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 2008

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.

April 30, 2008

i

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

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 Life Sales, Account Value Activity, and Face Amount in Force	11
Supplementary Information for Individual Life Insurance	12
Individual Annuities Sales Results, Account Values and Minimum Guarantees	13
Individual Annuities Account Value Activity	14
Supplementary Information for Group Insurance	15
Deferred Policy Acquisition Costs	16
INVESTMENT DIVISION
Combined Statements of Operations	17
Combining Statements of Operations	18
Supplementary Revenue And Assets Under Management Information for Asset Management Segment	19
Supplementary Assets Under Management and Assets Under Administration Information for Asset Management Segment	20
Supplementary Information for Financial Advisory Segment	21
Retirement Sales Results and Account Values	22
INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations	23
Combining Statements of Operations	24
International Insurance Segment - Supplementary Income Statement Information	25
Sales Results and Supplementary Information	26-27
INVESTMENT PORTFOLIO
Investment Portfolio Composition	28
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations	29
Financial Services Businesses Investment Results	30
Financial Services Businesses Investment Results - Japanese Insurance Operations	31
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations	32
RECLASSIFIED STATEMENTS OF OPERATION AND SUPPLEMENTAL INFORMATION	33-47
KEY DEFINITIONS AND FORMULAS	48-50
RATINGS AND INVESTOR INFORMATION	51

ii

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

This Quarterly Financial Supplement reflects the following:

The Asset Management segment’s commercial mortgage securitization operations, which had a pre-tax loss of $107 million for the first quarter of 2008, have been classified as a “divested business” and excluded from adjusted operating income for all periods presented, as a result of the company’s decision to exit these operations.

Effective for first quarter 2008 reporting, the company has amended its definition of adjusted operating income as it relates to certain externally managed investments in the European market. Under GAAP, the company accounts for these investments as available-for-sale securities containing embedded derivatives that are marked to market within “Realized investment gains (losses), net” based upon the change in value of the underlying portfolio. Prior to this amendment, adjusted operating income included cumulative mark-to-market losses and recoveries of such losses in the period in which they occurred, while cumulative net gains on the embedded derivatives were deferred and amortized into adjusted operating income over the remaining life of the notes. Under the amended definition, adjusted operating income excludes the mark-to-market adjustments on the embedded derivatives, amounting to a pre-tax loss of $208 million for the first quarter of 2008, which are included in net income on a GAAP basis within “Realized investment gains (losses), net.”. Accounting for these investments under GAAP has not been changed. Adjusted operating income results for earlier periods have been revised to conform to the amended definition.

Assets reported herein reflect reclassifications to conform to current reporting practices.

iii

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date			% Change			2007								2008
2008	2007					1Q		2Q		3Q		4Q		1Q
					Financial Services Businesses:
					Pre-tax adjusted operating income (loss) by division:
301	318		-5	%	Insurance Division	318		390		556		366		301
287	420		-32	%	Investment Division	420		377		311		372		287
439	474		-7	%	International Insurance and Investments Division	474		453		537		393		439
(35)	9		-489	%	Corporate and other operations	9		(8	)	(12	)	(51	)	(35	)
992	1,221		-19	%	Total pre-tax adjusted operating income	1,221		1,212		1,392		1,080		992
263	361		-27	%	Income taxes, applicable to adjusted operating income	361		355		416		268		263
729	860		-15	%	Financial Services Businesses after-tax adjusted operating income	860		857		976		812		729
					Reconciling items:
(678)	141		-581	%	Realized investment gains (losses), net, and related charges and adjustments	141		34		(180	)	(91	)	(678	)
(262)	82		-420	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	82		(108	)	36		(10	)	(262	)
200	(62	)	423	%	Change in experience-rated contractholder liabilities due to asset value changes	(62	)	72		(6	)	9		200
(112)	28		-500	%	Divested businesses	28		18		(27	)	(45	)	(112	)
(60)	(120	)	50	%	Equity in earnings of operating joint ventures	(120	)	(100	)	(103	)	(77	)	(60	)
(912)	69		-1422	%	Total reconciling items, before income taxes	69		(84	)	(280	)	(214	)	(912	)
(216)	18		-1300	%	Income taxes, not applicable to adjusted operating income	18		(35	)	(101	)	(137	)	(216	)
(696)	51		-1465	%	Total reconciling items, after income taxes	51		(49	)	(179	)	(77	)	(696	)
33	911		-96	%	Income from continuing operations (after-tax) of Financial Services Businessesbefore equity in earnings of operating joint ventures	911		808		797		735		33
43	77		-44	%	Equity in earnings of operating joint ventures, net of taxes	77		56		67		46		43
76	988		-92	%	Income from continuing operations (after-tax) of Financial Services Businesses	988		864		864		781		76
1	37		-97	%	Income (loss) from discontinued operations, net of taxes	37		(29	)	(4	)	11		1
77	1,025		-92	%	Net income of Financial Services Businesses	1,025		835		860		792		77
					Earnings per share of Common Stock (diluted):
1.65	1.83				Financial Services Businesses after-tax adjusted operating income	1.83		1.84		2.13		1.79		1.65
					Reconciling items:
(1.51)	0.30				Realized investment gains (losses), net, and related charges and adjustments	0.30		0.07		(0.39	)	(0.20	)	(1.51	)
(0.58)	0.17				Investment gains (losses) on trading account assets supporting insurance liabilities, net	0.17		(0.23	)	0.08		(0.02	)	(0.58	)
0.44	(0.13	)			Change in experience-rated contractholder liabilities due to asset value changes	(0.13	)	0.15		(0.01	)	0.02		0.44
(0.25)	0.06				Divested businesses	0.06		0.04		(0.06	)	(0.10	)	(0.25	)
(0.13)	(0.25	)			Equity in earnings of operating joint ventures	(0.25	)	(0.21	)	(0.22	)	(0.17	)	(0.13	)
(2.03)	0.15				Total reconciling items, before income taxes	0.15		(0.18	)	(0.60	)	(0.47	)	(2.03	)
(0.48)	0.04				Income taxes, not applicable to adjusted operating income	0.04		(0.08	)	(0.21	)	(0.31	)	(0.48	)
(1.55)	0.11				Total reconciling items, after income taxes	0.11		(0.10	)	(0.39	)	(0.16	)	(1.55	)
0.10	1.94				Income from continuing operations (after-tax) of Financial Services Businessesbefore equity in earnings of operating joint ventures	1.94		1.74		1.74		1.63		0.10
0.10	0.16				Equity in earnings of operating joint ventures, net of taxes	0.16		0.12		0.15		0.10		0.10
0.20	2.10				Income from continuing operations (after-tax) of Financial Services Businesses	2.10		1.86		1.89		1.73		0.20
—	0.08				Income (loss) from discontinued operations, net of taxes	0.08		(0.06	)	(0.01	)	0.02		—
0.20	2.18				Net income of Financial Services Businesses	2.18		1.80		1.88		1.75		0.20
448.6	477.2				Weighted average number of outstanding Common shares (diluted basis)	477.2		472.8		464.9		458.5		448.6
13.03%	16.29	%			Operating Return on Average Equity (based on adjusted operating income)	16.29	%	16.04	%	17.97	%	14.88	%	13.03	%
					Reconciliation to Consolidated Net Income of Prudential Financial, Inc:
77	1,025				Net income of Financial Services Businesses (above)	1,025		835		860		792		77
(8)	95				Net income (loss) of Closed Block Business	95		11		7		79		(8	)
69	1,120				Consolidated net income	1,120		846		867		871		69
12	15				Direct equity adjustments for earnings per share calculations	15		14		13		11		12

Page 1

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date			2007				2008
2008	2007		1Q	2Q	3Q	4Q	1Q
		Financial Services Businesses Capitalization Data (1):
		Short-term debt	12,812	11,533	12,619	14,514	13,788
		Long-term debt	10,080	9,401	9,771	12,351	13,302
		Attributed Equity:
		Including accumulated other comprehensive income	22,265	21,718	21,751	22,170	21,484
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	21,657	21,792	22,244	22,009	22,499
		Excluding total accumulated other comprehensive income	21,585	21,835	22,051	21,711	21,957
		Total Capitalization:
		Including accumulated other comprehensive income	32,345	31,119	31,522	34,521	34,786
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	31,737	31,193	32,015	34,360	35,801
		Excluding total accumulated other comprehensive income	31,665	31,236	31,822	34,062	35,259
		Book value per share of Common Stock:
		Including accumulated other comprehensive income	47.05	46.27	47.08	48.73	48.45
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	45.77	46.43	48.15	48.37	50.74
		Excluding total accumulated other comprehensive income	45.61	46.52	47.73	47.72	49.52
		Number of diluted shares at end of period	473.2	469.4	462.0	455.0	443.4
		Common Stock Price Range (based on closing price):
91.36	93.10	High	93.10	103.17	98.71	101.09	91.36
67.36	85.69	Low	85.69	90.21	84.28	89.46	67.36
78.25	90.26	Close	90.26	97.23	97.58	93.04	78.25
		Common Stock market capitalization (1)	42,025	44,879	44,309	41,623	34,227

(1) As of end of period.

Page 2

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

OPERATIONS HIGHLIGHTS

Year-to-date			2007				2008
2008	2007		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
		Institutional customers	161.0	166.2	170.1	176.4	174.2
		Retail customers	84.2	87.1	88.5	86.6	81.8
		General account	168.9	167.0	171.6	175.5	177.9
		Total Investment Management and Advisory Services	414.1	420.3	430.2	438.5	433.9
		Non-proprietary assets under management	53.4	56.1	57.0	59.7	54.7
		Total managed by Investment Division	467.5	476.4	487.2	498.2	488.6
		Managed by International Insurance and Investments Division (3):	88.8	94.3	71.5	69.2	71.0
		Managed by Insurance Division	73.5	77.7	78.2	80.3	71.5
		Total assets under management	629.8	648.4	636.9	647.7	631.1
		Client assets under administration	117.2	127.0	131.4	136.3	129.4
		Total assets under management and administration	747.0	775.4	768.3	784.0	760.5
		Assets managed or administered for customers outside of the United States at end of period (3)	128.8	137.3	119.6	117.0	117.4
		Distribution Representatives (1):
		Prudential Agents	2,505	2,512	2,552	2,425	2,436
		International Life Planners	5,893	6,001	6,038	6,166	6,138
		Gibraltar Life Advisors	5,952	5,815	5,944	6,264	6,035
50	49	Prudential Agent productivity ($ thousands)	49	57	54	85	50

(1) As of end of period.

(2) At fair market value.

(3) Assets managed by the International Insurance and Investments Division and Assets managed or administered for customers outside of the United States at end of period at June 30, 2007 included $28 billion associated with investments in operating joint ventures which the Company sold in the third quarter of 2007. As a result, these assets are no longer reported as a component of its assets under management and administration.

