Prudential Financial, Inc. 5.62 (PRS) 10-K 26 Feb 10 2009 FY Annual report Financial data

Statement of Financial Position

Statement of Financial Position, Unclassified - Insurance Based Operations (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
ASSETS
Fixed maturities, available for sale, at fair value (amortized cost: 2009-$174,251; 2008-$168,691)	$175,225	$158,056
Fixed maturities, held to maturity, at amortized cost (fair value: 2009-$5,197; 2008-$3,832)	5,120	3,808
Trading account assets supporting insurance liabilities, at fair value	16,020	13,875
Other trading account assets, at fair value	3,033	4,336
Equity securities, available for sale, at fair value (cost: 2009-$6,106; 2008-$7,288)	6,895	6,065
Commercial mortgage and other loans (includes $479 and $573 measured at fair value under the fair value option at December 31, 2009 and 2008, respectively)	31,384	33,114
Policy loans	10,146	9,703
Securities purchased under agreements to resell	6	480
Other long-term investments	5,904	7,012
Short-term investments	6,819	5,576
Total investments	260,552	242,025
Cash and cash equivalents	13,164	15,028
Accrued investment income	2,322	2,266
Deferred policy acquisition costs	14,578	15,126
Deferred income taxes, net	0	1,106
Other assets	15,513	22,365
Separate account assets	174,074	147,095
Total Assets	480,203	445,011
LIABILITIES
Future policy benefits	125,707	121,951
Policyholders' account balances	101,666	99,613
Policyholders' dividends	1,254	1,670
Securities sold under agreements to repurchase	6,033	7,900
Cash collateral for loaned securities	3,163	4,168
Income taxes	4,014	459
Short-term debt	3,122	10,535
Long-term debt (includes $429 measured at fair value under the fair value option at December 31, 2009)	21,037	20,290
Other liabilities	14,404	17,544
Separate account liabilities	174,074	147,095
Total liabilities	454,474	431,225
EQUITY
Preferred Stock ($.01 par value; 10,000,000 shares authorized; none issued)	0	0
Additional paid-in capital	23,235	22,001
Common Stock held in treasury, at cost (179,650,931 and 183,582,565 shares at December 31, 2009 and 2008, respectively)	(11,390)	(11,655)
Accumulated other comprehensive loss	(443)	(7,343)
Retained earnings	13,787	10,426
Total Prudential Financial, Inc. equity	25,195	13,435
Noncontrolling interests	534	351
Total equity	25,729	13,786
TOTAL LIABILITIES AND EQUITY	480,203	445,011
Class B Stock
EQUITY
Common Stock	$0	$0

1_Statement of Financial Positi

Statement of Financial Position, Unclassified - Insurance Based Operations (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Fixed maturities, available for sale, amortized cost	$174,251	$168,691
Fixed maturities, held to maturity, fair value	5,197	3,832
Equity securities, available for sale, cost	6,106	7,288
Commercial mortgage and other loans, measured at fair value	479	573
Long-term debt, measured at fair value	$429	$0
Preferred Stock, par value	0.01	0.01
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Common Stock held in treasury, shares	179,650,931	183,582,565
Class B Stock
Common Stock, par value	0.01	0.01
Common Stock, shares authorized	10,000,000	10,000,000
Common Stock, shares issued	2,000,000	2,000,000
Common Stock, shares outstanding	2,000,000	2,000,000

Statement Of Income Insurance B

Statement Of Income Insurance Based Revenue (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
REVENUES
Premiums	$16,545	$15,468	$14,351
Policy charges and fee income	2,833	3,138	3,131
Net investment income	11,421	11,881	12,015
Asset management fees and other income	4,785	1,131	4,267
Realized investment gains (losses), net:
Other-than-temporary impairments on fixed maturity securities	(3,721)	(2,397)	(187)
Other-than-temporary impairments on fixed maturity securities transferred to Other Comprehensive Income	2,027	0	0
Other realized investment gains (losses), net	(1,202)	(2)	800
Total realized investment gains (losses), net	(2,896)	(2,399)	613
Total revenues	32,688	29,219	34,377
BENEFITS AND EXPENSES
Policyholders' benefits	16,346	16,531	14,749
Interest credited to policyholders' account balances	4,484	2,335	3,222
Dividends to policyholders'	1,298	2,218	2,903
General and administrative expenses	8,991	9,274	8,820
Total benefits and expenses	31,119	30,358	29,694
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURES	1,569	(1,139)	4,683
Income taxes:
Current	(102)	241	783
Deferred	123	(728)	437
Total income tax expense (benefit)	21	(487)	1,220
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURES	1,548	(652)	3,463
Equity in earnings of operating joint ventures, net of taxes	1,523	(447)	246
INCOME (LOSS) FROM CONTINUING OPERATIONS	3,071	(1,099)	3,709
Income from discontinued operations, net of taxes	19	18	20
NET INCOME (LOSS)	3,090	(1,081)	3,729
Less: Income (loss) attributable to noncontrolling interests	(34)	36	67
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC	$3,124	($1,117)	$3,662
Basic:
Income (loss) from continuing operations attributable to Prudential Financial, Inc. per share of Common Stock	7.64	-2.57	7.57
Income from discontinued operations, net of taxes	0.04	0.04	0.04
Net income (loss) attributable to Prudential Financial, Inc. per share of Common Stock	7.68	-2.53	7.61
Diluted:
Income (loss) from continuing operations attributable to Prudential Financial, Inc. per share of Common Stock	7.59	-2.57	7.47
Income from discontinued operations, net of taxes	0.04	0.04	0.04
Net income (loss) attributable to Prudential Financial, Inc. per share of Common Stock	7.63	-2.53	7.51
Dividends declared per share of Common Stock	0.7	0.58	1.15
Basic and Diluted:
Income (loss) from continuing operations attributable to Prudential Financial, Inc. per share of Class B Stock	($165)	($16)	68.5
Income from discontinued operations, net of taxes	$0	$0	$1
Net income (loss) attributable to Prudential Financial, Inc. per share of Class B Stock	($165)	($16)	69.5
Dividends declared per share of Class B Stock	9.625	9.625	9.625

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Additional Paid-in Capital		Accumulated Other Comprehensive Income (loss)	Common Stock	Retained Earnings	Common Stock Held in Treasury	Total Prudential Financial, Inc. Equity		Noncontrolling Interests	Total
Beginning Balance at Dec. 31, 2006	$20,747		$519	$6	$8,803	($7,143)	$22,932		$329	$23,261
Common Stock acquired						(3,000)	(3,000)			(3,000)
Contributions from noncontrolling interests									121	121
Distributions to noncontrolling interests									(108)	(108)
Stock-based compensation programs	191				(34)	315	472			472
Conversion of Senior Notes	7				(39)	135	103			103
Dividends declared on Common Stock					(521)		(521)			(521)
Dividends declared on Class B Stock					(19)		(19)			(19)
Cumulative effect of changes in accounting principles, net of taxes					(43)		(43)			(43)
Comprehensive income:
Net income					3,662		3,662		67	3,729
Other comprehensive income (loss), net of tax			(72)				(72)			(72)
Total comprehensive income (loss)							3,590		67	3,657
Ending Balance at Dec. 31, 2007	20,945		447	6	11,809	(9,693)	23,514		409	23,923
Common Stock acquired						(2,161)	(2,161)			(2,161)
Contributions from noncontrolling interests									61	61
Distributions to noncontrolling interests									(31)	(31)
Consolidations/deconsolidations of noncontrolling interests									(129)	(129)
Stock-based compensation programs	15				(21)	199	193			193
Dividends declared on Common Stock					(246)		(246)			(246)
Dividends declared on Class B Stock					(19)		(19)			(19)
Impact on Company's investment in Wachovia Securities due to addition of A.G Edwards business, net of tax	1,041	[1]					1,041	[1]		1,041	[1]
Cumulative effect of changes in accounting principles, net of taxes					20		20			20
Comprehensive income:
Net income					(1,117)		(1,117)		36	(1,081)
Other comprehensive income (loss), net of tax			(7,790)				(7,790)		5	(7,785)
Total comprehensive income (loss)							(8,907)		41	(8,866)
Ending Balance at Dec. 31, 2008	22,001		(7,343)	6	10,426	(11,655)	13,435		351	13,786
Common Stock issued	1,391						1,391			1,391
Contributions from noncontrolling interests									277	277
Distributions to noncontrolling interests									(31)	(31)
Consolidations/deconsolidations of noncontrolling interests	(63)						(63)		(22)	(85)
Stock-based compensation programs	15				(76)	265	204			204
Dividends declared on Common Stock					(327)		(327)			(327)
Dividends declared on Class B Stock					(19)		(19)			(19)
Impact of adoption of guidance for other-than-temporary impairments of debt securities, net of taxes			(659)		659					0
Impact on Company's investment in Wachovia Securities due to addition of A.G Edwards business, net of tax	(109)	[1]					(109)	[1]		(109)	[1]
Comprehensive income:
Net income					3,124		3,124		(34)	3,090
Other comprehensive income (loss), net of tax			7,559				7,559		(7)	7,552
Total comprehensive income (loss)							10,683		(41)	10,642
Ending Balance at Dec. 31, 2009	$23,235		($443)	$6	$13,787	($11,390)	$25,195		$534	$25,729
[1]See Note 7.

