705		1,949
14,348		16,230		Total benefits and expenses	3,989		4,099		4,109		4,271		4,142		4,212
1,449		1,158		Adjusted operating income before income taxes	501		463		427		347		432		529
				Items excluded from adjusted operating income before income taxes:
(378	)	(165	)	Realized investment gains (losses), net, and related adjustments	(100	)	(341	)	(142	)	(290	)	(114	)	9
(29	)	26		Related charges	5		(4	)	(1	)	6		1		(20	)
(407	)	(139	)	Total realized investment losses, net, and related charges and adjustments	(95	)	(345	)	(143	)	(284	)	(113	)	(11	)
—		—		Sales practices remedies and costs	—		—		—		(20	)	—		—
(426	)	23		Divested businesses	18		31		(13	)	(59	)	3		(402	)
(143	)	(588	)	Demutualization costs and expenses	—		—		—		—		—		—
(976	)	(704	)	Total items excluded from adjusted operating income before income taxes	(77	)	(314	)	(156	)	(363	)	(110	)	(413	)
473		454		Income (loss) from continuing operations before income taxes	424		149		271		(16	)	322		116
272		120		Income tax expense (benefit)	158		51		(107	)	(21	)	104		3
201		334		Income from continuing operations, after-tax	266		98		378		5		218		113

(1) Revenues exclude realized investment gains, net of losses and related adjustments, and revenues of divested businesses and discontinued operations. Benefits and expenses exclude charges related to realized investment gains, net of losses, sales practices remedies and costs, and benefits and expenses of divested businesses, discontinued operations and demutualization costs and expenses.

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Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)

Year ended December 31				2002								2003
2000	2001			1Q		2Q		3Q		4Q		1Q		2Q
			Revenues (1):
71	20		Premiums	8		21		10		38		14		8
78	80		Policy charges and fee income	19		19		15		18		18		19
2,627	2,460		Net investment income	559		597		563		563		552		549
4,689	4,008		Commissions, investment management fees, and other income	966		956		890		863		814		906
7,465	6,568		Total revenues	1,552		1,593		1,478		1,482		1,398		1,482
			Benefits and Expenses (1):
930	913		Insurance and annuity benefits	197		231		220		232		210		204
1,024	977		Interest credited to policyholders’ account balances	243		238		247		250		236		233
52	32		Interest expense	3		5		4		2		4		4
(92)	(60	)	Deferral of acquisition costs	(14	)	(14	)	(8	)	(8	)	(7	)	(8	)
101	86		Amortization of acquisition costs	21		27		21		23		19		17
4,664	4,454		General and administrative expenses	998		1,014		943		948		863		955
6,679	6,402		Total benefits and expenses	1,448		1,501		1,427		1,447		1,325		1,405
786	166		Adjusted operating income before income taxes	104		92		51		35		73		77

(1) Revenues exclude realized investment gains, net of losses and related adjustments, and revenues of divested businesses and discontinued operations. Benefits and expenses exclude charges related to realized investment gains, net of losses, sales practices remedies and costs, and benefits and expenses of divested businesses and discontinued operations.

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Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - FINANCIAL ADVISORY SEGMENT

(in millions)

Year ended December 31				2002							2003
2000	2001			1Q	2Q		3Q		4Q		1Q		2Q
			Revenues (1):
—	—		Premiums	—	—		—		—		—		—
—	—		Policy charges and fee income	—	—		—		—		—		—
262	225		Net investment income	42	42		31		33		27		26
3,046	2,487		Commissions, investment management fees, and other income	600	597		555		521		489		553
3,308	2,712		Total revenues	642	639		586		554		516		579
			Benefits and Expenses (1):
—	—		Insurance and annuity benefits	—	—		—		—		—		—
—	—		Interest credited to policyholders’ account balances	—	—		—		—		—		—
—	—		Interest expense	—	—		—		—		—		—
—	—		Deferral of acquisition costs	—	—		—		—		—		—
—	—		Amortization of acquisition costs	—	—		—		—		—		—
2,956	2,852		General and administrative expenses	635	645		601		583		541		600
2,956	2,852		Total benefits and expenses	635	645		601		583		541		600
352	(140	)	Adjusted operating income before income taxes	7	(6	)	(15	)	(29	)	(25	)	(21	)

(1) Revenues exclude realized investment gains, net of losses and related adjustments, and revenues of divested businesses and discontinued operations. Benefits and expenses exclude charges related to realized investment gains, net of losses, sales practices remedies and costs, and benefits and expenses of divested businesses and discontinued operations.