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)

Year-to-date			% Change			2007								2008
2008	2007					1Q		2Q		3Q		4Q		1Q
					Revenues (1):
3,102	2,720		14	%	Premiums	2,720		2,684		2,673		2,71	7	3,10	2
824	784		5	%	Policy charges and fee income	784		783		727		828		824
2,111	1,995		6	%	Net investment income	1,99	5	2,033		2,070		2,106		2,111
939	1,149		-18	%	Asset management fees, commissions and other income	1,149		1,169		1,301		1,121		939
6,976	6,648		5	%	Total revenues	6,648		6,669		6,771		6,772		6,976
					Benefits and Expenses (1):
3,082	2,763		12	%	Insurance and annuity benefits	2,763		2,683		2,658		2,725		3,082
806	745		8	%	Interest credited to policyholders’ account balances	745		762		779		808		806
283	274		3	%	Interest expense	274		276		281		289		283
(588)	(539	)	-9	%	Deferral of acquisition costs	(539	)	(556	)	(554	)	(599	)	(588	)
338	272		24	%	Amortization of acquisition costs	272		265		108		290		338
2,063	1,912		8	%	General and administrative expenses	1,912		2,027		2,107		2,179		2,063
5,984	5,427		10	%	Total benefits and expenses	5,427		5,457		5,379		5,692		5,984
992	1,221		-19	%	Adjusted operating income before income taxes	1,221		1,212		1,392		1,080		992
					Reconciling items:
(665)	147		-552	%	Realized investment gains (losses), net, and related adjustments	147		41		(178	)	(51	)	(665	)
(13)	(6	)	-117	%	Related charges	(6	)	(7	)	(2	)	(40	)	(13	)
(678)	141		-581	%	Total realized investment gains (losses), net, and related charges and adjustments	141		34		(180	)	(91	)	(678	)
							��
(262)	82		-420	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	82		(108	)	36		(10	)	(262	)
200	(62	)	423	%	Change in experience-rated contractholder liabilities due to asset value changes	(62	)	72		(6	)	9		200
(112)	28		-500	%	Divested businesses	28		18		(27	)	(45	)	(112	)
(60)	(120	)	50	%	Equity in earnings of operating joint ventures	(120	)	(100	)	(103	)	(77	)	(60	)
(912)	69		-1422	%	Total reconciling items, before income taxes	69		(84	)	(280	)	(214	)	(912	)
80	1,290		-94	%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures	1,290		1,128		1,112		866		80
47	379		-88	%	Income tax expense	379		320		315		131		47
33	911		-96	%	Income from continuing operations before equity in earnings of operating joint ventures	911		808		797		735		33

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

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Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)

	3/31/2007	6/30/2007		9/30/2007		12/31/2007		3/31/2008
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $110,980; $108,291; $111,668; $111,405; $117,893)	113,833	109,665		112,956		112,748		117,91	4
Fixed maturities, held to maturity, at amortized cost (fair value $3,407; $3,287; $3,411; $3,543; $3,741)	3,440	3,370		3,473		3,548		3,735
Trading account assets supporting insurance liabilities, at fair value	14,223	14,069		14,612		14,473		14,644
Other trading account assets, at fair value	2,284	2,214		3,354		3,471		2,684
Equity securities, available for sale, at fair value (cost $3,942; $3,928; $4,385; $4,497; $4,786)	4,592	4,588		4,683		4,640		4,551
Commercial loans	18,947	19,852		20,756		22,093		23,444
Policy loans	3,575	3,642		3,815		3,942		4,147
Securities purchased under agreements to resell	113	198		111		129		178
Other long-term investments	4,339	4,430		4,449		5,163		5,266
Short-term investments	3,291	5,421		3,183		3,852		4,176
Total investments	168,637	167,449		171,392		174,059		180,739
Cash and cash equivalents	5,950	5,584		7,687		9,624		8,133
Accrued investment income	1,468	1,432		1,519		1,496		1,540
Reinsurance recoverables	2,021	2,127		2,149		2,119		1,975
Deferred policy acquisition costs	10,067	10,404		11,032		11,396		11,924
Other assets	16,608	15,489		16,143		17,754		20,357
Separate account assets	181,618	187,403		195,324		195,58	3	181,902
Total assets	386,369	389,888		405,246		412,031		406,570
Liabilities:
Future policy benefits	56,490	55,692		58,117		60,259		63,590
Policyholders’ account balances	75,132	75,606		77,105		78,599		84,812
Reinsurance payables	1,472	1,556		1,593		1,552		1,396
Securities sold under agreements to repurchase	4,794	5,146		5,683		5,281		3,727
Cash collateral for loaned securities	3,697	4,497		5,017		3,041		2,761
Income taxes	3,199	2,746		2,826		3,402		3,575
Short-term debt	12,812	11,533		12,619		14,514		13,788
Long-term debt	10,080	9,401		9,771		12,351		13,302
Other liabilities	14,810	14,590		15,440		15,279		16,233
Separate account liabilities	181,618	187,403		195,324		195,583		181,902
Total liabilities	364,104	368,170		383,495		389,861		385,086
Attributed Equity:
Accumulated other comprehensive income (loss)	680	(117	)	(300	)	459		(473	)
Other attributed equity	21,585	21,835		22,051		21,711		21,957
Total attributed equity	22,265	21,718		21,751		22,170		21,484
Total liabilities and attributed equity	386,369	389,888		405,246		412,031		406,570

Page 5

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)

	Three Months Ended March 31, 2008
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	3,102		1,134		200		1,772		(4	)
Policy charges and fee income	824		695		43		87		(1	)
Net investment income	2,111		504		964		462		181
Asset management fees, commissions and other income	939		177		659		180		(77	)
Total revenues	6,976		2,510		1,866		2,501		99
Benefits and Expenses (1):
Insurance and annuity benefits	3,082		1,255		392		1,413		22
Interest credited to policyholders’ account balances	806		216		533		100		(43	)
Interest expense	283		66		52		2		163
Deferral of acquisition costs	(588	)	(280	)	(29	)	(294	)	15
Amortization of acquisition costs	338		178		10		160		(10	)
General and administrative expenses	2,063		774		621		681		(13	)
Total benefits and expenses	5,984		2,209		1,579		2,062		134
Adjusted operating income (loss) before income taxes	992		301		287		439		(35	)
	Three Months Ended March 31, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,720		1,073		96		1,553		(2	)
Policy charges and fee income	784		667		44		72		1
Net investment income	1,995		470		934		386		205
Asset management fees, commissions and other income	1,149		230		745		219		(45	)
Total revenues	6,648		2,440		1,819		2,230		159
Benefits and Expenses (1):
Insurance and annuity benefits	2,763		1,230		302		1,219		12
Interest credited to policyholders’ account balances	745		202		492		77		(26	)
Interest expense	274		53		59		2		160
Deferral of acquisition costs	(539	)	(270	)	(19	)	(261	)	11
Amortization of acquisition costs	272		153		9		128		(18	)
General and administrative expenses	1,912		754		556		591		11
Total benefits and expenses	5,427		2,122		1,399		1,756		150
Adjusted operating income before income taxes	1,221		318		420		474		9

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

Page 6

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)

	As of March 31, 2008
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	180,739		37,860		69,724		62,005	11,150
Deferred policy acquisition costs	11,924		6,224		259		5,624	(183	)
Other assets	32,005		5,441		9,799		10,668	6,097
Separate account assets	181,902		90,727		92,318		276	(1,419	)
Total assets	406,570		140,252		172,100		78,573	15,645
Liabilities:
Future policy benefits	63,590		9,133		14,121		39,899	437
Policyholders’ account balances	84,812		23,925		44,881		19,120	(3,114	)
Debt	27,090		5,297		3,987		1,112	16,694
Other liabilities	27,692		4,537		10,048		11,027	2,080
Separate account liabilities	181,902		90,727		92,318		276	(1,419	)
Total liabilities	385,086		133,619		165,355		71,434	14,678
Attributed Equity:
Accumulated other comprehensive income (loss)	(473	)	(118	)	(531	)	406	(230	)
Other attributed equity	21,957		6,751		7,276		6,733	1,197
Total attributed equity	21,484		6,633		6,745		7,139	967
Total liabilities and attributed equity	406,570		140,252		172,100		78,573	15,645
	As of December 31, 2007
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	174,059		34,355		69,185		58,324	12,195
Deferred policy acquisition costs	11,396		6,152		233		5,187	(176	)
Other assets	30,993		5,502		8,052		9,319	8,120
Separate account assets	195,583		99,713		97,030		268	(1,428	)
Total assets	412,031		145,722		174,500		73,098	18,711
Liabilities:
Future policy benefits	60,259		8,730		14,298		36,773	458
Policyholders’ account balances	78,599		20,375		43,371		17,704	(2,851	)
Debt	26,865		4,916		3,814		1,218	16,917
Other liabilities	28,555		5,320		9,962		10,037	3,236
Separate account liabilities	195,583		99,713		97,030		268	(1,428	)
Total liabilities	389,861		139,054		168,475		66,000	16,332
Attributed Equity:
Accumulated other comprehensive income (loss)	459		59		(194	)	702	(108	)
Other attributed equity	21,711		6,609		6,219		6,396	2,487
Total attributed equity	22,170		6,668		6,025		7,098	2,379
Total liabilities and attributed equity	412,031		145,722		174,500		73,098	18,711

Page 7

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

SHORT-TERM AND LONG-TERM DEBT

(in millions)

	As of March 31, 2008				As of December 31, 2007
	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	3,175	3,190	6,365		1,506	3,275	4,781
Investment related	6,257	7,640	13,897		8,116	7,120	15,236
Securities business related	3,299	1,319	4,618		3,405	1,371	4,776
Specified other businesses	758	919	1,677		1,179	381	1,560
Limited recourse and non-recourse borrowing	299	234	533		308	204	512
Total debt - Financial Services Businesses	13,788	13,302	27,090		14,514	12,351	26,865
Ratio of long-term and short-term capital debt to capitalization			22.1	%			17.8	%
Closed Block Business
Investment related	2,436	—	2,436		1,143	—	1,143
Limited recourse and non-recourse borrowing	—	1,750	1,750		—	1,750	1,750
Total debt	2,436	1,750	4,186		1,143	1,750	2,893

	As of March 31, 2008				As of December 31, 2007
	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	5,134	1,231	—	6,365	3,661	1,120	—	4,781
Investment related	7,617	4,080	2,200	13,897	9,423	3,863	1,950	15,236
Securities business related	3,162	1,392	64	4,618	3,235	1,445	96	4,776
Specified other businesses	938	739	—	1,677	393	1,167	—	1,560
Limited recourse and non-recourse borrowing	—	—	533	533	—	—	512	512
Total debt - Financial Services Businesses	16,851	7,442	2,797	27,090	16,712	7,595	2,558	26,865

(1) Includes Prudential Funding, LLC.

(2) Capital debt at Prudential Insurance Co. of America includes $444 million of Surplus Notes for March 31, 2008 and December 31, 2007.

Page 8

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

Year-to-date			% Change			2007								2008
2008	2007					1Q		2Q		3Q		4Q		1Q
					Revenues (1):
1,134	1,073		6	%	Premiums	1,073		1,083		1,073		1,053		1,134
695	667		4	%	Policy charges and fee income	667		672		632		715		695
504	470		7	%	Net investment income	470		475		479		483		504
177	230		-23	%	Asset management fees, commissions and other income	230		242		324		233		177
2,510	2,440		3	%	Total revenues	2,440		2,472		2,508		2,484		2,510
					Benefits and Expenses (1):
1,255	1,230		2	%	Insurance and annuity benefits	1,230		1,182		1,161		1,165		1,255
216	202		7	%	Interest credited to policyholders’ account balances	202		205		201		209		216
66	53		25	%	Interest expense	53		53		59		67		66
(280)	(270	)	-4	%	Deferral of acquisition costs	(270	)	(287	)	(290	)	(304	)	(280	)
178	153		16	%	Amortization of acquisition costs	153		140		1		164		178
774	754		3	%	General and administrative expenses	754		789		820		817		774
2,209	2,122		4	%	Total benefits and expenses	2,122		2,082		1,952		2,118		2,209
301	318		-5	%	Adjusted operating income before income taxes	318		390		556		366		301

(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 2008

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

	Three Months Ended March 31, 2008
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	1,134		148		19		967
Policy charges and fee income	695		285		304		106
Net investment income	504		180		161		163
Asset management fees, commissions and other income	177		67		89		21
Total revenues	2,510		680		573		1,257
Benefits and Expenses (1):
Insurance and annuity benefits	1,255		239		71		945
Interest credited to policyholders’ account balances	216		55		102		59
Interest expense	66		52		14		—
Deferral of acquisition costs	(280	)	(108	)	(163	)	(9	)
Amortization of acquisition costs	178		111		63		4
General and administrative expenses (2)	774		235		371		168
Total benefits and expenses	2,209		584		458		1,167
Adjusted operating income before income taxes	301		96		115		90
	Three Months Ended March 31, 2007
	Total Insurance Division		Individual Life		Individual Annuities		Group Insurance
Revenues (1):
Premiums	1,073		126		21		926
Policy charges and fee income	667		272		299		96
Net investment income	470		155		151		164
Asset management fees, commissions and other income	230		78		133		19
Total revenues	2,440		631		604		1,205
Benefits and Expenses (1):
Insurance and annuity benefits	1,230		236		59		935
Interest credited to policyholders’ account balances	202		54		89		59
Interest expense	53		38		13		2
Deferral of acquisition costs	(270	)	(103	)	(154	)	(13	)
Amortization of acquisition costs	153		78		74		1
General and administrative expenses (2)	754		227		357		170
Total benefits and expenses	2,122		530		438		1,154
Adjusted operating income before income taxes	318		101		166		51

(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 $30 million for the three months ended March 31, 2008 and $32 million for the three months ended March 31, 2007, for the amortization, net of interest, of value of business acquired (VOBA).

