Prudential Financial, Inc. 5.62 (PRS) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FOURTH QUARTER 2005

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

i February 8, 2006

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

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	7
Combining Balance Sheets by Division	8
Short-Term and Long-Term Debt	9
INSURANCE DIVISION
Combined Statements of Operations	10
Combining Statements of Operations (Quarter)	11
Combining Statements of Operations	12
Individual Annuities Sales Results, Account Values and Minimum Guarantees	13
Individual Life Sales, Account Value Activity, and Face Amount in Force	14
Individual Annuities 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	20
Supplementary Revenue Information for Asset Management Segment	21
Supplementary Information for Financial Advisory Segment	22
Assets Under Management for Investment Management and Advisory Services operations	23
Mutual Funds and Wrap-fee Products	24
Retirement Sales Results and Account Values	25
INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations	26
Combining Statements of Operations	27
International Insurance Segment—Supplementary Income Statement Information	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 AND SUPPLEMENTAL INFORMATION	36-52
KEY DEFINITIONS AND FORMULAS	53-55
RATINGS AND INVESTOR INFORMATION	56

ii

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

This Quarterly Financial Supplement reflects the following, for all periods presented:

Results for the Company’s Canadian branch operations, previously included in Corporate and Other, have been classified as “divested businesses” as a result of the Company’s decision to exit these operations.

The Retirement segment’s sales results and account value information, historically categorized as “Defined Contribution” and “Guaranteed Products,” are now categorized as “Full Service” and “Institutional Investment Products” to more closely align with product and service categorization for management purposes. Concurrently with this realignment, certain reclassifications have been made within the line item display and a refinement has been introduced to the account values associated with the Company’s acquisition of CIGNA Retirement as of April 1, 2004.

In addition, certain measures have been added or modified to provide more meaningful presentation. Revenues, expenses, assets and liabilities as reported herein also reflect certain reclassifications to conform to current reporting practices.

iii

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date				% Change			2004		2005
2005		2004					4Q		1Q		2Q		3Q		4Q
						Financial Services Businesses:
						Pre-tax adjusted operating income by division:
1,227		991		24	%	Insurance Division	297		255		266		341		365
707		355		99	%	Investment Division	111		304		150		257		(4	)
1,420		1,003		42	%	International Insurance and Investments Division	253		311		347		384		378
198		167		19	%	Corporate and other operations	26		16		58		49		75
3,552		2,516		41	%	Total pre-tax adjusted operating income	687		886		821		1,031		814
1,120		680		65	%	Income taxes, applicable to adjusted operating income	199		285		253		292		290
2,432		1,836		32	%	Financial Services Businesses after-tax adjusted operating income	488		601		568		739		524
						Items excluded from adjusted operating income:
564		24		2250	%	Realized investment gains (losses), net, and related charges and adjustments	(158	)	236		249		80		(1	)
(33	)	(55	)	40	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	16		(132	)	190		(99	)	8
(44	)	1		-4500	%	Change in experience-rated contractholder liabilities due to asset value changes	(39	)	88		(145	)	47		(34	)
(50	)	(33	)	-52	%	Divested businesses	2		(5	)	3		(3	)	(45	)
437		(63	)	794	%	Total items excluded from adjusted operating income, before income taxes	(179	)	187		297		25		(72	)
(412	)	(58	)	-610	%	Income taxes, not applicable to adjusted operating income	(74	)	21		67		(572	)	72
849		(5	)	17080	%	Total items excluded from adjusted operating income, after income taxes	(105	)	166		230		597		(144	)
3,281		1,831		79	%	Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	383		767		798		1,336		380
(62	)	(99	)	37	%	Loss from discontinued operations, net of taxes	(66	)	(1	)	(44	)	(14	)	(3	)
—		21		-100	%	Extraordinary gain on acquisition, net of taxes	—		—		—		—		—
—		(79	)	100	%	Cumulative effect of accounting change, net of taxes	—		—		—		—		—
3,219		1,674		92	%	Net income of Financial Services Businesses	317		766		754		1,322		377
						Earnings per share of Common Stock (diluted):
4.83		3.61				Financial Services Businesses after-tax adjusted operating income	0.96		1.18		1.12		1.46		1.06
						Items excluded from adjusted operating income:
1.08		0.05				Realized investment gains (losses), net, and related charges and adjustments	(0.30	)	0.45		0.47		0.15		—
(0.06	)	(0.10	)			Investment gains (losses) on trading account assets supporting insurance liabilities, net	0.03		(0.25	)	0.37		(0.19	)	0.02
(0.08	)	—				Change in experience-rated contractholder liabilities due to asset value changes	(0.07	)	0.16		(0.28	)	0.09		(0.07	)
(0.10	)	(0.06	)			Divested businesses	—		(0.01	)	0.01		—		(0.09	)
0.84		(0.11	)			Total items excluded from adjusted operating income, before income taxes	(0.34	)	0.35		0.57		0.05		(0.14	)
(0.79	)	(0.11	)			Income taxes, not applicable to adjusted operating income	(0.14	)	0.04		0.13		(1.10	)	0.14
1.63		—				Total items excluded from adjusted operating income, after income taxes	(0.20	)	0.31		0.44		1.15		(0.28	)
6.46		3.61				Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	0.76		1.49		1.56		2.61		0.78
(0.12	)	(0.19	)			Income (loss) from discontinued operations, net of taxes	(0.12	)	—		(0.08	)	(0.02	)	—
—		0.04				Extraordinary gain on acquisition, net of taxes	—		—		—		—		—
—		(0.15	)			Cumulative effect of accounting change, net of taxes	—		—		—		—		—
6.34		3.31				Net income of Financial Services Businesses	0.64		1.49		1.48		2.59		0.78
520.9		531.2				Weighted average number of outstanding Common shares (diluted basis)	527.3		530.0		525.2		518.3		510.2
12.43	%	10.19	%			Operating Return on Average Equity (based on adjusted operating income)	10.54	%	12.60	%	11.71	%	14.67	%	10.54	%
						Reconciliation to Consolidated Net Income of Prudential Financial, Inc:
3,219		1,674				Net income of Financial Services Businesses (above)	317		766		754		1,322		377
321		582				Net income (loss) of Closed Block Business	261		163		129		42		(13	)
3,540		2,256				Consolidated net income	578		929		883		1,364		364
82		84				Direct equity adjustments for earnings per share calculations	20		22		22		19		19

Page 1

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date			2004	2005
2005	2004		4Q	1Q	2Q	3Q	4Q
		Financial Services Businesses Capitalization Data (1):
		Short-term debt	3,896	6,253	5,856	5,572	9,447
		Long-term debt	5,877	5,981	6,984	7,053	6,520
		Attributed Equity:
		Including accumulated other comprehensive income	21,209	21,244	22,375	22,493	21,654
		Excluding unrealized gains and losses on investments	19,561	20,008	20,311	21,025	20,206
		Excluding accumulated other comprehensive income	19,392	19,907	20,292	21,083	20,546
		Total Capitalization:
		Including accumulated other comprehensive income	27,086	27,225	29,359	29,546	28,174
		Excluding unrealized gains and losses on investments	25,438	25,989	27,295	28,078	26,726
		Excluding accumulated other comprehensive income	25,269	25,888	27,276	28,136	27,066
		Book value per share of Common Stock:
		Including accumulated other comprehensive income	39.90	40.35	42.82	43.79	42.70
		Excluding unrealized gains and losses on investments	36.80	38.00	38.87	40.94	39.85
		Excluding accumulated other comprehensive income	36.49	37.81	38.84	41.05	40.52
		Number of diluted shares at end of period	531.5	526.5	522.5	513.6	507.1
		Common Stock Price Range (based on closing price):
77.96	55.09	High	55.09	59.32	66.30	68.30	77.96
52.62	41.05	Low	42.87	52.62	55.23	63.09	63.27
73.19	54.96	Close	54.96	57.40	65.66	67.56	73.19
		Common Stock market capitalization (1)	28,834	29,828	33,707	34,118	36,412

(1) As of end of period.

Page 2

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

OPERATIONS HIGHLIGHTS

Year-to-date			2004	2005
2005	2004		4Q	1Q	2Q	3Q	4Q
		Assets Under Management and Administration ($ billions) (1) (2):
		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Retail customers	66.0	64.8	65.7	70.5	73.5
		Institutional customers	119.2	119.0	125.3	129.8	134.7
		General account	152.7	155.3	157.6	156.3	159.2
		Total Investment Management and Advisory Services	337.9	339.1	348.6	356.6	367.4
		Non-proprietary assets under management	44.8	44.0	46.5	48.0	48.1
		Total managed by Investment Division	382.7	383.1	395.1	404.6	415.5
		Managed by International Insurance and Investments Division	77.7	74.0	74.1	73.0	71.4
		Managed by Insurance Division	39.1	38.6	41.8	44.0	44.6
		Total assets under management	499.5	495.7	511.0	521.6	531.5
		Client assets under administration	82.2	85.3	90.0	96.9	92.5
		Total assets under management and administration	581.7	581.0	601.0	618.5	624.0
		Assets managed or administered for customers outside of the United States at end of period	107.0	104.9	107.0	108.8	100.4
		Distribution Representatives (1):
		Prudential Agents	3,682	3,519	3,340	3,212	2,946
		International Life Planners	5,385	5,555	5,529	5,702	5,694
		Gibraltar Life Advisors	4,970	4,902	4,788	5,349	5,436
46	42	Prudential Agent productivity ($ thousands)	54	37	42	43	61
		Third Party Distribution - Retail Products ($ millions) (3):
207	155	Individual life insurance (4)	48	39	47	55	66
7	11	Corporate-owned life insurance sales	1	1	1	3	2
5,973	4,834	Individual annuities	1,014	1,137	1,640	1,596	1,600
25,539	14,066	Mutual funds and wrap-fee products	4,936	6,261	6,490	6,164	6,624

(1) As of end of period.

(2) At fair market value.

(3) Represents scheduled premiums from new sales on an annualized basis and first year excess premiums and deposits on a cash-received basis for Individual Life Insurance, including corporate-owned life insurance, and gross sales for Individual Annuities, Mutual Funds and Wrap-fee products.

(4) Excludes corporate-owned life insurance sales.

Page 3

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)

Year-to-date				% Change			2004		2005
2005		2004					4Q		1Q		2Q		3Q		4Q
						Revenues (1):
10,052		8,670		16	%	Premiums	2,181		2,503		2,561		2,558		2,430
2,564		2,415		6	%	Policy charges and fee income	633		625		623		678		638
6,810		5,728		19	%	Net investment income	1,544		1,625		1,644		1,731		1,810
3,602		3,065		18	%	Asset management fees, commissions and other income	852		848		851		957		946
23,028		19,878		16	%	Total revenues	5,210		5,601		5,679		5,924		5,824
						Benefits and Expenses (1):
9,943		8,861		12	%	Insurance and annuity benefits	2,197		2,528		2,502		2,487		2,426
2,516		2,220		13	%	Interest credited to policyholders’ account balances	605		605		626		653		632
568		296		92	%	Interest expense	103		111		134		143		180
(1,801	)	(1,528	)	-18	%	Deferral of acquisition costs	(407	)	(422	)	(496	)	(444	)	(439	)
910		766		19	%	Amortization of acquisition costs	172		235		232		271		172
7,340		6,747		9	%	General and administrative expenses	1,853		1,658		1,860		1,783		2,039
19,476		17,362		12	%	Total benefits and expenses	4,523		4,715		4,858		4,893		5,010
3,552		2,516		41	%	Adjusted operating income before income taxes	687		886		821		1,031		814
						Items excluded from adjusted operating income before income taxes:
672		82		720	%	Realized investment gains (losses), net, and related adjustments	(132	)	257		322		90		3
(108	)	(58	)	-86	%	Related charges	(26	)	(21	)	(73	)	(10	)	(4	)
564		24		2250	%	Total realized investment gains (losses), net, and related charges and adjustments	(158	)	236		249		80		(1	)
(33	)	(55	)	40	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	16		(132	)	190		(99	)	8
(44	)	1		-4500	%	Change in experience-rated contractholder liabilities due to asset value changes	(39	)	88		(145	)	47		(34	)
(50	)	(33	)	-52	%	Divested businesses	2		(5	)	3		(3	)	(45	)
437		(63	)	794	%	Total items excluded from adjusted operating income before income taxes	(179	)	187		297		25		(72	)
3,989		2,453		63	%	Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change	508		1,073		1,118		1,056		742
708		622		14	%	Income tax expense (benefit)	125		306		320		(280	)	362
3,281		1,831		79	%	Income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change	383		767		798		1,336		380

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities, and revenues of divested businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; changes in experience-rated contractholder liabilities due to asset value changes, and benefits and expenses of divested businesses.