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect Investment Based Operations (USD $)
In Millions	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$3,090		($1,081)		$3,729
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Realized investment (gains) losses, net	2,896		2,399		(613)
Policy charges and fee income	(1,152)		(1,043)		(915)
Interest credited to policyholders' account balances	4,484		2,335		3,222
Depreciation and amortization	175		717		339
(Gains) losses on trading account assets supporting insurance liabilities, net	(1,601)		1,706		0
Gain on sale of joint venture in Wachovia Securities	(2,247)		0		0
Change in:
Deferred policy acquisition costs	(1,277)		(879)		(1,253)
Future policy benefits and other insurance liabilities	2,524		2,749		2,941
Other trading account assets	45		1,388		(1,649)
Income taxes	1,101		(537)		105
Other, net	(2,198)		3,101		86
Cash flows from operating activities	5,840		10,855		5,992
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available for sale	42,221		81,946		99,134
Fixed maturities, held to maturity	378		245		255
Trading account assets supporting insurance liabilities and other trading account assets	38,782		27,272		0
Equity securities, available for sale	2,246		3,326		5,140
Commercial mortgage and other loans	3,767		3,024		4,647
Policy loans	1,688		1,916		1,299
Other long-term investments	1,160		2,317		1,095
Short-term investments	25,905		38,080		18,649
Payments for the purchase/origination of:
Fixed maturities, available for sale	(42,911)		(86,923)		(98,671)
Fixed maturities, held to maturity	(1,122)		(38)		(209)
Trading account assets supporting insurance liabilities and other trading account assets	(40,085)		(28,905)		0
Equity securities, available for sale	(1,665)		(3,707)		(5,326)
Commercial mortgage and other loans	(2,755)		(5,731)		(8,264)
Policy loans	(1,593)		(1,738)		(1,306)
Other long-term investments	(1,018)		(2,794)		(2,503)
Short-term investments	(26,876)		(38,644)		(18,737)
Proceeds from sale of joint venture in Wachovia Securities	4,500		0		0
Other, net	(193)		(351)		(261)
Cash flows from (used in) investing activities	2,429		(10,705)		(5,058)
CASH FLOWS FROM FINANCING ACTIVITIES
Policyholders' account deposits	23,171		34,021		19,382
Policyholders' account withdrawals	(25,894)		(22,951)		(19,045)
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities	(2,677)		(5,948)		(1,546)
Proceeds from the issuance of Common Stock	1,391		0		0
Cash dividends paid on Common Stock	(328)		(298)		(514)
Cash dividends paid on Class B Stock	(19)		(19)		(19)
Net change in financing arrangements (maturities 90 days or less)	(4,566)		(2,809)		352
Common Stock acquired	0		(2,161)		(3,000)
Common Stock reissued for exercise of stock options	64		105		221
Proceeds from the issuance of debt (maturities longer than 90 days)	5,314		11,781		10,429
Repayments of debt (maturities longer than 90 days)	(7,130)		(7,875)		(5,124)
Excess tax benefits from share-based payment arrangements	2		24		106
Other, net	251		(149)		325
Cash flows from (used in) financing activities	(10,421)		3,721		1,567
Effect of foreign exchange rate changes on cash balances	288		97		(30)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(1,864)		3,968		2,471
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	15,028		11,060		8,589
CASH AND CASH EQUIVALENTS, END OF YEAR	13,164		15,028		11,060
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid (received)	(109)		508		653
Interest paid	1,181		1,468		1,602
NON-CASH TRANSACTIONS DURING THE YEAR
Impact on Company's investment in Wachovia Securities due to addition of A.G. Edwards business, net of tax	(109)	[1]	1,041	[1]	0
Treasury Stock shares issued for stock-based compensation programs and for 2007 only convertible debt redemption of $135	$100		$95		$236
[1]See Note 7.

2_Statement Of Cash Flows Indir

Statement Of Cash Flows Indirect Investment Based Operations (Parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Treasury Stock shares issued for stock-based compensation programs, convertible debt redemption	$0	$0	$135

BUSINESS AND BASIS OF PRESENTAT

BUSINESS AND BASIS OF PRESENTATION
	12 Months Ended Dec. 31, 2009 USD / shares
BUSINESS AND BASIS OF PRESENTATION	1.BUSINESS AND BASIS OF PRESENTATION Prudential Financial, Inc. (Prudential Financial) and its subsidiaries (collectively, Prudential or the Company) provide a wide range of insurance, investment management, and other financial products and services to both individual and institutional customers throughout the United States and in many other countries. Principal products and services provided include life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. The Company has organized its principal operations into the Financial Services Businesses and the Closed Block Business. The Financial Services Businesses operate through three operating divisions: U.S. Retirement Solutions and Investment Management, U.S. Individual Life and Group Insurance, and International Insurance and Investments. The Companys real estate and relocation services business as well as businesses that are not sufficiently material to warrant separate disclosure and businesses to be divested, including the Companys investment in the retail securities brokerage joint venture Wachovia Securities Financial Holdings, LLC (Wachovia Securities) which was sold on December31, 2009, are included in Corporate and Other operations within the Financial Services Businesses. The Closed Block Business, which includes the Closed Block (see Note 12), is managed separately from the Financial Services Businesses. The Closed Block Business was established on the date of demutualization and includes the Companys in force participating insurance and annuity products and assets that are used for the payment of benefits and policyholders dividends on these products, as well as other assets and equity that support these products and related liabilities. In connection with the demutualization, the Company ceased offering these participating products. Demutualization On December18, 2001 (the date of demutualization), The Prudential Insurance Company of America (Prudential Insurance) converted from a mutual life insurance company to a stock life insurance company and became an indirect, wholly owned subsidiary of Prudential Financial. At the time of demutualization Prudential Financial issued two classes of common stock, both of which remain outstanding. The Common Stock, which is publicly traded, reflects the performance of the Financial Services Businesses, and the Class B Stock, which was issued through a private placement, reflects the performance of the Closed Block Business. Basis of Presentation The Consolidated Financial Statements include the accounts of Prudential Financial, entities over which the Company exercises control, including majority-owned subsidiaries and minority-owned entities such as limited partnerships in which the Company is the general partner, and variable interest entities in which the Company is considered the primary beneficiary. See Note 5 for more information on the Companys consolidated variable interest entities. The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Intercompany

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Share-Based Payments The Company recognizes the cost resulting from all share-based payments in accordance with the authoritative guidance on accounting for stock based compensation and applies the fair value based measurement method in accounting for share-based payment transactions with employees except for equity instruments held by employee share ownership plans. The Company accounts for excess tax benefits in additional paid-in capital as a single pool available to all share-based compensation awards. The Company does not recognize excess tax benefits in additional paid-in capital until the benefits result in a reduction in taxes payable. The Company has elected the tax-law ordering methodology and has adopted a convention that considers excess tax benefits to be the last portion of a net operating loss carryforward to be utilized. The Company accounts for non-employee stock options using the fair value method in accordance with authoritative guidance and related interpretations on accounting for equity instruments that are issued to other than employees for acquiring, or in conjunction with selling, goods or services. Share-Based Compensation Awards with Non-substantive Vesting Conditions The Company issues employee share-based compensation awards, under a plan authorized by the Board of Directors, that are subject to specific vesting conditions. Generally the awards vest ratably over a three-year period, the nominal vesting period, or at the date the employee retires (as defined by the plan), if earlier. The Company accounts for those awards granted between (a)the adoption on January1, 2003 of the fair value recognition provisions of authoritative guidance on accounting for stock based compensation, and (b)the adoption on January1, 2006 of revised authoritative guidance on accounting for stock based compensation, which specify that an employee vests in the award upon retirement, using the nominal vesting period approach. Under this approach, the Company records compensation expense over the nominal vesting period. If the employee retires before the end of the nominal vesting period, any remaining unrecognized compensation cost is recognized at the date of retirement. Upon the adoption of the revised authoritative guidance on accounting for stock based compensation on January1, 2006, the Company revised its approach to the recognition of compensation costs for awards granted to retirement-eligible employees and awards that vest when an employee becomes retirement-eligible to apply the non-substantive vesting period approach to all new share-based compensation awards granted after January1, 2006. Under this approach, all compensation cost is recognized on the date of grant for awards issued to retirement-eligible employees, or over the period from the grant date to the date retirement eligibility is achieved, if that is expected to occur during the nominal vesting period. If the Company had accounted for all share-based compensation awards granted after January1, 2003 under the non-substantive vesting period approach, net income of the Financial Services Business

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS AND DISPOSITIONS
	12 Months Ended Dec. 31, 2009 USD / shares
ACQUISITIONS AND DISPOSITIONS	3.ACQUISITIONS AND DISPOSITIONS Sale of investment in Wachovia Securities On December31, 2009 the Company completed the sale of its minority joint venture interest in Wachovia Securities. See Note 7 for more details on this transaction. Acquisition of Yamato Life On May1, 2009, the Companys Gibraltar Life operations acquired Yamato Life, a Japanese life insurance company that declared bankruptcy in October 2008. Gibraltar Life served as the reorganization sponsor for Yamato and under the reorganization agreement acquired Yamato by contributing $72 million of capital to Yamato. At the date of acquisition the Company recognized $2.3 billion of assets and $2.3 billion of liabilities related to Yamato. Subsequent to the acquisition, the Company renamed the acquired company The Prudential Financial of Japan Life Insurance Company Ltd. Acquisition of Hyundai Investment and Securities Co., Ltd. In 2004, the Company acquired an 80 percent interest in Hyundai Investment and Securities Co., Ltd., a Korean asset management firm, from an agency of the Korean government. On January25, 2008, the Company acquired the remaining 20 percent for $90 million. In February 2010, the Company signed a definitive agreement to sell Prudential Investment Securities Co., Ltd. and Prudential Asset Management Co., Ltd, which together comprise its Korean asset management operations. Additional Investment in UBI Pramerica On January18, 2008, the Company made an additional investment of $154 million in its UBI Pramerica operating joint venture in Italy, which is accounted for under the equity method. This additional investment was necessary to maintain the Companys ownership interest at 35 percent and was a result of the merger of the Companys joint venture partner with another Italian bank, and their subsequent consolidation of their asset management companies into the UBI Pramerica joint venture. Acquisition of a portion of Union Bank of Californias Retirement Business On December31, 2007, the Company acquired a portion of the Union Bank of California, N.As retirement business for $103 million of cash consideration. In recording the transaction, the entire purchase price was allocated to other intangibles, which are reflected in Other assets. Sale of Oppenheim Joint Ventures On July12, 2007, the Company sold its 50% interest in its operating joint ventures Oppenheim Pramerica Fonds Trust GmbH and Oppenheim Pramerica Asset Management S.a.r.l., which the Company accounted for under the equity method, to its partner Oppenheim S.C.A. for $121 million. These businesses establish, package and distribute mutual fund products to German and other European retail investors. The Company recorded a pre-tax gain on sale of $37 million and related taxes of $22 million for the year ended December31, 2007. Discontinued Operations Income (loss) from discontinued businesses, including charges upon disposition, for the years ended December31, are as follows: 2009 2008 2007 (in millions) Equity sales, trading and research operations(1) $ 3 $ (1 ) $ (101 ) Real estate investments s