Page 10

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

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

(in millions)

Year-to-date					2007								2008
2008		2007			1Q		2Q		3Q		4Q		1Q
				SALES:
				Excluding corporate-owned life insurance:
16		48		Variable life	48		19		19		20		16
40		44		Universal life	44		45		40		47		40
51		49		Term life	49		54		54		55		51
107		141		Total excluding corporate-owned life insurance	141		118		113		122		107
—		5		Corporate-owned life insurance	5		3		1		2		—
107		146		Total	146		121		114		124		107
				SALES BY DISTRIBUTION CHANNEL:
				Excluding corporate-owned life insurance:
40		42		Prudential Agents	42		42		44		46		40
67		99		Third party distribution	99		76		69		76		67
—		5		Corporate-owned life insurance	5		3		1		2		—
107		146		Total	146		121		114		124		107
				ACCOUNT VALUE ACTIVITY:
				Policyholders’ Account Balances (1):
6,582		6,165		Beginning balance	6,165		6,253		6,385		6,489		6,582
370		325		Premiums and deposits	325		345		299		329		370
(238	)	(236	)	Surrenders and withdrawals	(236	)	(263	)	(257	)	(239	)	(238	)
132		89		Net sales	89		82		42		90		132
(39	)	(46	)	Benefit payments	(46	)	(40	)	(29	)	(37	)	(39	)
93		43		Net flows	43		42		13		53		93
9		46		Interest credited and other	46		92		93		38		9
63		65		Net transfers from separate account	65		65		70		70		63
(71	)	(66	)	Policy charges	(66	)	(67	)	(72	)	(68	)	(71	)
6,676		6,253		Ending balance	6,253		6,385		6,489		6,582		6,676
				Separate Account Liabilities:
18,585		17,586		Beginning balance	17,586		17,748		18,517		18,876		18,585
304		316		Premiums and deposits	316		314		360		292		304
(162	)	(166	)	Surrenders and withdrawals	(166	)	(156	)	(184	)	(174	)	(162	)
142		150		Net sales	150		158		176		118		142
(10	)	(28	)	Benefit payments	(28	)	(5	)	(13	)	(16	)	(10	)
132		122		Net flows	122		153		163		102		132
(1,183	)	303		Change in market value, interest credited and other	303		880		461		(121	)	(1,183	)
(63	)	(65	)	Net transfers to general account	(65	)	(65	)	(70	)	(70	)	(63	)
(195	)	(198	)	Policy charges	(198	)	(199	)	(195	)	(202	)	(195	)
17,276		17,748		Ending balance	17,748		18,517		18,876		18,585		17,276
				FACE AMOUNT IN FORCE (2):
				Variable life	139,418		139,280		138,872		137,889		135,519
				Universal life	22,910		23,696		24,424		25,416		26,201
				Term life	264,840		282,434		300,056		316,969		331,139
				Total	427,168		445,410		463,352		480,274		492,859

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

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

Page 11

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2007

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)

Year-to-date					2007								2008
2008		2007			1Q		2Q		3Q		4Q		1Q
				Individual Life Insurance:
				Policy Surrender Experience:
178		167		Cash value of surrenders	167		175		223		187		178
3.1	%	3.0	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.0	%	3.1	%	3.8	%	3.2	%	3.1	%
				Death benefits per $1,000 of in force (1):
3.62		3.66		Variable and universal life	3.66		3.04		4.00		3.13		3.62
1.59		3.18		Term life	3.18		1.62		1.99		0.91		1.59
2.92		3.64		Total, Individual Life Insurance	3.64		2.68		3.38		2.36		2.92

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

Page 12

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2007

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

(in millions)

Year-to-date					2007								2008
2008		2007			1Q		2Q		3Q		4Q		1Q
				SALES AND ACCOUNT VALUES:
				Variable Annuities:
80,330		74,555		Beginning total account value	74,555		75,591		78,968		81,173		80,330
2,829		2,779		Sales	2,779		3,033		2,825		3,041		2,829
(2,173	)	(2,310	)	Surrenders and withdrawals	(2,310	)	(2,515	)	(2,328	)	(2,415	)	(2,173	)
656		469		Net sales	469		518		497		626		656
(294	)	(306	)	Benefit payments	(306	)	(299	)	(265	)	(261	)	(294	)
362		163		Net flows	163		219		232		365		362
(5,409	)	1,168		Change in market value, interest credited, and other	1,168		3,478		2,295		(865	)	(5,409	)
(306	)	(295	)	Policy charges	(295	)	(320	)	(322	)	(343	)	(306	)
74,977		75,591		Ending total account value	75,591		78,968		81,173		80,330		74,977
				Fixed Annuities:
3,488		3,748		Beginning total account value	3,748		3,679		3,608		3,546		3,488
17		21		Sales	21		20		16		16		17
(53	)	(81	)	Surrenders and withdrawals	(81	)	(74	)	(69	)	(62	)	(53	)
(36	)	(60	)	Net redemptions	(60	)	(54	)	(53	)	(46	)	(36	)
(43	)	(43	)	Benefit payments	(43	)	(45	)	(41	)	(38	)	(43	)
(79	)	(103	)	Net flows	(103	)	(99	)	(94	)	(84	)	(79	)
32		35		Interest credited and other	35		29		33		27		32
(1	)	(1	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)
3,440		3,679		Ending total account value	3,679		3,608		3,546		3,488		3,440
				SALES BY DISTRIBUTION CHANNEL:
				Variable and Fixed Annuities (1):
646		589		Insurance Agents	589		660		607		713		646
344		346		Wirehouses (2)	346		407		385		428		344
1,856		1,865		Independent Financial Planners (3)	1,865		1,986		1,849		1,916		1,856
2,846		2,800		Total	2,800		3,053		2,841		3,057		2,846
				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (4):
				Return of net deposits:
				Account value	38,287		40,762		42,708		42,995		40,817
				Net amount at risk	1,433		1,268		1,171		1,204		1,631
				Minimum return, anniversary contract value, or maximum contract value:
				Account value	32,059		32,925		33,184		32,194		29,401
				Net amount at risk	2,439		2,108		1,978		2,255		3,823
				Variable Annuity Account Values with Living Benefit Features (4):
				Guaranteed minimum accumulation benefits	10,731		11,335		11,757		11,724		10,933
				Guaranteed minimum withdrawal benefits	2,105		2,229		2,274		2,234		2,006
				Guaranteed minimum income benefits	7,269		7,386		7,320		6,948		6,233
				Guaranteed minimum withdrawal & income benefits	10,205		12,448		14,659		16,260		16,863
				Total	30,310		33,398		36,010		37,166		36,035

(1) Amounts represent gross sales.

(2) Annuity sales for one of our distribution firms have been reclassified from the Independent Financial Planner channel to the Wirehouse channel for all periods presented to reflect current administration by Prudential Annuities.

(3) Including bank distribution.

(4) At end of period.

Page 13

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

INSURANCE DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)

Year-to-date					2007								2008
2008		2007			1Q		2Q		3Q		4Q		1Q
				INDIVIDUAL ANNUITIES:
				Account Values in General Account (1):
8,644		9,527		Beginning balance	9,527		9,246		8,784		8,647		8,644
73		83		Premiums and deposits	83		79		62		68		73
(251	)	(333	)	Surrenders and withdrawals	(333	)	(307	)	(263	)	(253	)	(251	)
(178	)	(250	)	Net redemptions	(250	)	(228	)	(201	)	(185	)	(178	)
(103	)	(102	)	Benefit payments	(102	)	(105	)	(96	)	(89	)	(103	)
(281	)	(352	)	Net flows	(352	)	(333	)	(297	)	(274	)	(281	)
99		85		Interest credited and other	85		84		89		84		99
3,552		(13	)	Net transfers (to) from separate account	(13	)	(212	)	72		188		3,552
(1	)	(1	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)
12,013		9,246		Ending balance	9,246		8,784		8,647		8,644		12,013
				Account Values in Separate Account:
75,174		68,776		Beginning balance	68,776		70,024		73,792		76,072		75,174
2,773		2,717		Premiums and deposits	2,717		2,974		2,779		2,989		2,773
(1,975	)	(2,058	)	Surrenders and withdrawals	(2,058	)	(2,282	)	(2,134	)	(2,224	)	(1,975	)
798		659		Net sales	659		692		645		765		798
(234	)	(247	)	Benefit payments	(247	)	(239	)	(210	)	(210	)	(234	)
564		412		Net flows	412		453		435		555		564
(5,476	)	1,118		Change in market value, interest credited and other	1,118		3,423		2,239		(922	)	(5,476	)
(3,552	)	13		Net transfers (to) from general account	13		212		(72	)	(188	)	(3,552	)
(306	)	(295	)	Policy charges	(295	)	(320	)	(322	)	(343	)	(306	)
66,404		70,024		Ending balance	70,024		73,792		76,072		75,174		66,404

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

Page 14

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)

Year-to-date					2007								2008
2008		2007			1Q		2Q		3Q		4Q		1Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
112		103		Group life	103		26		33		35		112
114		92		Group disability (1)	92		26		21		16		114
226		195		Total	195		52		54		51		226
				Future Policy Benefits (2):
				Group life	2,103		2,105		2,032		2,240		2,099
				Group disability (1)	589		614		640		662		774
				Total	2,692		2,719		2,672		2,902		2,873
				Policyholders’ Account Balances (2):
				Group life	5,439		5,521		5,610		5,734		5,824
				Group disability (1)	109		124		132		148		137
				Total	5,548		5,645		5,742		5,882		5,961
				Separate Account Liabilities (2):
				Group life	16,898		17,293		19,462		19,992		19,363
				Group disability (1)	—		—		—		—		—
				Total	16,898		17,293		19,462		19,992		19,363
				Group Life Insurance:
949		832		Gross premiums, policy charges and fee income (3)	832		860		841		889		949
793		811		Earned premiums, policy charges and fee income	811		810		784		773		793
87.1	%	91.5	%	Benefits ratio	91.5	%	91.1	%	88.4	%	90.4	%	87.1	%
8.2	%	9.6	%	Administrative operating expense ratio	9.6	%	9.3	%	9.8	%	8.4	%	8.2	%
				Persistency ratio	95.6	%	95.3	%	94.2	%	93.6	%	94.7	%
				Group Disability Insurance (1):
288		217		Gross premiums, policy charges and fee income (3)	217		225		233		227		288
280		211		Earned premiums, policy charges and fee income	211		216		223		217		280
91.1	%	91.0	%	Benefits ratio	91.0	%	84.7	%	82.1	%	88.9	%	91.1	%
17.4	%	22.1	%	Administrative operating expense ratio	22.1	%	20.0	%	20.6	%	21.2	%	17.4	%
				Persistency ratio	92.1	%	91.1	%	88.9	%	88.0	%	91.4	%

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

(2) As of end of period.