Page 4

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

COMBINED BALANCE SHEETS - - FINANCIAL SERVICES BUSINESSES

(in millions)

	12/31/2004	3/31/2005	6/30/2005	9/30/2005	12/31/2005
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $97,838; $100,336; $100,778; $99,912; $101,651)	102,265	104,003	106,214	103,811	105,659
Fixed maturities, held to maturity, at amortized cost (fair value $2,765; $3,412; $3,294; $3,172; $3,345)	2,747	3,389	3,245	3,170	3,362
Trading account assets supporting insurance liabilities, at fair value	12,964	13,232	13,737	14,208	13,781
Other trading account assets, at fair value	1,613	1,488	1,410	1,409	1,443
Equity securities, available for sale, at fair value (cost $1,494; $1,638; $1,640; $1,636; $1,651)	1,705	1,865	1,867	1,954	2,043
Commercial loans	18,191	17,360	17,189	17,167	17,177
Policy loans	2,919	2,943	2,935	2,959	2,967
Securities purchased under agreements to resell	127	171	60	146	413
Other long-term investments	4,749	4,540	4,331	4,341	4,495
Short-term investments	3,405	2,992	2,541	2,160	2,565
Total investments	150,685	151,983	153,529	151,325	153,905
Cash and cash equivalents	6,164	6,291	6,055	6,124	5,493
Accrued investment income	1,307	1,375	1,350	1,402	1,358
Reinsurance recoverables	32,790	3,767	3,648	3,673	3,548
Deferred policy acquisition costs	7,624	7,854	7,891	8,131	8,357
Other assets	15,110	15,697	14,466	14,975	15,069
Separate account assets	115,568	142,568	149,256	155,400	157,561
Total assets	329,248	329,535	336,195	341,030	345,291
Liabilities:
Future policy benefits	54,043	53,927	53,928	53,057	52,052
Policyholders’ account balances	70,226	70,569	70,956	71,084	69,798
Reinsurance payables	32,386	3,345	3,203	3,210	3,069
Securities sold under agreements to repurchase	4,657	6,087	5,739	5,682	6,801
Cash collateral for loaned securities	4,248	3,246	3,048	2,995	3,425
Income taxes payable	2,451	2,278	2,602	2,084	2,136
Securities sold but not yet purchased	427	466	144	207	223
Short-term debt	3,896	6,253	5,856	5,572	9,447
Long-term debt	5,877	5,981	6,984	7,053	6,520
Other liabilities	14,260	13,571	12,104	12,193	12,605
Separate account liabilities	115,568	142,568	149,256	155,400	157,561
Total liabilities	308,039	308,291	313,820	318,537	323,637
Attributed Equity:
Accumulated other comprehensive income	1,817	1,337	2,083	1,410	1,108
Other attributed equity	19,392	19,907	20,292	21,083	20,546
Total attributed equity	21,209	21,244	22,375	22,493	21,654
Total liabilities and attributed equity	329,248	329,535	336,195	341,030	345,291

Page 5

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)

	Quarter Ended December 31, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,430		943		70		1,418		(1	)
Policy charges and fee income	638		539		48		60		(9	)
Net investment income	1,810		428		820		371		191
Asset management fees, commissions and other income	946		159		645		151		(9	)
Total revenues	5,824		2,069		1,583		2,000		172
Benefits and Expenses (1):
Insurance and annuity benefits	2,426		1,001		266		1,142		17
Interest credited to policyholders’ account balances	632		175		421		50		(14	)
Interest expense	180		30		45		3		102
Deferral of acquisition costs	(439	)	(196	)	(15	)	(242	)	14
Amortization of acquisition costs	172		112		13		89		(42	)
General and administrative expenses	2,039		582		857		580		20
Total benefits and expenses	5,010		1,704		1,587		1,622		97
Adjusted operating income before income taxes	814		365		(4	)	378		75
	Quarter Ended December 31, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,181		834		11		1,341		(5	)
Policy charges and fee income	633		530		47		61		(5	)
Net investment income	1,544		423		751		233		137
Asset management fees, commissions and other income	852		151		600		108		(7	)
Total revenues	5,210		1,938		1,409		1,743		120
Benefits and Expenses (1):
Insurance and annuity benefits	2,197		924		209		1,037		27
Interest credited to policyholders’ account balances	605		182		388		38		(3	)
Interest expense	103		19		21		3		60
Deferral of acquisition costs	(407	)	(168	)	(19	)	(235	)	15
Amortization of acquisition costs	172		66		9		109		(12	)
General and administrative expenses	1,853		618		690		538		7
Total benefits and expenses	4,523		1,641		1,298		1,490		94
Adjusted operating income before income taxes	687		297		111		253		26

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities, and revenues of divested businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; changes in experience-rated contractholder liabilities due to asset value changes, and benefits and expenses of divested businesses.

Page 6

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)

	Twelve Months Ended December 31, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	10,052		3,728		320		6,022		(18	)
Policy charges and fee income	2,564		2,133		188		264		(21	)
Net investment income	6,810		1,711		3,165		1,324		610
Asset management fees, commissions and other income	3,602		636		2,501		471		(6	)
Total revenues	23,028		8,208		6,174		8,081		565
Benefits and Expenses (1):
Insurance and annuity benefits	9,943		4,042		1,049		4,789		63
Interest credited to policyholders’ account balances	2,516		715		1,633		207		(39	)
Interest expense	568		111		115		22		320
Deferral of acquisition costs	(1,801	)	(797	)	(61	)	(1,003	)	60
Amortization of acquisition costs	910		545		54		390		(79	)
General and administrative expenses	7,340		2,365		2,677		2,256		42
Total benefits and expenses	19,476		6,981		5,467		6,661		367
Adjusted operating income before income taxes	3,552		1,227		707		1,420		198
	Twelve Months Ended December 31, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	8,670		3,347		93		5,237		(7	)
Policy charges and fee income	2,415		2,035		155		240		(15	)
Net investment income	5,728		1,572		2,701		933		522
Asset management fees, commissions and other income	3,065		619		2,058		379		9
Total revenues	19,878		7,573		5,007		6,789		509
Benefits and Expenses (1):
Insurance and annuity benefits	8,861		3,770		862		4,144		85
Interest credited to policyholders’ account balances	2,220		733		1,362		129		(4	)
Interest expense	296		32		48		7		209
Deferral of acquisition costs	(1,528	)	(691	)	(51	)	(849	)	63
Amortization of acquisition costs	766		403		53		365		(55	)
General and administrative expenses	6,747		2,335		2,378		1,990		44
Total benefits and expenses	17,362		6,582		4,652		5,786		342
Adjusted operating income before income taxes	2,516		991		355		1,003		167

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities, and revenues of divested businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; changes in experience-rated contractholder liabilities due to asset value changes, and benefits and expenses of divested businesses.

Page 7

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)

	As of December 31, 2005
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	153,905	31,117	60,941	47,929	13,918
Deferred policy acquisition costs	8,357	4,613	119	3,761	(136	)
Other assets	25,468	3,531	8,524	7,331	6,082
Separate account assets	157,561	77,518	81,204	67	(1,228	)
Total assets	345,291	116,779	150,788	59,088	18,636
Liabilities:
Future policy benefits	52,052	7,255	13,339	30,800	658
Policyholders’ account balances	69,798	19,078	37,901	13,893	(1,074	)
Debt	15,967	1,950	1,623	1,021	11,373
Other liabilities	28,259	4,949	10,707	7,670	4,933
Separate account liabilities	157,561	77,518	81,204	67	(1,228	)
Total liabilities	323,637	110,750	144,774	53,451	14,662
Attributed Equity:
Accumulated other comprehensive income	1,108	293	65	737	13
Other attributed equity	20,546	5,736	5,949	4,900	3,961
Total attributed equity	21,654	6,029	6,014	5,637	3,974
Total liabilities and attributed equity	345,291	116,779	150,788	59,088	18,636
	As of December 31, 2004
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	150,685	31,614	57,708	50,222	11,141
Deferred policy acquisition costs	7,624	4,169	73	3,520	(138	)
Other assets	55,371	3,617	37,457	8,419	5,878
Separate account assets	115,568	69,348	47,301	25	(1,106	)
Total assets	329,248	108,748	142,539	62,186	15,775
Liabilities:
Future policy benefits	54,043	6,597	13,571	33,185	690
Policyholders’ account balances	70,226	18,804	36,490	15,418	(486	)
Debt	9,773	1,161	1,484	407	6,721
Other liabilities	58,429	6,726	37,635	8,717	5,351
Separate account liabilities	115,568	69,348	47,301	25	(1,106	)
Total liabilities	308,039	102,636	136,481	57,752	11,170
Attributed Equity:
Accumulated other comprehensive income	1,817	680	370	754	13
Other attributed equity	19,392	5,432	5,688	3,680	4,592
Total attributed equity	21,209	6,112	6,058	4,434	4,605
Total liabilities and attributed equity	329,248	108,748	142,539	62,186	15,775

Page 8

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

SHORT-TERM AND LONG-TERM DEBT

(in millions)

	As of December 31, 2005				As of December 31, 2004
	Short-term Debt	Long-term Debt	Total Debt		Short-term Debt	Long-term Debt	Total Debt
Financial Services Businesses
Borrowings by use of proceeds:
Capital Debt	353	3,846	4,199		102	3,378	3,480
Investment related	5,442	2,449	7,891		679	1,766	2,445
Securities business related	2,758	107	2,865		2,322	676	2,998
Specified other businesses	893	63	956		792	—	792
Limited recourse and non-recourse borrowing	1	55	56		1	57	58
Total debt - Financial Services Businesses	9,447	6,520	15,967		3,896	5,877	9,773
Ratio of long-term and short-term capital debt to capitalization			17.2	%			15.1	%
Closed Block Business
Investment related	1,667	—	1,667		148	—	148
Limited recourse and non-recourse borrowing	—	1,750	1,750		—	1,750	1,750
Total debt	1,667	1,750	3,417		148	1,750	1,898

	As of December 31, 2005				As of December 31, 2004
	Prudential Financial, Inc.	The Prudential Insurance Co. of America (1)(2)	Other Affiliates	Total	Prudential Financial, Inc.	The Prudential Insurance Co. of America (1)(2)	Other Affiliates	Total
Financial Services Businesses
Borrowings by sources:
Capital Debt	2,902	1,297	—	4,199	2,183	1,297	—	3,480
Investment related	4,173	3,718	—	7,891	1,524	921	—	2,445
Securities business related	1,117	1,173	575	2,865	762	906	1,330	2,998
Specified other businesses	116	692	148	956	105	548	278	792
Limited recourse and non-recourse borrowing	—	—	56	56	—	—	58	58
Total debt - Financial Services Businesses	8,308	6,880	779	15,967	4,574	3,672	1,527	9,773

(1) Includes Prudential Funding, LLC.

(2) Capital debt at Prudential Insurance Co. of America includes $693 million and $692 million of Surplus Notes for December 31, 2005 and December 31, 2004, respectively.

Page 9

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

Year-to-date				% Change			2004		2005
2005		2004					4Q		1Q		2Q		3Q		4Q
						Revenues (1):
3,728		3,347		11	%	Premiums	834		935		938		912		943
2,133		2,035		5	%	Policy charges and fee income	530		512		513		569		539
1,711		1,572		9	%	Net investment income	423		433		421		429		428
636		619		3	%	Asset management fees, commissions and other income	151		136		163		178		159
8,208		7,573		8	%	Total revenues	1,938		2,016		2,035		2,088		2,069
						Benefits and Expenses (1):
4,042		3,770		7	%	Insurance and annuity benefits	924		1,060		1,036		945		1,001
715		733		-2	%	Interest credited to policyholders’ account balances	182		177		183		180		175
111		32		247	%	Interest expense	19		25		25		31		30
(797	)	(691	)	-15	%	Deferral of acquisition costs	(168	)	(165	)	(234	)	(202	)	(196	)
545		403		35	%	Amortization of acquisition costs	66		127		126		180		112
2,365		2,335		1	%	General and administrative expenses	618		537		633		613		582
6,981		6,582		6	%	Total benefits and expenses	1,641		1,761		1,769		1,747		1,704
1,227		991		24	%	Adjusted operating income before income taxes	297		255		266		341		365

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

Page 10

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

	Quarter Ended December 31, 2005
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
							Individual Life		Individual Annuities
Revenues (1):
Premiums	943		126		817		109		17
Policy charges and fee income	539		467		72		277		190
Net investment income	428		281		147		130		151
Asset management fees, commissions and other income	159		145		14		64		81
Total revenues	2,069		1,019		1,050		580		439
Benefits and Expenses (1):
Insurance and annuity benefits	1,001		221		780		175		46
Interest credited to policyholders’ account balances	175		127		48		48		79
Interest expense	30		28		2		18		10
Deferral of acquisition costs	(196	)	(195	)	(1	)	(82	)	(113	)
Amortization of acquisition costs	112		112		—		75		37
General and administrative expenses (2)	582		441		141		204		237
Total benefits and expenses	1,704		734		970		438		296
Adjusted operating income before income taxes	365		285		80		142		143
	Quarter Ended December 31, 2004
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
							Individual Life		Individual Annuities
Revenues (1):
Premiums	834		109		725		93		16
Policy charges and fee income	530		429		101		254		175
Net investment income	423		278		145		123		155
Asset management fees, commissions and other income	151		141		10		65		76
Total revenues	1,938		957		981		535		422
Benefits and Expenses (1):
Insurance and annuity benefits	924		216		708		156		60
Interest credited to policyholders’ account balances	182		131		51		43		88
Interest expense	19		15		4		12		3
Deferral of acquisition costs	(168	)	(162	)	(6	)	(87	)	(75	)
Amortization of acquisition costs	66		65		1		61		4
General and administrative expenses (2)	618		449		169		246		203
Total benefits and expenses	1,641		714		927		431		283
Adjusted operating income before income taxes	297		243		54		104		139

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

(2) General and administrative expenses for Individual Annuities include $5 million for the quarter ended December 31, 2005 and $10 million for the quarter ended December 31, 2004 for the amortization, net of interest, of value of business acquired (VOBA) associated with the May 1, 2003 acquisition of American Skandia.