INVESTMENTS

INVESTMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
INVESTMENTS	4. INVESTMENTS Fixed Maturities and Equity Securities The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) at December31: 2009 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Other-than- temporary impairments in AOCI(3) (in millions) Fixed maturities, available for sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 8,254 $ 384 $ 370 $ 8,268 $ Obligations of U.S. states and their political subdivisions 1,389 28 42 1,375 Foreign government bonds 39,795 1,549 135 41,209 Corporate securities 89,915 4,377 2,746 91,546 (43 ) Asset-backed securities(1) 12,587 155 2,504 10,238 (1,716 ) Commercial mortgage-backed securities 11,036 202 220 11,018 1 Residential mortgage-backed securities(2) 11,275 428 132 11,571 (11 ) Total fixed maturities, available for sale $ 174,251 $ 7,123 $ 6,149 $ 175,225 $ (1,769 ) Equity securities, available for sale $ 6,106 $ 1,014 $ 225 $ 6,895 (1) Includes credit tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types. (2) Includes publicly traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of other-than-temporary impairment losses in Accumulated other comprehensive income (loss), or AOCI, which, from January1, 2009, were not included in earnings under new authoritative accounting guidance. Amount excludes $540 million of net unrealized gains on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date. 2009 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Other-than- temporary impairments in AOCI(3) (in millions) Fixed maturities, held to maturity Foreign government bonds $ 1,058 $ 25 $ 1 $ 1,082 $ Corporate securities 876 1 126 751 Asset-backed securities(1) 1,112 16 3 1,125 Commercial mortgage-backed securities 460 104 564 Residential mortgage-backed securities(2) 1,614 64 3 1,675 Total fixed maturities, held to maturity $ 5,120 $ 210 $ 133 $ 5,197 $ (1) Includes credit tranched securities collateralized by auto loans, credit cards, education loans, and other asset types. (2) Includes publicly traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of other-than-temporary impairment losses in Accumulated other comprehensive inc

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES
	12 Months Ended Dec. 31, 2009 USD / shares
VARIABLE INTEREST ENTITIES	5.VARIABLE INTEREST ENTITIES In the normal course of its activities, the Company enters into relationships with various special purpose entities and other entities that are deemed to be variable interest entities (VIEs). A VIE is an entity that either (1)has equity investors that lack certain essential characteristics of a controlling financial interest (including the ability to control the entity, the obligation to absorb the entitys expected losses and the right to receive the entitys expected residual returns) or (2)lacks sufficient equity to finance its own activities without financial support provided by other entities, which in turn would be expected to absorb at least some of the expected losses of the VIE. If the Company determines that it stands to absorb a majority of the VIEs expected losses or to receive a majority of the VIEs expected residual returns, the Company would be deemed to be the VIEs primary beneficiary and would be required to consolidate the VIE. Consolidated Variable Interest Entities for which the Company is the Sponsor The Company is the sponsor of certain asset-backed investment vehicles (commonly referred to as collateralized debt obligations, or CDOs) and certain other vehicles for which the Company earns fee income for investment management services, including certain investment structures which the Companys asset management business invests with other co-investors in investment funds referred to as feeder funds. The Company sells or syndicates investments through these vehicles, principally as part of the proprietary investing activity of the Companys asset management businesses. Additionally, the Company may invest in debt or equity securities issued by these vehicles. CDOs raise capital by issuing debt securities, and use the proceeds to purchase investments, typically interest-bearing financial instruments. The Company analyzes these relationships to determine whether or not it absorbs the majority of expected losses or receives the majority of the expected residual returns, and thus is the primary beneficiary. This analysis includes a review of the Companys size and relative position in the capital structure and/or a review of cash flow projections driven by assumptions regarding the underlying collateral including default rate, recovery rate, deal call probability, reinvestment rates and fees and expenses. The Company has not provided material financial or other support that was not contractually required to any VIE for which it is the sponsor. The Company has determined that it is the primary beneficiary of certain VIEs that it sponsors, including one CDO and certain other investment structures, as it absorbs a majority of the expected losses or receives the majority of the expected residual returns. The table below reflects the carrying amount and balance sheet caption in which the assets and liabilities of consolidated VIEs for which the Company is the sponsor are reported. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIE. December31, 2009 2008 (in millions) Fixed maturities, available

DEFERRED POLICY ACQUISITION COS

DEFERRED POLICY ACQUISITION COSTS
	12 Months Ended Dec. 31, 2009 USD / shares
DEFERRED POLICY ACQUISITION COSTS	6.DEFERRED POLICY ACQUISITION COSTS The balances of and changes in deferred policy acquisition costs as of and for the years ended December31, are as follows: 2009 2008 2007 (in millions) Balance, beginning of year $ 15,126 $ 12,339 $ 10,863 Capitalization of commissions, sales and issue expenses 2,771 2,303 2,250 Amortization (1,494 ) (1,424 ) (996 ) Change in unrealized investment gains and losses (2,000 ) 1,594 53 Foreign currency translation and other 175 314 185 Impact of adoption of guidance on accounting for deferred acquisition costs in connection with modifications or exchanges of insurance contracts (16 ) Balance, end of year $ 14,578 $ 15,126 $ 12,339

INVESTMENTS IN OPERATING JOINT

INVESTMENTS IN OPERATING JOINT VENTURES
	12 Months Ended Dec. 31, 2009 USD / shares
INVESTMENTS IN OPERATING JOINT VENTURES	7.INVESTMENTS IN OPERATING JOINT VENTURES The Company has made investments in certain joint ventures that are strategic in nature and made other than for the sole purpose of generating investment income. These investments are accounted for under the equity method of accounting and are included in Other assets in the Companys Consolidated Statements of Financial Position. The earnings from these investments are included on an after-tax basis in Equity in earnings of operating joint ventures, net of taxes in the Companys Consolidated Statements of Operations. Investments in operating joint ventures include the Companys former investment in Wachovia Securities, which was sold on December31, 2009, as well as investments in other operating joint ventures as part of the Companys International Insurance and International Investments segments. The summarized financial information for the Companys operating joint ventures has been included in the summarized combined financial information for all significant equity method investments shown in Note 4. Investment in Wachovia Securities On July1, 2003, the Company combined its retail securities brokerage and clearing operations with those of Wachovia Corporation (Wachovia) and formed Wachovia Securities Financial Holdings, LLC (Wachovia Securities), a joint venture headquartered in St. Louis, Missouri. The transaction included the contribution of certain assets and liabilities of the Companys securities brokerage operations; however, the Company retained certain assets and liabilities related to the contributed operations, including liabilities for certain litigation and regulatory matters. The Company and Wachovia each agreed to indemnify the other for certain losses, including losses resulting from litigation and regulatory matters relating to certain events arising from the operations of their respective contributed businesses prior to March31, 2004. On December31, 2008, Wachovia merged with and into Wells Fargo Company (Wells Fargo), which succeeded to Wachovias rights and obligations under the joint venture arrangements. On December31, 2009, the Company completed the sale of its minority joint venture interest in Wachovia Securities, which includes Wells Fargo Advisors, to Wells Fargo. At the closing, the Company received $4.5 billion in cash as the purchase price of its joint venture interest and de-recognized the carrying value of its investment in the joint venture and the carrying value of the lookback option described below. For the year ended December31, 2009, Equity in earnings of operating joint ventures, net of taxes includes the associated pre-tax gain on the sale of $2.247 billion. In addition, General and administrative expenses includes certain one-time costs related to the sale of the joint venture interest of $104 million, for pre-tax compensation costs and costs related to increased contributions to the Companys charitable foundation. Results related to the joint venture are included in Corporate and Other operations as a divested business. In addition, following the closing, the Company received $418 million in payment of the principal of and accrued interest on

