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

FIRST QUARTER 2006

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

May 3, 2006

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006  

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	6
Combining Balance Sheets by Division	7
Short-Term and Long-Term Debt	8
INSURANCE DIVISION
Combined Statements of Operations	9
Combining Statements of Operations	10
Individual Annuities Sales Results, Account Values and Minimum Guarantees	11
Individual Life Sales, Account Value Activity, and Face Amount in Force	12
Individual Annuities Account Value Activity	13
Deferred Policy Acquisition Costs	14
Supplementary Information for Individual Life Insurance	15
Supplementary Information for Group Insurance	16
INVESTMENT DIVISION
Combined Statements of Operations	17
Combining Statements of Operations	18
Supplementary Revenue Information for Asset Management Segment	19
Assets Under Management for Investment Management and Advisory Services operations	20
Mutual Funds and Wrap-fee Products	21
Supplementary Information for Financial Advisory Segment	22
Retirement Sales Results and Account Values	23
INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations	24
Combining Statements of Operations	25
International Insurance Segment - Supplementary Income Statement Information	26
Sales Results and Supplementary Information	27-28
INVESTMENT PORTFOLIO
Investment Portfolio Composition	29
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations	30
Financial Services Businesses Investment Results	31
Financial Services Businesses Investment Results - Japanese Insurance Operations	32
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations	33
RECLASSIFIED STATEMENTS OF OPERATIONS	34-40
KEY DEFINITIONS AND FORMULAS	41-43
RATINGS AND INVESTOR INFORMATION	44

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

The International Investments segment reflects, for all periods presented, the results of certain initiatives that were formerly reported in Corporate and Other.

In addition, revenues, expenses and liabilities as reported herein reflect certain reclassifications to conform to current reporting practices.

iii

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date				% Change			2005								2006
2006		2005					1Q		2Q		3Q		4Q		1Q
						Financial Services Businesses:
						Pre-tax adjusted operating income by division:
298		255		17	%	Insurance Division	255		266		341		365		298
240		304		-21	%	Investment Division	304		150		257		(4	)	240
382		310		23	%	International Insurance and Investments Division	310		346		383		377		382
26		17		53	%	Corporate and other operations	17		59		50		76		26
946		886		7	%	Total pre-tax adjusted operating income	886		821		1,031		814		946
277		285		-3	%	Income taxes, applicable to adjusted operating income	285		253		292		290		277
669		601		11	%	Financial Services Businesses after-tax adjusted operating income	601		568		739		524		669
						Items excluded from adjusted operating income:
51		236		-78	%	Realized investment gains (losses), net, and related charges and adjustments	236		249		80		(1	)	51
(114	)	(132	)	14	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(132	)	190		(99	)	8		(114	)
66		88		-25	%	Change in experience-rated contractholder liabilities due to asset value changes	88		(145	)	47		(34	)	66
8		(5	)	260	%	Divested businesses	(5	)	3		(3	)	(45	)	8
11		187		-94	%	Total items excluded from adjusted operating income, before income taxes	187		297		25		(72	)	11
2		21		-90	%	Income taxes, not applicable to adjusted operating income	21		67		(572	)	72		2
9		166		-95	%	Total items excluded from adjusted operating income, after income taxes	166		230		597		(144	)	9
678		767		-12	%	Income from continuing operations (after-tax) of Financial Services Businesses	767		798		1,336		380		678
(3	)	(1	)	-200	%	Loss from discontinued operations, net of taxes	(1	)	(44	)	(14	)	(3	)	(3	)
675		766		-12	%	Net income of Financial Services Businesses	766		754		1,322		377		675
						Earnings per share of Common Stock (diluted):
1.36		1.18				Financial Services Businesses after-tax adjusted operating income	1.18		1.12		1.46		1.06		1.36
						Items excluded from adjusted operating income:
0.10		0.45				Realized investment gains (losses), net, and related charges and adjustments	0.45		0.47		0.15		—		0.10
(0.23	)	(0.25	)			Investment gains (losses) on trading account assets supporting insurance liabilities, net	(0.25	)	0.37		(0.19	)	0.02		(0.23	)
0.13		0.16				Change in experience-rated contractholder liabilities due to asset value changes	0.16		(0.28	)	0.09		(0.07	)	0.13
0.02		(0.01	)			Divested businesses	(0.01	)	0.01		—		(0.09	)	0.02
0.02		0.35				Total items excluded from adjusted operating income, before income taxes	0.35		0.57		0.05		(0.14	)	0.02
—		0.04				Income taxes, not applicable to adjusted operating income	0.04		0.13		(1.10	)	0.14		—
0.02		0.31				Total items excluded from adjusted operating income, after income taxes	0.31		0.44		1.15		(0.28	)	0.02
1.38		1.49				Income from continuing operations (after-tax) of Financial Services Businesses	1.49		1.56		2.61		0.78		1.38
—		—				Income (loss) from discontinued operations, net of taxes	—		(0.08	)	(0.02	)	—		—
1.38		1.49				Net income of Financial Services Businesses	1.49		1.48		2.59		0.78		1.38
504.1		530.0				Weighted average number of outstanding Common shares (diluted basis)	530.0		525.2		518.3		510.2		504.1
13.55	%	12.60	%			Operating Return on Average Equity (based on adjusted operating income)	12.60	%	11.71	%	14.67	%	10.54	%	13.55	%
						Reconciliation to Consolidated Net Income of Prudential Financial, Inc:
675		766				Net income of Financial Services Businesses (above)	766		754		1,322		377		675
58		163				Net income (loss) of Closed Block Business	163		129		42		(13	)	58
733		929				Consolidated net income	929		883		1,364		364		733
19		22				Direct equity adjustments for earnings per share calculations	22		22		19		19		19

Page 1

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date			2005				2006
2006	2005		1Q	2Q	3Q	4Q	1Q
		Financial Services Businesses Capitalization Data (1):
		Short-term debt	6,253	5,856	5,572	9,447	9,685
		Long-term debt	5,981	6,984	7,053	6,520	7,284
		Attributed Equity:
		Including accumulated other comprehensive income	21,244	22,375	22,493	21,654	21,229
		Excluding unrealized gains and losses on investments	20,008	20,311	21,025	20,206	20,426
		Excluding accumulated other comprehensive income	19,907	20,292	21,083	20,546	20,717
		Total Capitalization:
		Including accumulated other comprehensive income	27,225	29,359	29,546	28,174	28,513
		Excluding unrealized gains and losses on investments	25,989	27,295	28,078	26,726	27,710
		Excluding accumulated other comprehensive income	25,888	27,276	28,136	27,066	28,001
		Book value per share of Common Stock:
		Including accumulated other comprehensive income	40.35	42.82	43.79	42.70	42.43
		Excluding unrealized gains and losses on investments	38.00	38.87	40.94	39.85	40.83
		Excluding accumulated other comprehensive income	37.81	38.84	41.05	40.52	41.41
		Number of diluted shares at end of period	526.5	522.5	513.6	507.1	500.3
		Common Stock Price Range (based on closing price):
77.48	59.32	High	59.32	66.30	68.30	77.96	77.48
73.19	52.62	Low	52.62	55.23	63.09	63.27	73.19
75.81	57.40	Close	57.40	65.66	67.56	73.19	75.81
		Common Stock market capitalization (1)	29,828	33,707	34,118	36,412	37,288

(1) As of end of period.

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

OPERATIONS HIGHLIGHTS

Year-to-date			2005				2006
2006	2005		1Q	2Q	3Q	4Q	1Q
		Assets Under Management and Administration ($ billions) (1) (2):
		Assets Under Management:
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Retail customers	64.8	65.7	70.5	73.5	75.6
		Institutional customers	119.0	125.3	129.8	134.7	138.7
		General account	155.3	157.6	156.3	159.2	157.8
		Total Investment Management and Advisory Services	339.1	348.6	356.6	367.4	372.1
		Non-proprietary assets under management	44.0	46.5	48.0	48.1	51.3
		Total managed by Investment Division	383.1	395.1	404.6	415.5	423.4
		Managed by International Insurance and Investments Division	74.0	74.1	73.0	71.4	74.5
		Managed by Insurance Division	38.6	41.8	44.0	44.6	49.5
		Total assets under management	495.7	511.0	521.6	531.5	547.4
		Client assets under administration	85.3	90.0	96.9	92.5	100.0
		Total assets under management and administration	581.0	601.0	618.5	624.0	647.4
		Assets managed or administered for customers outside of the United States at end of period	104.9	107.0	108.8	100.4	105.3
		Distribution Representatives (1):
		Prudential Agents	3,519	3,340	3,212	2,946	2,850
		International Life Planners	5,555	5,529	5,702	5,694	5,765
		Gibraltar Life Advisors	4,902	4,788	5,349	5,436	5,716
45	37	Prudential Agent productivity ($ thousands)	37	42	43	61	45
		Third Party Distribution - Retail Products ($ millions) (3):
47	39	Individual life insurance (4)	39	47	55	66	47
—	1	Corporate-owned life insurance sales	1	1	3	2	—
1,752	1,137	Individual annuities	1,137	1,640	1,596	1,600	1,752
8,282	6,261	Mutual funds and wrap-fee products	6,261	6,490	6,164	6,624	8,282

(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.