Page 11

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

	Twelve Months Ended December 31, 2005
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
							Individual Life		Individual Annuities
Revenues (1):
Premiums	3,728		458		3,270		391		67
Policy charges and fee income	2,133		1,842		291		1,095		747
Net investment income	1,711		1,118		593		500		618
Asset management fees, commissions and other income	636		590		46		276		314
Total revenues	8,208		4,008		4,200		2,262		1,746
Benefits and Expenses (1):
Insurance and annuity benefits	4,042		828		3,214		631		197
Interest credited to policyholders’ account balances	715		514		201		177		337
Interest expense	111		96		15		66		30
Deferral of acquisition costs	(797	)	(735	)	(62	)	(314	)	(421	)
Amortization of acquisition costs	545		542		3		369		173
General and administrative expenses (2)	2,365		1,760		605		835		925
Total benefits and expenses	6,981		3,005		3,976		1,764		1,241
Adjusted operating income before income taxes	1,227		1,003		224		498		505
	Twelve Months Ended December 31, 2004
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
							Individual Life		Individual Annuities
Revenues (1):
Premiums	3,347		397		2,950		334		63
Policy charges and fee income	2,035		1,693		342		1,027		666
Net investment income	1,572		1,011		561		421		590
Asset management fees, commissions and other income	619		580		39		291		289
Total revenues	7,573		3,681		3,892		2,073		1,608
`
Benefits and Expenses (1):
Insurance and annuity benefits	3,770		840		2,930		609		231
Interest credited to policyholders’ account balances	733		523		210		165		358
Interest expense	32		24		8		15		9
Deferral of acquisition costs	(691	)	(664	)	(27	)	(311	)	(353	)
Amortization of acquisition costs	403		399		4		274		125
General and administrative expenses (2)	2,335		1,742		593		931		811
Total benefits and expenses	6,582		2,864		3,718		1,683		1,181
Adjusted operating income before income taxes	991		817		174		390		427

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

(2) General and administrative expenses for Individual Annuities include $42 million for the twelve months ended December 31, 2005 and $30 million for the twelve months ended December 31, 2004 for the amortization, net of interest, of value of business acquired (VOBA) associated with the May 1, 2003 acquisition of American Skandia.

Page 12

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INSURANCE DIVISION - INDIVIDUAL ANNUITIES SALES RESULTS, ACCOUNT VALUES AND MINIMUM GUARANTEES

(in millions)

Year-to-date					2004		2005
2005		2004			4Q		1Q		2Q		3Q		4Q
				SALES AND ACCOUNT VALUES:
				Variable Annuities:
47,418		43,949		Beginning total account value	44,474		47,418		46,386		47,402		49,484
7,106		5,806		Sales	1,288		1,433		1,779		1,930		1,964
(5,691	)	(5,224	)	Surrenders and withdrawals	(1,343	)	(1,388	)	(1,470	)	(1,397	)	(1,436	)
1,415		582		Net sales (redemptions)	(55	)	45		309		533		528
(602	)	(613	)	Benefit payments	(155	)	(145	)	(148	)	(151	)	(158	)
813		(31	)	Net flows	(210	)	(100	)	161		382		370
3,223		4,091		Change in market value, interest credited, and other	3,310		(774	)	1,015		1,876		1,106
(676	)	(591	)	Policy charges	(156	)	(158	)	(160	)	(176	)	(182	)
50,778		47,418		Ending total account value	47,418		46,386		47,402		49,484		50,778
				Fixed Annuities:
3,879		3,514		Beginning total account value	3,860		3,879		3,879		4,064		4,033
361		532		Sales	69		52		243		39		27
(231	)	(191	)	Surrenders and withdrawals	(45	)	(56	)	(53	)	(56	)	(66	)
130		341		Net sales (redemptions)	24		(4	)	190		(17	)	(39	)
(160	)	(163	)	Benefit payments	(39	)	(41	)	(43	)	(35	)	(41	)
(30	)	178		Net flows	(15	)	(45	)	147		(52	)	(80	)
147		191		Interest credited and other	35		46		40		22		39
(5	)	(4	)	Policy charges	(1	)	(1	)	(2	)	(1	)	(1	)
3,991		3,879		Ending total account value	3,879		3,879		4,064		4,033		3,991
				SALES BY DISTRIBUTION CHANNEL:
				Variable and Fixed Annuities (1):
1,494		1,504		Prudential Agents	343		348		382		373		391
542		291		Wirehouses (2)	89		94		123		149		176
5,431		4,543		Independent Financial Planners (3)	925		1,043		1,517		1,447		1,424
7,467		6,338		Total	1,357		1,485		2,022		1,969		1,991
				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (4):
				Return of net deposits:
				Account value	25,880		25,453		26,224		27,646		28,290
				Net amount at risk	2,328		2,499		2,346		2,085		1,974
				Minimum return, anniversary contract value, or maximum contract value:
				Account value	15,816		15,454		15,814		16,528		17,022
				Net amount at risk	2,103		2,239		2,183		1,918		1,809
				Variable Annuity Account Values with Living Benefit Features (4):
				Guaranteed minimum accumulation benefits	5,748		5,990		6,368		6,823		7,162
				Guaranteed minimum withdrawal benefits	526		629		700		765		815
				Guaranteed minimum income benefits	2,398		2,567		2,756		2,941		3,052
				Guaranteed minimum withdrawal & income benefits	—		60		869		1,870		2,951
				Total	8,672		9,246		10,693		12,399		13,980

(1) Amounts represent gross sales.

(2) Prior period amounts have been reclassified to conform to current period reporting practices.

(3) Including bank distribution.

(4) At end of period.

Page 13

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INSURANCE DIVISION - INDIVIDUAL LIFE SALES, ACCOUNT VALUE ACTIVITY, AND FACE AMOUNT IN FORCE

(in millions)

Year-to-date					2004		2005
2005		2004			4Q		1Q		2Q		3Q		4Q
				SALES:
				Excluding corporate-owned life insurance:
83		97		Variable life	19		19		18		19		27
214		178		Universal life	59		51		53		54		56
122		116		Term life	28		29		30		30		33
419		391		Total excluding corporate-owned life insurance	106		99		101		103		116
7		14		Corporate-owned life insurance	3		1		1		3		2
426		405		Total	109		100		102		106		118
				SALES BY DISTRIBUTION CHANNEL:
				Excluding corporate-owned life insurance:
212		236		Prudential Agents	58		60		54		48		50
207		155		Third party distribution	48		39		47		55		66
7		14		Corporate-owned life insurance	3		1		1		3		2
426		405		Total	109		100		102		106		118
				ACCOUNT VALUE ACTIVITY:
				Policyholders’ Account Balances (1):
5,284		4,816		Beginning balance	5,094		5,284		5,424		5,532		5,619
1,208		1,132		Premiums and deposits	288		289		343		287		289
(815	)	(664	)	Surrenders and withdrawals	(165	)	(173	)	(214	)	(212	)	(216	)
393		468		Net sales	123		116		129		75		73
(126	)	(96	)	Benefit payments	(24	)	(31	)	(27	)	(29	)	(39	)
267		372		Net flows	99		85		102		46		34
154		106		Interest credited and other	104		56		11		42		45
188		160		Net transfers from separate account	34		45		44		50		49
(199	)	(170	)	Policy charges	(47	)	(46	)	(49	)	(51	)	(53	)
5,694		5,284		Ending balance	5,284		5,424		5,532		5,619		5,694
				Separate Account Liabilities:
15,180		13,981		Beginning balance	14,209		15,180		14,912		15,207		15,808
1,356		1,333		Premiums and deposits	318		310		331		308		407
(653	)	(588	)	Surrenders and withdrawals	(144	)	(141	)	(157	)	(206	)	(149	)
703		745		Net sales	174		169		174		102		258
(18	)	(23	)	Benefit payments	(3	)	(10	)	1		(4	)	(5	)
685		722		Net flows	171		159		175		98		253
1,298		1,447		Change in market value, interest credited and other	1,037		(181	)	364		756		359
(188	)	(160	)	Net transfers to general account	(34	)	(45	)	(44	)	(50	)	(49	)
(805	)	(810	)	Policy charges	(203	)	(201	)	(200	)	(203	)	(201	)
16,170		15,180		Ending balance	15,180		14,912		15,207		15,808		16,170
				FACE AMOUNT IN FORCE (2):
				Variable life	145,749		144,751		144,147		143,186		142,408
				Universal life	14,634		15,720		16,854		17,862		18,835
				Term life	160,789		170,311		181,216		190,913		201,139
				Total	321,172		330,782		342,217		351,961		362,382

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

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

Page 14

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INSURANCE DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)

Year-to-date				2004		2005
2005	2004			4Q		1Q		2Q		3Q		4Q
			INDIVIDUAL ANNUITIES:
			Account Values in General Account (1):
9,613	7,660		Beginning balance	10,026		9,613		9,662		9,782		9,437
649	1,042		Premiums and deposits	182		185		308		87		69
(935)	(810	)	Surrenders and withdrawals	(163	)	(239	)	(244	)	(202	)	(250	)
(286)	232		Net sales (redemptions)	19		(54	)	64		(115	)	(181	)
(303)	(318	)	Benefit payments	(78	)	(82	)	(82	)	(67	)	(72	)
(589)	(86	)	Net flows	(59	)	(136	)	(18	)	(182	)	(253	)
361	335		Interest credited and other	96		90		92		91		88
(146)	1,709		Net transfers (to) from separate account (2)	(449	)	97		48		(252	)	(39	)
(8)	(5	)	Policy charges	(1	)	(2	)	(2	)	(2	)	(2	)
9,231	9,613		Ending balance	9,613		9,662		9,782		9,437		9,231
			Account Values in Separate Account:
41,684	39,803		Beginning balance	38,308		41,684		40,602		41,684		44,080
6,818	5,296		Premiums and deposits	1,175		1,300		1,714		1,882		1,922
(4,988)	(4,605	)	Surrenders and withdrawals	(1,225	)	(1,206	)	(1,279	)	(1,251	)	(1,252	)
1,830	691		Net sales (redemptions)	(50	)	94		435		631		670
(458)	(458	)	Benefit payments	(116	)	(104	)	(109	)	(118	)	(127	)
1,372	233		Net flows	(166	)	(10	)	326		513		543
3,009	3,947		Change in market value, interest credited and other	3,249		(818	)	964		1,806		1,057
146	(1,709	)	Net transfers (to) from general account (2)	449		(97	)	(48	)	252		39
(673)	(590	)	Policy charges	(156	)	(157	)	(160	)	(175	)	(181	)
45,538	41,684		Ending balance	41,684		40,602		41,684		44,080		45,538

(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.

(2) Includes the transfer in classification, as of January 1, 2004, of $2,168 million of assets from separate account to general account, reflecting the adoption of Statement of Position 03-1, “Accounting and Reporting by Insurance Enterprises for Certain Non-Traditional Long-Duration Contracts and for Separate Accounts” (SOP 03-1).

Page 15

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)

Year-to-date				2004		2005
2005	2004			4Q		1Q		2Q		3Q		4Q
			INDIVIDUAL LIFE INSURANCE:
3,151	3,194		Beginning balance	3,012		3,151		3,210		3,162		3,158
314	311		Capitalization	87		74		79		79		82
(369)	(274	)	Amortization - operating results	(61	)	(72	)	(70	)	(152	)	(75	)
—	—		Amortization - realized investment gains and losses	—		—		—		—		—
91	(80	)	Impact of unrealized (gains) or losses on AFS securities	113		57		(57	)	69		22
3,187	3,151		Ending balance	3,151		3,210		3,162		3,158		3,187
			INDIVIDUAL ANNUITIES:
907	636		Beginning balance	837		907		1,012		1,049		1,155
421	353		Capitalization	75		83		117		108		113
(173)	(125	)	Amortization - operating results	(4	)	(54	)	(55	)	(27	)	(37	)
(1)	(2	)	Amortization - realized investment gains and losses	(2	)	(1	)	2		(4	)	2
102	41		Impact of unrealized (gains) or losses on AFS securities	1		77		(27	)	29		23
—	4		Other (1)	—		—		—		—		—
1,256	907		Ending balance	907		1,012		1,049		1,155		1,256
			GROUP INSURANCE:
111	88		Beginning balance	106		111		118		155		169
62	27		Capitalization	6		8		38		15		1
(3)	(4	)	Amortization - operating results	(1	)	(1	)	(1	)	(1	)	—
—	—		Amortization - realized investment gains and losses	—		—		—		—		—
—	—		Impact of unrealized losses on AFS securities	—		—		—		—		—
170	111		Ending balance	111		118		155		169		170
			TOTAL INSURANCE DIVISION:
4,169	3,918		Beginning balance	3,955		4,169		4,340		4,366		4,482
797	691		Capitalization	168		165		234		202		196
(545)	(403	)	Amortization - operating results	(66	)	(127	)	(126	)	(180	)	(112	)
(1)	(2	)	Amortization - realized investment gains and losses	(2	)	(1	)	2		(4	)	2
193	(39	)	Impact of unrealized (gains) or losses on AFS securities	114		134		(84	)	98		45
—	4		Other (1)	—		—		—		—		—
4,613	4,169		Ending balance	4,169		4,340		4,366		4,482		4,613

(1) Reflects the impact of adoption of SOP 03-1 on January 1, 2004.