VALUATION OF BUSINESS ACQUIRED

VALUATION OF BUSINESS ACQUIRED
	12 Months Ended Dec. 31, 2009 USD / shares
VALUATION OF BUSINESS ACQUIRED	8.VALUATION OF BUSINESS ACQUIRED The balances of and changes in VOBA as of and for the years ended December31, are as follows: 2009 2008 2007 (in millions) Balance, beginning of year $ 719 $ 1,072 $ 1,304 Amortization(1) (217 ) (448 ) (243 ) Change in unrealized investment gains and losses (13 ) 3 2 Interest(2) 27 51 62 Foreign currency translation (5 ) 41 12 Impact of adoption of guidance on accounting for deferred acquisition costs in connection with modifications or exchanges of insurance contracts. (12 ) Impact of adoption of revised guidance for accounting for uncertainty in income taxes(3) (53 ) Balance, end of year $ 511 $ 719 $ 1,072 (1) The VOBA balances at December31, 2009 were $0 million, $285 million, $52 million, and $174 million related to the insurance transactions associated with the Allstate Corporation (Allstate), CIGNA, American Skandia, Inc. (American Skandia), and Aoba Life Insurance Company, LTD. (Aoba Life), respectively. The weighted average remaining expected life of VOBA varies by product. The weighted average remaining expected lives were approximately 17, 4 and 6 years for the VOBA related to CIGNA, American Skandia and Aoba Life, respectively. (2) The interest accrual rates vary by product. The interest rates for 2009 were 5.42%, 6.90%, 5.24%, and 2.60% for the VOBA related to Allstate, CIGNA, American Skandia, and Aoba Life, respectively. The interest rates for 2008 were 5.42%, 7.30%, 5.72%, and 2.50% to 2.60% for the VOBA related to Allstate, CIGNA, American Skandia, and Aoba Life, respectively. The interest rates for 2007 were 5.48%, 8.00%, 5.78%, and 2.35% to 2.50% for the VOBA related to Allstate, CIGNA, American Skandia, and Aoba Life, respectively. (3) The Company reduced its valuation allowance on the deferred taxes associated with the acquisition of Gibraltar Life and in accordance with U.S. GAAP; the reduction in valuation allowance was applied against non-current intangible assets prior to being applied to retained earnings. During the first quarter of 2009 and the fourth quarter of 2008, the Company recognized impairments of $73 million and $234 million, respectively, related to the VOBA associated with the Allstate acquisition. These impairments are included on the Amortization line in the table above. The impairment recorded in 2009 represented the remaining VOBA balance associated with the Allstate acquisition. These impairments are reflective of the deterioration in the financial markets, which resulted in additional market depreciation within the separate account assets and corresponding decreases in fee income and overall expected future earnings for this business. These impairments were determined using discounted present value of future estimated gross profits. Since the VOBA balance was completely impaired for these contracts, it cannot be reestablished for market value appreciation in subsequent periods. The follow

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES
	12 Months Ended Dec. 31, 2009 USD / shares
GOODWILL AND OTHER INTANGIBLES	9.GOODWILL AND OTHER INTANGIBLES The changes in the book value of goodwill by segment are as follows: Individual Annuities Asset Management Retirement International Insurance International Investments RealEstate and Relocation Services Total (in millions) Balance at January1, 2007: Goodwill $ 97 $ 238 $ 338 $ 19 $ 125 $ 118 $ 935 Accumulated Impairment Losses Net Balance at January1, 2007 97 238 338 19 125 118 935 2007 Activity: Other(1) 5 4 1 1 11 Balance at December31, 2007: Goodwill 97 243 338 23 126 119 946 Accumulated Impairment Losses Net Balance at December31, 2007 97 243 338 23 126 119 946 2008 Activity: Acquisitions 106 4 110 Impairment Charges (97 ) (123 ) (117 ) (337 ) Other(1) (2 ) (6 ) (7 ) (2 ) (17 ) Balance at December31, 2008: Goodwill 97 241 444 17 123 117 1,039 Accumulated Impairment Losses (97 ) (123 ) (117 ) (337 ) Net Balance at December31, 2008 241 444 17 702 2009 Activity: Other(1) 1 6 7 Balance at December31, 2009: Goodwill 97 242 444 23 123 117 1,046 Accumulated Impairment Losses (97 ) (123 ) (117 ) (337 ) Net Balance at December31, 2009 $ $ 242 $ 444 $ 23 $ $ $ 709 (1) Other represents foreign currency translation and purchase price adjustments. The Company tests goodwill for impairment annually as of December31 and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, as discussed in further detail in Note 2. During the first quarter of 2009, the Company concluded that due to the severe economic conditions, a triggerin

POLICYHOLDERS' LIABILITIES

POLICYHOLDERS' LIABILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
POLICYHOLDERS' LIABILITIES	10.POLICYHOLDERS' LIABILITIES Future Policy Benefits Future policy benefits at December31, are as follows: 2009 2008 (in millions) Life Insurance $ 100,686 $ 94,940 Individual and group annuities and supplementary contracts 17,633 16,856 Other contract liabilities 5,083 7,999 Subtotal future policy benefits excluding unpaid claims and claim adjustment expenses 123,402 119,795 Unpaid claims and claim adjustment expenses 2,305 2,156 Total future policy benefits $ 125,707 $ 121,951 Life insurance liabilities include reserves for death and endowment policy benefits, terminal dividends and certain health benefits. Individual and group annuities and supplementary contracts liabilities include reserves for life contingent immediate annuities and life contingent group annuities. Other contract liabilities include unearned revenue and certain other reserves for group, annuities and individual life and health products. Future policy benefits for individual participating traditional life insurance are based on the net level premium method, calculated using the guaranteed mortality and nonforfeiture interest rates which range from 2.5% to 7.5%. Participating insurance represented 13% and 15% of domestic individual life insurance in force at December31, 2009 and 2008, respectively, and 83%, 85% and 87% of domestic individual life insurance premiums for 2009, 2008 and 2007, respectively. Future policy benefits for individual non-participating traditional life insurance policies, group and individual long-term care policies and individual health insurance policies are generally equal to the aggregate of (1)the present value of future benefit payments and related expenses, less the present value of future net premiums, and (2)any premium deficiency reserves. Assumptions as to mortality, morbidity and persistency are based on the Companys experience, and in certain instances, industry experience, when the basis of the reserve is established. Interest rates used in the determination of the present values range from 1.0% to 9.5%; less than 1% of the reserves are based on an interest rate in excess of 8%. Future policy benefits for individual and group annuities and supplementary contracts are generally equal to the aggregate of (1)the present value of expected future payments, and (2)any premium deficiency reserves. Assumptions as to mortality are based on the Companys experience, and in certain instances, industry experience, when the basis of the reserve is established. The interest rates used in the determination of the present values range from 1.0% to 14.8%; less than 1% of the reserves are based on an interest rate in excess of 8%. Future policy benefits for other contract liabilities are generally equal to the present value of expected future payments based on the Companys experience, except for example, certain group insurance coverages for which future policy benefits are equal to gross unearned premium reserves. The interest rates used in the determination of the present values range f

CERTAIN NONTRADITIONAL LONG-DUR

CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS
	12 Months Ended Dec. 31, 2009 USD / shares
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS	11.CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS The Company issues traditional variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. The Company also issues variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than (1)total deposits made to the contract less any partial withdrawals (return of net deposits), (2)total deposits made to the contract less any partial withdrawals plus a minimum return (minimum return), or (3)the highest contract value on a specified date minus any withdrawals (contract value). These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company also issues annuity contracts with market value adjusted investment options (MVAs), which provide for a return of principal plus a fixed rate of return if held to maturity, or, alternatively, a market adjusted value if surrendered prior to maturity or if funds are reallocated to other investment options. The market value adjustment may result in a gain or loss to the Company, depending on crediting rates or an indexed rate at surrender, as applicable. In addition, the Company issues variable life, variable universal life and universal life contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (no lapse guarantee). Variable life and variable universal life contracts are offered with general and separate account options. The assets supporting the variable portion of both traditional variable annuities and certain variable contracts with guarantees are carried at fair value and reported as Separate account assets with an equivalent amount reported as Separate account liabilities. Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in Policy charges and fee income and changes in liabilities for minimum guarantees are generally included in Policyholders benefits. In 2009, 2008 and 2007, there were no gains or losses on transfers of assets from the general account to a separate account. For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Companys primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments avail

CLOSED BLOCK

CLOSED BLOCK
	12 Months Ended Dec. 31, 2009 USD / shares
CLOSED BLOCK	12.CLOSED BLOCK On the date of demutualization, Prudential Insurance established a Closed Block for certain individual life insurance policies and annuities issued by Prudential Insurance in the U.S. The recorded assets and liabilities were allocated to the Closed Block at their historical carrying amounts. The Closed Block forms the principal component of the Closed Block Business. For a discussion of the Closed Block Business see Note 22. The policies included in the Closed Block are specified individual life insurance policies and individual annuity contracts that were in force on the effective date of the Plan of Reorganization and for which Prudential Insurance is currently paying or expects to pay experience-based policy dividends. Assets have been allocated to the Closed Block in an amount that has been determined to produce cash flows which, together with revenues from policies included in the Closed Block, are expected to be sufficient to support obligations and liabilities relating to these policies, including provision for payment of benefits, certain expenses, and taxes and to provide for continuation of the policyholder dividend scales in effect in 2000, assuming experience underlying such scales continues. To the extent that, over time, cash flows from the assets allocated to the Closed Block and claims and other experience related to the Closed Block are, in the aggregate, more or less favorable than what was assumed when the Closed Block was established, total dividends paid to Closed Block policyholders may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect in 2000 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time to Closed Block policyholders and will not be available to stockholders. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside of the Closed Block. The Closed Block will continue in effect as long as any policy in the Closed Block remains in force unless, with the consent of the New Jersey insurance regulator, it is terminated earlier. The excess of Closed Block Liabilities over Closed Block Assets at the date of the demutualization (adjusted to eliminate the impact of related amounts in Accumulated other comprehensive income (loss)) represented the estimated maximum future earnings at that date from the Closed Block expected to result from operations attributed to the Closed Block after income taxes. In establishing the Closed Block, the Company developed an actuarial calculation of the timing of such maximum future earnings. If actual cumulative earnings of the Closed Block from inception through the end of any given period are greater than the expected cumulative earnings, only the expected earnings will be recognized in income. Any excess of actual cumulative earnings over expected cumulative earnings will represent undistributed accumulated earnings attributable to policyholders, which are recorded as a policyholder dividend obligation. The policyholder dividend obliga