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Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)

Year ended December 31				2002								2003
2000	2001			1Q		2Q		3Q		4Q		1Q		2Q
			Revenues (1):
15	41		Premiums	2		(2	)	(3	)	—		(6	)	(6	)
(10)	(7	)	Policy charges and fee income	—		(6	)	(3	)	(10	)	(3	)	(4	)
823	682		Net investment income	139		180		156		136		142		124
(313)	(306	)	Commissions, investment management fees, and other income	(47	)	(79	)	(23	)	(23	)	(46	)	(13	)
515	410		Total revenues	94		93		127		103		87		101
			Benefits and Expenses (1):
27	39		Insurance and annuity benefits	27		31		—		43		35		23
(3)	1		Interest credited to policyholders’ account balances	—		—		—		—		—		—
385	289		Interest expense	45		39		41		35		34		33
105	82		Deferral of acquisition costs	19		21		12		10		11		12
(84)	(82	)	Amortization of acquisition costs	(20	)	(25	)	(21	)	(19	)	(18	)	(15	)
113	106		General and administrative expenses	13		(12	)	(17	)	35		7		49
543	435		Total benefits and expenses	84		54		15		104		69		102
(28)	(25	)	Adjusted operating income before income taxes	10		39		112		(1	)	18		(1	)

(1) Revenues exclude realized investment gains, net of losses and related adjustments, and revenues of divested businesses and discontinued operations. Benefits and expenses exclude charges related to realized investment gains, net of losses, sales practices remedies and costs, and benefits and expenses of divested businesses, discontinued operations and demutualization costs and expenses.

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Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

FINANCIAL SERVICES BUSINESSES RECONCILIATION OF ADJUSTED OPERATING INCOME TO INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

(in millions)

Year-to-date					2002				2003
2003		2002			3Q		4Q		1Q		2Q		3Q
				Financial Services Businesses:
474		305		Individual Life and Annuities	46		85		129		178		167
122		103		Group Insurance	30		52		34		58		30
596		408		Insurance Division	76		137		163		236		197
109		112		Investment Management	29		27		36		37		36
(44	)	(14	)	Financial Advisory	(15	)	(29	)	(25	)	(21	)	2
137		108		Retirement	24		33		53		45		39
31		41		Other Asset Management	13		4		9		16		6
233		247		Investment Division	51		35		73		77		83
597		577		International Insurance	186		180		175		207		215
21		(2	)	International Investments	2		(4	)	3		10		8
618		575		International Insurance and Investments Division	188		176		178		217		223
49		161		Corporate and Other	112		(1	)	18		(1	)	32
1,496		1,391		Sub-total	427		347		432		529		535
				Items excluded from adjusted operating income:
				Realized investment gains (losses), net, and related charges and adjustments(1)
(75	)	(195	)	Insurance Division	(84	)	(81	)	(51	)	(10	)	(14	)
28		(192	)	Investment Division	(100	)	(120	)	(32	)	17		43
(82	)	(150	)	International Insurance and Investments Division	(30	)	(23	)	(36	)	(61	)	15
(41	)	(46	)	Corporate and Other	71		(60	)	6		43		(90	)
(170	)	(583	)	Total	(143	)	(284	)	(113	)	(11	)	(46	)
—		—		Sales practices remedies and costs - Corporate and Other	—		(20	)	—		—		—
(419)		36		Divested businesses - Corporate and Other	(13	)	(59	)	3		(402	)	(20	)
(589	)	(547	)	Total items excluded from adjusted operating income	(156	)	(363	)	(110	)	(413	)	(66	)
907		844		Income (loss) from continuing operations before income taxes - Financial Services Businesses	271		(16	)	322		116		469

(1) Realized investment gains (losses), net, and related charges and adjustments for the 2003 periods reflect the reclassification of certain market value changes of hedging instruments between International Insurance and Investments Division and Corporate and Other, to conform to current presentation.