Page 16

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)

Year-to-date					2004		2005
2005		2004			4Q		1Q		2Q		3Q		4Q
				Individual Life Insurance:
				Policy Surrender Experience:
698		633		Cash value of surrenders	150		155		166		214		163
3.5	%	3.3	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.1	%	3.2	%	3.4	%	4.3	%	3.2	%
				Death benefits per $1,000 of in force (1):
2.97		2.69		Variable and universal life	2.46		3.10		2.88		2.95		3.04
1.12		1.38		Term life	1.67		1.37		1.32		1.27		0.89
2.61		2.52		Total, Individual Life Insurance	2.40		2.74		2.67		2.63		2.63

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

Page 17

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)

Year-to-date					2004		2005
2005		2004			4Q		1Q		2Q		3Q		4Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
370		237		Group life	42		274		30		32		34
154		161		Group disability (1)	18		76		46		15		17
524		398		Total	60		350		76		47		51
				Future Policy Benefits (2):
				Group life	1,881		1,891		1,948		1,924		2,130
				Group disability (1)	302		362		375		395		413
				Total	2,183		2,253		2,323		2,319		2,543
				Policyholders’ Account Balances (2):
				Group life	4,566		4,516		4,462		4,434		4,790
				Group disability (1)	71		74		85		90		98
				Total	4,637		4,590		4,547		4,524		4,888
				Separate Account Liabilities (2):
				Group life	12,483		12,832		15,954		15,983		15,811
				Group disability (1)	—		—		—		—		—
				Total	12,483		12,832		15,954		15,983		15,811
				Group Life Insurance:
3,009		2,686		Gross premiums, policy charges and fee income (3)	762		694		683		668		964
2,822		2,602		Earned premiums, policy charges and fee income	650		714		707		694		707
88.9	%	87.5	%	Benefits ratio	83.7	%	90.1	%	89.7	%	89.5	%	86.4	%
8.9	%	10.9	%	Administrative operating expense ratio	12.1	%	8.9	%	9.7	%	10.3	%	7.3	%
				Persistency ratio	93.9	%	96.8	%	96.4	%	95.6	%	95.2	%
				Group Disability Insurance (1):
781		711		Gross premiums, policy charges and fee income (3)	179		188		210		193		190
739		690		Earned premiums, policy charges and fee income	176		178		195		184		182
95.4	%	94.6	%	Benefits ratio	92.6	%	102.8	%	94.9	%	91.3	%	92.9	%
20.9	%	22.1	%	Administrative operating expense ratio	23.5	%	22.3	%	19.1	%	20.7	%	21.6	%
				Persistency ratio	85.8	%	91.6	%	90.2	%	87.1	%	85.4	%

(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 Fourth Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)

Year-to-date				% Change			2004		2005
2005		2004					4Q		1Q		2Q		3Q		4Q
						Revenues (1):
320		93		244	%	Premiums	11		41		103		106		70
188		155		21	%	Policy charges and fee income	47		46		48		46		48
3,165		2,701		17	%	Net investment income	751		770		765		810		820
2,501		2,058		22	%	Asset management fees, commissions and other income	600		616		592		648		645
6,174		5,007		23	%	Total revenues	1,409		1,473		1,508		1,610		1,583
						Benefits and Expenses (1):
1,049		862		22	%	Insurance and annuity benefits	209		215		272		296		266
1,633		1,362		20	%	Interest credited to policyholders’ account balances	388		384		397		431		421
115		48		140	%	Interest expense	21		22		25		23		45
(61	)	(51	)	-20	%	Deferral of acquisition costs	(19	)	(17	)	(16	)	(13	)	(15	)
54		53		2	%	Amortization of acquisition costs	9		14		14		13		13
2,677		2,378		13	%	General and administrative expenses	690		551		666		603		857
5,467		4,652		18	%	Total benefits and expenses	1,298		1,169		1,358		1,353		1,587
707		355		99	%	Adjusted operating income before income taxes	111		304		150		257		(4	)

(1) Revenues exclude realized investment gains, net of losses and related adjustments and investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

Page 19

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)

	Twelve Months Ended December 31, 2005								Quarter Ended December 31, 2005
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	320		—		—		320		70		—		—		70
Policy charges and fee income	188		—		—		188		48		—		—		48
Net investment income	3,165		105		10		3,050		820		30		3		787
Asset management fees, commissions and other income	2,501		1,591		443		467		645		406		121		118
Total revenues	6,174		1,696		453		4,025		1,583		436		124		1,023
Benefits and Expenses (1):
Insurance and annuity benefits	1,049		—		—		1,049		266		—		—		266
Interest credited to policyholders’ account balances	1,633		—		—		1,633		421		—		—		421
Interest expense	115		16		—		99		45		6		—		39
Deferral of acquisition costs	(61	)	(17	)	—		(44	)	(15	)	(3	)	—		(12	)
Amortization of acquisition costs	54		33		—		21		13		7		—		6
General and administrative expenses	2,677		1,200		708		769		857		317		328		212
Total benefits and expenses	5,467		1,232		708		3,527		1,587		327		328		932
Adjusted operating income before income taxes	707		464		(255	)	498		(4	)	109		(204	)	91
	Twelve Months Ended December 31, 2004								Quarter Ended December 31, 2004
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	93		—		—		93		11		—		—		11
Policy charges and fee income	155		—		—		155		47		—		—		47
Net investment income	2,701		87		2		2,612		751		33		1		717
Asset management fees, commissions and other income	2,058		1,377		316		365		600		385		95		120
Total revenues	5,007		1,464		318		3,225		1,409		418		96		895
Benefits and Expenses (1):
Insurance and annuity benefits	862		—		—		862		209		—		—		209
Interest credited to policyholders’ account balances	1,362		—		—		1,362		388		—		—		388
Interest expense	48		11		—		37		21		3		—		18
Deferral of acquisition costs	(51	)	(19	)	—		(32	)	(19	)	(4	)	—		(15	)
Amortization of acquisition costs	53		43		—		10		9		9		—		— ��
General and administrative expenses	2,378		1,163		563		652		690		320		171		199
Total benefits and expenses	4,652		1,198		563		2,891		1,298		328		171		799
Adjusted operating income before income taxes	355		266		(245	)	334		111		90		(75	)	96

(1) Revenues exclude realized investment gains, net of losses and related adjustments and investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

Page 20

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in millions)

Year-to-date		% Change			2004	2005
2005	2004				4Q	1Q	2Q	3Q	4Q
				Asset Management Segment:
				Analysis of revenues by source:
				Investment Management and Advisory Services:
244	219	11	%	Retail customers	58	58	57	60	69
593	442	34	%	Institutional customers	124	134	149	151	159
257	234	10	%	General account	64	65	65	63	64
1,094	895	22	%	Subtotal	246	257	271	274	292
602	569	6	%	Mutual Fund, managed account and other revenues (1)	172	161	130	167	144
1,696	1,464	16	%	Total Asset Management segment revenues	418	418	401	441	436
				Analysis of asset management fees, commissions and other income by type:
				Investment Management and Advisory Services:
975	812	20	%	Asset-based fees	215	226	247	249	253
82	52	58	%	Transaction-based and other revenues	23	21	19	14	28
1,057	864	22	%	Subtotal	238	247	266	263	281
534	513	4	%	Mutual Fund, managed account and other revenues (1)	147	144	120	145	125
1,591	1,377	16	%	Total	385	391	386	408	406

(1) Represents mutual fund, managed account and other revenues other than asset management fees, which are included in appropriate categories above.

Page 21

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)

Year-to-date					2004		2005
2005		2004			4Q		1Q		2Q		3Q		4Q
				Information pertaining to Wachovia Securities Financial Holdings, LLC:
				Revenues:
252		225		Net investment income	59		56		61		65		70
1,852		2,196		Commissions	526		482		457		464		449
1,842		1,637		Fees	429		443		455		459		485
170		107		Other non-interest revenues	21		29		41		53		47
4,116		4,165		Total revenues	1,035		1,010		1,014		1,041		1,051
				Expenses:
3,529		3,707		Expenses before transition costs	902		871		885		881		892
65		300		Transition costs	78		28		37		—		—
3,594		4,007		Total expenses	980		899		922		881		892
522		158		Income before income taxes	55		111		92		160		159
198		60		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	21		42		35		61		60
(6	)	(2	)	Purchase accounting and related adjustments	3		(3	)	(2	)	(2	)	1
192		58		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	24		39		33		59		61
				Recurring revenue as a percentage of total non-interest revenue (1)	43.9	%	47.1	%	47.6	%	47.7	%	48.2	%
				Total client assets ($ in billions) (2)	652.6		644.7		655.6		683.1		683.6
				Distribution representatives (2):
				Series 7 Financial Advisors	8,017		7,883		7,833		7,941		8,028
				Series 6 Financial Representatives	2,502		2,451		2,456		2,493		2,458
				Customer debit balances ($ in billions) (2)	6.1		5.8		5.7		5.6		5.8
(255	)	(249	)	Prudential Financial, Inc. income (loss) from investment in WachoviaSecurities Financial Holdings, LLC, including 38% interest in results, costsincurred at Prudential level, and purchase accounting adjustments	(83	)	12		(98	)	37		(206	)

(1) Calculated on a YTD annualized basis.

(2) As of end of period.

Page 22

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INVESTMENT DIVISION - ASSETS UNDER MANAGEMENT FOR INVESTMENT MANAGEMENT

AND ADVISORY SERVICES OPERATIONS

(in billions)

	December 31, 2005
	Equity	Fixed Income	Real Estate	Total
Retail customers	52.7	19.2	1.6	73.5
Institutional customers	48.9	68.2	17.6	134.7
General account	3.5	154.6	1.1	159.2
Total	105.1	242.0	20.3	367.4
	December 31, 2004
	Equity	Fixed Income	Real Estate	Total
Retail customers	45.7	19.3	1.0	66.0
Institutional customers	42.4	62.6	14.2	119.2
General account	3.1	148.4	1.2	152.7
Total	91.2	230.3	16.4	337.9

Year-to-date					2004		2005
2005		2004			4Q		1Q		2Q		3Q		4Q
				Institutional Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
84.8		69.3		Beginning assets under management	76.5		84.8		85.7		91.1		95.0
22.9		22.2		Additions to managed portfolio (1)	8.6		3.5		5.0		7.1		7.3
(12.5	)	(12.4	)	Withdrawals	(3.5	)	(2.2	)	(2.1	)	(5.1	)	(3.1	)
6.3		6.1		Change in market value	3.8		(0.6	)	2.7		2.2		2.0
(0.2	)	(0.4	)	Net money market flows	(0.6	)	0.2		(0.2	)	(0.3	)	0.1
101.3		84.8		Ending assets under management	84.8		85.7		91.1		95.0		101.3
33.4		34.4		Other institutional assets under management	34.4		33.3		34.2		34.8		33.4
134.7		119.2		Total assets managed for institutional customers at end of period	119.2		119.0		125.3		129.8		134.7

(1) Additions to managed portfolio include $1.186 billion for the year ended December 31, 2005, including $796 million in the fourth quarter, for assets transferred from the Retirement segment.

Page 23

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INVESTMENT DIVISION - MUTUAL FUNDS AND WRAP-FEE PRODUCTS

(in millions)

Year-to-date					2004		2005
2005		2004			4Q		1Q		2Q		3Q		4Q
				Mutual Funds Assets Under Management:
30,686		46,784		Beginning total mutual funds assets	29,674		30,686		29,894		30,446		31,050
4,572		3,003		Sales (other than money market)	827		874		1,288		1,023		1,387
(6,685	)	(5,762	)	Redemptions (other than money market)	(1,692	)	(1,592	)	(1,582	)	(1,893	)	(1,618	)
2,810		3,085		Reinvestment of distributions and change in market value	2,507		(500	)	1,174		1,691		445
(47	)	(16,424	)	Net money market sales	(630	)	426		(328	)	(217	)	72
31,336		30,686		Ending total mutual funds assets	30,686		29,894		30,446		31,050		31,336
(2,113	)	(2,759	)	Net mutual funds redemptions other than money market	(865	)	(718	)	(294	)	(870	)	(231	)
				Wrap-fee Products Assets Under Administration:
41,254		19,833		Beginning total wrap-fee product assets	36,408		41,254		43,054		46,621		51,752
22,205		12,109		Sales	4,345		5,672		5,623		5,418		5,492
(11,357	)	(7,652	)	Redemptions	(2,766	)	(2,837	)	(2,735	)	(2,608	)	(3,177	)
3,089		3,080		Reinvestment of distributions and change in market value	3,267		(1,035	)	679		2,321		1,124
—		13,884		Other (1)	—		—		—		—		—
55,191		41,254		Ending total wrap-fee product assets	41,254		43,054		46,621		51,752		55,191
10,848		4,457		Net wrap-fee product sales	1,579		2,835		2,888		2,810		2,315
				MUTUAL FUNDS AND WRAP-FEE PRODUCTS GROSS SALES BYDISTRIBUTION CHANNEL
				Mutual funds, excluding wrap-fee products (2):
362		376		Prudential Agents	76		104		93		82		83
4,042		2,526		Third party distributors	727		764		1,041		938		1,299
168		101		Other	24		6		154		3		5
4,572		3,003		Total	827		874		1,288		1,023		1,387
				Wrap-fee products:
708		569		Prudential Agents	136		175		174		192		167
21,497		11,540		Third party distributors (3)	4,209		5,497		5,449		5,226		5,325
22,205		12,109		Total	4,345		5,672		5,623		5,418		5,492

(1) As a result of agreements in connection with the formation of the retail securities brokerage joint venture with Wachovia, the Asset Management segment assumed administrative responsibilities for Wachovia Securities customer assets under wrap-fee and managed account programs.