REINSURANCE

REINSURANCE
	12 Months Ended Dec. 31, 2009 USD / shares
REINSURANCE	13.REINSURANCE The Company participates in reinsurance in order to provide additional capacity for future growth, to limit the maximum net loss potential arising from large risks and in acquiring or disposing of businesses. In 2006, the Company acquired the variable annuity business of The Allstate Corporation (Allstate) through a reinsurance transaction. The reinsurance arrangements with Allstate include a coinsurance arrangement associated with the general account liabilities assumed and a modified coinsurance arrangement associated with the separate account liabilities assumed. The reinsurance payable, which represents the Companys obligation under the modified coinsurance arrangement, is netted with the reinsurance receivable in the Companys Consolidated Statement of Financial Position. In 2004, the Company acquired the retirement business of CIGNA and as a result, entered into various reinsurance arrangements. The Company still has indemnity coinsurance and modified coinsurance without assumption arrangements in effect related to this acquisition. Life and disability reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term, per person excess and coinsurance. In addition, the Company has reinsured with unaffiliated third parties, 73% of the Closed Block through various modified coinsurance arrangements. The Company accounts for these modified coinsurance arrangements under the deposit method of accounting. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured long-duration contracts are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. The cost of reinsurance related to short-duration contracts is accounted for over the reinsurance contract period. Amounts recoverable from reinsurers, for both short-and long-duration reinsurance arrangements, are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies. The tables presented below exclude amounts pertaining to the Companys discontinued operations. Reinsurance amounts included in the Consolidated Statements of Operations for premiums, policy charges and fees and policyholders benefits for the years ended December31, were as follows: 2009 2008 2007 (in millions) Direct premiums $ 17,787 $ 16,668 $ 15,688 Reinsurance assumed 90 33 35 Reinsurance ceded (1,332 ) (1,233 ) (1,372 ) Premiums $ 16,545 $ 15,468 $ 14,351 Direct policy charges and fees $ 2,777 $ 3,060 $ 2,989 Reinsurance assumed 139 166 225 Reinsurance ceded (83 ) (88 ) (83 )

SHORT-TERM AND LONG-TERM DEBT

SHORT-TERM AND LONG-TERM DEBT
	12 Months Ended Dec. 31, 2009 USD / shares
SHORT-TERM AND LONG-TERM DEBT	14.SHORT-TERM AND LONG-TERM DEBT Short-term Debt Short-term debt at December31, is as follows: 2009 2008 (in millions) Commercial paper $ 876 $ 5,586 Floating rate convertible senior notes 2 2,131 Other notes payable(1) 52 2,397 Current portion of long-term debt(2) 2,192 421 Total short-term debt(3) $ 3,122 $ 10,535 (1) Includes collateralized borrowings from the Federal Home Loan Bank of New York of $1,000 million at December31, 2008, which are discussed in more detail below, and $816 million of yen-denominated notes at December31, 2008. (2) Includes collateralized borrowings from the Federal Home Loan Bank of New York of $2,000 million at December31, 2009, which are discussed in more detail below. (3) Includes Prudential Financial debt of $203 million and $4,454 million at December31, 2009 and 2008, respectively. The weighted average interest rate on outstanding short-term debt, excluding the current portion of long-term debt and convertible debt, was 0.51% and 1.95% at December31, 2009 and 2008, respectively. At December31, 2009 and 2008, the Company was in compliance with all covenants related to the above debt. At December31, 2009, the Company had $4,340 million in committed lines of credit from numerous financial institutions, all of which were unused. These lines of credit have terms ranging from two to three years. The Company also has access to uncommitted lines of credit from financial institutions. In addition, the Company, as part of its real estate separate account activities, had outstanding lines of credit of $1,004 million at December31, 2009, of which $204 million was used. Commercial Paper The Company issues commercial paper under the two programs described below primarily to manage operating cash flows and existing commitments, to meet working capital needs and to take advantage of current investment opportunities. At December31, 2009 and 2008, the weighted average maturity of total commercial paper outstanding was 27 and 29 days, respectively. Prudential Financial has a commercial paper program rated A-1 by Standard Poors Rating Services (SP), P-2 by Moodys Investor Service, Inc. (Moodys) and F2 by Fitch Ratings Ltd. (Fitch) as of December31, 2009. Prudential Financials outstanding commercial paper borrowings were $146 million and $1,243 million at December31, 2009 and 2008, respectively. Prudential Funding, LLC (Prudential Funding), a wholly owned subsidiary of Prudential Insurance, has a commercial paper program, rated A-1+ by SP, P-2 by Moodys and F1 by Fitch as of December31, 2009. Prudential Fundings outstanding commercial paper borrowings were $730 million and $4,343 million at December31, 2009 and 2008, respectively. Prudential Financial has issued a subordinated guarantee covering Prudential Fundings domestic commercial paper program. Prudential Fundings outstanding master note borrowings, included in other notes payable in the table above, were $0 million and $11 million at December31, 2009 and 2008, respectively. Both Prudential Financials a

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY
	1/1/2009 - 12/31/2009 USD / shares
STOCKHOLDERS' EQUITY	15.STOCKHOLDERS EQUITY The Company has outstanding two classes of common stock: the Common Stock and the Class B Stock. The changes in the number of shares issued, held in treasury and outstanding are as follows for the periods indicated: Common Stock ClassBStock Issued Held In Treasury Outstanding Issued and Outstanding (in millions) Balance, December31, 2006 604.9 133.8 471.1 2.0 Common Stock issued Common Stock acquired 32.0 (32.0 ) Stock-based compensation programs(1) (5.9 ) 5.9 Convertible senior notes(2) (2.4 ) 2.4 Balance, December31, 2007 604.9 157.5 447.4 2.0 Common Stock issued Common Stock acquired 29.3 (29.3 ) Stock-based compensation programs(1) (3.2 ) 3.2 Balance, December31, 2008 604.9 183.6 421.3 2.0 Common Stock issued(3) 36.9 36.9 Common Stock acquired Stock-based compensation programs(1) (3.9 ) 3.9 Balance, December31, 2009 641.8 179.7 462.1 2.0 (1) Represents net shares issued from treasury pursuant to the Companys stock-based compensation program as discussed in Note 17. (2) Represents shares issued in conjunction with the conversion of the November 2005 convertible senior notes, as discussed in Note 16. (3) In June 2009, the Company issued 36,858,975 shares of Common Stock in a public offering at a price of $39.00 per share for net proceeds of $1.391 billion. Common Stock and Class B Stock On the date of demutualization, Prudential Financial completed an initial public offering of its Common Stock at an initial public offering price of $27.50 per share. The shares of Common Stock issued were in addition to shares of Common Stock the Company distributed to policyholders as part of the demutualization. The Common Stock is traded on the New York Stock Exchange under the symbol PRU. Also on the date of demutualization, Prudential Financial completed the sale, through a private placement, of 2.0million shares of Class B Stock at a price of $87.50 per share. The Class B Stock is a separate class of common stock which is not publicly traded. The Common Stock reflects the performance of the Financial Services Businesses and the Class B Stock reflects the performance of the Closed Block Business. Holders of Common Stock have no interest in a separate legal entity representing the Financial Services Businesses and holders of the Class B Stock have no interest in a separate legal entity representing the Closed Block Business and holders of each class of common stock are subject to all of the risks associated with an investment in the Company. In the event of a liquidation, dissolution or winding-up of the Company, holders of Common Stock and holders of Class B Stock would be entitled to receive a proportionate share of the net assets of the Company that remain after paying all liabilities and the liquidation preferences of any preferred

EARNINGS PER SHARE

EARNINGS PER SHARE
	12 Months Ended Dec. 31, 2009 USD / shares
EARNINGS PER SHARE	16.EARNINGS PER SHARE The Company has outstanding two separate classes of common stock. The Common Stock reflects the performance of the Financial Services Businesses and the Class B Stock reflects the performance of the Closed Block Business. Accordingly, earnings per share is calculated separately for each of these two classes of common stock. Net income for the Financial Services Businesses and the Closed Block Business is determined in accordance with U.S. GAAP and includes general and administrative expenses charged to each of the respective businesses based on the Companys 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 the businesses. The direct equity adjustments modify the earnings available to each of the classes of common stock for earnings per share purposes. Common Stock A reconciliation of the numerators and denominators of the basic and diluted per share computations is as follows: 2009 2008 2007 Income Weighted Average Shares Per Share Amount Income Weighted Average Shares Per Share Amount Income Weighted Average Shares Per Share Amount (in millions except per share amounts) Basic earnings per share Income (loss) from continuing operations attributable to the Financial Services Businesses $ 3,358 $ (1,122 ) $ 3,519 Direct equity adjustment 43 55 53 Less: Income (loss) attributable to noncontrolling interests (34 ) 36 67 Less: Earnings allocated to participating unvested share-based payment awards 39 1 23 Income (loss) from continuing operations attributable to the Financial Services Businesses available to holders of Common Stock after direct equity adjustment $ 3,396 444.6 $ 7.64 $ (1,104 ) 429.7 $ (2.57 ) $ 3,482 459.8 $ 7.57 Effect of dilutive securities and compensation programs(1) Add: Earnings allocated to participating unvested share-based payment awardsBasic $ 39 $ 1 $ 23 Less: Earnings allocated to participating unvested share-based payment awardsDiluted 38 1 23 Stock options 1.6 5.4 Deferred and long-term compensation programs 0.6 0.8 Convertible Senior Notes 0.2 Exchangeable Surplus Notes 5