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)

Year-to-date				% Change			2005								2006
2006		2005					1Q		2Q		3Q		4Q		1Q
						Revenues (1):
2,610		2,503		4	%	Premiums	2,503		2,561		2,558		2,430		2,610
662		617		7	%	Policy charges and fee income	617		615		668		629		662
1,801		1,625		11	%	Net investment income	1,625		1,644		1,731		1,810		1,801
1,054		848		24	%	Asset management fees, commissions and other income	848		852		960		948		1,054
6,127		5,593		10	%	Total revenues	5,593		5,672		5,917		5,817		6,127
						Benefits and Expenses (1):
2,583		2,520		3	%	Insurance and annuity benefits	2,520		2,495		2,480		2,419		2,583
652		605		8	%	Interest credited to policyholders’ account balances	605		626		653		632		652
201		111		81	%	Interest expense	111		134		143		180		201
(501	)	(422	)	-19	%	Deferral of acquisition costs	(422	)	(496	)	(444	)	(439	)	(501	)
240		235		2	%	Amortization of acquisition costs	235		232		271		172		240
2,006		1,658		21	%	General and administrative expenses	1,658		1,860		1,783		2,039		2,006
5,181		4,707		10	%	Total benefits and expenses	4,707		4,851		4,886		5,003		5,181
946		886		7	%	Adjusted operating income before income taxes	886		821		1,031		814		946
						Items excluded from adjusted operating income before income taxes:
51		257		-80	%	Realized investment gains (losses), net, and related adjustments	257		322		90		3		51
—		(21	)	100	%	Related charges	(21	)	(73	)	(10	)	(4	)	—
51		236		-78	%	Total realized investment gains (losses), net, and related charges and adjustments	236		249		80		(1	)	51
(114	)	(132	)	14	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(132	)	190		(99	)	8		(114	)
66		88		-25	%	Change in experience-rated contractholder liabilities due to asset value changes	88		(145	)	47		(34	)	66
8		(5	)	260	%	Divested businesses	(5	)	3		(3	)	(45	)	8
11		187		-94	%	Total items excluded from adjusted operating income before income taxes	187		297		25		(72	)	11
957		1,073		-11	%	Income from continuing operations before income taxes	1,073		1,118		1,056		742		957
279		306		-9	%	Income tax expense (benefit)	306		320		(280	)	362		279
678		767		-12	%	Income from continuing operations	767		798		1,336		380		678

(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.

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)

	3/31/2005	6/30/2005	9/30/2005	12/31/2005	3/31/2006
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $100,336; $100,778; $99,912; $101,651; $102,680)	104,003	106,214	103,811	105,659	104,744
Fixed maturities, held to maturity, at amortized cost (fair value $3,412; $3,294; $3,172; $3,345; $3,507)	3,389	3,245	3,170	3,362	3,537
Trading account assets supporting insurance liabilities, at fair value	13,232	13,737	14,208	13,781	13,877
Other trading account assets, at fair value	1,488	1,410	1,409	1,443	2,358
Equity securities, available for sale, at fair value (cost $1,638; $1,640; $1,636; $1,651; $1,682)	1,865	1,867	1,954	2,043	2,149
Commercial loans	17,360	17,189	17,167	17,177	17,721
Policy loans	2,943	2,935	2,959	2,967	3,094
Securities purchased under agreements to resell	171	60	146	413	103
Other long-term investments	4,540	4,331	4,341	4,495	4,920
Short-term investments	2,992	2,541	2,160	2,565	2,404
Total investments	151,983	153,529	151,325	153,905	154,907
Cash and cash equivalents	6,291	6,055	6,124	5,493	5,915
Accrued investment income	1,375	1,350	1,402	1,358	1,400
Reinsurance recoverables	3,767	3,648	3,673	3,548	3,480
Deferred policy acquisition costs	7,854	7,891	8,131	8,357	8,776
Other assets	15,697	14,466	14,975	15,069	16,279
Separate account assets	142,568	149,256	155,400	157,561	170,134
Total assets	329,535	336,195	341,030	345,291	360,891
Liabilities:
Future policy benefits	53,927	53,886	53,005	51,998	52,909
Policyholders’ account balances	70,569	70,998	71,136	69,852	70,411
Reinsurance payables	3,345	3,203	3,210	3,069	2,994
Securities sold under agreements to repurchase	6,087	5,739	5,682	6,801	7,141
Cash collateral for loaned securities	3,246	3,048	2,995	3,425	3,139
Income taxes payable	2,278	2,602	2,084	2,136	2,500
Securities sold but not yet purchased	466	144	207	223	132
Short-term debt	6,253	5,856	5,572	9,447	9,685
Long-term debt	5,981	6,984	7,053	6,520	7,284
Other liabilities	13,571	12,104	12,193	12,605	13,333
Separate account liabilities	142,568	149,256	155,400	157,561	170,134
Total liabilities	308,291	313,820	318,537	323,637	339,662
Attributed Equity:
Accumulated other comprehensive income	1,337	2,083	1,410	1,108	512
Other attributed equity	19,907	20,292	21,083	20,546	20,717
Total attributed equity	21,244	22,375	22,493	21,654	21,229
Total liabilities and attributed equity	329,535	336,195	341,030	345,291	360,891

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)

	Three Months Ended March 31, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,610		982		92		1,539		(3	)
Policy charges and fee income	662		543		48		76		(5	)
Net investment income	1,801		421		853		330		197
Asset management fees, commissions and other income	1,054		175		741		160		(22	)
Total revenues	6,127		2,121		1,734		2,105		167
Benefits and Expenses (1):
Insurance and annuity benefits	2,583		1,070		269		1,230		14
Interest credited to policyholders’ account balances	652		180		429		57		(14	)
Interest expense	201		30		46		3		122
Deferral of acquisition costs	(501	)	(256	)	(22	)	(256	)	33
Amortization of acquisition costs	240		131		13		116		(20	)
General and administrative expenses	2,006		668		759		573		6
Total benefits and expenses	5,181		1,823		1,494		1,723		141
Adjusted operating income before income taxes	946		298		240		382		26
	Three Months Ended March 31, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,503		935		41		1,532		(5	)
Policy charges and fee income	617		504		46		71		(4	)
Net investment income	1,625		433		770		305		117
Asset management fees, commissions and other income	848		136		616		120		(24	)
Total revenues	5,593		2,008		1,473		2,028		84
Benefits and Expenses (1):
Insurance and annuity benefits	2,520		1,052		215		1,237		16
Interest credited to policyholders’ account balances	605		177		384		48		(4	)
Interest expense	111		25		22		6		58
Deferral of acquisition costs	(422	)	(165	)	(17	)	(257	)	17
Amortization of acquisition costs	235		127		14		107		(13	)
General and administrative expenses	1,658		537		551		577		(7	)
Total benefits and expenses	4,707		1,753		1,169		1,718		67
Adjusted operating income before income taxes	886		255		304		310		17

(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.

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)

	As of March 31, 2006
	Total Financial Services Businesses	Insurance Division	Investment Division		International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	154,907	30,580	61,113		49,163	14,051
Deferred policy acquisition costs	8,776	4,817	138		3,972	(151	)
Other assets	27,074	4,665	9,148		7,884	5,377
Separate account assets	170,134	86,110	85,179		95	(1,250	)
Total assets	360,891	126,172	155,578		61,114	18,027
Liabilities:
Future policy benefits	52,909	7,288	12,936		32,039	646
Policyholders’ account balances	70,411	18,879	38,282		14,430	(1,180	)
Debt	16,969	2,339	2,333		1,293	11,004
Other liabilities	29,239	5,899	11,009		7,395	4,936
Separate account liabilities	170,134	86,110	85,179		95	(1,250	)
Total liabilities	339,662	120,515	149,739		55,252	14,156
Attributed Equity:
Accumulated other comprehensive income (loss)	512	67	(99	)	635	(91	)
Other attributed equity	20,717	5,590	5,938		5,227	3,962
Total attributed equity	21,229	5,657	5,839		5,862	3,871
Total liabilities and attributed equity	360,891	126,172	155,578		61,114	18,027
	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		47,930	13,917
Deferred policy acquisition costs	8,357	4,613	119		3,761	(136	)
Other assets	25,468	3,531	8,524		7,343	6,070
Separate account assets	157,561	77,518	81,204		67	(1,228	)
Total assets	345,291	116,779	150,788		59,101	18,623
Liabilities:
Future policy benefits	51,998	7,201	13,339		30,800	658
Policyholders’ account balances	69,852	19,132	37,901		13,893	(1,074	)
Debt	15,967	1,950	1,623		1,032	11,362
Other liabilities	28,259	4,949	10,707		7,672	4,931
Separate account liabilities	157,561	77,518	81,204		67	(1,228	)
Total liabilities	323,637	110,750	144,774		53,464	14,649
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		59,101	18,623

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

SHORT-TERM AND LONG-TERM DEBT

(in millions)

	As of March 31, 2006					As of December 31, 2005
	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	5	4,363	4,368			353	3,846	4,199
Investment related	5,472	2,836	8,308			5,442	2,449	7,891
Securities business related	3,238	—	3,238			2,758	107	2,865
Specified other businesses	968	31	999			893	63	956
Limited recourse and non-recourse borrowing	2	54	56			1	55	56
Total debt - Financial Services Businesses	9,685	7,284	16,969			9,447	6,520	15,967
Ratio of long-term and short-term capital debt to capitalization			17.6	%				17.2	%
Closed Block Business
Investment related	1,671	—	1,671			1,667	—	1,667
Limited recourse and non-recourse borrowing	—	1,750	1,750			—	1,750	1,750
Total debt	1,671	1,750	3,421			1,667	1,750	3,417
	As of March 31, 2006					As of December 31, 2005
	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	3,071	1,297	—		4,368	2,902	1,297	—		4,199
Investment related	4,396	3,912	—		8,308	4,173	3,718	—		7,891
Securities business related	1,154	1,141	943		3,238	1,117	1,173	575		2,865
Specified other businesses	67	715	217		999	116	692	148		956
Limited recourse and non-recourse borrowing	—	—	56		56	—	—	56		56
Total debt - Financial Services Businesses	8,688	7,065	1,216		16,969	8,308	6,880	779		15,967

(1) Includes Prudential Funding, LLC.