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

Page 15

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)

Year-to-date				2007								2008
2008	2007			1Q		2Q		3Q		4Q		1Q
			INDIVIDUAL LIFE INSURANCE:
3,855	3,550		Beginning balance	3,550		3,570		3,678		3,841		3,855
108	103		Capitalization	103		115		115		119		108
(111)	(78	)	Amortization - operating results	(78	)	(64	)	68		(90	)	(111	)
—	—		Amortization - realized investment gains and losses	—		—		—		—		—
(47)	(5	)	Impact of unrealized (gains) or losses on AFS securities	(5	)	57		(20	)	(15	)	(47	)
3,805	3,570		Ending balance	3,570		3,678		3,841		3,855		3,805
			INDIVIDUAL ANNUITIES:
1,976	1,613		Beginning balance	1,613		1,671		1,791		1,876		1,976
163	154		Capitalization	154		168		158		173		163
(63)	(74	)	Amortization - operating results	(74	)	(75	)	(66	)	(70	)	(63	)
15	1		Amortization - realized investment gains and losses	1		(1	)	5		2		15
2	(10	)	Impact of unrealized (gains) or losses on AFS securities	(10	)	28		(12	)	(5	)	2
—	(13	)	Other (1)	(13	)	—		—		—		—
2,093	1,671		Ending balance	1,671		1,791		1,876		1,976		2,093
			GROUP INSURANCE:
321	284		Beginning balance	284		296		299		313		321
9	13		Capitalization	13		4		17		12		9
(4)	(1	)	Amortization - operating results	(1	)	(1	)	(3	)	(4	)	(4	)
—	—		Amortization - realized investment gains and losses	—		—		—		—		—
—	—		Impact of unrealized losses on AFS securities	—		—		—		—		—
326	296		Ending balance	296		299		313		321		326
			TOTAL INSURANCE DIVISION:
6,152	5,447		Beginning balance	5,447		5,537		5,768		6,030		6,152
280	270		Capitalization	270		287		290		304		280
(178)	(153	)	Amortization - operating results	(153	)	(140	)	(1	)	(164	)	(178	)
15	1		Amortization - realized investment gains and losses	1		(1	)	5		2		15
(45)	(15	)	Impact of unrealized (gains) or losses on AFS securities	(15	)	85		(32	)	(20	)	(45	)
—	(13	)	Other (1)	(13	)	—		—		—		—
6,224	5,537		Ending balance	5,537		5,768		6,030		6,152		6,224

(1) Reflects the impact of adoption of SOP 05-1 on January 1, 2007.

Page 16

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)

Year-to-date			% Change			2007								2008
2008	2007					1Q		2Q		3Q		4Q		1Q
					Revenues (1):
200	96		108	%	Premiums	96		71		88		74		200
43	44		-2	%	Policy charges and fee income	44		44		40		44		43
964	934		3	%	Net investment income	934		972		979		1,010		964
659	745		-12	%	Asset management fees, commissions and other income	745		747		744		768		659
1,866	1,819		3	%	Total revenues	1,819		1,834		1,851		1,896		1,866
					Benefits and Expenses (1):
392	302		30	%	Insurance and annuity benefits	302		276		290		277		392
533	492		8	%	Interest credited to policyholders’ account balances	492		508		528		545		533
52	59		-12	%	Interest expense	59		64		76		75		52
(29)	(19	)	-53	%	Deferral of acquisition costs	(19	)	(25	)	(19	)	(28	)	(29	)
10	9		11	%	Amortization of acquisition costs	9		11		11		7		10
621	556		12	%	General and administrative expenses	556		623		654		648		621
1,579	1,399		13	%	Total benefits and expenses	1,399		1,457		1,540		1,524		1,579
287	420		-32	%	Adjusted operating income before income taxes	420		377		311		372		287

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

Page 17

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2007

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)

	Three Months Ended March 31, 2008
	Total Investment Division		Asset Management		Financial Advisory	Retirement
Revenues (1):
Premiums	200		—		—	200
Policy charges and fee income	43		—		—	43
Net investment income	964		71		—	893
Asset management fees, commissions and other income	659		477		51	131
Total revenues	1,866		548		51	1,267
Benefits and Expenses (1):
Insurance and annuity benefits	392		—		—	392
Interest credited to policyholders’ account balances	533		—		—	533
Interest expense	52		22		—	30
Deferral of acquisition costs	(29	)	(4	)	—	(25	)
Amortization of acquisition costs	10		5		—	5
General and administrative expenses	621		406		7	208
Total benefits and expenses	1,579		429		7	1,143
Adjusted operating income before income taxes	287		119		44	124
	Three Months Ended March 31, 2007
	Total Investment Division		Asset Management		Financial Advisory	Retirement
Revenues (1):
Premiums	96		—		—	96
Policy charges and fee income	44		—		—	44
Net investment income	934		40		—	894
Asset management fees, commissions and other income	745		505		111	129
Total revenues	1,819		545		111	1,163
Benefits and Expenses (1):
Insurance and annuity benefits	302		—		—	302
Interest credited to policyholders’ account balances	492		—		—	492
Interest expense	59		10		—	49
Deferral of acquisition costs	(19	)	(4	)	—	(15	)
Amortization of acquisition costs	9		6		—	3
General and administrative expenses	556		358		14	184
Total benefits and expenses	1,399		370		14	1,015
Adjusted operating income before income taxes	420		175		97	148

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

Page 18

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2007

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION FOR

ASSET MANAGEMENT SEGMENT

		% Change	Supplementary Revenue Information (in millions):
Year-to-date				2007				2008
2008	2007			1Q	2Q	3Q	4Q	1Q
			Analysis of revenues by type:
281	262	7%	Asset management fees	262	271	265	283	281
101	131	-23%	Incentive, transaction, principal investing and capital markets revenue	131	159	133	137	101
166	152	9%	Service, distribution and other revenues	152	160	160	206	166
548	545	1%	Total Asset Management segment revenues	545	590	558	626	548
			Analysis of asset management fees by source:
133	117	14%	Institutional customers	117	123	118	130	133
81	84	-4%	Retail customers	84	87	87	89	81
67	61	10%	General account	61	61	60	64	67
281	262	7%	Total asset management fees	262	271	265	283	281

Supplementary Assets Under Management Information (in billions):
	March 31, 2008
	Equity	Fixed Income	Real Estate	Total
Institutional customers	52.1	93.3	28.8	174.2
Retail customers	60.2	20.0	1.6	81.8
General account	4.2	172.8	0.9	177.9
Total	116.5	286.1	31.3	433.9
	March 31, 2007
	Equity	Fixed Income	Real Estate	Total
Institutional customers	55.2	81.8	24.0	161.0
Retail customers	61.8	20.5	1.9	84.2
General account	4.1	163.9	0.9	168.9
Total	121.1	266.2	26.8	414.1

Page 19

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

INVESTMENT DIVISION - SUPPLEMENTARY ASSETS UNDER MANAGEMENT AND ADMINISTRATION INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in billions)

Year-to-date					2007								2008
2008		2007			1Q		2Q		3Q		4Q		1Q
				Institutional Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
141.7		122.9		Beginning assets under management	122.9		127.0		132.0		135.0		141.7
6.5		5.1		Additions (1)	5.1		6.3		5.4		11.1		6.5
(4.3	)	(3.9	)	Withdrawals (2)	(3.9	)	(4.6	)	(6.0	)	(6.4	)	(4.3	)
(2.8	)	2.5		Change in market value	2.5		3.5		3.7		1.2		(2.8	)
(1.0	)	0.4		Net money market flows	0.4		(0.2	)	(0.1	)	0.8		(1.0	)
140.1		127.0		Ending assets under management	127.0		132.0		135.0		141.7		140.1
34.1		34.0		Affiliated institutional assets under management	34.0		34.2		35.1		34.7		34.1
174.2		161.0		Total assets managed for institutional customers at end of period	161.0		166.2		170.1		176.4		174.2
2.2		1.2		Net institutional additions (withdrawals) other than money market	1.2		1.7		(0.6	)	4.7		2.2
				Retail Assets Under Management:
				Assets gathered by Investment Management & Advisory Services sales force:
50.9		43.4		Beginning assets under management	43.4		47.7		49.3		51.3		50.9
3.5		2.9		Additions	2.9		2.3		2.7		2.6		3.5
(2.5	)	(2.6	)	Withdrawals	(2.6	)	(3.0	)	(2.4	)	(2.4	)	(2.5	)
(4.0	)	1.1		Change in market value	1.1		2.3		1.7		(0.2	)	(4.0	)
0.3		0.1		Net money market flows	0.1		—		—		(0.6	)	0.3
—		2.8		Other (3)	2.8		—		—		0.2		—
48.2		47.7		Ending assets under management	47.7		49.3		51.3		50.9		48.2
33.6		36.5		Affiliated retail assets under management	36.5		37.8		37.2		35.7		33.6
81.8		84.2		Total assets managed for retail customers at end of period	84.2		87.1		88.5		86.6		81.8
1.0		0.3		Net retail additions (withdrawals) other than money market	0.3		(0.7	)	0.3		0.2		1.0
				Wrap-fee Product Assets Under Administration:
81.7		69.1		Beginning total wrap-fee product assets	69.1		72.3		78.7		82.1		81.7
4.7		5.8		Additions (4)	5.8		5.7		3.6		4.0		4.7
(5.4	)	(3.8	)	Withdrawals	(3.8	)	(3.9	)	(3.6	)	(4.2	)	(5.4	)
(5.1	)	1.2		Change in market value	1.2		4.6		3.4		(0.2	)	(5.1	)
75.9		72.3		Ending total wrap-fee product assets	72.3		78.7		82.1		81.7		75.9
(0.7	)	2.0		Net wrap-fee product additions (withdrawals)	2.0		1.8		—		(0.2	)	(0.7	)

(1) Additions include $0.2 billion for the three months ended March 31, 2008 and $0.3 billion for the three months ended June 30, 2007 for assets transferred from the Retirement segment.

(2) Withdrawals include $(0.1) billion for the three months ended December 31, 2007 and $(0.4) billion for the three months ended September 30, 2007, for assets transferred to the Retirement segment.

(3) Represents transfer of retail assets from an externally managed fund family to the Jennison Dryden Fund Family (internally managed).

(4) Substantially all relates to a contractual arrangement with Wachovia which provides for an essentially fixed annual fee and is scheduled to expire July 1, 2008.

Page 20

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)

Year-to-date			2007								2008
2008	2007		1Q		2Q		3Q		4Q		1Q
		Information pertaining to Wachovia Securities Financial Holdings, LLC:
		Revenues:
95	79	Net investment income	79		77		75		75		95
844	529	Commissions	529		519		484		511		844
981	588	Fees	588		608		644		668		981
123	75	Other non-interest revenues (1)	75		84		62		194		123
2,043	1,271	Total revenues	1,271		1,288		1,265		1,448		2,043
1,863	978	Expenses (1)	978		1,043		1,009		1,265		1,863
1,677	978	Expenses before transition costs	978		1,043		1,009		1,238		1,677
186	—	Transition costs	—		—		—		27		186
1,863	978	Total expenses	978		1,043		1,009		1,265		1,863
180	293	Income before income taxes	293		245		256		183		180
44	111	Prudential Financial, Inc’s. share of Wachovia Securities Financial Holdings, LLC (2)	111		94		97		69		44
7	—	Purchase accounting and related adjustments	—		(1	)	—		—		7
51	111	Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	111		93		97		69		51
		Recurring revenue as a percentage of total revenue (3)	54.8	%	55.2	%	56.6	%	58.6	%	59.1	%
		Total client assets ($ in billions) (4)	768.0		791.4		802.4		799.2		1,149.2
		Distribution representatives (4):
		Series 7 Financial Advisors	8,073		8,193		8,272		8,343		14,456
		Series 6 Financial Representatives	2,521		2,531		2,996		3,296		4,059
		Customer debit balances ($ in billions) (4)	4.5		4.6		4.6		5.1		6.4
44	97	Prudential Financial, Inc. income from investment in Wachovia Securities Financial Holdings, LLC, including share of results, costs incurred at Prudential level, and purchase accounting adjustments (2)	97		72		85		43		44

(1) In the fourth quarter of 2007, Wachovia Securities changed its presentation of certain revenues that were received from customers and subsequently remitted to third parties, formerly reported on a net basis, to report the activity on a gross basis as Other non-interest revenues and Expenses. This reclassification had no impact on income before taxes. Wachovia Securities did not restate prior periods, but rather reflected the reclassification of amounts for the first nine months of 2007 together with 4Q 2007 activity.

(2) On January 1, 2008, Wachovia Corporation combined the retail securities brokerage business of Wachovia Securities with the acquired A.G. Edwards business. The Company has elected the “lookback” option under the terms of the agreements relating to the joint venture. The “lookback” option permits the Company to delay for two years following the combination of the A.G. Edwards business with Wachovia Securities the Company’s decision to make or not to make an additional capital contribution to the joint venture or other payments to avoid or limit dilution of its ownership interest in the joint venture. During this “lookback” period, the Company’s share in the earnings of the joint venture and transition costs associated with the combination of the A.G. Edwards business with Wachovia Securities is based on a diluted ownership level. The ownership level applied is based on the Company’s estimate for purposes of reporting results for the first quarter of 2008. The ownership level, and consequently the Company’s share in earnings and transition costs, may be subsequently adjusted as a result of completion of definitive valuation of the business and possible modification of existing agreements relating to the joint venture. The company does not anticipate any such adjustment to have a material effect on its reported results of operations.