SHARE-BASED PAYMENTS

SHARE-BASED PAYMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
SHARE-BASED PAYMENTS	17.SHARE-BASED PAYMENTS Omnibus Incentive Plan In March 2003, the Companys Board of Directors adopted the Prudential Financial, Inc. Omnibus Incentive Plan (as subsequently amended and restated, the Omnibus Plan). Upon adoption of the Omnibus Plan, the Prudential Financial, Inc. Stock Option Plan previously adopted by the Company on January9, 2001 (the Option Plan) was merged into the Omnibus Plan. The nature of stock based awards provided under the Omnibus Plan are stock options, stock appreciation rights, restricted stock shares, and restricted stock units, and equity-based performance awards (performance shares). Dividend equivalents are generally provided on restricted stock shares and restricted stock units outstanding as of the record date. Dividend equivalents are generally accrued on target performance shares outstanding as of the record date. These dividend equivalents are paid only on the shares released up to a maximum of the target number of shares awarded. Generally, the requisite service period is the vesting period. As of December31, 2009, 30,585,802 authorized shares remain available for grant under the Omnibus Plan including previously authorized but unissued shares under the Option Plan. Compensation Costs Compensation cost for employee stock options is based on the fair values estimated on the grant date, while compensation cost for non-employee stock options is re-estimated at each period-end through the vesting date, using the approach and assumptions described below. Compensation cost for restricted stock shares, restricted stock units and performance shares granted to employees is measured by the share price of the underlying Common Stock at the date of grant. Compensation cost for restricted stock shares and restricted stock units granted to non-employees is measured by the share price as of the balance sheet date for unvested shares and the share price at the vesting date for vested shares. The fair value of each stock option award is estimated using a binomial option-pricing model on the date of grant for stock options issued to employees and the balance sheet date or vesting date for stock options issued to non-employees. The weighted average grant date assumptions used in the binomial option valuation model are as follows: 2009 2008 2007 Expected volatility 48.96 % 22.36 % 18.21 % Expected dividend yield 1.10 % 1.10 % 1.10 % Expected term 4.85years 4.96years 4.87years Risk-free interest rate 1.76 % 2.92 % 4.74 % Expected volatilities are based on historical volatility of the Companys Common Stock and implied volatilities from traded options on the Companys Common Stock. The Company uses historical data and expectations of future exercise patterns to estimate option exercises and employee terminations within the valuation model. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The foll

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS
	12 Months Ended Dec. 31, 2009 USD / shares
EMPLOYEE BENEFIT PLANS	18.EMPLOYEE BENEFIT PLANS Pension and Other Postretirement Plans The Company has funded and non-funded contributory and non-contributory defined benefit pension plans, which cover substantially all of its employees. For some employees, benefits are based on final average earnings and length of service, while benefits for other employees are based on an account balance that takes into consideration age, service and earnings during their career. The Company provides certain health care and life insurance benefits for its retired employees, their beneficiaries and covered dependents (other postretirement benefits). The health care plan is contributory; the life insurance plan is non-contributory. Substantially all of the Companys U.S. employees may become eligible to receive other postretirement benefits if they retire after age55 with at least 10 years of service or under certain circumstances after age 50 with at least 20 years of continuous service. The Company has elected to amortize its transition obligation for other postretirement benefits over 20years. As discussed in Note 2, the revised authoritative guidance eliminated the provisions that allowed plan assets and obligations to be measured as of a date not more than three months prior to the reporting entitys balance sheet date. The revised authoritative guidance requires an employer on a prospective basis to measure the funded status of its plans as of its fiscal year-end. The Company adopted this guidance on December31, 2008 and the impact of changing from a September30 measurement date to a December31 measurement date was a net after-tax increase to Retained earnings of $17 million. Prepaid benefits costs and accrued benefit liabilities are included in Other assets and Other liabilities, respectively, in the Companys Consolidated Statements of Financial Position. The status of these plans as of December31, 2009 and 2008, is summarized below: Pension Benefits Other Postretirement Benefits 2009 2008 2009 2008 (in millions) Change in benefit obligation Benefit obligation at end of prior year period $ (8,260 ) $ (7,915 ) $ (2,002 ) $ (2,170 ) Effect of measurement date change (29 ) 12 Benefit obligation at the beginning of period (8,260 ) (7,944 ) (2,002 ) (2,158 ) Acquisition (9 ) Service cost (163 ) (155 ) (10 ) (11 ) Interest cost (462 ) (464 ) (116 ) (125 ) Plan participants contributions (21 ) (18 ) Medicare Part D subsidy receipts (14 ) (11 ) Amendments (3 ) 3 Actuarial gains/(losses), net (434 ) (245 ) (172 ) 94 Settlements 3 31 Special termination benefits (2 ) (3 ) Benefits paid 539 558 209 218 Foreign currency changes and other (64 ) (38 ) (5 ) 6 Benefit obligatio

INCOME TAXES

INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
INCOME TAXES	19.INCOME TAXES The components of income tax expense (benefit) for the years ended December31, were as follows: 2009 2008 2007 (in millions) Current tax expense (benefit) U.S. $ (49 ) $ (275 ) $ 302 State and local 7 29 19 Foreign (60 ) 487 462 Total (102 ) 241 783 Deferred tax expense (benefit) U.S. (554 ) (819 ) 192 State and local (7 ) (40 ) (11 ) Foreign 684 131 256 Total 123 (728 ) 437 Total income tax expense (benefit) on continuing operations before equity in earnings of operating joint ventures $ 21 $ (487 ) $ 1,220 Income tax expense (benefit) on equity in earnings of operating joint ventures 807 (171 ) 154 Income tax expense (benefit) on discontinued operations 17 11 (33 ) Income tax expense (benefit) reported in stockholders equity related to: Other comprehensive income (loss) 3,352 (3,912 ) 11 Impact on Companys investment in Wachovia Securities due to addition of A.G. Edwards business (59 ) 561 Stock-based compensation programs 22 (21 ) (106 ) Conversion of senior notes (44 ) Cumulative effect of changes in accounting principles 355 7 (118 ) Other 18 Total income taxes $ 4,515 $ (4,012 ) $ 1,102 The Companys income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures includes income (loss) from domestic operations of $466 million, $(3,503) million and $2,349 million, and income from foreign operations of $1,103 million, $1,914 million and $2,334 million for the years ended December31, 2009, 2008 and 2007, respectively. The Companys actual income tax expense on continuing operations before equity in earnings of operating joint ventures for the years ended December31, differs from the expected amount computed by applying the statutory federal income tax rate of 35% to income from continuing operations before income taxes and equity in earnings of operating joint ventures for the following reasons: 2009 2008 2007 (in millions) Expected federal income tax expense (benefit) $ 549 $ (399 ) $ 1,639 Low income housing and other tax credits (68 ) (82 ) (67 ) Non-taxable investment income (177 ) (52 ) (269 ) Valuation allowance (32 ) Expiration of statute of limitations and related interest (272 ) Non-deductible goodwill impairment 83 Change in repatriation assumption 66 9 Other (77 ) (37 ) (60 ) Total income tax expense (benefit) on continuing operations before equity in ear

FAIR VALUE OF ASSETS AND LIABIL

FAIR VALUE OF ASSETS AND LIABILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
FAIR VALUE OF ASSETS AND LIABILITIES	20.FAIR VALUE OF ASSETS AND LIABILITIES Transition ImpactAs discussed in Note 2, the Company adopted the authoritative guidance related to fair value measurements and disclosures and the fair value option for financial assets and financial liabilities effective January1, 2008. As a result of adopting the guidance on fair value measurement and disclosures, the Company eliminated the deferral of gains at inception of certain derivatives contracts whose fair value was not evidenced by market-observable data. The elimination of the deferral of these gains resulted in a net after-tax increase to retained earnings of $3 million. Also as discussed in Note 2, in conjunction with the adoption of the guidance on fair value option for financial assets and financial liabilities, the Company elected the fair value option for fixed rate commercial mortgage loans held for investment that were held at December31, 2007. This election resulted in $399 million of commercial mortgage loans being reported at fair value, with no material impact on the Companys consolidated financial position. In addition, this guidance requires entities to classify cash receipts and cash payments related to trading securities and financial assets and liabilities for which the Company elected the fair value option according to their nature and purpose on the Statement of Cash Flows. As a result, cash flows related to trading account assets supporting insurance liabilities and certain other assets are classified as investing rather than operating as of the adoption date of this guidance. Fair Value MeasurementFair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance around fair value established a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. These generally provide the most reliable evidence and are used to measure fair value whenever available. Active markets are defined as having the following characteristics for the measured asset/liability: (i)many transactions, (ii)current prices, (iii)price quotes not varying substantially among market makers, (iv)narrow bid/ask spreads and (v)most information publicly available. The Companys Level 1 assets and liabilities primarily include certain cash equivalents and short term investments, equity securities and derivative contracts that are traded in an active exchange market. Prices are obtained from readily available sources for market transactions involving identical assets or liabilities. Level 2Fair value is b

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
DERIVATIVE INSTRUMENTS	21.DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies used in a non-dealer or broker capacity Interest rate swaps are used by the Company to manage interest rate exposures arising from mismatches between assets and liabilities (including duration mismatches) and to hedge against changes in the value of assets it anticipates acquiring and other anticipated transactions and commitments. Swaps may be attributed to specific assets or liabilities or may be used on a portfolio basis. Under interest rate swaps, the Company agrees with other parties to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts calculated by reference to an agreed upon notional principal amount. Generally, no cash is exchanged at the outset of the contract and no principal payments are made by either party. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by one counterparty at each due date. Exchange-traded futures and options are used by the Company to reduce risks from changes in interest rates, to alter mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, and to hedge against changes in the value of securities it owns or anticipates acquiring or selling. In exchange-traded futures transactions, the Company agrees to purchase or sell a specified number of contracts, the values of which are determined by the values of underlying referenced investments, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures and options with regulated futures commissions merchants who are members of a trading exchange. Currency derivatives, including exchange-traded currency futures and options, currency forwards and currency swaps, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell. The Company also uses currency forwards to hedge the currency risk associated with net investments in foreign operations and anticipated earnings of its foreign operations. Under currency forwards, the Company agrees with other parties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. As noted above, the Company uses currency forwards to mitigate the risk that unfavorable changes in currency exchange rates will reduce U.S. dollar equivalent earnings generated by certain of its non-U.S. businesses, primarily its international insurance and investments operations. The Company executes forward sales of the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these forwards correspond with the future periods in which the non-U.S. earnings are expected to be generated. These earnings hedges do not qualify for hedge a