(2) Capital debt at Prudential Insurance Co. of America includes $693 million of Surplus Notes for March 31, 2006 and December 31, 2005, respectively.

Page 8

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

Year-to-date				% Change			2005								2006
2006		2005					1Q		2Q		3Q		4Q		1Q
						Revenues (1):
982		935		5	%	Premiums	935		938		912		943		982
543		504		8	%	Policy charges and fee income	504		505		559		530		543
421		433		-3	%	Net investment income	433		421		429		428		421
175		136		29	%	Asset management fees, commissions and other income	136		164		181		161		175
2,121		2,008		6	%	Total revenues	2,008		2,028		2,081		2,062		2,121
						Benefits and Expenses (1):
1,070		1,052		2	%	Insurance and annuity benefits	1,052		1,029		938		994		1,070
180		177		2	%	Interest credited to policyholders’ account balances	177		183		180		175		180
30		25		20	%	Interest expense	25		25		31		30		30
(256	)	(165	)	-55	%	Deferral of acquisition costs	(165	)	(234	)	(202	)	(196	)	(256	)
131		127		3	%	Amortization of acquisition costs	127		126		180		112		131
668		537		24	%	General and administrative expenses	537		633		613		582		668
1,823		1,753		4	%	Total benefits and expenses	1,753		1,762		1,740		1,697		1,823
298		255		17	%	Adjusted operating income before income taxes	255		266		341		365		298

(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 9

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

	Three Months Ended March 31, 2006
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
							Individual Life		Individual Annuities
Revenues (1):
Premiums	982		115		867		100		15
Policy charges and fee income	543		466		77		266		200
Net investment income	421		272		149		127		145
Asset management fees, commissions and other income	175		159		16		66		93
Total revenues	2,121		1,012		1,109		559		453
Benefits and Expenses (1):
Insurance and annuity benefits	1,070		210		860		161		49
Interest credited to policyholders’ account balances	180		131		49		48		83
Interest expense	30		27		3		17		10
Deferral of acquisition costs	(256	)	(199	)	(57	)	(80	)	(119	)
Amortization of acquisition costs	131		131		—		74		57
General and administrative expenses (2)	668		461		207		206		255
Total benefits and expenses	1,823		761		1,062		426		335
Adjusted operating income before income taxes	298		251		47		133		118
	Three Months Ended March 31, 2005
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
							Individual Life		Individual Annuities
Revenues (1):
Premiums	935		117		818		92		25
Policy charges and fee income	504		430		74		261		169
Net investment income	433		282		151		125		157
Asset management fees, commissions and other income	136		127		9		54		73
Total revenues	2,008		956		1,052		532		424
Benefits and Expenses (1):
Insurance and annuity benefits	1,052		225		827		163		62
Interest credited to policyholders’ account balances	177		126		51		42		84
Interest expense	25		20		5		15		5
Deferral of acquisition costs	(165	)	(157	)	(8	)	(74	)	(83	)
Amortization of acquisition costs	127		126		1		72		54
General and administrative expenses (2)	537		399		138		197		202
Total benefits and expenses	1,753		739		1,014		415		324
Adjusted operating income before income taxes	255		217		38		117		100

(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 $11 million for the three months ended March 31, 2006 and $8 million for the three months ended March 31, 2005 for the amortization, net of interest, of value of business acquired (VOBA) associated with the acquisition of American Skandia.

Page 10

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

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

(in millions)

Year-to-date					2005								2006
2006		2005			1Q		2Q		3Q		4Q		1Q
				SALES AND ACCOUNT VALUES:
				Variable Annuities:
50,778		47,418		Beginning total account value	47,418		46,386		47,402		49,484		50,778
2,129		1,433		Sales	1,433		1,779		1,930		1,964		2,129
(1,585	)	(1,388	)	Surrenders and withdrawals	(1,388	)	(1,470	)	(1,397	)	(1,436	)	(1,585	)
544		45		Net sales	45		309		533		528		544
(198	)	(145	)	Benefit payments	(145	)	(148	)	(151	)	(158	)	(198	)
346		(100	)	Net flows	(100	)	161		382		370		346
2,241		(774	)	Change in market value, interest credited, and other	(774	)	1,015		1,876		1,106		2,241
(184	)	(158	)	Policy charges	(158	)	(160	)	(176	)	(182	)	(184	)
53,181		46,386		Ending total account value	46,386		47,402		49,484		50,778		53,181
				Fixed Annuities:
3,991		3,879		Beginning total account value	3,879		3,879		4,064		4,033		3,991
28		52		Sales	52		243		39		27		28
(69	)	(56	)	Surrenders and withdrawals	(56	)	(53	)	(56	)	(66	)	(69	)
(41	)	(4	)	Net sales (redemptions)	(4	)	190		(17	)	(39	)	(41	)
(43	)	(41	)	Benefit payments	(41	)	(43	)	(35	)	(41	)	(43	)
(84	)	(45	)	Net flows	(45	)	147		(52	)	(80	)	(84	)
35		46		Interest credited and other	46		40		22		39		35
(1	)	(1	)	Policy charges	(1	)	(2	)	(1	)	(1	)	(1	)
3,941		3,879		Ending total account value	3,879		4,064		4,033		3,991		3,941
				SALES BY DISTRIBUTION CHANNEL:
				Variable and Fixed Annuities (1):
405		348		Prudential Agents	348		382		373		391		405
194		94		Wirehouses	94		123		149		176		194
1,558		1,043		Independent Financial Planners (2)	1,043		1,517		1,447		1,424		1,558
2,157		1,485		Total	1,485		2,022		1,969		1,991		2,157
				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (3):
				Return of net deposits:
				Account value	25,453		26,224		27,646		28,290		29,988
				Net amount at risk	2,499		2,346		2,085		1,974		1,751
				Minimum return, anniversary contract value, or maximum contract value:
				Account value	15,454		15,814		16,528		17,022		17,755
				Net amount at risk	2,239		2,183		1,918		1,809		1,600
				Variable Annuity Account Values with Living Benefit Features (3):
				Guaranteed minimum accumulation benefits	5,990		6,368		6,823		7,162		7,738
				Guaranteed minimum withdrawal benefits	629		700		765		815		885
				Guaranteed minimum income benefits	2,567		2,756		2,941		3,052		3,203
				Guaranteed minimum withdrawal & income benefits	60		869		1,870		2,951		4,155
				Total	9,246		10,693		12,399		13,980		15,981

(1) Amounts represent gross sales.

(2) Including bank distribution.

(3) At end of period.

Page 11

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006  

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

(in millions)