(3) Calculated on a YTD annualized basis.

(4) As of end of period.

Page 21

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)

Year-to-date					2007								2008
2008		2007			1Q		2Q		3Q		4Q		1Q
				RETIREMENT SALES AND ACCOUNT VALUES
				Full Service:
112,192		97,430		Beginning total account value	97,430		99,558		104,033		105,601		112,192
4,586		4,003		Deposits and sales	4,003		3,212		3,219		4,258		4,586
(3,933	)	(3,433	)	Withdrawals and benefits	(3,433	)	(3,203	)	(3,309	)	(3,804	)	(3,933	)
(5,785	)	1,558		Change in market value, interest credited and interest income (1)	1,558		4,466		1,658		(1,119	)	(5,785	)
—		—		Acquisition (2)	—		—		—		7,256		—
107,060		99,558		Ending total account value	99,558		104,033		105,601		112,192		107,060
653		570		Net additions (withdrawals)	570		9		(90	)	454		653
				Stable value account values included above	30,758		31,274		31,578		32,314		33,279
				Institutional Investment Products:
51,591		50,269		Beginning total account value	50,269		50,661		50,926		51,627		51,591
1,810		1,533		Additions	1,533		1,597		545		1,298		1,810
(1,702	)	(1,743	)	Withdrawals and benefits (3)	(1,743	)	(1,067	)	(1,193	)	(1,863	)	(1,702	)
561		607		Change in market value, interest credited and interest income	607		325		933		900		561
(593	)	(5	)	Other (3)	(5	)	(590	)	416		(371	)	(593	)
51,667		50,661		Ending total account value	50,661		50,926		51,627		51,591		51,667
108		(210	)	Net additions (withdrawals)	(210	)	530		(648	)	(565	)	108

(1) Includes $511 million for second quarter of 2007 representing a transfer within the Retirement segment from Institutional Investment Products to Full Service as a result of one client’s change in contract form.

(2) On December 31, 2007, the company acquired a portion of the Union Bank of California, N.A.’s retirement business.

(3) “Other” activity includes transfers from (to) the Asset Management segment of $(206) million, $(332) million, $407 million and $110 million for the first quarter of 2008 and the second, third and fourth quarters of 2007, respectively. “Other” activity also includes $(511) million for the second quarter of 2007 representing a transfer within the Retirement segment from Institutional Investment Products to Full Service as a result of one client’s change in contract form. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

Page 22

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)

Year-to-date			% Change			2007								2008
2008	2007					1Q		2Q		3Q		4Q		1Q
					Revenues (1):
1,772	1,553		14	%	Premiums	1,553		1,531		1,518		1,590		1,772
87	72		21	%	Policy charges and fee income	72		73		72		76		87
462	386		20	%	Net investment income	386		405		419		434		462
180	219		-18	%	Asset management fees, commissions and other income	219		215		282		182		180
2,501	2,230		12	%	Total revenues	2,230		2,224		2,291		2,282		2,501
					Benefits and Expenses (1):
1,413	1,219		16	%	Insurance and annuity benefits	1,219		1,219		1,194		1,275		1,413
100	77		30	%	Interest credited to policyholders’ account balances	77		79		84		90		100
2	2		0	%	Interest expense	2		3		8		6		2
(294)	(261	)	-13	%	Deferral of acquisition costs	(261	)	(259	)	(253	)	(284	)	(294	)
160	128		25	%	Amortization of acquisition costs	128		126		103		129		160
681	591		15	%	General and administrative expenses	591		603		618		673		681
2,062	1,756		17	%	Total benefits and expenses	1,756		1,771		1,754		1,889		2,062
439	474		-7	%	Adjusted operating income before income taxes	474		453		537		393		439

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

Page 23

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)

	Three Months Ended March 31, 2008
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	1,772		1,262		510		—
Policy charges and fee income	87		70		17		—
Net investment income	462		232		216		14
Asset management fees, commissions and other income	180		13		5		162
Total revenues	2,501		1,577		748		176
Benefits and Expenses (1):
Insurance and annuity benefits	1,413		1,001		412		—
Interest credited to policyholders’ account balances	100		43		57		—
Interest expense	2		3		(2	)	1
Deferral of acquisition costs	(294	)	(221	)	(73	)	—
Amortization of acquisition costs	160		121		39		—
General and administrative expenses	681		345		187		149
Total benefits and expenses	2,062		1,292		620		150
Adjusted operating income before income taxes	439		285		128		26
	Three Months Ended March 31, 2007
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	1,553		1,086		467		—
Policy charges and fee income	72		56		16		—
Net investment income	386		187		191		8
Asset management fees, commissions and other income	219		30		20		169
Total revenues	2,230		1,359		694		177
Benefits and Expenses (1):
Insurance and annuity benefits	1,219		848		371		—
Interest credited to policyholders’ account balances	77		34		43		—
Interest expense	2		3		(2	)	1
Deferral of acquisition costs	(261	)	(196	)	(65	)	—
Amortization of acquisition costs	128		97		31		—
General and administrative expenses	591		304		173		114
Total benefits and expenses	1,756		1,090		551		115
Adjusted operating income before income taxes	474		269		143		62

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

Page 24

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)

Year-to-date					2007								2008
2008		2007			1Q		2Q		3Q		4Q		1Q
				Japanese Yen Basis Results:
				Revenues (1):
¥	117,421	¥	110,156	Japanese insurance operations excluding Gibraltar Life	¥	110,156	¥	103,721	¥	103,633	¥	103,043	¥	117,421
	82,122		80,488	Gibraltar Life		80,488		86,405		82,645		79,042		82,122
	199,543		190,644	Total revenues, Japan, yen basis		190,644		190,126		186,278		182,085		199,543
							��
				Benefits and Expenses (1):
	92,701		86,553	Japanese insurance operations excluding Gibraltar Life		86,553		80,649		79,125		83,597		92,701
	68,126		65,133	Gibraltar Life		65,133		70,199		66,148		64,992		68,126
	160,827		151,686	Total benefits and expenses, Japan, yen basis		151,686		150,848		145,273		148,589		160,827
				Adjusted operating income (2):
	24,720		23,603	Japanese insurance operations excluding Gibraltar Life		23,603		23,072		24,508		19,446		24,720
	13,996		15,355	Gibraltar Life		15,355		16,206		16,497		14,050		13,996
¥	38,716	¥	38,958	Total adjusted operating income, Japan, yen basis	¥	38,958	¥	39,278	¥	41,005	¥	33,496	¥	38,716
				U.S. Dollar adjusted operating income (3):
$	231	$	218	Japanese insurance operations excluding Gibraltar Life	$	218	$	212	$	224	$	186	$	231
	128		143	Gibraltar Life		143		157		157		121		128
	359		361	Total adjusted operating income, Japan, U.S. dollar basis		361		369		381		307		359
	54		51	All other countries (4)		51		41		42		46		54
$	413	$	412	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	412	$	410	$	423	$	353	$	413

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

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

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

(4) Results include corporate management and development expenses incurred in the U.S. related to Japanese Insurance operations excluding Gibraltar Life.

Page 25

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)

Year-to-date			2007				2008
2008	2007		1Q	2Q	3Q	4Q	1Q
		INTERNATIONAL INSURANCE OPERATING DATA:
		Actual exchange rate basis (1):
		Net premiums, policy charges and fee income:
953	787	Japan, excluding Gibraltar Life	787	719	731	765	953
527	483	Gibraltar Life	483	523	472	501	527
379	355	All other countries	355	362	387	400	379
1,859	1,625	Total	1,625	1,604	1,590	1,666	1,859
		Annualized new business premiums:
163	153	Japan, excluding Gibraltar Life	153	109	103	126	163
94	73	Gibraltar Life (2)	73	90	86	93	94
72	70	All other countries	70	69	75	83	72
329	296	Total	296	268	264	302	329
		Annualized new business premiums by distribution channel:
235	223	Life Planners	223	178	178	209	235
88	67	Gibraltar Life Advisors	67	85	82	86	88
6	6	Banks (3)	6	5	4	7	6
329	296	Total	296	268	264	302	329
		Constant exchange rate basis (4):
		Net premiums, policy charges and fee income:
941	885	Japan, excluding Gibraltar Life	885	819	812	816	941
542	544	Gibraltar Life	544	587	537	538	542
378	357	All other countries	357	360	382	390	378
1,861	1,786	Total	1,786	1,766	1,731	1,744	1,861
		Annualized new business premiums:
161	165	Japan, excluding Gibraltar Life	165	118	111	131	161
96	79	Gibraltar Life (2)	79	97	93	96	96
72	71	All other countries	71	70	75	80	72
329	315	Total	315	285	279	307	329
		Annualized new business premiums by distribution channel:
233	236	Life Planners	236	188	186	211	233
90	73	Gibraltar Life Advisors	73	92	89	90	90
6	6	Banks (3)	6	5	4	6	6
329	315	Total	315	285	279	307	329

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

(2) Methodology for determining Gibraltar Life’s annualized new business premium on a constant and actual exchange rate basis has been revised to more clearly report the trend of U.S. dollar product sales. Prior period amounts have been restated to conform to current presentation.

(3) Substantially all bank channel distribution represents U.S. dollar denominated Gibraltar Life fixed annuities.

(4) Foreign currencies translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 106 per U.S. dollar; Korean won 950 per U.S. dollar.

Page 26

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

	2007								2008
	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	231		233		236		238		242
Gibraltar Life	188		186		186		186		185
All other countries	103		104		105		106		108
Total	522		523		527		530		535
Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	2,118		2,144		2,167		2,194		2,232
Gibraltar Life	3,846		3,816		3,815		3,817		3,804
All other countries	1,225		1,246		1,270		1,296		1,311
Total	7,189		7,206		7,252		7,307		7,347
International life insurance policy persistency:
Excluding Gibraltar Life:
13 months	92.8	%	92.7	%	92.6	%	92.4	%	92.4	%
25 months	86.9	%	86.9	%	86.5	%	85.9	%	85.9	%
Gibraltar Life:
13 months	93.9	%	93.5	%	92.6	%	91.7	%	91.2	%
25 months	88.0	%	87.9	%	88.0	%	87.9	%	87.2	%
Number of Life Planners at end of period:
Japan	3,001		3,012		3,030		3,068		3,108
All other countries	2,892		2,989		3,008		3,098		3,030
Total life planners	5,893		6,001		6,038		6,166		6,138
Gibraltar Life Advisors	5,952		5,815		5,944		6,264		6,035

(1) Foreign currencies translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 106 per U.S. dollar; Korean won 950 per U.S. dollar.