Page 40

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure that excludes realized investment gains, net of losses, and related charges and adjustments; results of divested businesses and discontinued operations and sales practices remedies and costs and the related tax effects thereof. Revenues and benefits and expenses shown as components of adjusted operating income and for the divisions of the Financial Services Businesses, are presented on the same basis as pre-tax adjusted operating income and exclude these items as well. Adjusted operating income should not be viewed as a substitute for net income determined in accordance with GAAP, and our definition of adjusted operating income may differ from that used by other companies. The excluded items 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. 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).

4. 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.

5. 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.

6. Borrowings - General Corporate Purposes:

Amounts used for general corporate purposes include those used for cash flow timing mismatches at Prudential Financial, Prudential Financial ‘s investments in equity and debt securities of subsidiaries, and amounts utilized for regulatory capital purposes.

7. Borrowings - Investment Related:

Debt issued to finance specific investment assets or portfolios of investment assets, including institutional spread lending investment portfolios, real estate, and real estate related investments held in consolidated joint ventures, as well as institutional and insurance company portfolio cash flow timing differences.

8. Borrowings - Securities Business Related:

Debt issued to finance primarily the liquidity of our broker-dealers, and our capital markets and other securities business related operations.

9. Borrowings - Specified Other Businesses:

Borrowings associated with consumer banking activities, the individual annuity business, real estate franchises, and relocation services.

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. For periods prior to July 1, 2003, also includes fair market value of assets in client accounts of Prudential Securities businesses combined into Wachovia Securities, LLC.

Page 41

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

KEY DEFINITIONS AND FORMULAS

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 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 of the Financial Services Businesses reflects these adjustments as well.

13. 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.

14. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

15. 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.

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

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

17. 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.

18. International Life Planners:

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

19. New annualized premiums:

Premiums from new sales that are expected to be collected over a one year period. Group insurance new annualized 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.

20. 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.

Page 42

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

KEY DEFINITIONS AND FORMULAS

21. 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 unrealized gains and losses on investments.

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 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 4.08% for the nine months ended September 30, 2003, 5.12% for the nine months ended September 30, 2002, 5.39% for the three months ended September 30, 2003, 7.50% for the three months ended September 30, 2002, 2.26% for the three months ended June 30, 2003, 4.54% for the three months ended March 31, 2003 and 0.35% for the three months ended December 31, 2002.

22. 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).

23. 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.

24. Prudential Agents:

Insurance agents in our insurance operations in the United States.

25. 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.

26. Ratio of corporate debt to total capitalization:

For purposes of this ratio, we measure “debt” as the sum of borrowings for general corporate purposes, excluding Equity Security Units, and 20% of the stated aggregate liquidation amount of the Equity Security Units, and we measure “total capitalization” as the sum of equity excluding unrealized gains and losses on investments and total corporate debt, including Equity Security Units. The ratio is calculated by dividing debt by total capitalization.

27. Redeemable Capital Securities:

Capital Trust Certificates of Prudential Financial Capital Trust I (element of Equity Security Units).

28. 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.

29. 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 43

Prudential Financial, Inc. Quarterly Financial Supplement Third Quarter 2003

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of November 4, 2003

	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A	A+	A1	AA-
PRUCO Life Insurance Company	A	A+	A1	NR*
PRUCO Life Insurance Company of New Jersey	A	A+	NR	NR
Prudential Property and Casualty Insurance Company	A-	BBB+	A2	NR
The Prudential Property & Casualty Insurance Company of New Jersey	A-	NR	NR	NR
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	A+	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	A	A2	NR
American Skandia Life Assurance Corporation	A-	A	NR	A+
CREDIT RATINGS:
as of November 4, 2003
Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-2	P-2	F1
Long-Term Senior Debt	a-	A-	A3	A
Redeemable Capital Securities	a-	A-	A3	A
The Prudential Insurance Company of America :
Capital and surplus notes	a-	A-	A3	NR
Prudential Funding, LLC:
Commercial Paper	AMB-1	A-1	P-1	NR
Long-Term Senior Debt	a	A+	A2	NR
American Skandia Life Assurance Corporation	NR	A	NR	NR

* NR indicates not rated.

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

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

Equity Security Units of Prudential Financial, Inc. are traded on the New York Stock Exchange under the symbol PFA.

Page 44