Year-to-date					2005								2006
2006		2005			1Q		2Q		3Q		4Q		1Q
				SALES:
				Excluding corporate-owned life insurance:
21		19		Variable life	19		18		19		27		21
40		51		Universal life	51		53		54		56		40
31		29		Term life	29		30		30		33		31
92		99		Total excluding corporate-owned life insurance	99		101		103		116		92
1		1		Corporate-owned life insurance	1		1		3		2		1
93		100		Total	100		102		106		118		93
				SALES BY DISTRIBUTION CHANNEL:
				Excluding corporate-owned life insurance:
45		60		Prudential Agents	60		54		48		50		45
47		39		Third party distribution	39		47		55		66		47
1		1		Corporate-owned life insurance	1		1		3		2		1
93		100		Total	100		102		106		118		93
				ACCOUNT VALUE ACTIVITY:
				Policyholders’ Account Balances (1):
5,694		5,284		Beginning balance	5,284		5,424		5,532		5,619		5,694
307		289		Premiums and deposits	289		343		287		289		307
(242	)	(173	)	Surrenders and withdrawals	(173	)	(214	)	(212	)	(216	)	(242	)
65		116		Net sales	116		129		75		73		65
(37	)	(31	)	Benefit payments	(31	)	(27	)	(29	)	(39	)	(37	)
28		85		Net flows	85		102		46		34		28
83		56		Interest credited and other	56		11		42		45		83
55		45		Net transfers from separate account	45		44		50		49		55
(58	)	(46	)	Policy charges	(46	)	(49	)	(51	)	(53	)	(58	)
5,802		5,424		Ending balance	5,424		5,532		5,619		5,694		5,802
				Separate Account Liabilities:
16,170		15,180		Beginning balance	15,180		14,912		15,207		15,808		16,170
301		310		Premiums and deposits	310		331		308		407		301
(177	)	(141	)	Surrenders and withdrawals	(141	)	(157	)	(206	)	(149	)	(177	)
124		169		Net sales	169		174		102		258		124
(9	)	(10	)	Benefit payments	(10	)	1		(4	)	(5	)	(9	)
115		159		Net flows	159		175		98		253		115
653		(181	)	Change in market value, interest credited and other	(181	)	364		756		359		653
(55	)	(45	)	Net transfers to general account	(45	)	(44	)	(50	)	(49	)	(55	)
(201	)	(201	)	Policy charges	(201	)	(200	)	(203	)	(201	)	(201	)
16,682		14,912		Ending balance	14,912		15,207		15,808		16,170		16,682
				FACE AMOUNT IN FORCE (2):
				Variable life	144,751		144,147		143,186		142,408		141,962
				Universal life	15,720		16,854		17,862		18,835		19,639
				Term life	170,311		181,216		190,913		201,139		210,589
				Total	330,782		342,217		351,961		362,382		372,190

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

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

Page 12

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

INSURANCE DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)

Year-to-date					2005								2006
2006		2005			1Q		2Q		3Q		4Q		1Q
				INDIVIDUAL ANNUITIES:
				Account Values in General Account (1):
9,231		9,613		Beginning balance	9,613		9,662		9,782		9,437		9,231
74		185		Premiums and deposits	185		308		87		69		74
(273	)	(239	)	Surrenders and withdrawals	(239	)	(244	)	(202	)	(250	)	(273	)
(199	)	(54	)	Net sales (redemptions)	(54	)	64		(115	)	(181	)	(199	)
(94	)	(82	)	Benefit payments	(82	)	(82	)	(67	)	(72	)	(94	)
(293	)	(136	)	Net flows	(136	)	(18	)	(182	)	(253	)	(293	)
86		90		Interest credited and other	90		92		91		88		86
(173	)	97		Net transfers (to) from separate account	97		48		(252	)	(39	)	(173	)
(1	)	(2	)	Policy charges	(2	)	(2	)	(2	)	(2	)	(1	)
8,850		9,662		Ending balance	9,662		9,782		9,437		9,231		8,850
				Account Values in Separate Account:
45,538		41,684		Beginning balance	41,684		40,602		41,684		44,080		45,538
2,083		1,300		Premiums and deposits	1,300		1,714		1,882		1,922		2,083
(1,380	)	(1,206	)	Surrenders and withdrawals	(1,206	)	(1,279	)	(1,251	)	(1,252	)	(1,380	)
703		94		Net sales	94		435		631		670		703
(147	)	(104	)	Benefit payments	(104	)	(109	)	(118	)	(127	)	(147	)
556		(10	)	Net flows	(10	)	326		513		543		556
2,190		(818	)	Change in market value, interest credited and other	(818	)	964		1,806		1,057		2,190
173		(97	)	Net transfers (to) from general account	(97	)	(48	)	252		39		173
(185	)	(157	)	Policy charges	(157	)	(160	)	(175	)	(181	)	(185	)
48,272		40,602		Ending balance	40,602		41,684		44,080		45,538		48,272

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

Page 13

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)

Year-to-date					2005								2006
2006		2005			1Q		2Q		3Q		4Q		1Q
				INDIVIDUAL LIFE INSURANCE:
3,187		3,151		Beginning balance	3,151		3,210		3,162		3,158		3,187
80		74		Capitalization	74		79		79		82		80
(74	)	(72	)	Amortization - operating results	(72	)	(70	)	(152	)	(75	)	(74	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
60		57		Impact of unrealized (gains) or losses on AFS securities	57		(57	)	69		22		60
3,253		3,210		Ending balance	3,210		3,162		3,158		3,187		3,253
				INDIVIDUAL ANNUITIES:
1,256		907		Beginning balance	907		1,012		1,049		1,155		1,256
119		83		Capitalization	83		117		108		113		119
(57	)	(54	)	Amortization - operating results	(54	)	(55	)	(27	)	(37	)	(57	)
—		(1	)	Amortization - realized investment gains and losses	(1	)	2		(4	)	2		—
19		77		Impact of unrealized (gains) or losses on AFS securities	77		(27	)	29		23		19
1,337		1,012		Ending balance	1,012		1,049		1,155		1,256		1,337
				GROUP INSURANCE:
170		111		Beginning balance	111		118		155		169		170
57		8		Capitalization	8		38		15		1		57
—		(1	)	Amortization - operating results	(1	)	(1	)	(1	)	—		—
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—
227		118		Ending balance	118		155		169		170		227
				TOTAL INSURANCE DIVISION:
4,613		4,169		Beginning balance	4,169		4,340		4,366		4,482		4,613
256		165		Capitalization	165		234		202		196		256
(131	)	(127	)	Amortization - operating results	(127	)	(126	)	(180	)	(112	)	(131	)
—		(1	)	Amortization - realized investment gains and losses	(1	)	2		(4	)	2		—
79		134		Impact of unrealized (gains) or losses on AFS securities	134		(84	)	98		45		79
4,817		4,340		Ending balance	4,340		4,366		4,482		4,613		4,817

Page 14

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006  

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)

Year-to-date					2005								2006
2006		2005			1Q		2Q		3Q		4Q		1Q
				Individual Life Insurance:
				Policy Surrender Experience:
191		155		Cash value of surrenders	155		166		214		163		191
3.7	%	3.2	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.2	%	3.4	%	4.3	%	3.2	%	3.7	%
				Death benefits per $1,000 of in force (1):
2.87		3.10		Variable and universal life	3.10		2.88		2.95		3.04		2.87
1.09		1.37		Term life	1.37		1.32		1.27		0.89		1.09
2.50		2.74		Total, Individual Life Insurance	2.74		2.67		2.63		2.63		2.50

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

Page 15

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006  

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)

Year-to-date					2005								2006
2006		2005			1Q		2Q		3Q		4Q		1Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
206		274		Group life	274		30		32		34		206
74		76		Group disability (1)	76		46		15		17		74
280		350		Total	350		76		47		51		280
				Future Policy Benefits (2):
				Group life	1,891		1,906		1,872		2,076		2,038
				Group disability (1)	362		375		395		413		474
				Total	2,253		2,281		2,267		2,489		2,512
				Policyholders’ Account Balances (2):
				Group life	4,516		4,504		4,486		4,844		4,864
				Group disability (1)	74		85		90		98		95
				Total	4,590		4,589		4,576		4,942		4,959
				Separate Account Liabilities (2):
				Group life	12,832		15,954		15,983		15,811		21,156
				Group disability (1)	—		—		—		—		—
				Total	12,832		15,954		15,983		15,811		21,156
				Group Life Insurance:
791		694		Gross premiums, policy charges and fee income (3)	694		683		668		964		791
755		714		Earned premiums, policy charges and fee income	714		707		694		707		755
92.1	%	90.1	%	Benefits ratio	90.1	%	89.7	%	89.5	%	86.4	%	92.1	%
9.4	%	8.9	%	Administrative operating expense ratio	8.9	%	9.7	%	10.3	%	7.3	%	9.4	%
				Persistency ratio	96.8	%	96.4	%	95.6	%	95.2	%	96.5	%
				Group Disability Insurance (1):
199		188		Gross premiums, policy charges and fee income (3)	188		210		193		190		199
189		178		Earned premiums, policy charges and fee income	178		195		184		182		189
87.3	%	102.8	%	Benefits ratio	102.8	%	94.9	%	91.3	%	92.9	%	87.3	%
21.6	%	22.3	%	Administrative operating expense ratio	22.3	%	19.1	%	20.7	%	21.6	%	21.6	%
				Persistency ratio	91.6	%	90.2	%	87.1	%	85.4	%	94.2	%

(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 16

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)

Year-to-date				% Change			2005								2006
2006		2005					1Q		2Q		3Q		4Q		1Q
						Revenues (1):
92		41		124	%	Premiums	41		103		106		70		92
48		46		4	%	Policy charges and fee income	46		48		46		48		48
853		770		11	%	Net investment income	770		765		810		820		853
741		616		20	%	Asset management fees, commissions and other income	616		592		648		645		741
1,734		1,473		18	%	Total revenues	1,473		1,508		1,610		1,583		1,734
						Benefits and Expenses (1):
269		215		25	%	Insurance and annuity benefits	215		272		296		266		269
429		384		12	%	Interest credited to policyholders’ account balances	384		397		431		421		429
46		22		109	%	Interest expense	22		25		23		45		46
(22	)	(17	)	-29	%	Deferral of acquisition costs	(17	)	(16	)	(13	)	(15	)	(22	)
13		14		-7	%	Amortization of acquisition costs	14		14		13		13		13
759		551		38	%	General and administrative expenses	551		666		603		857		759
1,494		1,169		28	%	Total benefits and expenses	1,169		1,358		1,353		1,587		1,494
240		304		-21	%	Adjusted operating income before income taxes	304		150		257		(4	)	240