(2) Other than money market.

(3) Substantially all relates to a contractual arrangement with Wachovia which provides for an essentially fixed annual fee commencing July 1, 2005.

Page 24

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)

Year-to-date					2004		2005
2005		2004			4Q		1Q		2Q		3Q		4Q
				RETIREMENT SALES AND ACCOUNT VALUES
				Full Service:
83,891		32,911		Beginning total account value	80,252		83,891		83,927		85,331		88,337
13,006		11,665		Sales	3,354		3,784		2,667		3,509		3,046
(13,918)		(13,087	)	Withdrawals and benefits	(4,078	)	(3,349	)	(2,837	)	(3,202	)	(4,530	)
5,406		5,592		Change in market value, interest credited and interest income	4,363		(399	)	1,574		2,699		1,532
—		46,810		Acquisition	—		—		—		—		—
88,385		83,891		Ending total account value	83,891		83,927		85,331		88,337		88,385
(912	)	(1,422	)	Net sales (withdrawals)	(724	)	435		(170	)	307		(1,484	)
				Stable value account values included above	31,332		31,575		31,937		31,967		31,266
				Institutional Investment Products (1):
47,680		39,296		Beginning total account value	45,856		47,680		47,698		48,612		48,917
4,065		2,951		Sales	1,514		1,243		1,235		802		785
(5,533	)	(3,860	)	Withdrawals and benefits (2)	(810	)	(1,181	)	(1,222	)	(896	)	(2,234	)
2,319		2,691		Change in market value, interest credited and interest income	992		318		1,128		311		562
(451	)	(640	)	Other (3)	128		(362	)	(227	)	88		50
—		7,242		Acquisition	—		—		—		—		—
48,080		47,680		Ending total account value	47,680		47,698		48,612		48,917		48,080
(1,468	)	(909	)	Net sales (withdrawals)	704		62		13		(94	)	(1,449	)

(1) Account values included in Institutional Investment Products for certain businesses, substantially all of which was written prior to the company’s demutualization, have been redefined for all periods presented, to include additional balance sheet reserves that have been reported in accordance with GAAP relative to these contracts in addition to their base reserves, which was the former measurement basis for purposes of the account value rollforward display.

(2) Withdrawals and benefits include $1.186 billion for the year ended December 31, 2005, including $796 million in the fourth quarter, for assets transferred to the Asset Management segment’s Investment Management and Advisory Services business.

(3) Represents changes in asset balances for externally managed accounts. Includes a $152 million reduction in account value as of January 1, 2004 reflecting the adoption of SOP 03-1.

Page 25

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)

Year-to-date			% Change			2004		2005
2005	2004					4Q		1Q		2Q		3Q		4Q
					Revenues (1):
6,022	5,237		15	%	Premiums	1,341		1,532		1,526		1,546		1,418
264	240		10	%	Policy charges and fee income	61		71		66		67		60
1,324	933		42	%	Net investment income	233		305		315		333		371
471	379		24	%	Asset management fees, commissions and other income	108		118		89		113		151
8,081	6,789		19	%	Total revenues	1,743		2,026		1,996		2,059		2,000
					Benefits and Expenses (1):
4,789	4,144		16	%	Insurance and annuity benefits	1,037		1,237		1,176		1,234		1,142
207	129		60	%	Interest credited to policyholders’ account balances	38		48		55		54		50
22	7		214	%	Interest expense	3		6		6		7		3
(1,003)	(849	)	-18	%	Deferral of acquisition costs	(235	)	(257	)	(261	)	(243	)	(242	)
390	365		7	%	Amortization of acquisition costs	109		107		104		90		89
2,256	1,990		13	%	General and administrative expenses	538		574		569		533		580
6,661	5,786		15	%	Total benefits and expenses	1,490		1,715		1,649		1,675		1,622
1,420	1,003		42	%	Adjusted operating income before income taxes	253		311		347		384		378

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments and investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

Page 26

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)

	Twelve Months Ended December 31, 2005							Quarter Ended December 31, 2005
	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	6,022		3,659		2,363		—	1,418		890		528		—
Policy charges and fee income	264		197		67		—	60		44		16		—
Net investment income	1,324		623		676		25	371		193		171		7
Asset management fees, commissions and other income	471		3		7		461	151		21		6		124
Total revenues	8,081		4,482		3,113		486	2,000		1,148		721		131
Benefits and Expenses (1):
Insurance and annuity benefits	4,789		2,836		1,953		—	1,142		707		435		—
Interest credited to policyholders’ account balances	207		102		105		—	50		23		27		—
Interest expense	22		21		(1	)	2	3		4		—		(1	)
Deferral of acquisition costs	(1,003	)	(738	)	(265	)	—	(242	)	(175	)	(67	)	—
Amortization of acquisition costs	390		296		94		—	89		68		21		—
General and administrative expenses	2,256		1,157		725		374	580		292		194		94
Total benefits and expenses	6,661		3,674		2,611		376	1,622		919		610		93
Adjusted operating income before income taxes	1,420		808		502		110	378		229		111		38
	Twelve Months Ended December 31, 2004							Quarter Ended December 31, 2004
	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	5,237		2,948		2,289		—	1,341		801		540		—
Policy charges and fee income	240		164		76		—	61		44		17		—
Net investment income	933		319		600		14	233		80		150		3
Asset management fees, commissions and other income	379		(27	)	(27	)	433	108		(8	)	(8	)	124
Total revenues	6,789		3,404		2,938		447	1,743		917		699		127
Benefits and Expenses (1):
Insurance and annuity benefits	4,144		2,257		1,887		—	1,037		605		432		—
Interest credited to policyholders’ account balances	129		28		101		—	38		9		29		—
Interest expense	7		12		(7	)	2	3		4		(1	)	—
Deferral of acquisition costs	(849	)	(625	)	(224	)	—	(235	)	(178	)	(57	)	—
Amortization of acquisition costs	365		286		79		—	109		87		22		—
General and administrative expenses	1,990		931		700		359	538		264		181		93
Total benefits and expenses	5,786		2,889		2,536		361	1,490		791		606		93
Adjusted operating income before income taxes	1,003		515		402		86	253		126		93		34

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments and investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

Page 27

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)

Year-to-date					2004		2005
2005		2004			4Q		1Q		2Q		3Q		4Q
				Japanese Yen Basis Results:
				Revenues (1):
¥	351,573	¥	257,669	Japanese insurance operations excluding Gibraltar Life	¥	65,542	¥	90,086	¥	82,958	¥	85,595	¥	92,934
	339,341		322,101	Gibraltar Life		76,114		77,620		85,990		91,603		84,128
	690,914		579,770	Total revenues, Japan, yen basis		141,656		167,706		168,948		177,198		177,062
				Benefits and Expenses (1):
	274,658		207,830	Japanese insurance operations excluding Gibraltar Life		52,623		73,354		65,271		64,755		71,278
	284,124		275,132	Gibraltar Life		65,282		66,152		70,197		76,051		71,724
	558,782		482,962	Total benefits and expenses, Japan, yen basis		117,905		139,506		135,468		140,806		143,002
				Adjusted operating income (2):
	76,915		49,839	Japanese insurance operations excluding Gibraltar Life		12,919		16,732		17,687		20,840		21,656
	55,217		46,969	Gibraltar Life		10,832		11,468		15,793		15,552		12,404
¥	132,132	¥	96,808	Total adjusted operating income, Japan, yen basis	¥	23,751	¥	28,200	¥	33,480	¥	36,392	¥	34,060
				U.S. Dollar adjusted operating income (3):
$	700	$	426	Japanese insurance operations excluding Gibraltar Life	$	111	$	154	$	159	$	190	$	197
	502		402	Gibraltar Life		93		106		144		141		111
	1,202		828	Total adjusted operating income, Japan, U.S. dollar basis		204		260		303		331		308
	108		89	All other countries		15		25		24		27		32
$	1,310	$	917	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	219	$	285	$	327	$	358	$	340

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments and investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

(2) Adjusted operating income on yen basis excludes impact of currency hedging.

(3) U.S. dollar adjusted operating income includes impact of currency hedging.

Page 28

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(dollar amounts in millions unless otherwise noted)

Year-to-date			2004	2005
2005	2004		4Q	1Q	2Q	3Q	4Q
		INTERNATIONAL INSURANCE OPERATING DATA:
		Actual exchange rate basis (1):
		Net premiums, policy charges and fee income:
2,699	2,169	Japan, excluding Gibraltar Life	569	741	670	658	630
2,428	2,365	Gibraltar Life	557	586	634	665	543
1,157	943	All other countries	275	276	287	290	304
6,284	5,477	Total	1,401	1,603	1,591	1,613	1,477
		Annualized new business premiums:
576	451	Japan, excluding Gibraltar Life	127	171	179	117	109
323	277	Gibraltar Life	66	71	96	82	74
280	217	All other countries	67	66	68	64	82
1,179	945	Total	260	308	343	263	265
		Constant exchange rate basis (2):
		Net premiums, policy charges and fee income:
2,696	2,136	Japan, excluding Gibraltar Life	547	707	655	664	670
2,403	2,333	Gibraltar Life	547	555	613	651	584
1,157	1,037	All other countries	289	273	284	292	308
6,256	5,506	Total	1,383	1,535	1,552	1,607	1,562
		Annualized new business premiums:
575	445	Japan, excluding Gibraltar Life	124	167	176	119	113
319	274	Gibraltar Life	65	68	92	82	77
281	239	All other countries	72	65	69	63	84
1,175	958	Total	261	300	337	264	274

(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, 2005.

Page 29

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

	2004		2005
	4Q		1Q		2Q		3Q		4Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	180		185		188		191		194
Gibraltar Life	186		184		181		180		179
All other countries	80		82		85		86		88
Total	446		451		454		457		461
Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	1,696		1,737		1,780		1,808		1,838
Gibraltar Life	4,070		4,025		3,961		3,938		3,699
All other countries	965		1,001		1,036		1,064		1,097
Total	6,731		6,763		6,777		6,810		6,634
International insurance policy persistency:
Excluding Gibraltar Life:
13 months	93.0	%	92.9	%	93.1	%	93.3	%	93.0	%
25 months	86.3	%	86.2	%	86.2	%	86.6	%	87.1	%
Gibraltar Life:
13 months	94.1	%	94.2	%	94.3	%	94.2	%	94.2	%
25 months	84.0	%	85.0	%	85.8	%	86.4	%	87.3	%
Number of Life Planners at end of period (3):
Japan	2,550		2,665		2,603		2,752		2,753
All other countries	2,835		2,890		2,926		2,950		2,941
Total	5,385		5,555		5,529		5,702		5,694

(1) Translated based on exchange rates as of December 31, 2005.

(2) At end of period; direct business only.

(3) Excluding Gibraltar Life Advisors.

