 Exhibit 99.1 |
 Investor Day 6.9.2011 1 Forward-Looking Statements Forward-Looking Statements Certain of the statements included in this presentation constitute forward-looking statements within the meaning of the U. S. Private Securities Litigation Reform Act of 1995. It is possible that actual results may differ materially from any expectations or predictions expressed in this presentation. Words such as “expects,” “believes,” “anticipates,” “includes,” “plans,” “assumes,” “estimates,” “projects,” “intends,” “should,” “will,” “shall,” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. There can be no assurance that future developments affecting Prudential Financial, Inc. and its subsidiaries will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (1) general economic, market and political conditions, including the performance and fluctuations of fixed income, equity, real estate and other financial markets; (2) the availability and cost of additional debt or equity capital or external financing for our operations; (3) interest rate fluctuations or prolonged periods of low interest rates; (4) the degree to which we choose not to hedge risks, or the potential ineffectiveness or insufficiency of hedging or risk management strategies we do implement, with regard to variable annuity or other product guarantees; (5) any inability to access our credit facilities; (6) reestimates of our reserves for future policy benefits and claims; (7) differences between actual experience regarding mortality, morbidity, persistency, surrender experience, interest rates or market returns and the assumptions we use in pricing our products, establishing liabilities and reserves or for other purposes; (8) changes in our assumptions related to deferred policy acquisition costs, valuation of business acquired or goodwill; (9) changes in assumptions for retirement expense; (10) changes in our financial strength or credit ratings; (11) statutory reserve requirements associated with term and universal life insurance policies under Regulation XXX and Guideline AXXX; (12) investment losses, defaults and counterparty non-performance; (13) competition in our product lines and for personnel; (14) difficulties in marketing and distributing products through current or future distribution channels; (15) changes in tax law; (16) economic, political, currency and other risks relating to our international operations; (17) fluctuations in foreign currency exchange rates and foreign securities markets; (18) regulatory or legislative changes, including the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act; (19) inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others; (20) adverse determinations in litigation or regulatory matters and our exposure to contingent liabilities, including in connection with our divestiture or winding down of businesses; (21) domestic or international military actions, natural or man-made disasters including terrorist activities or pandemic disease, or other events resulting in catastrophic loss of life; (22) ineffectiveness of risk management policies and procedures in identifying, monitoring and managing risks; (23) effects of acquisitions, divestitures and restructurings, including possible difficulties in integrating and realizing the projected results of acquisitions, including risks associated with the recent acquisition of certain insurance operations in Japan; (24) interruption in telecommunication, information technology or other operational systems or failure to maintain the security, confidentiality or privacy of sensitive data on such systems; (25) changes in statutory or U.S. GAAP accounting principles, practices or policies; (26) Prudential Financial, Inc.’s primary reliance, as a holding company, on dividends or distributions from its subsidiaries to meet debt payment obligations and the ability of the subsidiaries to pay such dividends or distributions in light of our ratings objectives and/or applicable regulatory restrictions; and (27) risks due to the lack of legal separation between our Financial Services Businesses and our Closed Block Business. Prudential Financial, Inc. does not intend, and is under no obligation, to update any particular forward-looking statement included in this presentation. Prudential Financial, Inc. of the United States is not affiliated with Prudential PLC which is headquartered in the United Kingdom. |