SEGMENT INFORMATION

SEGMENT INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
SEGMENT INFORMATION	22.SEGMENT INFORMATION Segments The Company has organized its principal operations into the Financial Services Businesses and the Closed Block Business. Within the Financial Services Businesses, the Company operates through three divisions, which together encompass seven reportable segments. The Companys real estate and relocation services business as well as businesses that are not sufficiently material to warrant separate disclosure and businesses to be divested, including the Companys investment in Wachovia Securities, are included in Corporate and Other operations within the Financial Services Businesses. Collectively, the businesses that comprise the three operating divisions and Corporate and Other are referred to as the Financial Services Businesses. U.S. Retirement Solutions and Investment Management Division. The U.S. Retirement Solutions and Investment Management division consists of the Individual Annuities, Retirement, and Asset Management segments. The Individual Annuities segment manufactures and distributes individual variable and fixed annuity products, primarily to the U.S. mass affluent market. The Retirement segment manufactures and distributes products and provides administrative services for qualified and non-qualified retirement plans and offers guaranteed investment contracts, funding agreements, institutional and retail notes, structured settlement annuities and group annuities. The Asset Management segment provides a broad array of investment management and advisory services by means of institutional portfolio management, mutual funds, asset securitization activity and other structured products, and proprietary investments. These products and services are provided to the public and private marketplace, as well as to other segments of the Company. U.S. Individual Life and Group Insurance Division. The U.S. Individual Life and Group Insurance division consists of the Individual Life and Group Insurance segments. The Individual Life segment manufactures and distributes individual variable life, term life and universal life insurance products primarily to the U.S. mass middle, mass affluent and affluent markets. The Group Insurance segment manufactures and distributes a full range of group life, long-term and short-term group disability, long-term care and group corporate-owned and trust-owned life insurance in the U.S. primarily to institutional clients for use in connection with employee and membership benefit plans. International Insurance and Investments Division. The International Insurance and Investments division consists of the International Insurance and International Investments segments. The International Insurance segment manufactures and distributes individual life insurance products to the mass affluent and affluent markets in Japan, Korea and other foreign countries through its Life Planner operations. In addition, similar products are offered to the broad middle income market across Japan through Life Advisors, the proprietary distribution channel of the Companys Gibraltar Life operation. The International Investments segment offers proprietary and non-proprietary asset management, in

COMMITMENTS AND GUARANTEES, CON

COMMITMENTS AND GUARANTEES, CONTINGENT LIABILITIES AND LITIGATION AND REGULATORY MATTERS
	12 Months Ended Dec. 31, 2009 USD / shares
COMMITMENTS AND GUARANTEES, CONTINGENT LIABILITIES AND LITIGATION AND REGULATORY MATTERS	23.COMMITMENTS AND GUARANTEES, CONTINGENT LIABILITIES AND LITIGATION AND REGULATORY MATTERS Commitments and Guarantees The Company occupies leased office space in many locations under various long-term leases and has entered into numerous leases covering the long-term use of computers and other equipment. Rental expense, net of sub-lease income, incurred for the years ended December31, 2009, 2008 and 2007 was $231 million, $191 million and $179 million, respectively. The following table presents, at December31, 2009, the Companys contractual maturities on long-term debt, as more fully described in Note 14, and future minimum lease payments under non-cancelable operating leases along with associated sub-lease income: Long-term Debt Operating Leases Sub-lease Income (in millions) 2010 $ $ 190 $ (27 ) 2011 546 167 (19 ) 2012 1,397 142 (16 ) 2013 1,383 118 (14 ) 2014 1,706 72 (12 ) 2015 and thereafter 16,005 108 Total $ 21,037 $ 797 $ (88 ) Occasionally, for business reasons, the Company may exit certain non-cancelable operating leases prior to their expiration. In these instances, the Companys policy is to accrue, at the time it ceases to use the property being leased, the future rental expense net of any expected sub-lease income, and to release this reserve over the remaining commitment period. Of the $797 million in total non-cancelable operating leases and $88 million in total sub-lease income, $91 million and $80 million, respectively, has been accrued at December31, 2009. In connection with the Companys commercial mortgage operations, it originates commercial mortgage loans. At December31, 2009, the Company had outstanding commercial mortgage loan commitments with borrowers of $1,664 million. The loan commitments that will be held for sale are recognized as derivatives and recorded at fair value. In certain of these transactions, the Company prearranges that it will sell the loan to an investor, including to governmental sponsored entities as discussed below, after the Company funds the loan. At December31, 2009, $1,090 million of the Companys commitments to originate commercial mortgage loans are subject to such arrangements. The Company also has other commitments, some of which are contingent upon events or circumstances not under the Companys control, including those at the discretion of the Companys counterparties. These other commitments amounted to $8,776 million at December31, 2009. Reflected in these other commitments are $8,715 million of commitments to purchase or fund investments, including $4,674 million that the Company anticipates will ultimately be funded from its separate accounts. Of these separate account commitments, $1,991 million have recourse to Prudential Insurance if the separate accounts are unable to fund the amounts when due. In the course of the Companys business, it provides certain guarantees and indemnities to third parties pursuant to which it may be contingently required to make payment

QUARTERLY RESULTS OF OPERATIONS

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
	12 Months Ended Dec. 31, 2009 USD / shares
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)	24.QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The unaudited quarterly results of operations for the years ended December31, 2009 and 2008 are summarized in the table below: Three Months Ended March31 June30 September30 December31 (in millions, except per share amounts) 2009 Total revenues $ 8,557 $ 6,908 $ 8,575 $ 8,648 Total benefits and expenses 8,545 6,916 7,723 7,935 Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures 12 (8 ) 852 713 Income from continuing operations 2 159 1,036 1,874 Net income 3 180 1,032 1,875 Less: Income (loss) attributable to noncontrolling interests (11 ) 17 (50 ) 10 Net income attributable to Prudential Financial, Inc. 14 163 1,082 1,865 Basic income from continuing operations attributable to Prudential Financial, Inc. per shareCommon Stock(1) 0.01 1.21 2.37 3.84 Diluted income from continuing operations attributable to Prudential Financial, Inc. per shareCommon Stock(1) 0.01 1.20 2.36 3.78 Basic net income attributable to Prudential Financial, Inc. per shareCommon Stock(1) 0.01 1.25 2.36 3.85 Diluted net income attributable to Prudential Financial, Inc. per shareCommon Stock(1) 0.01 1.25 2.35 3.79 Basic and diluted income (loss) from continuing operations attributable to Prudential Financial, Inc. per shareClass B Stock 4.00 (193.00 ) (10.00 ) 34.00 Basic and diluted net income (loss) attributable to Prudential Financial, Inc. per shareClass B Stock 4.00 (193.00 ) (10.00 ) 34.00 2008 Total revenues $ 7,555 $ 7,699 $ 7,025 $ 6,940 Total benefits and expenses 7,493 7,071 7,221 8,573 Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures 62 628 (196 ) (1,633 ) Income (loss) from continuing operations 82 592 (176 ) (1,597 ) Net income (loss) 84 589 (171 ) (1,583 ) Less: Income (loss) attributable to noncontrolling interests 24 8 5 (1 ) Net income (loss) attributable to Prudential Financial, Inc. 60 581 (176 ) (1,582 ) Basic income (loss) from continuing operations attributable to Prudential Financial, Inc. per shareCommon Stock(1) 0.18 1.34 (0.27 ) (3.92 ) Diluted income (loss) from continuing operations attributable to Prudential Financial, Inc. per shareCommon Stock(1) 0.17 1.33 (0.27 ) (3.92 ) Basic net income (loss) attributable to Prudential Financial, Inc. per shareCommon Stock(1) 0.18 1.33 (0.25 ) (3.89 ) Diluted net income (loss) attributable to Prudential Financial, Inc. per shareCommon Stock(1) 0.18 1.32