(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 17

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)

	Three Months Ended March 31, 2006
	Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	92		—		—		92
Policy charges and fee income	48		—		—		48
Net investment income	853		42		9		802
Asset management fees, commissions and other income	741		460		169		112
Total revenues	1,734		502		178		1,054
Benefits and Expenses (1):
Insurance and annuity benefits	269		—		—		269
Interest credited to policyholders’ account balances	429		—		—		429
Interest expense	46		6		—		40
Deferral of acquisition costs	(22	)	(5	)	—		(17	)
Amortization of acquisition costs	13		7		—		6
General and administrative expenses	759		325		244		190
Total benefits and expenses	1,494		333		244		917
Adjusted operating income before income taxes	240		169		(66	)	137
	Three Months Ended March 31, 2005
	Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	41		—		—		41
Policy charges and fee income	46		—		—		46
Net investment income	770		27		1		742
Asset management fees, commissions and other income	616		391		111		114
Total revenues	1,473		418		112		943
Benefits and Expenses (1):
Insurance and annuity benefits	215		—		—		215
Interest credited to policyholders’ account balances	384		—		—		384
Interest expense	22		3		—		19
Deferral of acquisition costs	(17	)	(4	)	—		(13	)
Amortization of acquisition costs	14		9		—		5
General and administrative expenses	551		276		97		178
Total benefits and expenses	1,169		284		97		788
Adjusted operating income before income taxes	304		134		15		155

(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 18

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in millions)

Year-to-date		% Change			2005				2006
2006	2005				1Q	2Q	3Q	4Q	1Q
				Asset Management Segment:
				Analysis of revenues by source:
				Investment Management and Advisory Services:
65	58	12	%	Retail customers	58	57	60	69	65
194	134	45	%	Institutional customers	134	149	151	159	194
68	65	5	%	General account	65	65	63	64	68
327	257	27	%	Subtotal	257	271	274	292	327
175	161	9	%	Mutual Fund, managed account and other revenues (1)	161	130	167	144	175
502	418	20	%	Total Asset Management segment revenues	418	401	441	436	502
				Analysis of asset management fees, commissions and other income by type:
				Investment Management and Advisory Services:
291	226	29	%	Asset-based fees	226	247	249	253	291
29	21	38	%	Transaction-based and other revenues	21	19	14	28	29
320	247	30	%	Subtotal	247	266	263	281	320
140	144	-3	%	Mutual Fund, managed account and other revenues (1)	144	120	145	125	140
460	391	18	%	Total	391	386	408	406	460

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

Page 19

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

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

(in billions)

	March 31, 2006
	Equity	Fixed Income	Real Estate	Total
Retail customers	55.4	19.1	1.1	75.6
Institutional customers	51.2	68.6	18.9	138.7
General account	3.8	152.9	1.1	157.8
Total	110.4	240.6	21.1	372.1
	March 31, 2005
	Equity	Fixed Income	Real Estate	Total
Retail customers	45.1	18.6	1.1	64.8
Institutional customers	40.7	63.7	14.6	119.0
General account	3.0	151.1	1.2	155.3
Total	88.8	233.4	16.9	339.1

Year-to-date					2005								2006
2006		2005			1Q		2Q		3Q		4Q		1Q
				Institutional Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
101.3		84.8		Beginning assets under management	84.8		85.7		91.1		95.0		101.3
7.3		3.5		Additions to managed portfolio (1)	3.5		5.0		7.1		7.3		7.3
(4.0	)	(2.2	)	Withdrawals	(2.2	)	(2.1	)	(5.1	)	(3.1	)	(4.0	)
1.9		(0.6	)	Change in market value	(0.6	)	2.7		2.2		2.0		1.9
0.2		0.2		Net money market flows	0.2		(0.2	)	(0.3	)	0.1		0.2
106.7		85.7		Ending assets under management	85.7		91.1		95.0		101.3		106.7
32.0		33.3		Other institutional assets under management	33.3		34.2		34.8		33.4		32.0
138.7		119.0		Total assets managed for institutional customers at end of period	119.0		125.3		129.8		134.7		138.7

(1) Additions to managed portfolio include $1.2 billion for the year ended December 31, 2005, $.8 billion for the quarter ended December 31, 2005 and $1.4 billion for the quarter ended March 31, 2006, for assets transferred from the Retirement segment.

Page 20

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

INVESTMENT DIVISION - MUTUAL FUNDS AND WRAP-FEE PRODUCTS

(in millions)

Year-to-date					2005								2006
2006		2005			1Q		2Q		3Q		4Q		1Q
				Mutual Funds Assets Under Management:
31,336		30,686		Beginning total mutual funds assets	30,686		29,894		30,446		31,050		31,336
1,380		874		Sales (other than money market)	874		1,288		1,023		1,387		1,380
(1,614	)	(1,592	)	Redemptions (other than money market)	(1,592	)	(1,582	)	(1,893	)	(1,618	)	(1,614	)
1,199		(500	)	Reinvestment of distributions and change in market value	(500	)	1,174		1,691		445		1,199
276		426		Net money market sales	426		(328	)	(217	)	72		276
32,577		29,894		Ending total mutual funds assets	29,894		30,446		31,050		31,336		32,577
(234	)	(718	)	Net mutual funds redemptions other than money market	(718	)	(294	)	(870	)	(231	)	(234	)
				Wrap-fee Products Assets Under Administration:
55,191		41,254		Beginning total wrap-fee product assets	41,254		43,054		46,621		51,752		55,191
7,207		5,672		Sales	5,672		5,623		5,418		5,492		7,207
(4,331	)	(2,837	)	Redemptions	(2,837	)	(2,735	)	(2,608	)	(3,177	)	(4,331	)
2,759		(1,035	)	Reinvestment of distributions and change in market value	(1,035	)	679		2,321		1,124		2,759
60,826		43,054		Ending total wrap-fee product assets	43,054		46,621		51,752		55,191		60,826
2,876		2,835		Net wrap-fee product sales	2,835		2,888		2,810		2,315		2,876
				MUTUAL FUNDS AND WRAP-FEE PRODUCTS GROSS SALES BY DISTRIBUTION CHANNEL
				Mutual funds, excluding wrap-fee products (1):
105		104		Prudential Agents	104		93		82		83		105
1,271		764		Third party distributors	764		1,041		938		1,299		1,271
4		6		Other	6		154		3		5		4
1,380		874		Total	874		1,288		1,023		1,387		1,380
				Wrap-fee products:
196		175		Prudential Agents	175		174		192		167		196
7,011		5,497		Third party distributors (2)	5,497		5,449		5,226		5,325		7,011
7,207		5,672		Total	5,672		5,623		5,418		5,492		7,207

(1) Other than money market.

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

Page 21

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006  

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)

Year-to-date					2005								2006
2006		2005			1Q		2Q		3Q		4Q		1Q
				Information pertaining to Wachovia Securities Financial Holdings, LLC:
				Revenues:
72		56		Net investment income	56		61		65		70		72
483		482		Commissions	482		457		464		449		483
503		443		Fees	443		455		459		485		503
53		29		Other non-interest revenues	29		41		53		47		53
1,111		1,010		Total revenues	1,010		1,014		1,041		1,051		1,111
				Expenses:
933		871		Expenses before transition costs	871		885		881		892		933
—		28		Transition costs	28		37		—		—		—
933		899		Total expenses	899		922		881		892		933
178		111		Income before income taxes	111		92		160		159		178
68		42		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	42		35		61		60		68
1		(3	)	Purchase accounting and related adjustments	(3	)	(2	)	(2	)	1		1
69		39		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	39		33		59		61		69
				Recurring revenue as a percentage of total non-interest revenue (1)	47.1	%	47.6	%	47.7	%	48.2	%	48.4	%
				Total client assets ($ in billions) (2)	644.7		655.6		683.1		683.6		688.7
				Distribution representatives (2):
				Series 7 Financial Advisors	7,883		7,833		7,941		8,028		7,926
				Series 6 Financial Representatives	2,451		2,456		2,493		2,458		2,454
				Customer debit balances ($ in billions) (2)	5.8		5.7		5.6		5.8		5.4
(107	)	12		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	12		(98	)	37		(206	)	(107	)

(1) Calculated on a YTD annualized basis.

(2) As of end of period.