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

Page 27

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

INVESTMENT PORTFOLIO COMPOSITION

(in millions)

	March 31, 2008					December 31, 2007
	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	130,422	34,315	96,107	56.5	%	128,130	37,168	90,962	55.8	%
Public, held to maturity, at amortized cost	3,015	—	3,015	1.8	%	2,879	—	2,879	1.8	%
Private, available for sale, at fair value	32,415	12,243	20,172	11.9	%	32,559	12,246	20,313	12.5	%
Private, held to maturity, at amortized cost	720	—	720	0.4	%	669	—	669	0.4	%
Trading account assets supporting insurance liabilities, at fair value	14,644	—	14,644	8.6	%	14,473	—	14,473	8.9	%
Other trading account assets, at fair value	359	149	210	0.1	%	346	142	204	0.1	%
Equity securities, available for sale, at fair value	8,121	3,578	4,543	2.7	%	8,569	3,940	4,629	2.8	%
Commercial loans	29,674	8,494	21,180	12.5	%	27,557	7,954	19,603	12.0	%
Policy loans	9,538	5,391	4,147	2.4	%	9,337	5,395	3,942	2.4	%
Other long-term investments (1)	3,832	1,139	2,693	1.6	%	3,992	1,268	2,724	1.7	%
Short-term investments (2)	4,169	1,555	2,614	1.5	%	3,983	1,385	2,598	1.6	%
Subtotal (3)	236,909	66,864	170,045	100.0	%	232,494	69,498	162,996	100.0	%
Invested assets of other entities and operations (4)	10,694	—	10,694			11,063	—	11,063
Total investments	247,603	66,864	180,739			243,557	69,498	174,059

Fixed Maturities by Credit Quality (3):

		March 31, 2008						December 31, 2007
		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 (5)	Rating Agency Equivalent
1	Aaa, Aa, A	79,733	2,418	1,958	80,193	80.9	%	74,678	2,036	1,184	75,530	80.5	%
2	Baa	14,811	443	795	14,459	14.6	%	13,573	490	351	13,712	14.6	%
Subtotal Investment Grade		94,544	2,861	2,753	94,652	95.5	%	88,251	2,526	1,535	89,242	95.1	%
3	Ba	2,976	52	192	2,836	2.9	%	2,830	68	102	2,796	3.1	%
4	B	1,586	24	139	1,471	1.5	%	1,681	38	82	1,637	1.7	%
5	C and lower	129	3	14	118	0.1	%	115	5	6	114	0.1	%
6	In or near default	28	7	2	33	0.0	%	34	5	1	38	0.0	%
Subtotal Below Investment Grade		4,719	86	347	4,458	4.5	%	4,660	116	191	4,585	4.9	%
Total		99,263	2,947	3,100	99,110	100.0	%	92,911	2,642	1,726	93,827	100.0	%
Private Fixed Maturities:
NAIC Rating (5)	Rating Agency Equivalent
1	Aaa, Aa, A	7,062	237	135	7,164	34.3	%	7,139	230	84	7,285	34.7	%
2	Baa	10,874	345	255	10,964	52.4	%	10,595	344	118	10,821	51.6	%
Subtotal Investment Grade		17,936	582	390	18,128	86.7	%	17,734	574	202	18,106	86.3	%
3	Ba	1,638	51	33	1,656	7.9	%	1,637	49	26	1,660	7.9	%
4	B	747	6	27	726	3.5	%	738	6	12	732	3.5	%
5	C and lower	195	5	6	194	0.9	%	319	8	4	323	1.5	%
6	In or near default	211	13	18	206	1.0	%	147	23	—	170	0.8	%
Subtotal Below Investment Grade		2,791	75	84	2,782	13.3	%	2,841	86	42	2,885	13.7	%
Total		20,727	657	474	20,910	100.0	%	20,575	660	244	20,991	100.0	%

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

(2) Short-term investments consist primarily of money market funds with virtually no sub-prime exposure.

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

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

(5) Reflects equivalent ratings for investments of international insurance operations that are not rated by United States insurance regulatory authorities. Includes, as of March 31, 2008 and December 31, 2007, respectively, 231 securities with amortized cost of $2,549 million (fair value $2,488 million) and 196 securities with amortized cost of $2,306 million (fair value, $2,319 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 28

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)

	March 31, 2008			December 31, 2007
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	38,163	70.0	%	34,752	68.5	%
Public, held to maturity, at amortized cost	3,015	5.5	%	2,879	5.7	%
Private, available for sale, at fair value	3,576	6.5	%	3,467	6.8	%
Private, held to maturity, at amortized cost	720	1.3	%	668	1.3	%
Trading account assets supporting insurance liabilities, at fair value	1,136	2.1	%	1,132	2.2	%
Other trading account assets, at fair value	49	0.1	%	48	0.1	%
Equity securities, available for sale, at fair value	2,545	4.7	%	2,550	5.0	%
Commercial loans	3,046	5.6	%	2,881	5.7	%
Policy loans	1,287	2.4	%	1,133	2.2	%
Other long-term investments (1)	918	1.7	%	993	2.0	%
Short-term investments	54	0.1	%	239	0.5	%
Total	54,509	100.0	%	50,742	100.0	%
	March 31, 2008			December 31, 2007
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value	57,944	50.2	%	56,210	50.1	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	16,596	14.4	%	16,846	15.0	%
Private, held to maturity, at amortized cost	—	0.0	%	1	0.0	%
Trading account assets supporting insurance liabilities, at fair value	13,508	11.7	%	13,341	11.9	%
Other trading account assets, at fair value	161	0.1	%	156	0.1	%
Equity securities, available for sale, at fair value	1,998	1.7	%	2,079	1.9	%
Commercial loans	18,134	15.7	%	16,722	14.9	%
Policy loans	2,860	2.5	%	2,809	2.5	%
Other long-term investments (1)	1,775	1.5	%	1,731	1.5	%
Short-term investments	2,560	2.2	%	2,359	2.1	%
Total	115,536	100.0	%	112,254	100.0	%

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

(2) Excludes (i) assets of our 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 29

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)

	Three Months Ended March 31
	2008						2007
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1):
Fixed maturities	4.77	%	1,380		(385	)	4.95	%	1,414		27
Equity securities	4.01	%	46		(56	)	4.61	%	44		131
Commercial loans	5.82	%	231		1		6.17	%	204		(4	)
Policy loans	5.05	%	51		—		4.98	%	44		—
Short-term investments and cash equivalents	4.18	%	99		—		5.45	%	96		(7	)
Other investments	4.95	%	36		(345	)	6.61	%	47		35
Gross investment income before investment expenses	4.84	%	1,843		(785	)	5.11	%	1,849		182
Investment expenses	-0.15	%	(80	)	—		-0.15	%	(139	)	—
Subtotal	4.69	%	1,763		(785	)	4.96	%	1,710		182
Investment results of other entities and operations (2)			358		(17	)			292		31
Less, investment income relating to divested businesses			(10	)					(7	)
Total			2,111		(802	)			1,995		213

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

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

(3) Yields are annualized, for interim periods, and based on quarterly averages calculated using beginning and end of period balances. Yields are based on carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for securities lending activity are calculated net of corresponding liabilities and rebate expenses. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets of the Financial Services Businesses. Prior periods yields are presented on a basis consistent with the current presentation.

Page 30

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)

	Three Months Ended March 31
	2008						2007
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations:
Fixed maturities	2.78	%	300		(49	)	2.61	%	252		25
Equity securities	2.20	%	14		(51	)	2.64	%	13		120
Commercial loans	4.54	%	33		3		4.32	%	30		2
Policy loans	3.84	%	12		—		3.71	%	9		—
Short-term investments and cash equivalents	1.55	%	3		—		2.67	%	5		(1	)
Other investments	9.06	%	23		(22	)	10.61	%	25		(11	)
Gross investment income before investment expenses	2.98	%	385		(119	)	2.91	%	334		135
Investment expenses	-0.18	%	(23	)	—		-0.17	%	(23	)	—
Total	2.80	%	362		(119	)	2.74	%	311		135

(1) Yields are annualized, for interim periods, and based on quarterly averages calculated using beginning and end of period balances. Yields are based on carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for securities lending activity are calculated net of corresponding liabilities and rebate expenses. Yields exclude investment income and assets related to trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets of the Financial Services Businesses. Prior periods yields are presented on a basis consistent with the current presentation.

Page 31

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)

	Three Months Ended March 31
	2008						2007
	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	6.00	%	1,080		(336	)	6.24	%	1,162		2
Equity securities	6.36	%	32		(5	)	6.80	%	31		11
Commercial loans	6.11	%	198		(2	)	6.66	%	174		(6	)
Policy loans	5.57	%	39		—		5.51	%	35		—
Short-term investments and cash equivalents	4.45	%	96		—		5.89	%	91		(6	)
Other investments	2.81	%	13		(323	)	4.56	%	22		46
Gross investment income before investment expenses	5.83	%	1,458		(666	)	6.23	%	1,515		47
Investment expenses	-0.13	%	(57	)	—		-0.15	%	(116	)	—
Total	5.70	%	1,401		(666	)	6.08	%	1,399		47

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

(2) Yields are annualized, for interim periods, and based on quarterly averages calculated using beginning and end of period balances. Yields are based on carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for securities lending activity are calculated net of corresponding liabilities and rebate expenses. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets of the Financial Services Businesses. Prior periods yields are presented on a basis consistent with the current presentation.

Page 32

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Years ended December 31							2006								2007
2007		2006		2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
						Financial Services Businesses:
						Pre-tax adjusted operating income (loss) by division:
1,630		1,360		1,228		Insurance Division	298		248		465		349		318		390		556		366
1,480		1,087		670		Investment Division	184		300		262		341		420		377		311		372
1,857		1,571		1,427		International Insurance and Investments Division	383		364		427		397		474		453		537		393
(62)		47		188		Corporate and other operations	16		40		4		(13	)	9		(8	)	(12	)	(51	)
4,905		4,065		3,513		Total pre-tax adjusted operating income	881		952		1,158		1,074		1,221		1,212		1,392		1,080
1,400		1,160		1,105		Income taxes, applicable to adjusted operating income	252		274		330		304		361		355		416		268
3,505		2,905		2,408		Financial Services Businesses after-tax adjusted operating income	629		678		828		770		860		857		976		812
						Reconciling items:
(96	)	83		549		Realized investment gains (losses), net, and related charges and adjustments	49		(319	)	222		131		141		34		(180	)	(91	)
—		35		(33	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(114	)	(151	)	257		43		82		(108	)	36		(10	)
13		11		(44	)	Change in experience-rated contractholder liabilities due to asset value changes	66		130		(168	)	(17	)	(62	)	72		(6	)	9
(26	)	119		21		Divested businesses	73		—		8		38		28		18		(27	)	(45	)
(400	)	(322	)	(214	)	Equity in earnings of operating joint ventures	(78	)	(67	)	(78	)	(99	)	(120	)	(100	)	(103	)	(77	)
(509	)	(74	)	279		Total reconciling items, before income taxes	(4	)	(407	)	241		96		69		(84	)	(280	)	(214	)
(255	)	(34	)	(463	)	Income taxes, not applicable to adjusted operating income	(1	)	(118	)	33		52		18		(35	)	(101	)	(137	)
(254	)	(40	)	742		Total reconciling items, after income taxes	(3	)	(289	)	208		44		51		(49	)	(179	)	(77	)
3,251		2,865		3,150		Income from continuing operations (after-tax) of Financial Services Businessesbefore equity in earnings of operating joint ventures	626		389		1,036		814		911		808		797		735
246		208		142		Equity in earnings of operating joint ventures, net of taxes	51		45		50		62		77		56		67		46
3,497		3,073		3,292		Income from continuing operations (after-tax) of Financial Services Businesses	677		434		1,086		876		988		864		864		781
15		71		(73	)	Income (loss) from discontinued operations, net of taxes	(2	)	(10	)	66		17		37		(29	)	(4	)	11
3,512		3,144		3,219		Net income of Financial Services Businesses	675		424		1,152		893		1,025		835		860		792
						Earnings per share of Common Stock (diluted):
7.60		6.02		4.78		Financial Services Businesses after-tax adjusted operating income	1.29		1.40		1.72		1.63		1.83		1.84		2.13		1.79
						Reconciling items:
(0.20	)	0.17		1.05		Realized investment gains (losses), net, and related charges and adjustments	0.10		(0.64	)	0.45		0.27		0.30		0.07		(0.39	)	(0.20	)
—		0.07		(0.06	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(0.23	)	(0.30	)	0.52		0.09		0.17		(0.23	)	0.08		(0.02	)
0.03		0.02		(0.08	)	Change in experience-rated contractholder liabilities due to asset value changes	0.13		0.26		(0.34	)	(0.04	)	(0.13	)	0.15		(0.01	)	0.02
(0.06	)	0.24		0.04		Divested businesses	0.14		—		0.02		0.08		0.06		0.04		(0.06	)	(0.10	)
(0.85	)	(0.65	)	(0.41	)	Equity in earnings of operating joint ventures	(0.15	)	(0.13	)	(0.16	)	(0.21	)	(0.25	)	(0.21	)	(0.22	)	(0.17	)
(1.08	)	(0.15	)	0.54		Total reconciling items, before income taxes	(0.01	)	(0.81	)	0.49		0.19		0.15		(0.18	)	(0.60	)	(0.47	)
(0.53	)	(0.07	)	(0.89	)	Income taxes, not applicable to adjusted operating income	—		(0.23	)	0.06		0.10		0.04		(0.08	)	(0.21	)	(0.31	)
(0.55	)	(0.08	)	1.43		Total reconciling items, after income taxes	(0.01	)	(0.58	)	0.43		0.09		0.11		(0.10	)	(0.39	)	(0.16	)
7.05		5.94		6.21		Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	1.28		0.82		2.15		1.72		1.94		1.74		1.74		1.63
0.53		0.42		0.27		Equity in earnings of operating joint ventures, net of taxes	0.10		0.09		0.10		0.13		0.16		0.12		0.15		0.10
7.58		6.36		6.48		Income from continuing operations (after-tax) of Financial Services Businesses	1.38		0.91		2.25		1.85		2.10		1.86		1.89		1.73
0.03		0.14		(0.14	)	Income (loss) from discontinued operations, net of taxes	—		(0.02	)	0.13		0.03		0.08		(0.06	)	(0.01	)	0.02
7.61		6.50		6.34		Net income of Financial Services Businesses	1.38		0.89		2.38		1.88		2.18		1.80		1.88		1.75
468.3		494.0		520.9		Weighted average number of outstanding Common shares (diluted basis)	504.1		497.1		490.5		482.8		477.2		472.8		464.9		458.5
16.32	%	14.23	%	12.21	%	Operating Return on Average Equity (based on adjusted operating income)	12.59	%	13.41	%	16.07	%	14.78	%	16.29	%	16.04	%	17.97	%	14.88	%
53		68		82		Direct equity adjustments for earnings per share calculations	19		16		16		17		15		14		13		11