Schedule I Summary of Investmen

Schedule I Summary of Investments Other Than Investments in Related Parties
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule I Summary of Investments Other Than Investments in Related Parties	Schedule I Summary of Investments Other Than Investments in Related Parties As of December31, 2009 (in millions) Type of Investment Cost(1) Value Amount at which showninthe BalanceSheet Fixed maturities, available for sale: Bonds: United States Government and government agencies and authorities $ 8,254 $ 8,268 $ 8,268 States, municipalities and political subdivisions 1,389 1,375 1,375 Foreign governments 39,795 41,209 41,209 Asset-backed securities 12,587 10,238 10,238 Residential mortgage-backed securities 11,275 11,571 11,571 Commercial mortgage-backed securities 11,036 11,018 11,018 Public utilities 17,336 17,989 17,989 Convertibles and bonds with warrants attached All other corporate bonds 72,566 73,541 73,541 Redeemable preferred stock 13 16 16 Total fixed maturities, available for sale $ 174,251 $ 175,225 $ 175,225 Fixed maturities, held to maturity: Bonds: Foreign governments $ 1,058 $ 1,082 $ 1,058 Asset-backed securities 1,112 1,125 1,112 Residential mortgage-backed securities 1,614 1,675 1,614 Commercial mortgage-backed securities 460 564 460 All other corporate bonds 876 751 876 Total fixed maturities, held to maturity $ 5,120 $ 5,197 $ 5,120 Equity securities: Common Stocks: Public utilities $ 185 $ 197 $ 197 Banks, trust and insurance companies 360 383 383 Industrial, miscellaneous and other 4,534 5,284 5,284 Nonredeemable preferred stocks 36 71 71 Perpetual preferred stocks 991 960 960 Total equity securities, available for sale $ 6,106 $ 6,895 $ 6,895 Trading account assets supporting insurance liabilities(2)(3) $ 16,020 $ 16,020 Other trading account assets(2) 3,033 3,033 Commercial mortgage and other loans(4) 31,384 31,384 Policy loans 10,146 10,146 Securities purchased under agreements to resell 6 6 Short-term investments 6,819 6,819 Other long-term investments 5,904 5,904 Total investments $ 258,789 $ 260,552 (1) Original cost of equities reduced by impairment and, as to fixed maturities, original cost reduced by repayments and impairments and adjusted for amortization of premiums and accretion of discounts. (2) At fair value. (3) See Note 4 to Consolidated Financial Statements for the composition of the Companys Trading account assets supporting insurance liabilities. (4) At carrying value, net of allowance for losses. Includes commercial mortgage and other collateralized loans of $30,056 million and uncollateralized loans of $

Schedule II Condensed Financial

Schedule II Condensed Financial Information of Registrant
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule II Condensed Financial Information of Registrant	Schedule II Condensed Financial Information of Registrant Condensed Statements of Financial Positions as of December31, 2009 and 2008 (in millions) 2009 2008 ASSETS Investment contracts from subsidiaries $ 1,770 $ 3,393 Fixed maturities, available for sale, at fair value (amortized cost: 2009$198) 197 Other investments 661 708 Total investments 2,628 4,101 Cash and cash equivalents 3,170 3,727 Due from subsidiaries 383 194 Loans receivable from subsidiaries 4,965 4,380 Investment in subsidiaries 32,641 19,891 Other assets 354 470 TOTAL ASSETS $ 44,141 $ 32,763 LIABILITIES AND EQUITY LIABILITIES Due to subsidiaries $ 1,078 $ 730 Loans payable to subsidiaries 1,180 1,289 Short-term debt 203 4,454 Long-term debt 14,465 12,186 Income taxes payable 1,127 Other liabilities 359 318 Total liabilities 18,412 18,977 EQUITY Preferred Stock ($.01 par value; 10,000,000 shares authorized; none issued) Common Stock ($.01 par value; 1,500,000,000 shares authorized 641,762,089 and 604,902,444 shares issued at December31, 2009 and 2008, respectively) 6 6 Class B Stock ($0.01 par value; 10,000,000 shares authorized; 2,000,000 shares issued and outstanding at December31, 2009 and 2008, respectively) Additional paid-in capital 23,235 22,001 Common Stock held in treasury, at cost (179,650,931 and 183,582,565 shares at December31, 2009 and 2008, respectively) (11,390 ) (11,655 ) Accumulated other comprehensive loss (443 ) (7,343 ) Retained earnings 13,787 10,426 Total Prudential Financial, Inc. equity 25,195 13,435 Noncontrolling interests 534 351 Total equity 25,729 13,786 TOTAL LIABILITIES AND EQUITY $ 44,141 $ 32,763 Condensed Statements of Operations for the Years Ended December31, 2009, 2008 and 2007 (in millions) 2009 2008 2007 REVENUES Net investment income $ 132 $ 281 $ 207 Realized investment gains (losses), net 210 (144 ) (16 ) Affiliated interest revenue 162 322 364 Other income 53 (30 ) 7 Total revenues 557 429 562 EXPENSES General and administrative expenses 29 33 25 Interest expense 839 908 804 Total expenses 868 941 829 LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES (311 ) (512 ) (267 ) Income taxes:

Schedule III Supplementary Insu

Schedule III Supplementary Insurance Information
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule III Supplementary Insurance Information	PRUDENTIAL FINANCIAL, INC. Schedule III Supplementary Insurance Information As of and for the Year Ended December31, 2009 (in millions) Segment Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims, Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premiums, Policy Charges andFee Income Net Investment Income Benefits, Claims, Losses and Settlement Expenses Amortization of DAC Other Operating Expenses Individual Annuities $ 2,449 $ 1,487 $ $ 13,938 $ 886 $ 979 $ 762 $ 482 $ 875 Retirement 273 13,701 147 44,216 800 3,309 4,115 22 854 Asset Management 90 18 1,198 U.S. Retirement Solutions and Investment Management Division 2,722 15,188 147 58,154 1,686 4,378 4,877 522 2,927 Individual Life 4,179 3,461 8,088 1,711 809 1,305 186 715 Group Insurance 371 5,500 161 6,796 4,535 623 4,252 22 687 U.S. Individual Life and Group Insurance Division 4,550 8,961 161 14,884 6,246 1,432 5,557 208 1,402 International Insurance 6,627 48,849 230 25,186 8,245 2,158 6,646 776 1,203 International Investments 18 379 International Insurance and Investments Division 6,627 48,849 230 25,186 8,245 2,176 6,646 776 1,582 Corporate and Other (148 ) 394 1 (1,818 ) (49 ) 257 (77 ) (33 ) 1,007 Total Financial Services Business 13,751 73,392 539 96,406 16,128 8,243 17,003 1,473 6,918 Closed Block Business 827 51,776 6,514 3,250 3,178 5,125 21 579 Total $ 14,578 $ 125,168 $ 539 $ 102,920 $ 19,378 $ 11,421 $ 22,128 $ 1,494 $ 7,497 As of and for the Year Ended December31, 2008 (in millions) Segment Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premiums, Policy Charges and Fee Income Net Investment Income Benefits, Claims, Losses and Settlement Expenses Amortization

Schedule IV Reinsurance

Schedule IV Reinsurance
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule IV Reinsurance	PRUDENTIAL FINANCIAL, INC. Schedule IV Reinsurance For the Years Ended December31, 2009, 2008 and 2007 (in millions) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net 2009 Life Insurance Face Amount In Force $ 2,971,838 $ 395,022 $ 18,113 $ 2,594,929 0.7 % Premiums: Life Insurance $ 16,266 $ 1,311 $ 90 $ 15,045 0.6 % Accident and Health Insurance 1,521 21 1,500 % Property Liability Insurance % Total Premiums $ 17,787 $ 1,332 $ 90 $ 16,545 0.5 % 2008 Life Insurance Face Amount In Force $ 2,772,863 $ 352,741 $ 5,389 $ 2,425,511 0.2 % Premiums: Life Insurance $ 15,339 $ 1,218 $ 31 $ 14,152 0.2 % Accident and Health Insurance 1,329 15 1 1,315 0.1 % Property Liability Insurance 1 1 100.0 % Total Premiums $ 16,668 $ 1,233 $ 33 $ 15,468 0.2 % 2007 Life Insurance Face Amount In Force $ 2,651,833 $ 309,197 $ 5,563 $ 2,348,199 0.2 % Premiums: Life Insurance $ 14,549 $ 1,359 $ 29 $ 13,219 0.2 % Accident and Health Insurance 1,139 13 3 1,129 0.3 % Property Liability Insurance 3 3 100.0 % Total Premiums $ 15,688 $ 1,372 $ 35 $ 14,351 0.2 %

Schedule V Valuation and Qualif

Schedule V Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule V Valuation and Qualifying Accounts	PRUDENTIAL FINANCIAL, INC. Schedule V Valuation and Qualifying Accounts For the Years Ended December31, 2009, 2008 and 2007 (in millions) Additions Description Balanceat Beginningof Period Chargedto Costs and Expenses Other Deductions Effect of Foreign ExchangeRates Balance at End ofPeriod 2009 Allowance for losses on commercial mortgage and other loans $ 332 $ $ 468 (a) $ 105 (b) $ 3 $ 698 Valuation allowance on deferred tax asset 265 4 58 (h) 121 (e) 4 210 $ 597 $ 4 $ 526 $ 226 $ 7 $ 908 2008 Allowance for losses on commercial mortgage and other loans $ 173 $ $ 155 (c) $ 1 (d) $ 5 $ 332 Valuation allowance on deferred tax asset 324 27 (h) 35 (e) (51 ) 265 $ 497 $ $ 182 $ 36 $ (46 ) $ 597 2007 Allowance for losses on commercial mortgage and other loans $ 185 $ $ $ 13 (f) $ 1 $ 173 Valuation allowance on deferred tax asset 592 264 (g) (4 ) 324 $ 777 $ $ $ 277 $ (3 ) $ 497 (a) Represents $468 million of additions to allowance for losses. (b) Represents $105 million of charge-offs, net of recoveries. (c) Represents $155 million of additions to allowance for losses. (d) Represents $1 million of charge-offs, net of recoveries. (e) Represents, primarily, utilization and expiration of net operating losses. (f) Represents $11 million of release of allowance for losses and $2 million of charge-offs, net of recoveries. (g) Represents, primarily, $141 million reduction to the valuation allowance on the deferred taxes associated with the acquisition of Gibraltar Life as a result of the adoption of authoritative guidance for accounting for uncertainty in income taxes, as well as the utilization and expiration of net operating losses. (h) Represents, primarily, additional valuation allowance to offset the establishment of gross deferred tax asset.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Trading Symbol	PRU
Entity Registrant Name	PRUDENTIAL FINANCIAL INC
Entity Central Index Key	0001137774
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		463,000,000
Entity Public Float			$17,140,000,000
Class B Stock
Entity Common Stock, Shares Outstanding		2,000,000