Page 22

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)

Year-to-date					2005								2006
2006		2005			1Q		2Q		3Q		4Q		1Q
				RETIREMENT SALES AND ACCOUNT VALUES
				Full Service:
88,385		83,891		Beginning total account value	83,891		83,927		85,331		88,337		88,385
5,381		3,784		Sales	3,784		2,667		3,509		3,046		5,381
(5,471	)	(3,349	)	Withdrawals and benefits	(3,349	)	(2,837	)	(3,202	)	(4,530	)	(5,471	)
3,559		(399	)	Change in market value, interest credited and interest income	(399	)	1,574		2,699		1,532		3,559
91,854		83,927		Ending total account value	83,927		85,331		88,337		88,385		91,854
(90	)	435		Net sales (withdrawals)	435		(170	)	307		(1,484	)	(90	)
				Stable value account values included above	31,575		31,937		31,967		31,266		30,696
				Institutional Investment Products:
48,080		47,680		Beginning total account value	47,680		47,698		48,612		48,917		48,080
1,536		1,243		Sales	1,243		1,235		802		785		1,536
(2,452	)	(1,181	)	Withdrawals and benefits (1)	(1,181	)	(1,222	)	(896	)	(2,234	)	(2,452	)
182		318		Change in market value, interest credited and interest income	318		1,128		311		562		182
(131	)	(362	)	Other (2)	(362	)	(227	)	88		50		(131	)
47,215		47,698		Ending total account value	47,698		48,612		48,917		48,080		47,215
(916	)	62		Net sales (withdrawals)	62		13		(94	)	(1,449	)	(916	)

(1) Withdrawals and benefits include $1.2 billion for the year ended December 31, 2005, $.8 billion for the quarter ended December 31, 2005 and $1.4 billion for the quarter ended March 31, 2006, for assets transferred to the Asset Management segment.

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

Page 23

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)

Year-to-date				% Change			2005								2006
2006		2005					1Q		2Q		3Q		4Q		1Q
						Revenues (1):
1,539		1,532		—		Premiums	1,532		1,526		1,546		1,418		1,539
76		71		7	%	Policy charges and fee income	71		66		67		60		76
330		305		8	%	Net investment income	305		315		333		371		330
160		120		33	%	Asset management fees, commissions and other income	120		87		114		151		160
2,105		2,028		4	%	Total revenues	2,028		1,994		2,060		2,000		2,105
						Benefits and Expenses (1):
1,230		1,237		-1	%	Insurance and annuity benefits	1,237		1,176		1,234		1,142		1,230
57		48		19	%	Interest credited to policyholders’ account balances	48		55		54		50		57
3		6		-50	%	Interest expense	6		6		7		3		3
(256	)	(257	)	—		Deferral of acquisition costs	(257	)	(261	)	(243	)	(242	)	(256	)
116		107		8	%	Amortization of acquisition costs	107		104		90		89		116
573		577		-1	%	General and administrative expenses	577		568		535		581		573
1,723		1,718		—		Total benefits and expenses	1,718		1,648		1,677		1,623		1,723
382		310		23	%	Adjusted operating income before income taxes	310		346		383		377		382

(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 24

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)

	Three Months Ended March 31, 2006
	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	1,539		989		550		—
Policy charges and fee income	76		58		18		—
Net investment income	330		156		167		7
Asset management fees, commissions and other income	160		14		3		143
Total revenues	2,105		1,217		738		150
Benefits and Expenses (1):
Insurance and annuity benefits	1,230		769		461		—
Interest credited to policyholders’ account balances	57		27		30		—
Interest expense	3		3		—		—
Deferral of acquisition costs	(256	)	(191	)	(65	)	—
Amortization of acquisition costs	116		91		25		—
General and administrative expenses	573		290		177		106
Total benefits and expenses	1,723		989		628		106
Adjusted operating income before income taxes	382		228		110		44
	Three Months Ended March 31, 2005
	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	1,532		964		568		—
Policy charges and fee income	71		53		18		—
Net investment income	305		144		156		5
Asset management fees, commissions and other income	120		(2	)	(1	)	123
Total revenues	2,028		1,159		741		128
Benefits and Expenses (1):
Insurance and annuity benefits	1,237		770		467		—
Interest credited to policyholders’ account balances	48		25		23		—
Interest expense	6		6		(1	)	1
Deferral of acquisition costs	(257	)	(195	)	(62	)	—
Amortization of acquisition costs	107		76		31		—
General and administrative expenses	577		298		177		102
Total benefits and expenses	1,718		980		635		103
Adjusted operating income before income taxes	310		179		106		25

(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 contract holder liabilities due to asset value changes.

Page 25

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)

Year-to-date					2005								2006
2006		2005			1Q		2Q		3Q		4Q		1Q
				Japanese Yen Basis Results (1):
				Revenues (2):
¥	98,534	¥	90,086	Japanese insurance operations excluding Gibraltar Life	¥	90,086	¥	82,958	¥	85,595	¥	92,934	¥	98,534
	85,353		77,620	Gibraltar Life		77,620		85,990		93,622		82,109		85,353
	183,887		167,706	Total revenues, Japan, yen basis		167,706		168,948		179,217		175,043		183,887
				Benefits and Expenses (2):
	77,842		73,354	Japanese insurance operations excluding Gibraltar Life		73,354		65,271		64,755		71,278		77,842
	73,343		66,152	Gibraltar Life		66,152		70,197		78,069		69,706		73,343
	151,185		139,506	Total benefits and expenses, Japan, yen basis		139,506		135,468		142,824		140,984		151,185
				Adjusted operating income (3):
	20,692		16,732	Japanese insurance operations excluding Gibraltar Life		16,732		17,687		20,840		21,656		20,692
	12,010		11,468	Gibraltar Life		11,468		15,793		15,553		12,403		12,010
¥	32,702	¥	28,200	Total adjusted operating income, Japan, yen basis	¥	28,200	¥	33,480	¥	36,393	¥	34,059	¥	32,702
				U.S. Dollar adjusted operating income (4):
$	196	$	154	Japanese insurance operations excluding Gibraltar Life	$	154	$	159	$	190	$	197	$	196
	110		106	Gibraltar Life		106		144		141		111		110
	306		260	Total adjusted operating income, Japan, U.S. dollar basis		260		303		331		308		306
	32		25	All other countries		25		24		27		32		32
$	338	$	285	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	285	$	327	$	358	$	340	$	338

(1) Data for certain earlier periods has been updated to reflect calculation refinements for purposes of comparability with current period amounts.

(2) 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 contract holder liabilities due to asset value changes.

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

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

Page 26

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(dollar amounts in millions unless otherwise noted)

Year-to-date			2005				2006
2006	2005		1Q	2Q	3Q	4Q	1Q
		INTERNATIONAL INSURANCE OPERATING DATA:
		Actual exchange rate basis (1):
		Net premiums, policy charges and fee income:
731	741	Japan, excluding Gibraltar Life	741	670	658	630	731
568	586	Gibraltar Life	586	634	665	543	568
316	276	All other countries	276	287	290	304	316
1,615	1,603	Total	1,603	1,591	1,613	1,477	1,615
		Annualized new business premiums:
138	171	Japan, excluding Gibraltar Life	171	179	117	109	138
73	71	Gibraltar Life	71	96	82	74	73
78	66	All other countries	66	68	64	82	78
289	308	Total	308	343	263	265	289
		Constant exchange rate basis (2)(3):
		Net premiums, policy charges and fee income:
778	707	Japan, excluding Gibraltar Life	707	655	664	670	778
602	555	Gibraltar Life	555	613	669	566	602
304	273	All other countries	273	284	292	308	304
1,684	1,535	Total	1,535	1,552	1,625	1,544	1,684
		Annualized new business premiums:
145	167	Japan, excluding Gibraltar Life	167	176	119	113	145
76	68	Gibraltar Life	68	92	82	77	76
74	65	All other countries	65	69	63	84	74
295	300	Total	300	337	264	274	295

(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.

(3) Data for certain earlier periods has been updated to reflect calculation refinements for purposes of comparability with current period amounts.

Page 27

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

	2005								2006
	1Q		2Q		3Q		4Q		1Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	185		188		191		194		198
Gibraltar Life	184		181		180		179		179
All other countries	82		85		86		88		90
Total	451		454		457		461		467
Number of individual policies in force at end of period (in thousands) (2)(3):
Japan, excluding Gibraltar Life	1,860		1,901		1,927		1,956		1,996
Gibraltar Life	4,230		3,961		3,938		3,915		3,890
All other countries	1,000		1,036		1,064		1,098		1,137
Total	7,090		6,898		6,929		6,969		7,023
International insurance policy persistency:
Excluding Gibraltar Life:
13 months	92.9	%	93.1	%	93.3	%	93.0	%	92.8	%
25 months	86.2	%	86.2	%	86.6	%	87.1	%	87.1	%
Gibraltar Life:
13 months	94.2	%	94.3	%	94.2	%	94.2	%	94.3	%
25 months	85.0	%	85.8	%	86.4	%	87.3	%	87.7	%
Number of Life Planners at end of period (4):
Japan	2,665		2,603		2,752		2,753		2,855
All other countries	2,890		2,926		2,950		2,941		2,910
Total	5,555		5,529		5,702		5,694		5,765

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

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

(3) Data for certain earlier periods has been updated to reflect calculation refinements for purposes of comparability with current period amounts.

(4) Excluding Gibraltar Life Advisors.