 Investor Day 6.9.2011 2 Non–GAAP Measures Non–GAAP Measures This presentation includes references to “adjusted operating income.” Adjusted operating income is a non-GAAP measure of performance of our Financial Service Businesses (“FSB”). Adjusted operating income excludes “Realized investment gains (losses), net,” as adjusted, and related charges and adjustments. A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as our tax and capital profile. Realized investment gains (losses) within certain of our businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of a hedging program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are classified as other trading account assets. Adjusted operating income also excludes investment gains and losses on trading account assets supporting insurance liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of these transactions. In addition, adjusted operating income excludes the results of divested businesses, which are not relevant to our ongoing operations. Discontinued operations, which is presented as a separate component of net income under GAAP, is also excluded from adjusted operating income. We believe that the presentation of adjusted operating income as we measure it for management purposes enhances understanding of the results of operations of the Financial Services Businesses by highlighting the results from ongoing operations and the underlying profitability of our businesses. However, adjusted operating income is not a substitute for income determined in accordance with GAAP, and the adjustments made to derive adjusted operating income are important to an understanding of our overall results of operations. Return on equity (“ROE”) based on adjusted operating income is determined by dividing adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation) by average attributed equity for the Financial Services Businesses excluding accumulated other comprehensive income related to unrealized gains and losses on investments and accumulated other comprehensive income related to pension and postretirement benefits. Our expectations of ROE potential are based on after-tax adjusted operating income. Because we do not predict future realized investment gains / losses or recorded changes in asset and liability values that are expected to ultimately accrue to contractholders, we cannot provide a measure of our ROE expectations based on income from continuing operations of the Financial Services Businesses, which is the GAAP measure most comparable to adjusted operating income. For additional information about adjusted operating income and the comparable GAAP measure, including reconciliation between the two, please refer to our Annual Report on Form 10-K for the year ended December 31, 2010 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 located on the Investor Relations Web site at www.investor.prudential.com. Additional historical information relating to the Company’s financial performance, including its first quarter 2011 Quarterly Financial Supplement, is also located on the Investor Relations website. The information referred to above and on the prior page, as well as the risks of our businesses described in our Annual Report on Form 10-K for the year ended December 31, 2010, should be considered when reviewing forward-looking statements contained in this presentation. |
 Investor Day 6.9.2011 3 Reconciliation for Individual Annuities pre-tax adjusted Reconciliation for Individual Annuities pre-tax adjusted operating income excluding disclosed items operating income excluding disclosed items 2011 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Individual Annuities pre-tax adjusted operating income (loss) (244) 489 315 197 244 (131) 588 345 292 Reconciling items: Amortization of deferred policy acquisition and other costs (1) 112 (142) (26) (32) (21) 88 (245) (46) (19) Change in reserves for guaranteed minimum death and income benefits (1) 215 (274) (185) (47) (53) 196 (167) (100) (40) Other (2) - - - - (25) - - - - Individual Annuities pre-tax adjusted operating income excluding disclosed items indicated above 83 73 104 118 145 153 176 199 233 2009 2010 1) Reflects impact of market performance, actual-to-expected result differences, and changes in assumptions used in projecting gross profits and claims. 2) Includes refinements based on review and settlement of reinsurance contracts related to acquired business. |
 PRUDENTIAL FINANCIAL, INC. JOHN STRANGFELD CHAIRMAN AND CEO |