Page 30

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

INVESTMENT PORTFOLIO COMPOSITION

(in millions)

	December 31, 2005					December 31, 2004 (1)
	Consolidated Portfolio	Closed Block Business	Financial Services Businesses			Consolidated Portfolio	Closed Block Business	Financial Services Businesses
			Amount	% of Total				Amount	% of Total
Fixed maturities:
Public, available for sale, at fair value	123,679	36,133	87,546	58.6	%	118,400	34,683	83,717	57.1	%
Public, held to maturity, at amortized cost	3,135	—	3,135	2.1	%	2,624	—	2,624	1.8	%
Private, available for sale, at fair value	31,012	13,361	17,651	11.8	%	32,328	14,130	18,198	12.4	%
Private, held to maturity, at amortized cost	227	—	227	0.2	%	123	—	123	0.1	%
Trading account assets supporting insurance liabilities, at fair value	13,781	—	13,781	9.2	%	12,964	—	12,964	8.9	%
Other trading account assets, at fair value	124	—	124	0.1	%	121	—	121	0.1	%
Equity securities, available for sale, at fair value	5,008	2,968	2,040	1.4	%	4,269	2,620	1,649	1.1	%
Commercial loans	23,045	7,264	15,781	10.5	%	24,214	7,297	16,917	11.5	%
Policy loans	8,370	5,403	2,967	2.0	%	8,373	5,454	2,919	2.0	%
Other long-term investments (2)	4,698	973	3,725	2.5	%	5,021	1,047	3,974	2.7	%
Short-term investments	3,850	1,394	2,456	1.6	%	5,236	1,840	3,396	2.3	%
Subtotal (3)	216,929	67,496	149,433	100.0	%	213,673	67,071	146,602	100.0	%
Invested assets of other entities and operations (4)	4,472	—	4,472			4,083	—	4,083
Total investments	221,401	67,496	153,905			217,756	67,071	150,685

	December 31, 2005						December 31, 2004 (1)
	Financial Services Businesses						Financial Services Businesses
Fixed Maturities by Credit Quality (3):	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 (5) Rating Agency Equivalent
1 Aaa, Aa, A	68,533	2,289	304	70,518	77.8	%	63,553	2,500	276	65,777	76.2	%
2 Baa	15,439	747	139	16,047	17.7	%	16,463	980	123	17,320	20.1	%
Subtotal Investment Grade	83,972	3,036	443	86,565	95.5	%	80,016	3,480	399	83,097	96.3	%
3 Ba	2,715	124	43	2,796	3.1	%	2,096	176	72	2,200	2.5	%
4 B	1,109	72	20	1,161	1.3	%	839	93	1	931	1.1	%
5 C and lower	103	6	5	104	0.1	%	85	13	2	96	0.1	%
6 In or near default	28	10	1	37	0.0	%	25	9	—	34	0.0	%
Subtotal Below Investment Grade	3,955	212	69	4,098	4.5	%	3,045	291	75	3,261	3.7	%
Total	87,927	3,248	512	90,663	100.0	%	83,061	3,771	474	86,358	100.0	%
Private Fixed Maturities:
NAIC Rating (5) Rating Agency Equivalent
1 Aaa, Aa, A	5,626	270	27	5,869	32.8	%	4,917	321	19	5,219	28.5	%
2 Baa	9,436	522	62	9,896	55.4	%	9,831	695	25	10,501	57.3	%
Subtotal Investment Grade	15,062	792	89	15,765	88.2	%	14,748	1,016	44	15,720	85.8	%
3 Ba	1,107	44	7	1,144	6.4	%	1,520	102	1	1,621	8.8	%
4 B	507	33	5	535	3.0	%	396	42	3	435	2.4	%
5 C and lower	339	22	2	359	2.0	%	288	32	1	319	1.8	%
6 In or near default	70	8	2	76	0.4	%	224	9	6	227	1.2	%
Subtotal Below Investment Grade	2,023	107	16	2,114	11.8	%	2,428	185	11	2,602	14.2	%
Total	17,085	899	105	17,879	100.0	%	17,176	1,201	55	18,322	100.0	%

(1) Classification for the earlier period presented has been conformed to the current presentation.

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

(3) Excludes (i) assets of our securities brokerage, securities trading, banking operations and real estate and relocation services, (ii) assets of our asset management operations, including assets managed for third parties, and (iii) those assets classified as “separate account assets” on our balance sheet.

(4) Includes assets of our securities brokerage, securities trading, banking and asset management operations and real estate and relocation services. Excludes assets of our asset management operations managed for third parties and those assets classified as “separate account assets” on our balance sheet. Our investment in operating joint ventures, including our investment in Wachovia Securities Financial Holdings, LLC is included in “Other assets”.

(5) Reflects equivalent ratings for investments of international insurance operations that are not rated by United States insurance regulatory authorities. Includes, as of December 31, 2005 and December 31, 2004, respectively, 205 securities with amortized cost of $3,640 million (fair value $3,689 million) and 206 securities with amortized cost of $2,910 million (fair value, $2,972 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 31

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)

	December 31, 2005			December 31, 2004 (1)
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	30,933	70.0	%	33,090	69.8	%
Public, held to maturity, at amortized cost	3,135	7.1	%	2,624	5.5	%
Private, available for sale, at fair value	2,659	6.0	%	2,309	4.9	%
Private, held to maturity, at amortized cost	227	0.5	%	123	0.3	%
Trading account assets supporting insurance liabilities, at fair value	1,022	2.3	%	885	1.9	%
Other trading account assets, at fair value	26	0.1	%	71	0.1	%
Equity securities, available for sale, at fair value	1,732	3.9	%	1,470	3.1	%
Commercial loans	2,278	5.2	%	3,371	7.1	%
Policy loans	943	2.1	%	1,037	2.2	%
Other long-term investments (2)	941	2.1	%	1,375	2.9	%
Short-term investments	326	0.7	%	1,031	2.2	%
Total	44,222	100.0	%	47,386	100.0	%
	December 31, 2005			December 31, 2004 (1)
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (3):
Fixed maturities:
Public, available for sale, at fair value (1)	56,613	53.8	%	50,627	51.0	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value (1)	14,992	14.3	%	15,889	16.0	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	12,759	12.1	%	12,079	12.2	%
Other trading account assets, at fair value	98	0.1	%	50	0.1	%
Equity securities, available for sale, at fair value	308	0.3	%	179	0.2	%
Commercial loans	13,503	12.9	%	13,546	13.6	%
Policy loans	2,024	1.9	%	1,882	1.9	%
Other long-term investments (2)	2,784	2.6	%	2,599	2.6	%
Short-term investments	2,130	2.0	%	2,365	2.4	%
Total	105,211	100.0	%	99,216	100.0	%

(1) Classification for the earlier period presented has been conformed to the current presentation.

(2) Other long-term investments consist of real estate and non-real estate related investments in joint ventures (other than our investments in operating joint ventures, including our equity investment in Wachovia Securities Financial Holdings, LLC) and partnerships, investment real estate held through direct ownership, our interest in separate account investments and other miscellaneous investments. Our investment in operating joint ventures, including our investment in Wachovia Securities Financial Holdings, LLC is included in “Other assets”.

(3) Excludes (i) assets of our securities brokerage, securities trading, banking operations and real estate and relocation services, (ii) assets of our asset management operations, including assets managed for third parties, and (iii) those assets classified as “separate account assets” on our balance sheet.

Page 32

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)

	Quarter Ended December 31
	2005						2004(4)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1):
Fixed maturities	4.70	%	1,225		(86	)	4.43	%	1,030		(3	)
Equity securities	2.37	%	9		94		5.57	%	18		17
Commercial loans	6.59	%	184		(9	)	7.17	%	196		2
Policy loans	4.89	%	36		—		4.63	%	33		—
Short-term investments and cash equivalents	4.22	%	65		—		2.09	%	34		2
Other investments	14.02	%	137		16		8.68	%	84		(132	)
Gross investment income before investment expenses	5.12	%	1,656		15		4.77	%	1,395		(114	)
Investment expenses	-0.24	%	(140	)	—		-0.23	%	(93	)	—
Subtotal	4.88	%	1,516		15		4.54	%	1,302		(114	)
Investment results of other entities and operations (2)			300		13				247		9
Less, investment income relating to divested businesses			(6	)					(5	)
Total			1,810		28				1,544		(105	)
	Twelve Months Ended December 31
	2005						2004(4)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1):
Fixed maturities	4.68	%	4,717		1		4.60	%	3,975		153
Equity securities	3.43	%	53		148		3.57	%	40		110
Commercial loans	6.97	%	773		102		7.35	%	754		—
Policy loans	4.91	%	141		—		4.71	%	125		—
Short-term investments and cash equivalents	2.82	%	202		—		1.61	%	102		1
Other investments	9.23	%	361		360		8.18	%	330		(132	)
Gross investment income before investment expenses	4.96	%	6,247		611		4.86	%	5,326		132
Investment expenses	-0.22	%	(477	)	—		-0.23	%	(312	)	—
Subtotal	4.74	%	5,770		611		4.63	%	5,014		132
Investment results of other entities and operations (2)			1,069		128				735		(49	)
Less, investment income relating to divested businesses			(29	)					(21	)
Total			6,810		739				5,728		83

(1) Excludes assets of our securities brokerage, securities trading, and banking operations, real estate and relocation services, commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders, assets of our asset management operations, including assets managed for third parties, and those assets classified as “separate account assets” on our balance sheet.

(2) Investment income of securities brokerage, securities trading, banking operations, real estate and relocation services, commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders.

(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 exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets of the Financial Services Businesses.

(4) Classification for the earlier period presented has been conformed to the current presentation.

Page 33

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)

	Quarter Ended December 31
	2005						2004 (2)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	2.40	%	222		(57	)	1.78	%	147		(50	)
Equity securities	2.36	%	9		79		2.30	%	7		7
Commercial loans	4.14	%	25		—		4.14	%	27		2
Policy loans	3.44	%	9		—		3.80	%	8		—
Short-term investments and cash equivalents	1.81	%	2		—		1.42	%	1		3
Other investments	38.20	%	74		(29	)	7.32	%	22		(4	)
Gross investment income before investment expenses	3.17	%	341		(7	)	2.16	%	212		(42	)
Investment expenses	-0.21	%	(26	)	—		-0.22	%	(21	)	—
Total	2.96	%	315		(7	)	1.94	%	191		(42	)
	Twelve Months Ended December 31
	2005						2004(2)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	2.31	%	860		(125	)	1.89	%	605		(62	)
Equity securities	3.00	%	42		117		2.26	%	24		40
Commercial loans	4.15	%	115		120		4.27	%	115		22
Policy loans	3.43	%	34		—		3.38	%	28		—
Short-term investments and cash equivalents	0.75	%	5		—		2.49	%	2		1
Other investments	15.10	%	156		51		7.71	%	92		5
Gross investment income before investment expenses	2.75	%	1,212		163		2.29	%	866		6
Investment expenses	-0.20	%	(90	)	—		-0.21	%	(80	)	—
Total	2.55	%	1,122		163		2.08	%	786		6

(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 exclude investment income and assets related to trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets of the Financial Services Businesses.

(2) Classification for the earlier period presented has been conformed to the current presentation.

Page 34

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)

	Quarter Ended December 31
	2005						2004 (3)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount				Yield (2)		Amount
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	6.02	%	1,003		(29	)	5.95	%	883		47
Equity securities	2.50	%	—		15		70.28	%	11		10
Commercial loans	7.27	%	159		(9	)	8.10	%	169		—
Policy loans	5.59	%	27		—		4.97	%	25		—
Short-term investments and cash equivalents	4.58	%	63		—		2.12	%	33		(1	)
Other investments	7.07	%	63		45		9.20	%	62		(128	)
Gross investment income before investment expenses	6.13	%	1,315		22		6.13	%	1,183		(72	)
Investment expenses	-0.25	%	(114	)	—		-0.24	%	(72	)	—
Total	5.88	%	1,201		22		5.89	%	1,111		(72	)
	Twelve Months Ended December 31
	2005						2004 (3)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount				Yield (2)		Amount
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	6.13	%	3,857		126		6.22	%	3,370		215
Equity securities	7.33	%	11		31		23.33	%	16		70
Commercial loans	7.91	%	658		(18	)	8.46	%	639		(22	)
Policy loans	5.67	%	107		—		5.32	%	97		—
Short-term investments and cash equivalents	3.22	%	197		—		1.59	%	100		—
Other investments	6.70	%	205		309		8.33	%	238		(137	)
Gross investment income before investment expenses	6.20	%	5,035		448		6.25	%	4,460		126
Investment expenses	-0.23	%	(387	)	—		-0.23	%	(232	)	—
Total	5.97	%	4,648		448		6.02	%	4,228		126

(1) Excludes assets of our securities brokerage, securities trading and banking operations, real estate and relocation services, commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders, assets of our asset management operations, including assets managed for third parties, and those assets classified as “separate account assets” on our balance sheet.

(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 exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets of the Financial Services Businesses.

(3) Classification for the earlier period presented has been conformed to the current presentation.

Page 35

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)

Year ended December 31 2003			2004								2005
			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
7,794		Premiums	2,167		2,174		2,148		2,181		2,503		2,561		2,558
2,012		Policy charges and fee income	567		598		617		633		625		623		678
4,913		Net investment income	1,245		1,448		1,491		1,544		1,625		1,644		1,731
3,258		Asset management fees, commissions and other income	673		797		743		852		848		851		957
17,977		Total revenues	4,652		5,017		4,999		5,210		5,601		5,679		5,924
		Benefits and Expenses (1):
8,138		Insurance and annuity benefits	2,258		2,197		2,209		2,197		2,528		2,502		2,487
1,718		Interest credited to policyholders’ account balances	434		592		589		605		605		626		653
200		Interest expense	53		57		83		103		111		134		143
(1,270	)	Deferral of acquisition costs	(388	)	(373	)	(360	)	(407	)	(422	)	(496	)	(444	)
533		Amortization of acquisition costs	192		190		212		172		235		232		271
6,688		General and administrative expenses	1,553		1,711		1,630		1,853		1,658		1,860		1,783
16,007		Total benefits and expenses	4,102		4,374		4,363		4,523		4,715		4,858		4,893
1,970		Adjusted operating income before income taxes	550		643		636		687		886		821		1,031
		Items excluded from adjusted operating income before income taxes:
(156	)	Realized investment gains (losses), net, and related adjustments	9		155		50		(132	)	257		322		90
(43	)	Related charges	(8	)	(12	)	(12	)	(26	)	(21	)	(73	)	(10	)
(199	)	Total realized investment gains (losses), net, and related charges and adjustments	1		143		38		(158	)	236		249		80
—		Investment gains (losses) on trading account assets supporting insurance liabilities, net	48		(325	)	206		16		(132	)	190		(99	)
—		Change in experience-rated contractholder liabilities due to asset value changes	(48	)	186		(98	)	(39	)	88		(145	)	47
(158	)	Divested businesses	(16	)	(3	)	(16	)	2		(5	)	3		(3	)
(357	)	Total items excluded from adjusted operating income before income taxes	(15	)	1		130		(179	)	187		297		25
1,613		Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change	535		644		766		508		1,073		1,118		1,056
531		Income tax expense (benefit)	159		134		204		125		306		320		(280	)
1,082		Income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change	376		510		562		383		767		798		1,336

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities, and revenues of divested businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; changes in experience-rated contractholder liabilities due to asset value changes, and benefits and expenses of divested businesses.