Page 28

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

INVESTMENT PORTFOLIO COMPOSITION

(in millions)

	March 31, 2006							December 31, 2005
	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	123,411	36,471	86,940	58.3	%			123,679	36,133	87,546	58.6	%
Public, held to maturity, at amortized cost	3,260	—	3,260	2.2	%			3,135	—	3,135	2.1	%
Private, available for sale, at fair value	29,889	12,601	17,288	11.6	%			31,012	13,361	17,651	11.8	%
Private, held to maturity, at amortized cost	277	—	277	0.2	%			227	—	227	0.2	%
Trading account assets supporting insurance liabilities, at fair value	13,877	—	13,877	9.3	%			13,781	—	13,781	9.2	%
Other trading account assets, at fair value	126	—	126	0.1	%			124	—	124	0.1	%
Equity securities, available for sale, at fair value	5,487	3,341	2,146	1.4	%			5,008	2,968	2,040	1.4	%
Commercial loans	22,988	7,154	15,834	10.6	%			23,045	7,264	15,781	10.5	%
Policy loans	8,497	5,403	3,094	2.1	%			8,370	5,403	2,967	2.0	%
Other long-term investments (1)	4,857	897	3,960	2.7	%			4,698	973	3,725	2.5	%
Short-term investments	3,683	1,431	2,252	1.5	%			3,850	1,394	2,456	1.6	%
Subtotal (2)	216,352	67,298	149,054	100.0	%			216,929	67,496	149,433	100.0	%
Invested assets of other entities and operations (3)	5,853	—	5,853					4,472	—	4,472
Total investments	222,205	67,298	154,907					221,401	67,496	153,905
Fixed Maturities by Credit Quality (2):
	March 31, 2006							December 31, 2005
	Financial Services Businesses							Financial Services Businesses
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value		% of Total		Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value		% of Total
Public Fixed Maturities:
NAIC Rating (4) Rating Agency Equivalent
1            Aaa, Aa, A	70,005	1,656	542	71,119		78.9	%	68,533	2,289	304	70,518		77.8	%
2             Baa	14,386	545	255	14,676		16.3	%	15,439	747	139	16,047		17.7	%
Subtotal Investment Grade	84,391	2,201	797	85,795		95.2	%	83,972	3,036	443	86,565		95.5	%
3            Ba	2,734	107	34	2,807		3.1	%	2,715	124	43	2,796		3.1	%
4            B	1,372	78	27	1,423		1.6	%	1,109	72	20	1,161		1.3	%
5            C and lower	105	7	4	108		0.1	%	103	6	5	104		0.1	%
6            In or near default	35	7	1	41		0.0	%	28	10	1	37		0.0	%
Subtotal Below Investment Grade	4,246	199	66	4,379		4.8	%	3,955	212	69	4,098		4.5	%
Total	88,637	2,400	863	90,174		100.0	%	87,927	3,248	512	90,663		100.0	%
Private Fixed Maturities:
NAIC Rating (4) Rating Agency Equivalent
1            Aaa, Aa, A	5,606	214	57	5,763		32.8	%	5,626	270	27	5,869		32.8	%
2            Baa	9,372	381	113	9,640		54.9	%	9,436	522	62	9,896		55.4	%
Subtotal Investment Grade	14,978	595	170	15,403		87.7	%	15,062	792	89	15,765		88.2	%
3            Ba	1,132	53	12	1,173		6.7	%	1,107	44	7	1,144		6.4	%
4            B	557	24	6	575		3.3	%	507	33	5	535		3.0	%
5            C and lower	325	22	6	341		1.9	%	339	22	2	359		2.0	%
6            In or near default	66	4	1	69		0.4	%	70	8	2	76		0.4	%
Subtotal Below Investment Grade	2,080	103	25	2,158		12.3	%	2,023	107	16	2,114		11.8	%
Total	17,058	698	195	17,561		100.0	%	17,085	899	105	17,879		100.0	%

(1) 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.

(2) 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.

(3) 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”.

(4) Reflects equivalent ratings for investments of international insurance operations that are not rated by United States insurance regulatory authorities. Includes, as of March 31, 2006 and December 31, 2005, respectively, 199 securities with amortized cost of $4,289 million (fair value $4,271 million) and 205 securities with amortized cost of $3,640 million (fair value, $3,689 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 29

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)

	March 31, 2006			December 31, 2005
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	31,379	69.8	%	30,933	70.0	%
Public, held to maturity, at amortized cost	3,260	7.3	%	3,135	7.1	%
Private, available for sale, at fair value	2,870	6.4	%	2,659	6.0	%
Private, held to maturity, at amortized cost	277	0.6	%	227	0.5	%
Trading account assets supporting insurance liabilities, at fair value	1,066	2.4	%	1,022	2.3	%
Other trading account assets, at fair value	28	0.1	%	26	0.1	%
Equity securities, available for sale, at fair value	1,858	4.1	%	1,732	3.9	%
Commercial loans	2,310	5.1	%	2,278	5.2	%
Policy loans	974	2.2	%	943	2.1	%
Other long-term investments (1)	871	1.9	%	941	2.1	%
Short-term investments	40	0.1	%	326	0.7	%
Total	44,933	100.0	%	44,222	100.0	%
	March 31, 2006			December 31, 2005
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value	55,561	53.4	%	56,613	53.8	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	14,418	13.8	%	14,992	14.3	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	12,811	12.3	%	12,759	12.1	%
Other trading account assets, at fair value	98	0.1	%	98	0.1	%
Equity securities, available for sale, at fair value	288	0.3	%	308	0.3	%
Commercial loans	13,524	13.0	%	13,503	12.9	%
Policy loans	2,120	2.0	%	2,024	1.9	%
Other long-term investments (1)	3,089	3.0	%	2,784	2.6	%
Short-term investments	2,212	2.1	%	2,130	2.0	%
Total	104,121	100.0	%	105,211	100.0	%

(1) 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”.

(2) 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 30

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)

	Three Months Ended March 31
	2006						2005 (4)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1):
Fixed maturities	4.75	%	1,256		(67	)	4.58	%	1,150		39
Equity securities	2.97	%	12		66		3.40	%	13		2
Commercial loans	6.12	%	181		(4	)	7.10	%	195		(3	)
Policy loans	4.86	%	37		—		4.65	%	34		—
Short-term investments and cash equivalents	4.18	%	71		—		2.02	%	39		5
Other investments	10.41	%	100		85		6.20	%	64		188
Gross investment income before investment expenses	5.02	%	1,657		80		4.75	%	1,495		231
Investment expenses	-0.23	%	(145	)	—		-0.22	%	(101	)	—
Subtotal	4.79	%	1,512		80		4.53	%	1,394		231
Investment results of other entities and operations (2)			295		36				239		39
Less, investment income relating to divested businesses			(6	)					(8	)
Total			1,801		116				1,625		270

(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 contract holders, 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 contract holders.

(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 contract holders 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 31

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)

	Three Months Ended March 31
	2006						2005 (2)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	2.44	%	225		6		2.14	%	203		(40	)
Equity securities	2.26	%	8		52		2.23	%	8		2
Commercial loans	3.27	%	19		5		4.12	%	33		(2	)
Policy loans	3.61	%	9		—		3.30	%	8		—
Short-term investments and cash equivalents	3.05	%	3		—		0.32	%	1		5
Other investments	16.97	%	30		(31	)	8.01	%	29		77
Gross investment income before investment expenses	2.75	%	294		32		2.45	%	282		42
Investment expenses	-0.18	%	(22	)	—		-0.19	%	(22	)	—
Total	2.57	%	272		32		2.26	%	260		42

(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 contract holders 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 32

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)

	Three Months Ended March 31
	2006						2005 (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	6.06	%	1,031		(73	)	6.13	%	947		79
Equity securities	7.28	%	4		14		18.74	%	5		—
Commercial loans	6.81	%	162		(9	)	8.31	%	162		(1	)
Policy loans	5.44	%	28		—		5.38	%	26		—
Short-term investments and cash equivalents	4.29	%	68		—		2.41	%	38		—
Other investments	8.86	%	70		116		5.16	%	35		111
Gross investment income before investment expenses	6.17	%	1,363		48		6.12	%	1,213		189
Investment expenses	-0.26	%	(123	)	—		-0.23	%	(79	)	—
Total	5.91	%	1,240		48		5.89	%	1,134		189

(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 contract holders, 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 contract holders 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 33

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)