 Investor Day 6.9.2011 Prudential Today Prudential Today 1 • Attractive return opportunities in high quality businesses, supported by strong balance sheet • Balanced portfolio of selected risks; improving risk profile • Expanding distribution: market leadership across multiple channels • Growth engines in International Insurance, Annuities and Asset Management • Capital management: balanced approach to investing in businesses, returning capital to investors • Proven acquisition and integration track record • Seasoned management team; focus on talent and leadership |
 Investor Day 6.9.2011 Leadership Positions in Chosen Markets Leadership Positions in Chosen Markets Rank Rank Business Business Metric Metric As of As of 1 Variable Annuities Sales (Advisor-sold) 1Q ’11 2 Stable Value Assets 4Q ’10 7 Defined Contribution Assets managed 2010 7 Defined Benefit Assets managed 2010 3 Term Life New annualized premiums 1Q ’11 2 Group Life In-force premiums 4Q ’10 4 International Insurance New business face amount in Japan Dec. 2010 Sources: LIMRA, VARDS, PlanSponsor, Pensions & Investments, Life Insurance Association of Japan (excluding Japan Post Insurance) 2 A set of businesses that are diverse, healthy and competitive in A set of businesses that are diverse, healthy and competitive in their markets their markets |
 Equity Deployment to a Superior Mix of Equity Deployment to a Superior Mix of High Quality Businesses High Quality Businesses $18.4 Billion (1) 12/31/10 12/31/02 $29.2 Billion (1) $30.1 Billion (1) International Insurance Annuities, Retirement & Asset Management Individual Life & Group Insurance Corporate & Other (2) 3/31/11 3 3% 49% 21% 15% 15% 15% 15% 30% 40% 43% 14% 40% Investor Day 6.9.2011 1) Attributed equity of Financial Services Businesses, including Corporate and Other; excludes accumulated other comprehensive income related to unrealized gains and losses on investments for all periods presented and excludes accumulated other comprehensive income related to pension and postretirement benefits for December 31, 2010 and March 31, 2011. 2) Includes divested businesses. |
 High Quality Mix of Businesses with Superior ROE Prospects (1) 4 1) Business unit ROE’s are unlevered and are based on FSB effective tax rate applicable to Adjusted Operating Income. 2) Attributed equity of Financial Services Businesses as of March 31, 2011, excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension and postretirement benefits; includes $1.0 billion attributed to Corporate and Other. 3) Includes Corporate & Other results, including costs of Capital Debt. Annuities, Retirement & Asset Mgmt 2010 Baseline ROE 11% - 12% Individual Life & Individual Life & Group Ins Group Ins 2010 Baseline ROE 2010 Baseline ROE 11% 11% - - 12% 12% International International Insurance Insurance 2010 Baseline ROE 2010 Baseline ROE 19% 19% - - 20% 20% Annuities, Retirement & Asset Mgmt 2013 ROE Potential 14% - 15% Individual Life & Individual Life & Group Ins Group Ins 2013 ROE Potential 2013 ROE Potential 12% 12% - - 13% 13% International International Insurance Insurance 2013 ROE Potential 2013 ROE Potential 17% 17% - - 18% 18% Group Insurance $2.1B Individual Life $2.2B Retirement $4.2B Asset Management $1.9B Individual Annuities $5.9B International Insurance $12.8B Investor Day 6.9.2011 |
 |
 Investor Day 6.9.2011 Capital Deployment “Then” and “Now” 1 • Defense • Offense • Offense • Defense Circa 2008 - Circa 2008 - 2009 2009 2011 2011 |
 Investor Day 6.9.2011 Strong Capital Position 2 1) Pro-forma for Star/Edison acquisition which closed February 1, 2011 and Global Commodities business divestiture expected to close in second quarter 2011; in billions. 2) As reported on statutory basis. 3) Reflects targeted statutory ratios in domestic and international regulated entities consistent with “AA” ratings objectives. |
 Investor Day 6.9.2011 Capital Management and Business Approach 3 Capital Management Capital Management Begins with Begins with Selection of Selection of Businesses Businesses and Risks and Risks • High value-added business models • Credible diversification in mix of businesses and risks • Consistent with established strategies • Fit with proven execution and risk management capabilities • Contribution to ROE prospects and growth potential |
 Investor Day 6.9.2011 Superior Business Mix Drives Growth and Return Prospects (1) 4 International Insurance Asset Management Individual Annuities Retirement Group Insurance Individual Life ROE Prospects Low Medium High Expected AOI Volatility 1) For illustrative purposes only; not intended to express actual growth or return expectations for any particular periods. Amounts shown (in billions) represent attributed equity as of March 31, 2011. |