Page 36

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

Year ended December 31 2003				2004								2005
				1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):	��
3,175		Premiums		849		827		837		834		935		938		912
1,728		Policy charges and fee income		490		494		521		530		512		513		569
1,446		Net investment income		369		378		402		423		433		421		429
387		Asset management fees, commissions and other income		150		156		162		151		136		163		178
6,736		Total revenues		1,858		1,855		1,922		1,938		2,016		2,035		2,088
		Benefits and Expenses (1):
3,735		Insurance and annuity benefits		972		921		953		924		1,060		1,036		945
663		Interest credited to policyholders’ account balances		180		185		186		182		177		183		180
—		Interest expense		1		2		10		19		25		25		31
(595	)	Deferral of acquisition costs		(182	)	(180	)	(161	)	(168	)	(165	)	(234	)	(202	)
245		Amortization of acquisition costs		108		109		120		66		127		126		180
1,900		General and administrative expenses		568		580		569		618		537		633		613
5,948		Total benefits and expenses		1,647		1,617		1,677		1,641		1,761		1,769		1,747
788		Adjusted operating income before income taxes		211		238		245		297		255		266		341

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

Page 37

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE

(in millions)

Year ended December 31 2003			2004								2005
			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
278		Premiums	81		80		80		93		92		93		97
1,013		Policy charges and fee income	256		254		263		254		261		259		298
408		Net investment income	97		97		104		123		125		119		126
151		Asset management fees, commissions and other income	67		76		83		65		54		77		81
1,850		Total revenues	501		507		530		535		532		548		602
		Benefits and Expenses (1):
704		Insurance and annuity benefits	160		147		146		156		163		160		133
152		Interest credited to policyholders’ account balances	39		41		42		43		42		44		43
(3	)	Interest expense	—		—		3		12		15		15		18
(294	)	Deferral of acquisition costs	(77	)	(75	)	(72	)	(87	)	(74	)	(79	)	(79	)
195		Amortization of acquisition costs	70		68		75		61		72		70		152
739		General and administrative expenses	222		228		235		246		197		219		215
1,493		Total benefits and expenses	414		409		429		431		415		429		482
357		Adjusted operating income before income taxes	87		98		101		104		117		119		120

(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 38

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED SUPPLEMENTAL INFORMATION - INDIVIDUAL LIFE

(in millions)

Year ended December 31 2003			2004								2005
			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		INDIVIDUAL LIFE INSURANCE:
		Policyholders’ Account Balances (1):
4,424		Beginning balance	4,816		4,856		5,027		5,094		5,284		5,424		5,532
993		Premiums and deposits	277		283		284		288		289		343		287
(606	)	Surrenders and withdrawals	(163	)	(168	)	(168	)	(165	)	(173	)	(214	)	(212	)
387		Net sales	114		115		116		123		116		129		75
(88	)	Benefit payments	(25	)	(22	)	(25	)	(24	)	(31	)	(27	)	(29	)
299		Net flows	89		93		91		99		85		102		46
142		Interest credited and other	(48	)	81		(31	)	104		56		11		42
102		Net transfers from separate account	39		37		50		34		45		44		50
(151	)	Policy charges	(40	)	(40	)	(43	)	(47	)	(46	)	(49	)	(51	)
4,816		Ending balance	4,856		5,027		5,094		5,284		5,424		5,532		5,619
		Separate Account Liabilities:
11,412		Beginning balance	13,981		14,246		14,303		14,209		15,180		14,912		15,207
1,434		Premiums and deposits	331		355		329		318		310		331		308
(600	)	Surrenders and withdrawals	(145	)	(140	)	(159	)	(144	)	(141	)	(157	)	(206	)
834		Net sales	186		215		170		174		169		174		102
(22	)	Benefit payments	(8	)	(6	)	(6	)	(3	)	(10	)	1		(4	)
812		Net flows	178		209		164		171		159		175		98
2,678		Change in market value, interest credited and other	328		87		(5	)	1,037		(181	)	364		756
(102	)	Net transfers (to) from general account	(39	)	(37	)	(50	)	(34	)	(45	)	(44	)	(50	)
(819	)	Policy charges	(202	)	(202	)	(203	)	(203	)	(201	)	(200	)	(203	)
13,981		Ending balance	14,246		14,303		14,209		15,180		14,912		15,207		15,808
		FACE AMOUNT IN FORCE (2):
148,056		Variable life	147,601		146,915		145,783		145,749		144,751		144,147		143,186
10,918		Universal life	11,749		12,674		13,517		14,634		15,720		16,854		17,862
127,123		Term life	135,507		144,313		152,501		160,789		170,311		181,216		190,913
286,097		Total	294,857		303,902		311,801		321,172		330,782		342,217		351,961

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

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

Page 39

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INDIVIDUAL ANNUITIES

(in millions)

Year ended December 31 2003			2004								2005
			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
64		Premiums	14		17		16		16		25		12		13
453		Policy charges and fee income	163		164		164		175		177		186		195
453		Net investment income	137		143		155		155		157		153		156
199		Asset management fees, commissions and other income	72		71		70		76		73		76		84
1,169		Total revenues	386		395		405		422		432		427		448
		Benefits and Expenses (1):
234		Insurance and annuity benefits	51		58		62		60		70		58		23
268		Interest credited to policyholders’ account balances	89		90		91		88		84		87		87
1		Interest expense	1		1		4		3		5		6		9
(267	)	Deferral of acquisition costs	(98	)	(97	)	(83	)	(75	)	(83	)	(117	)	(108	)
47		Amortization of acquisition costs	37		40		44		4		54		55		27
624		General and administrative expenses	208		209		191		203		202		237		249
907		Total benefits and expenses	288		301		309		283		332		326		287
262		Adjusted operating income before income taxes	98		94		96		139		100		101		161

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

Page 40

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED SUPPLEMENTAL INFORMATION - INDIVIDUAL ANNUITIES

(in millions)

Year ended December 31 2003		2004				2005
		1Q	2Q	3Q	4Q	1Q	2Q	3Q
	VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (1):
	Return of net deposits:
23,147	Account value	23,973	24,181	24,031	25,880	25,453	26,224	27,646
2,982	Net amount at risk	2,817	2,824	2,900	2,328	2,499	2,346	2,085
	Minimum return, anniversary contract value, or maximum contract value:
14,809	Account value	15,098	15,033	14,878	15,816	15,454	15,814	16,528
2,629	Net amount at risk	2,485	2,510	2,641	2,103	2,239	2,183	1,918
	VARIABLE ANNUITY ACCOUNT VALUES WITH LIVING BENEFIT FEATURES (1):
3,659	Guaranteed minimum accumulation benefits	4,214	4,622	5,010	5,748	5,990	6,368	6,823
33	Guaranteed minimum withdrawal benefits	141	257	372	526	629	700	765
1,072	Guaranteed minimum income benefits	1,391	1,702	1,962	2,398	2,567	2,756	2,941
—	Guaranteed minimum withdrawal & income benefits	—	—	—	—	60	869	1,870
4,764	Total	5,746	6,581	7,344	8,672	9,246	10,693	12,399

(1) At end of period.

Page 41

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)

Year ended December 31 2003			2004								2005
			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
29		Premiums	12		27		43		11		41		103		106
72		Policy charges and fee income	18		47		43		47		46		48		46
2,157		Net investment income	529		707		714		751		770		765		810
2,689		Asset management fees, commissions and other income	471		510		477		600		616		592		648
4,947		Total revenues	1,030		1,291		1,277		1,409		1,473		1,508		1,610
		Benefits and Expenses (1):
791		Insurance and annuity benefits	208		208		237		209		215		272		296
946		Interest credited to policyholders’ account balances	226		376		372		388		384		397		431
33		Interest expense	9		1		17		21		22		25		23
(29	)	Deferral of acquisition costs	(8	)	(14	)	(10	)	(19	)	(17	)	(16	)	(13	)
66		Amortization of acquisition costs	15		14		15		9		14		14		13
2,851		General and administrative expenses	484		634		570		690		551		666		603
4,658		Total benefits and expenses	934		1,219		1,201		1,298		1,169		1,358		1,353
289		Adjusted operating income before income taxes	96		72		76		111		304		150		257

(1) Revenues exclude realized investment gains, net of losses and related adjustments and investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

Page 42

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT

(in millions)

Year ended December 31 2003			2004								2005
			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
—		Premiums	—		—		—		—		—		—		—
—		Policy charges and fee income	—		—		—		—		—		—		—
61		Net investment income	22		23		9		33		27		15		33
1,299		Asset management fees, commissions and other income	325		343		324		385		391		386		408
1,360		Total revenues	347		366		333		418		418		401		441
		Benefits and Expenses:
—		Insurance and annuity benefits	—		—		—		—		—		—		—
—		Interest credited to policyholders’ account balances	—		—		—		—		—		—		—
16		Interest expense	3		2		3		3		3		4		3
(18	)	Deferral of acquisition costs	(6	)	(5	)	(4	)	(4	)	(4	)	(5	)	(5	)
54		Amortization of acquisition costs	12		11		11		9		9		9		8
1,100		General and administrative expenses	280		298		265		320		276		288		319
1,152		Total benefits and expenses	289		306		275		328		284		296		325
208		Adjusted operating income before income taxes	58		60		58		90		134		105		116

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

Page 43

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED SUPPLEMENTAL INFORMATION - ASSET MANAGEMENT SEGMENT

(in millions)

Year ended December 31 2003		2004				2005
		1Q	2Q	3Q	4Q	1Q	2Q	3Q
	Asset Management Segment:
	Analysis of asset management fees, commissions and other income by type:
	Investment Management and Advisory Services:
682	Asset-based fees	186	209	202	215	226	247	249
68	Transaction-based and other revenues	9	12	8	23	21	19	14
750	Subtotal	195	221	210	238	247	266	263
549	Mutual Fund, managed account and other revenues (1)	130	122	114	147	144	120	145
1,299	Total	325	343	324	385	391	386	408

(1) Represents mutual fund, managed account and other revenues other than asset management fees, which are included in appropriate categories above.

Page 44

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - RETIREMENT SEGMENT

(in millions)

Year ended December 31 2003			2004								2005
			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
29		Premiums	12		27		43		11		41		103		106
72		Policy charges and fee income	18		47		43		47		46		48		46
2,043		Net investment income	506		684		705		717		742		747		774
137		Asset management fees, commissions and other income	41		95		109		120		114		114		121
		��
2,281		Total revenues	577		853		900		895		943		1,012		1,047
		Benefits and Expenses (1):
791		Insurance and annuity benefits	208		208		237		209		215		272		296
946		Interest credited to policyholders’ account balances	226		376		372		388		384		397		431
17		Interest expense	2		3		14		18		19		21		20
(11	)	Deferral of acquisition costs	(2	)	(9	)	(6	)	(15	)	(13	)	(11	)	(8	)
12		Amortization of acquisition costs	3		3		4		—		5		5		5
334		General and administrative expenses	88		180		185		199		178		186		193
2,089		Total benefits and expenses	525		761		806		799		788		870		937
192		Adjusted operating income before income taxes	52		92		94		96		155		142		110

(1) Revenues exclude realized investment gains, net of losses and related adjustments and investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-related contractholder liabilities due to asset value changes.