Year ended December 31 2003		2004								2005
		1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
	Revenues (1):
7,794	Premiums	2,167		2,174		2,148		2,181		2,503		2,561		2,558		2,430
1,978	Policy charges and fee income	559		590		610		626		617		615		668		629
4,913	Net investment income	1,245		1,448		1,491		1,544		1,625		1,644		1,731		1,810
3,258	Asset management fees, commissions and other income	673		797		743		852		848		852		960		948
17,943	Total revenues	4,644		5,009		4,992		5,203		5,593		5,672		5,917		5,817
	Benefits and Expenses (1):
8,104	Insurance and annuity benefits	2,250		2,189		2,202		2,190		2,520		2,495		2,480		2,419
1,718	Interest credited to policyholders’ account balances	434		592		589		605		605		626		653		632
200	Interest expense	53		57		83		103		111		134		143		180
(1,270)	Deferral of acquisition costs	(388	)	(373	)	(360	)	(407	)	(422	)	(496	)	(444	)	(439	)
533	Amortization of acquisition costs	192		190		212		172		235		232		271		172
6,688	General and administrative expenses	1,553		1,711		1,630		1,853		1,658		1,860		1,783		2,039
15,973	Total benefits and expenses	4,094		4,366		4,356		4,516		4,707		4,851		4,886		5,003
1,970	Adjusted operating income before income taxes	550		643		636		687		886		821		1,031		814
	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		3
(43)	Related charges	(8	)	(12	)	(12	)	(26	)	(21	)	(73	)	(10	)	(4	)
(199)	Total realized investment gains (losses), net, and related charges and adjustments	1		143		38		(158	)	236		249		80		(1	)
—	Investment gains (losses) on trading account assets supporting insurance liabilities, net	48		(325	)	206		16		(132	)	190		(99	)	8
—	Change in experience-rated contractholder liabilities due to asset value changes	(48	)	186		(98	)	(39	)	88		(145	)	47		(34	)
(158)	Divested businesses	(16	)	(3	)	(16	)	2		(5	)	3		(3	)	(45	)
(357)	Total items excluded from adjusted operating income before income taxes	(15	)	1		130		(179	)	187		297		25		(72	)
1,613	Income from continuing operations before income taxes	535		644		766		508		1,073		1,118		1,056		742
531	Income tax expense (benefit)	159		134		204		125		306		320		(280	)	362
1,082	Income from continuing operations	376		510		562		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 34

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

Year ended December 31 2003		2004								2005
		1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
	Revenues (1):
3,175	Premiums	849		827		837		834		935		938		912		943
1,694	Policy charges and fee income	482		486		514		523		504		505		559		530
1,446	Net investment income	369		378		402		423		433		421		429		428
387	Asset management fees, commissions and other income	150		156		162		151		136		164		181		161
6,702	Total revenues	1,850		1,847		1,915		1,931		2,008		2,028		2,081		2,062
	Benefits and Expenses (1):
3,701	Insurance and annuity benefits	964		913		946		917		1,052		1,029		938		994
663	Interest credited to policyholders’ account balances	180		185		186		182		177		183		180		175
—	Interest expense	1		2		10		19		25		25		31		30
(595)	Deferral of acquisition costs	(182	)	(180	)	(161	)	(168	)	(165	)	(234	)	(202	)	(196	)
245	Amortization of acquisition costs	108		109		120		66		127		126		180		112
1,900	General and administrative expenses	568		580		569		618		537		633		613		582
5,914	Total benefits and expenses	1,639		1,609		1,670		1,634		1,753		1,762		1,740		1,697
788	Adjusted operating income before income taxes	211		238		245		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 35

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE AND ANNUITIES SEGMENT

(in millions)

Year ended December 31 2003		2004								2005
		1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
	Revenues (1):
342	Premiums	95		97		96		109		117		105		110		126
1,432	Policy charges and fee income	411		410		420		422		430		436		483		458
861	Net investment income	234		240		259		278		282		273		282		281
350	Asset management fees, commissions and other income	139		147		153		141		127		154		168		147
2,985	Total revenues	879		894		928		950		956		968		1,043		1,012
	Benefits and Expenses (1):
904	Insurance and annuity benefits	203		197		201		209		225		211		149		214
420	Interest credited to policyholders’ account balances	128		131		133		131		126		131		130		127
(2)	Interest expense	1		1		7		15		20		21		27		28
(561)	Deferral of acquisition costs	(175	)	(172	)	(155	)	(162	)	(157	)	(196	)	(187	)	(195	)
242	Amortization of acquisition costs	107		108		119		65		126		125		179		112
1,363	General and administrative expenses	430		437		426		449		399		456		464		441
2,366	Total benefits and expenses	694		702		731		707		739		748		762		727
619	Adjusted operating income before income taxes	185		192		197		243		217		220		281		285

(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 36

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INDIVIDUAL ANNUITIES

(in millions)

Year ended December 31 2003		2004								2005
		1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
	Revenues (1):
64	Premiums	14		17		16		16		25		12		13		17
419	Policy charges and fee income	155		156		157		168		169		178		185		181
453	Net investment income	137		143		155		155		157		153		156		151
199	Asset management fees, commissions and other income	72		71		70		76		73		77		87		83
1,135	Total revenues	378		387		398		415		424		420		441		432
	Benefits and Expenses (1):
200	Insurance and annuity benefits	43		50		55		53		62		51		16		39
268	Interest credited to policyholders’ account balances	89		90		91		88		84		87		87		79
1	Interest expense	1		1		4		3		5		6		9		10
(267)	Deferral of acquisition costs	(98	)	(97	)	(83	)	(75	)	(83	)	(117	)	(108	)	(113	)
47	Amortization of acquisition costs	37		40		44		4		54		55		27		37
624	General and administrative expenses	208		209		191		203		202		237		249		237
873	Total benefits and expenses	280		293		302		276		324		319		280		289
262	Adjusted operating income before income taxes	98		94		96		139		100		101		161		143

(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.

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

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		4Q
	Revenues (1):
4,602	Premiums	1,307		1,317		1,272		1,341		1,532		1,526		1,546		1,418
226	Policy charges and fee income	63		61		55		61		71		66		67		60
778	Net investment income	228		232		240		233		305		315		333		371
216	Asset management fees, commissions and other income	64		107		99		108		120		87		114		151
5,822	Total revenues	1,662		1,717		1,666		1,743		2,028		1,994		2,060		2,000
	Benefits and Expenses (1):
3,540	Insurance and annuity benefits	1,060		1,053		994		1,037		1,237		1,176		1,234		1,142
109	Interest credited to policyholders’ account balances	28		32		31		38		48		55		54		50
3	Interest expense	1		2		1		3		6		6		7		3
(695)	Deferral of acquisition costs	(214	)	(194	)	(206	)	(235	)	(257	)	(261	)	(243	)	(242	)
284	Amortization of acquisition costs	84		80		92		109		107		104		90		89
1,778	General and administrative expenses	483		480		496		539		577		568		535		581
5,019	Total benefits and expenses	1,442		1,453		1,408		1,491		1,718		1,648		1,677		1,623
803	Adjusted operating income before income taxes	220		264		258		252		310		346		383		377

(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 contract holder liabilities due to asset value changes.

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INVESTMENTS SEGMENT

(in millions)

Year ended December 31 2003		2004				2005
		1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
	Revenues (1):
—	Premiums	—	—	—	—	—	—	—	—
—	Policy charges and fee income	—	—	—	—	—	—	—	—
(11)	Net investment income	3	4	4	3	5	5	8	7
252	Asset management fees, commissions and other income	84	110	114	124	123	101	114	124
241	Total revenues	87	114	118	127	128	106	122	131
	Benefits and Expenses (1):
—	Insurance and annuity benefits	—	—	—	—	—	—	—	—
—	Interest credited to policyholders’ account balances	—	—	—	—	—	—	—	—
—	Interest expense	1	—	1	—	1	1	1	(1	)
—	Deferral of acquisition costs	—	—	—	—	—	—	—	—
—	Amortization of acquisition costs	—	—	—	—	—	—	—	—
257	General and administrative expenses	81	94	98	94	102	86	96	95
257	Total benefits and expenses	82	94	99	94	103	87	97	94
(16)	Adjusted operating income before income taxes	5	20	19	33	25	19	25	37

(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 contract holder liabilities due to asset value changes.

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

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		4Q
	Revenues (1):
(12)	Premiums	(1	)	3		(4	)	(5	)	(5	)	(6	)	(6	)	(1	)
(14)	Policy charges and fee income	(4	)	(4	)	(2	)	(5	)	(4	)	(4	)	(4	)	(9	)
532	Net investment income	119		131		135		137		117		143		159		191
(34)	Asset management fees, commissions and other income	(12	)	24		5		(7	)	(24	)	9		17		(9	)
472	Total revenues	102		154		134		120		84		142		166		172
	Benefits and Expenses (1):
72	Insurance and annuity benefits	18		15		25		27		16		18		12		17
—	Interest credited to policyholders’ account balances	—		(1	)	—		(3	)	(4	)	(9	)	(12	)	(14	)
164	Interest expense	42		52		55		60		58		78		82		102
49	Deferral of acquisition costs	16		15		17		15		17		15		14		14
(62)	Amortization of acquisition costs	(15	)	(13	)	(15	)	(12	)	(13	)	(12	)	(12	)	(42	)
159	General and administrative expenses	18		17		(5	)	6		(7	)	(7	)	32		19
382	Total benefits and expenses	79		85		77		93		67		83		116		96
90	Adjusted operating income before income taxes	23		69		57		27		17		59		50		76

(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 contract holder liabilities due to asset value changes, and benefits and expenses of divested businesses.

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

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 contract holder liabilities due to asset value changes; results of divested businesses and discontinued operations; 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” 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.

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

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.

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

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 13.00% for the three months ended March 31, 2006, 14.87% for the three months ended March 31, 2005, 7.23% for the three months ended December 31, 2005, 24.16% for the three months ended September 30, 2005 and 15.04% for the three months ended June 30, 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.

Page 43

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2006

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of May 3, 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 May 3, 2006
Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-1	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.	Dial 877-998-ROCK for additional printed information or inquiries.
751 Broad Street
Newark, New Jersey 07102
	Web Site:
	www.prudential.com

Common Stock:

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

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