Page 33

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)

Years ended December 31							2006								2007
2007		2006		2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
						Revenues (1):
10,794		10,287		10,128		Premiums	2,604		2,542		2,548		2,593		2,720		2,684		2,673		2,717
3,122		2,649		2,529		Policy charges and fee income	662		667		583		737		784		783		727		828
8,204		7,614		6,846		Net investment income	1,808		1,860		1,955		1,991		1,995		2,033		2,070		2,106
4,740		3,960		3,334		Asset management fees, commissions and other income	933		921		974		1,132		1,149		1,169		1,301		1,121
26,860		24,510		22,837		Total revenues	6,007		5,990		6,060		6,453		6,648		6,669		6,771		6,772
						Benefits and Expenses (1):
10,829		10,423		9,990		Insurance and annuity benefits	2,577		2,591		2,650		2,605		2,763		2,683		2,658		2,725
3,094		2,790		2,516		Interest credited to policyholders’ account balances	652		677		716		745		745		762		779		808
1,120		949		615		Interest expense	212		233		249		255		274		276		281		289
(2,248	)	(2,037	)	(1,801	)	Deferral of acquisition costs	(501	)	(495	)	(496	)	(545	)	(539	)	(556	)	(554	)	(599	)
935		670		910		Amortization of acquisition costs	240		264		(73	)	239		272		265		108		290
8,225		7,650		7,094		General and administrative expenses	1,946		1,768		1,856		2,080		1,912		2,027		2,107		2,179
21,955		20,445		19,324		Total benefits and expenses	5,126		5,038		4,902		5,379		5,427		5,457		5,379		5,692
4,905		4,065		3,513		Adjusted operating income before income taxes	881		952		1,158		1,074		1,221		1,212		1,392		1,080
						Reconciling items:
(41	)	66		657		Realized investment gains (losses), net, and related adjustments	49		(342	)	215		144		147		41		(178	)	(51	)
(55	)	17		(108	)	Related charges	—		23		7		(13	)	(6	)	(7	)	(2	)	(40	)
(96	)	83		549		Total realized investment gains (losses), net, and related charges and adjustments	49		(319	)	222		131		141		34		(180	)	(91	)
—		35		(33	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(114	)	(151	)	257		43		82		(108	)	36		(10	)
13		11		(44	)	Change in experience-rated contractholder liabilities due to asset value changes	66		130		(168	)	(17	)	(62	)	72		(6	)	9
(26	)	119		21		Divested businesses	73		—		8		38		28		18		(27	)	(45	)
(400	)	(322	)	(214	)	Equity in earnings of operating joint ventures	(78	)	(67	)	(78	)	(99	)	(120	)	(100	)	(103	)	(77	)
(509	)	(74	)	279		Total reconciling items, before income taxes	(4	)	(407	)	241		96		69		(84	)	(280	)	(214	)
4,396		3,991		3,792		Income from continuing operations before income taxes and equity in earnings of operating joint ventures	877		545		1,399		1,170		1,290		1,128		1,112		866
1,145		1,126		642		Income tax expense	251		156		363		356		379		320		315		131
3,251		2,865		3,150		Income from continuing operations before equity in earnings of operating joint ventures	626		389		1,036		814		911		808		797		735

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

Page 34

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)

Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
		Revenues (1):
3,728		Premiums	982		1,005		1,027		1,052		1,073		1,083		1,073		1,053
2,098		Policy charges and fee income	543		559		474		637		667		672		632		715
1,702		Net investment income	418		438		463		468		470		475		479		483
652		Asset management fees, commissions and other income	178		170		241		218		230		242		324		233
8,180		Total revenues	2,121		2,172		2,205		2,375		2,440		2,472		2,508		2,484
		Benefits and Expenses (1):
4,013		Insurance and annuity benefits	1,070		1,144		1,225		1,154		1,230		1,182		1,161		1,165
715		Interest credited to policyholders’ account balances	180		181		196		206		202		205		201		209
111		Interest expense	30		28		37		44		53		53		59		67
(797	)	Deferral of acquisition costs	(256	)	(228	)	(235	)	(282	)	(270	)	(287	)	(290	)	(304	)
545		Amortization of acquisition costs	131		142		(191	)	125		153		140		1		164
2,365		General and administrative expenses	668		657		708		779		754		789		820		817
6,952		Total benefits and expenses	1,823		1,924		1,740		2,026		2,122		2,082		1,952		2,118
1,228		Adjusted operating income before income taxes	298		248		465		349		318		390		556		366

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

Page 35

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE INSURANCE

(in millions)

Year ended December 31		2006								2007
2005		1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
	Revenues (1):
391	Premiums	100		103		109		117		126		126		137		144
1,095	Policy charges and fee income	266		270		117		267		272		264		226		278
496	Net investment income	126		136		137		149		155		161		165		175
280	Asset management fees, commissions and other income	67		77		104		72		78		78		144		73
2,262	Total revenues	559		586		467		605		631		629		672		670
	Benefits and Expenses (1):
631	Insurance and annuity benefits	161		199		300		203		236		203		254		211
177	Interest credited to policyholders’ account balances	48		50		51		54		54		54		54		56
66	Interest expense	17		18		20		27		38		37		41		49
(314)	Deferral of acquisition costs	(80	)	(83	)	(91	)	(97	)	(103	)	(115	)	(115	)	(119	)
369	Amortization of acquisition costs	74		91		(220	)	57		78		64		(68	)	90
835	General and administrative expenses	206		214		224		229		227		245		255		254
1,764	Total benefits and expenses	426		489		284		473		530		488		421		541
498	Adjusted operating income before income taxes	133		97		183		132		101		141		251		129

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

Page 36

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INDIVIDUAL ANNUITIES

(in millions)

Year ended December 31		2006								2007
2005		1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
	Revenues (1):
67	Premiums	15		16		26		24		21		19		13		17
712	Policy charges and fee income	200		225		270		291		299		320		322		339
615	Net investment income	144		149		169		156		151		148		144		137
324	Asset management fees, commissions and other income	94		79		118		125		133		145		154		141
1,718	Total revenues	453		469		583		596		604		632		633		634
	Benefits and Expenses (1):
168	Insurance and annuity benefits	49		51		66		67		59		59		31		62
337	Interest credited to policyholders’ account balances	83		83		93		97		89		93		87		90
30	Interest expense	10		10		15		15		13		14		16		16
(421)	Deferral of acquisition costs	(119	)	(133	)	(131	)	(151	)	(154	)	(168	)	(158	)	(173	)
173	Amortization of acquisition costs	57		51		28		67		74		75		66		70
925	General and administrative expenses	255		285		320		347		357		379		386		398
1,212	Total benefits and expenses	335		347		391		442		438		452		428		463
506	Adjusted operating income before income taxes	118		122		192		154		166		180		205		171

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

Page 37

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - GROUP INSURANCE

(in millions)

Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
		Revenues (1):
3,270		Premiums	867		886		892		911		926		938		923		892
291		Policy charges and fee income	77		64		87		79		96		88		84		98
591		Net investment income	148		153		157		163		164		166		170		171
48		Asset management fees, commissions and other income	17		14		19		21		19		19		26		19
4,200		Total revenues	1,109		1,117		1,155		1,174		1,205		1,211		1,203		1,180
		Benefits and Expenses (1):
3,214		Insurance and annuity benefits	860		894		859		884		935		920		876		892
201		Interest credited to policyholders’ account balances	49		48		52		55		59		58		60		63
15		Interest expense	3		—		2		2		2		2		2		2
(62	)	Deferral of acquisition costs	(57	)	(12	)	(13	)	(34	)	(13	)	(4	)	(17	)	(12	)
3		Amortization of acquisition costs	—		—		1		1		1		1		3		4
605		General and administrative expenses	207		158		164		203		170		165		179		165
3,976		Total benefits and expenses	1,062		1,088		1,065		1,111		1,154		1,142		1,103		1,114
224		Adjusted operating income before income taxes	47		29		90		63		51		69		100		66

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

Page 38

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)

Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
		Revenues (1):
320		Premiums	92		30		84		88		96		71		88		74
188		Policy charges and fee income	48		43		45		43		44		44		40		44
3,136		Net investment income	844		902		919		950		934		972		979		1,010
2,225		Asset management fees, commissions and other income	630		598		582		786		745		747		744		768
5,869		Total revenues	1,614		1,573		1,630		1,867		1,819		1,834		1,851		1,896
		Benefits and Expenses (1):
1,049		Insurance and annuity benefits	269		235		297		303		302		276		290		277
1,633		Interest credited to policyholders' account balances	429		452		475		497		492		508		528		545
115		Interest expense	46		62		63		67		59		64		76		75
(61	)	Deferral of acquisition costs	(22	)	(22	)	(25	)	(24	)	(19	)	(25	)	(19	)	(28	)
54		Amortization of acquisition costs	13		17		12		10		9		11		11		7
2,409		General and administrative expenses	695		529		546		673		556		623		654		648
5,199		Total benefits and expenses	1,430		1,273		1,368		1,526		1,399		1,457		1,540		1,524
670		Adjusted operating income before income taxes	184		300		262		341		420		377		311		372

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

Page 39

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT

(in millions)

Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
		Revenues (1):
—		Premiums	—		—		—		—		—		—		—		—
—		Policy charges and fee income	—		—		—		—		—		—		—		—
90		Net investment income	39		37		48		46		40		62		44		70
1,555		Asset management fees, commissions and other income	445		418		392		566		505		528		514		556
1,645		Total revenues	484		455		440		612		545		590		558		626
		Benefits and Expenses (1):
—		Insurance and annuity benefits	—		—		—		—		—		—		—		—
—		Interest credited to policyholders' account balances	—		—		—		—		—		—		—		—
16		Interest expense	6		9		10		16		10		14		19		19
(17	)	Deferral of acquisition costs	(5	)	(6	)	(3	)	(3	)	(4	)	(4	)	(4	)	(4	)
33		Amortization of acquisition costs	7		8		6		6		6		5		4		5
1,186		General and administrative expenses	322		317		325		426		358		408		378		408
1,218		Total benefits and expenses	330		328		338		445		370		423		397		428
427		Adjusted operating income before income taxes	154		127		102		167		175		167		161		198

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

Page 40

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - RETIREMENT SEGMENT

(in millions)

Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
		Revenues (1):
320		Premiums	92		30		84		88		96		71		88		74
188		Policy charges and fee income	48		43		45		43		44		44		40		44
3,040		Net investment income	798		857		866		904		894		909		934		939
477		Asset management fees, commissions and other income	116		120		117		128		129		126		133		143
4,025		Total revenues	1,054		1,050		1,112		1,163		1,163		1,150		1,195		1,200
		Benefits and Expenses (1):
1,049		Insurance and annuity benefits	269		235		297		303		302		276		290		277
1,633		Interest credited to policyholders' account balances	429		452		475		497		492		508		528		545
99		Interest expense	40		53		53		51		49		50		57		56
(44	)	Deferral of acquisition costs	(17	)	(16	)	(22	)	(21	)	(15	)	(21	)	(15	)	(24	)
21		Amortization of acquisition costs	6		9		6		4		3		6		7		2
769		General and administrative expenses	190		174		194		208		184		193		263		213
3,527		Total benefits and expenses	917		907		1,003		1,042		1,015		1,012		1,130		1,069
498		Adjusted operating income before income taxes	137		143		109		121		148		138		65		131

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

Page 41

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)

Year ended December 31		2006								2007
2005		1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
	Revenues (1):
6,098	Premiums	1,533		1,517		1,438		1,458		1,553		1,531		1,518		1,590
264	Policy charges and fee income	76		70		70		70		72		73		72		76
1,324	Net investment income	330		343		376		376		386		405		419		434
483	Asset management fees, commissions and other income	161		156		171		180		219		215		282		182
8,169	Total revenues	2,100		2,086		2,055		2,084		2,230		2,224		2,291		2,282
	Benefits and Expenses (1):
4,865	Insurance and annuity benefits	1,224		1,203		1,112		1,143		1,219		1,219		1,194		1,275
207	Interest credited to policyholders' account balances	57		61		66		67		77		79		84		90
22	Interest expense	3		4		3		—		2		3		8		6
(1,003)	Deferral of acquisition costs	(256	)	(257	)	(242	)	(252	)	(261	)	(259	)	(253	)	(284	)
390	Amortization of acquisition costs	116		115		111		112		128		126		103		129
2,261	General and administrative expenses	573		596		578		617		591		603		618		673
6,742	Total benefits and expenses	1,717		1,722		1,628		1,687		1,756		1,771		1,754		1,889
1,427	Adjusted operating income before income taxes	383		364		427		397		474		453		537		393

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

Page 42

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2007

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - LIFE PLANNER OPERATIONS

(in millions)

Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
		Revenues (1):
3,659		Premiums	989		977		963		988		1,086		1,024		1,060		1,106
197		Policy charges and fee income	58		51		55		57		56		57		58		59
623		Net investment income	156		162		173		179		187		188		207		217
16		Asset management fees, commissions and other income	16		13		25		22		30		39		19		21
4,495		Total revenues	1,219		1,203		1,216		1,246		1,359		1,308		1,344		1,403
		Benefits and Expenses (1):
2,836		Insurance and annuity benefits	769		744		732		773		848		807		837		894
102		Interest credited to policyholders' account balances	27		27		27		25		34		31		36		36
21		Interest expense	3		3		3		2		3		3		2		4
(738	)	Deferral of acquisition costs	(191	)	(179	)	(167	)	(187	)	(196	)	(188	)	(187	)	(211	)
296		Amortization of acquisition costs	91		93		85		88		97		94		74		96
1,157		General and administrative expenses	290		287		288		313		304		308		316		352
3,674		Total benefits and expenses	989		975		968		1,014		1,090		1,055		1,078		1,171
821		Adjusted operating income before income taxes	230		228		248		232		269		253		266		232

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

Page 43

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - GIBRALTAR LIFE

(in millions)

Year ended December 31		2006								2007
2005		1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
	Revenues (1):
2,439	Premiums	544		540		475		470		467		507		458		484
67	Policy charges and fee income	18		19		15		13		16		16		14		17
676	Net investment income	167		175		196		186		191		208		201		209
5	Asset management fees, commissions and other income	2		3		21		7		20		16		23		(3	)
3,187	Total revenues	731		737		707		676		694		747		696		707
	Benefits and Expenses (1):
2,029	Insurance and annuity benefits	455		459		380		370		371		412		357		381
105	Interest credited to policyholders' account balances	30		34		39		42		43		48		48		54
8	Interest expense	—		—		—		(2	)	(2	)	(2	)	4		1
(265)	Deferral of acquisition costs	(65	)	(78	)	(75	)	(65	)	(65	)	(71	)	(66	)	(73	)
94	Amortization of acquisition costs	25		22		26		24		31		32		29		33
725	General and administrative expenses	177		198		189		176		173		171		167		190
2,687	Total benefits and expenses	622		635		559		545		551		590		539		586
500	Adjusted operating income before income taxes	109		102		148		131		143		157		157		121

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

Page 44

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)

Year ended December 31			2006								2007
2005			1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
		Revenues (1):
(18	)	Premiums	(3	)	(10	)	(1	)	(5	)	(2	)	(1	)	(6	)	—
(21	)	Policy charges and fee income	(5	)	(5	)	(6	)	(13	)	1		(6	)	(17	)	(7	)
684		Net investment income	216		177		197		197		205		181		193		179
(26	)	Asset management fees, commissions and other income	(36	)	(3	)	(20	)	(52	)	(45	)	(35	)	(49	)	(62	)
619		Total revenues	172		159		170		127		159		139		121		110
		Benefits and Expenses (1):
63		Insurance and annuity benefits	14		9		16		5		12		6		13		8
(39	)	Interest credited to policyholders' account balances	(14	)	(17	)	(21	)	(25	)	(26	)	(30	)	(34	)	(36	)
367		Interest expense	133		139		146		144		160		156		138		141
60		Deferral of acquisition costs	33		12		6		13		11		15		8		17
(79	)	Amortization of acquisition costs	(20	)	(10	)	(5	)	(8	)	(18	)	(12	)	(7	)	(10	)
59		General and administrative expenses	10		(14	)	24		11		11		12		15		41
431		Total benefits and expenses	156		119		166		140		150		147		133		161
188		Adjusted operating income (loss) before income taxes	16		40		4		(13	)	9		(8	)	(12	)	(51	)

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

Page 45

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED SUPPLEMENTARY INCOME STATEMENT INFORMATION - INTERNATIONAL INSURANCE SEGMENT

(Yen and Dollars in millions)

Year ended December 31				2006								2007
2005				1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
			Japanese Yen Basis Results:
			Revenues (1):
¥	352,960		Japanese insurance operations excluding Gibraltar Life	¥	98,758	¥	92,728	¥	94,541	¥	95,872	¥	110,156	¥	103,721	¥	103,633	¥	103,043
	347,293		Gibraltar Life		84,582		84,323		80,738		77,085		80,488		86,405		82,645		79,042
	700,253		Total revenues, Japan, yen basis		183,340		177,051		175,279		172,957		190,644		190,126		186,278		182,085
			Benefits and Expenses (1):
	274,658		Japanese insurance operations excluding Gibraltar Life		77,842		74,339		72,202		74,907		86,553		80,649		79,125		83,597
	292,252		Gibraltar Life		72,640		73,067		65,292		62,677		65,133		70,199		66,148		64,992
	566,910		Total benefits and expenses, Japan, yen basis		150,482		147,406		137,494		137,584		151,686		150,848		145,273		148,589
			Adjusted operating income (2):
	78,302		Japanese insurance operations excluding Gibraltar Life		20,916		18,389		22,339		20,965		23,603		23,072		24,508		19,446
	55,041		Gibraltar Life		11,942		11,256		15,446		14,408		15,355		16,206		16,497		14,050
¥	133,343		Total adjusted operating income, Japan, yen basis	¥	32,858	¥	29,645	¥	37,785	¥	35,373	¥	38,958	¥	39,278	¥	41,005	¥	33,496
			U.S. Dollar adjusted operating income (3):
$	713		Japanese insurance operations excluding Gibraltar Life	$	198	$	178	$	213	$	194	$	218	$	212	$	224	$	186
	500		Gibraltar Life		109		102		148		131		143		157		157		121
	1,213		Total adjusted operating income, Japan, U.S. dollar basis		307		280		361		325		361		369		381		307
	108		All other countries (4)		32		50		35		38		51		41		42		46
		��
$	1,321		Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	339	$	330	$	396	$	363	$	412	$	410	$	423	$	353

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

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

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

(4) Results include corporate management and development expenses incurred in the U.S. related to Japanese Insurance operations excluding Gibraltar Life.

Page 46

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RECLASSIFIED SUPPLEMENTARY REVENUE INFORMATION FOR ASSET MANAGEMENT SEGMENT - INVESTMENT DIVISION

Year ended December 31		2006				2007
2005		1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
	Supplementary Revenue Information (in millions):
	Analysis of revenues by type:
886	Asset management fees	234	237	244	259	262	271	265	283
294	Incentive, transaction, principal investing and capital markets revenue	126	97	76	223	131	159	133	137
465	Service, distribution and other revenues	124	121	120	130	152	160	160	206
1,645	Total Asset Management segment revenues	484	455	440	612	545	590	558	626

Page 47

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure of performance of our Financial Services Businesses that excludes “Realized investment gains (losses), net”, as adjusted, and related charges and adjustments; net investment gains and losses on trading account assets supporting insurance liabilities; change in experience-rated contractholder liabilities due to asset value changes; results of divested businesses and discontinued operations; and the related tax effects thereof. Adjusted operating income includes equity in earnings of operating joint ventures and the related tax effects thereof. Realized investment gains (losses) 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 are included in adjusted operating income. Realized investment gains and losses from products that are free standing derivatives or contain embedded derivatives, and from associated derivative portfolios that are part of an economic hedging program related to the risk of those products, are included in adjusted operating income. Revenues and benefits and expenses shown as components of adjusted operating income, are presented on the same basis as pre-tax adjusted operating income and are adjusted for the items above as well. Adjusted operating income does not equate to “Income from continuing operations” as determined in accordance with GAAP but is the measure of profit or loss we use to evaluate segment performance. Adjusted operating income is not a substitute for income determined in accordance with GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability factors of our businesses.

2. After-tax adjusted operating income:

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

3. 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 including our discontinued commercial mortgage conduit related activities.

9. Borrowings - Specified Other Businesses:

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

10. Client Assets:

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

Page 48

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

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 Annuity Account Values in General Account and Separate Account:

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

20. 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.

21. 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.

Page 49

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

KEY DEFINITIONS AND FORMULAS

22. International Life Planners:

Insurance agents in our insurance operations outside the United States, excluding Gibraltar Life Advisors. Excludes Life Planners associated with discontinued Philippine operations.

23. 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. Group disability amounts include long-term care products. Single premium business for the Company's international insurance operations is included in annualized new business premiums based on 10% credit.

24. Non-recourse and Limited-recourse Debt:

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

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

Adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average attributed equity for the Financial Services Businesses excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension/postretirement benefits.

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 1.58% for the three months ended March 31, 2008, 14.43% for the three months ended December 31, 2007, 16.14% for the three months ended September 30, 2007, 15.97% for the three months ended June 30, 2007, and 18.25% for the three months ended March 31, 2007.

26. Policy Persistency - Group Insurance:

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

27. Policy Persistency - International Insurance:

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

28. Prudential Agents:

Insurance agents in our insurance operations in the United States.

29. Prudential Agent productivity:

Commissions on new sales of all products by Prudential Agents under contract for the entire period, divided by the number of those Prudential Agents. Excludes

commissions on new sales by Prudential Agents hired or departed during the period. For interim reporting periods, the productivity measures are annualized.

30. 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

accumulated other comprehensive income related to unrealized gains and losses on investments, pension and postretirement benefits and capital debt.

31. 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.

32. 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 50

Prudential Financial, Inc. Quarterly Financial Supplement First Quarter 2008

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of April 30, 2008

	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
Prudential Annuities Life Assurance Corporation (1)	A+	AA	NR	AA
Prudential Retirement Insurance and Annuity Company	A+	AA	Aa3	AA
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	NR	AA	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA	Aa3	NR
CREDIT RATINGS:
as of April 30, 2008
Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-1	P-2	F1
Long-Term Senior Debt (2)	a-	A+	A3	A
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	AA-
PRICOA Global Funding I
Long-Term Senior Debt	aa-	AA	Aa3	AA

* NR indicates not rated.

(1) Formerly known as American Skandia Life Assurance Corporation

(2) Includes the retail medium-term notes program.

INVESTOR INFORMATION:

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

Common Stock:

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

Page 51