Page 45

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED SUPPLEMENTAL INFORMATION - RETIREMENT SEGMENT

(in millions)

Year ended December 31 2003			2004								2005
			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		RETIREMENT SALES AND ACCOUNT VALUES
		Full Service:
26,107		Beginning total account value	32,911		33,176		80,329		80,252		83,891		83,927		85,331
6,311		Sales	1,198		3,150		3,963		3,354		3,784		2,667		3,509
(3,648	)	Withdrawals and benefits	(1,603	)	(3,459	)	(3,947	)	(4,078	)	(3,349	)	(2,837	)	(3,202	)
4,141		Change in market value, interest credited and interest income	670		652		(93	)	4,363		(399	)	1,574		2,699
—		Acquisition	—		46,810		—		—		—		—		—
32,911		Ending total account value	33,176		80,329		80,252		83,891		83,927		85,331		88,337
2,663		Net sales (withdrawals)	(405	)	(309	)	16		(724	)	435		(170	)	307
13,122		Stable value account values included above	13,112		30,473		31,603		31,332		31,575		31,937		31,967
		Institutional Investment Products (1):
37,554		Beginning total account value	39,296		39,510		45,685		45,856		47,680		47,698		48,612
1,765		Sales	328		706		403		1,514		1,243		1,235		802
(3,387	)	Withdrawals and benefits	(675	)	(1,281	)	(1,094	)	(810	)	(1,181	)	(1,222	)	(896	)
2,991		Change in market value, interest credited and interest income	948		(123	)	874		992		318		1,128		311
373		Other (2)	(387	)	(369	)	(12	)	128		(362	)	(227	)	88
—		Acquisition	—		7,242		—		—		—		—		—
39,296		Ending total account value	39,510		45,685		45,856		47,680		47,698		48,612		48,917
(1,622	)	Net sales (withdrawals)	(347	)	(575	)	(691	)	704		62		13		(94	)

(1) Account values included in Institutional Investment Products for certain businesses, substantially all of which was written prior to the company’s demutualization, have been redefined for all periods presented, to include additional balance sheet reserves that have been reported in accordance with GAAP relative to these contracts in addition to their base reserves, which was the former measurement basis for purposes of the account value rollforward display.

(2) Represents changes in asset balances for externally managed accounts. Includes a $152 million reduction in account value as of January 1, 2004 reflecting the adoption of SOP 03-1.

Page 46

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)

Year ended December 31 2003			2004								2005
			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
4,602		Premiums	1,307		1,317		1,272		1,341		1,532		1,526		1,546
226		Policy charges and fee income	63		61		55		61		71		66		67
778		Net investment income	228		232		240		233		305		315		333
215		Asset management fees, commissions and other income	64		108		99		108		118		89		113
5,821		Total revenues	1,662		1,718		1,666		1,743		2,026		1,996		2,059
		Benefits and Expenses (1):
3,540		Insurance and annuity benefits	1,060		1,053		994		1,037		1,237		1,176		1,234
109		Interest credited to policyholders’ account balances	28		32		31		38		48		55		54
3		Interest expense	1		2		1		3		6		6		7
(695	)	Deferral of acquisition costs	(214	)	(194	)	(206	)	(235	)	(257	)	(261	)	(243	)
284		Amortization of acquisition costs	84		80		92		109		107		104		90
1,771		General and administrative expenses	482		476		494		538		574		569		533
5,012		Total benefits and expenses	1,441		1,449		1,406		1,490		1,715		1,649		1,675
809		Adjusted operating income before income taxes	221		269		260		253		311		347		384

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments and investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

Page 47

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE excluding GIBRALTAR LIFE

(in millions)

Year ended December 31 2003			2004								2005
			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
2,532		Premiums	736		681		730		801		964		911		894
140		Policy charges and fee income	44		38		38		44		53		46		54
233		Net investment income	74		80		85		80		144		140		146
(19	)	Asset management fees, commissions and other income	(10	)	—		(9	)	(8	)	(2	)	(13	)	(3	)
2,886		Total revenues	844		799		844		917		1,159		1,084		1,091
		Benefits and Expenses (1):
1,870		Insurance and annuity benefits	576		531		545		605		770		686		673
13		Interest credited to policyholders’ account balances	6		6		7		9		25		29		25
12		Interest expense	3		3		2		4		6		5		6
(498	)	Deferral of acquisition costs	(159	)	(138	)	(150	)	(178	)	(195	)	(190	)	(178	)
233		Amortization of acquisition costs	69		57		73		87		76		76		76
807		General and administrative expenses	228		211		228		264		298		295		272
2,437		Total benefits and expenses	723		670		705		791		980		901		874
449		Adjusted operating income before income taxes	121		129		139		126		179		183		217

(1) Revenues exclude realized investment gains, net of losses and related adjustments and investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

Page 48

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE - GIBRALTAR LIFE

(in millions)

Year ended December 31 2003			2004								2005
			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
2,070		Premiums	571		636		542		540		568		615		652
86		Policy charges and fee income	19		23		17		17		18		20		13
556		Net investment income	151		148		151		150		156		170		179
(17	)	Asset management fees, commissions and other income	(10	)	(3	)	(6	)	(8	)	(1	)	(1	)	3
2,695		Total revenues	731		804		704		699		741		804		847
		Benefits and Expenses (1):
1,670		Insurance and annuity benefits	484		522		449		432		467		490		561
96		Interest credited to policyholders’ account balances	22		26		24		29		23		26		29
(9	)	Interest expense	(3	)	(1	)	(2	)	(1	)	(1	)	—		—
(197	)	Deferral of acquisition costs	(55	)	(56	)	(56	)	(57	)	(62	)	(71	)	(65	)
51		Amortization of acquisition costs	15		23		19		22		31		28		14
714		General and administrative expenses	174		175		170		181		177		187		167
2,325		Total benefits and expenses	637		689		604		606		635		660		706
370		Adjusted operating income before income taxes	94		115		100		93		106		144		141

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments and investment gains, net of losses on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

Page 49

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED SUPPLEMENTAL INFORMATION - INTERNATIONAL INSURANCE SEGMENT

(Yen and Dollars in millions)

Year ended December 31 2003				2004												2005
				1Q			2Q			3Q			4Q			1Q			2Q			3Q
			Japanese Yen Basis Results:
			Revenues (1):
¥	237,877		Japanese insurance operations excluding Gibraltar Life	¥	66,348		¥	60,940		¥	64,840		¥	65,542		¥	90,086		¥	82,958		¥	85,595
	317,869		Gibraltar Life		79,324			88,624			78,039			76,114			77,620			85,990			91,603
	555,746		Total revenues, Japan, yen basis		145,672			149,564			142,879			141,656			167,706			168,948			177,198
			Benefits and Expenses (1):
	194,063		Japanese insurance operations excluding Gibraltar Life		54,372			49,277			51,557			52,623			73,354			65,271			64,755
	272,163		Gibraltar Life		68,326			75,113			66,411			65,282			66,152			70,197			76,051
	466,226		Total benefits and expenses, Japan, yen basis		122,698			124,390			117,968			117,905			139,506			135,468			140,806
			Actual exchange rate basis (2):
			Net premiums, policy charges and fee income:
	1,906		Japan, excluding Gibraltar Life		570			497			533			569			741			670			658
	2,156		Gibraltar Life		590			659			559			557			586			634			665
	766		All other countries		210			222			235			275			276			287			290
	4,828		Total		1,370			1,378			1,327			1,401			1,603			1,591			1,613
			Constant exchange rate basis (3):
			Net premiums, policy charges and fee income:
	2,006		Japan, excluding Gibraltar Life		555			499			534			547			707			655			664
	2,295		Gibraltar Life		574			654			556			547			555			613			651
	744		All other countries		200			212			221			289			273			284			292
	5,045		Total		1,329			1,365			1,311			1,383			1,535			1,552			1,607
			International insurance policy persistency:
			Gibraltar Life:
	92.5	%	13 months		93.1	%		93.4	%		93.7	%		94.1	%		94.2	%		94.3	%		94.2	%
	79.6	%	25 months		80.7	%		82.1	%		83.0	%		84.0	%		85.0	%		85.8	%		86.4	%

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments and investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

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

(3) Translated based on average exchange rates for the year ended December 31, 2005.

Page 50

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INVESTMENTS SEGMENT

(in millions)

Year ended December 31 2003			2004				2005
			1Q	2Q	3Q	4Q	1Q	2Q	3Q
		Revenues (1):
—		Premiums	—	—	—	—	—	—	—
—		Policy charges and fee income	—	—	—	—	—	—	—
(11	)	Net investment income	3	4	4	3	5	5	8
251		Asset management fees, commissions and other income	84	111	114	124	121	103	113
240		Total revenues	87	115	118	127	126	108	121
		Benefits and Expenses (1):
—		Insurance and annuity benefits	—	—	—	—	—	—	—
—		Interest credited to policyholders’ account balances	—	—	—	—	—	—	—
—		Interest expense	1	—	1	—	1	1	1
—		Deferral of acquisition costs	—	—	—	—	—	—	—
—		Amortization of acquisition costs	—	—	—	—	—	—	—
250		General and administrative expenses	80	90	96	93	99	87	94
250		Total benefits and expenses	81	90	97	93	100	88	95
(10	)	Adjusted operating income before income taxes	6	25	21	34	26	20	26

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

Page 51

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)

Year ended December 31 2003			2004								2005
			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Revenues (1):
(12	)	Premiums	(1	)	3		(4	)	(5	)	(5	)	(6	)	(6	)
(14	)	Policy charges and fee income	(4	)	(4	)	(2	)	(5	)	(4	)	(4	)	(4	)
532		Net investment income	119		131		135		137		117		143		159
(33	)	Asset management fees, commissions and other income	(12	)	23		5		(7	)	(22	)	7		18
473		Total revenues	102		153		134		120		86		140		167
		Benefits and Expenses (1):
72		Insurance and annuity benefits	18		15		25		27		16		18		12
—		Interest credited to policyholders’ account balances	—		(1	)	—		(3	)	(4	)	(9	)	(12	)
164		Interest expense	42		52		55		60		58		78		82
49		Deferral of acquisition costs	16		15		17		15		17		15		14
(62	)	Amortization of acquisition costs	(15	)	(13	)	(15	)	(12	)	(13	)	(12	)	(12	)
166		General and administrative expenses	19		21		(3	)	7		(4	)	(8	)	34
389		Total benefits and expenses	80		89		79		94		70		82		118
84		Adjusted operating income before income taxes	22		64		55		26		16		58		49

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

Page 52

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure that excludes Realized investment gains (losses), net (other than those representing profit or loss of certain of our businesses which primarily originate investments for sale or syndication to unrelated investors, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments), and related charges and adjustments; net investment gains and losses on trading account assets supporting insurance liabilities; change in experience-rated contractholder liabilities due to asset value changes; results of divested businesses and discontinued operations; cumulative effect of accounting change; extraordinary gain on acquisition; and the related tax effects thereof. Revenues and benefits and expenses shown as components of adjusted operating income, are presented on the same basis as pre-tax adjusted operating income and exclude these items as well. Adjusted operating income does not equate to “Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change” as determined in accordance with GAAP but is the measure of profit or loss we use to evaluate segment performance. Adjusted operating income is not a substitute for income determined in accordance with GAAP, and our definition of adjusted operating income may differ from that used by other companies. The 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 - Capital Debt:

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

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.

Page 53

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

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. Full Service:

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

14. Full Service Stable Value:

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

15. General Account:

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

16. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

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

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

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

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

19. Individual Life Insurance Sales:

Scheduled premiums from new sales on an annualized basis and first year excess premiums and deposits on a cash-received basis.

20. 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.

21. International Life Planners:

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

Page 54

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

KEY DEFINITIONS AND FORMULAS

22. 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. Group insurance new annualized premiums include premiums from the takeover of claim liabilities. Single premium business for the company’s international insurance operations is included in annualized new business premiums based on 10% credit.

23. Non-recourse and Limited-recourse Debt:

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

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

Adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average attributed equity for the Financial Services Businesses excluding 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 15.43% for the twelve months ended December 31, 2005, 9.35% for the twelve months ended December 31, 2004, 7.23% for the three months ended December 31, 2005, 7.74% for the three months ended December 31, 2004, 24.16% for the three months ended September 30, 2005, 15.04% for the three months ended June 30, 2005 and 14.87% for the three months ended March 31, 2005.

25. Policy Persistency - Group Insurance:

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

26. Policy Persistency - International Insurance:

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

27. Prudential Agents:

Insurance agents in our insurance operations in the United States.

28. Prudential Agent productivity:

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

29. Ratio of capital debt to total capitalization:

For purposes of this ratio, we measure “debt” as borrowings for capital debt, and we measure “total capitalization” as the sum of equity, excluding unrealized gains and losses on investments, and capital debt.

30. Separate Accounts:

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

31. Wrap-Fee Products:

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

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Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2005

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of February 8, 2006

	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+	AA-	Aa3	AA-
PRUCO Life Insurance Company	A+	AA-	Aa3	AA-
PRUCO Life Insurance Company of New Jersey	A+	AA-	NR*	AA-
American Skandia Life Assurance Corporation	A+	AA-	NR	AA-
Prudential Retirement Insurance and Annuity Company	A+	AA-	Aa3	AA-
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	A+	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA-	A1	NR
CREDIT RATINGS:
as of February 8, 2006
Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-2	P-2	F1
Long-Term Senior Debt	a-	A-	A3	A
Retail Notes	a-	A-	A3	NR
The Prudential Insurance Company of America :
Capital and surplus notes	a	A	A2	A
Prudential Funding, LLC:
Short-Term Debt	AMB-1	A-1+	P-1	F1
Long-Term Senior Debt	a+	AA-	A1	A+
PRICOA Global Funding I
Long-Term Senior Debt	aa-	AA-	Aa3	AA-
*  NR indicates not rated.
INVESTOR INFORMATION:
Corporate Offices:	Investor Information Hotline:
Prudential Financial, Inc. 751 Broad Street Newark, New Jersey 07102	Dial 877-998-ROCK for additional printed information or inquiries.
	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.

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