 Investor Day 6.9.2011 Prudential’s Business Mix 5 Individual Life • Focus on returns through capital management, cost effective distribution • Coordinated approach to product and distribution channel management • Quality business; avoid inappropriate financing • Results largely uncorrelated to U.S. equity markets Group Insurance • Focus on returns: case selection, appropriate pricing • Cultivate optional life sales through employer clients • Deliver stable earnings and strong cash flows Retirement • Emphasis on Full Service business • Market opportunity in investment-only products for pension plan sponsors • Positioned for developing pension risk transfer market |
 Investor Day 6.9.2011 6 Prudential’s Business Mix Asset Asset Management Management • Leading third party asset manager Leading third party asset manager • • Seasoned skills in multiple asset classes provide Seasoned skills in multiple asset classes provide competitive advantage for Prudential businesses competitive advantage for Prudential businesses • • Strong net flows drive increasing AUM, growing Strong net flows drive increasing AUM, growing asset management fees asset management fees • • Improving earnings quality; reduced exposure Improving earnings quality; reduced exposure to volatility to volatility |
 Investor Day 6.9.2011 7 Prudential’s Business Mix Annuities • Market leading positions across multiple distribution channels • Proven, superior value proposition based on “highest daily” living benefits • Popularity of auto-rebalancing products drives improving overall risk profile • Growing returns on an increasing base |
 Investor Day 6.9.2011 8 Prudential’s Business Mix International Insurance • Sustained success in Japan built on foundation of needs-based selling, emphasis on protection products adapted to successful retirement products • Expanding distribution including Life Planners, Life Advisors, banks and independent distributors fuels growth prospects • Lifetime client relationships, innovative products and broad-based distribution support opportunities in attractive retirement market |
 PRUDENTIAL INTERNATIONAL INSURANCE PRUDENTIAL INTERNATIONAL INSURANCE BUILDING ON SUCCESS IN JAPAN BUILDING ON SUCCESS IN JAPAN EDWARD BAIRD EDWARD BAIRD EXECUTIVE VICE PRESIDENT EXECUTIVE VICE PRESIDENT CHIEF OPERATING OFFICER, INTERNATIONAL CHIEF OPERATING OFFICER, INTERNATIONAL PRUDENTIAL FINANCIAL, INC. PRUDENTIAL FINANCIAL, INC. |
 Investor Day 6.9.2011 • Big business • A market leader in Japan • High margins, low volatility • Strong growth International Insurance International Insurance 1 |
 Investor Day 6.9.2011 International Insurance International Insurance 2 Star/Edison POJ (4) /Gibraltar All Other Operations Annualized New Business Premiums (2) Total Premium Revenue (2)(3) Number of Policies Inforce (1) (thousands) (millions) (millions) 1) Direct business only; includes annuities. 2) Foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar; Korean won 1190 per U.S. dollar. 3) Represents net premiums, policy charges and fee income. 4) Prudential of Japan (“POJ”). 7,956 11,569 12/31/10 3/31/11 $9,200 $12,700 2010 2010 Proforma $1,787 $2,467 2010 2010 Proforma |
 Investor Day 6.9.2011 3 Number of Captive Agents Number of Bank Relationships Number of Independent Agencies International Insurance International Insurance Star/Edison POJ/Gibraltar All Other Operations 238 5,148 12/31/10 3/31/11 31 100 12/31/10 3/31/11 12,846 19,808 12/31/10 3/31/11 |
 Investor Day 6.9.2011 Investor Day 6.9.2011 6 Years Ago 6 Years Ago FY 2004 FY 2004 Share Share Nine Months ended Nine Months ended December 31, 2010 December 31, 2010 Share Share 1. Nippon 18.4% 1. Dai-ichi 12.2% 2. Dai-ichi 14.3% 2. Nippon 12.1% 3. Meiji-Yasuda 11.1% 3. T&D Financial 10.9% 4. Sumitomo 10.8% 4. Prudential 9.7% 5. T&D Financial 7.7% 5. Sumitomo 7.5% 6. AIG Group 5.6% 6. Meiji-Yasuda 7.3% 7. Prudential 4.9% 7. Sony 6.7% 8. Sony 3.8% 8. MetLife Alico 4.8% 9. Fukoku 3.4% 9. Millea 4.5% 10. Mitsui 2.9% 10. Sompo Japan 3.6% Overall Position – New Business (Face Amount) (1) 4 Market share improvement of 4.8% 1) Industry data from Life Insurance Association of Japan. Data shown are based on companies’ Japanese statutory results for nine months ended December 31, 2010 and fiscal year ended March 31, 2005. New business amounts are individual life and annuity contracts including net increase by conversion. Excludes Japan Post Insurance. Prudential’s share for the nine months ended December 31, 2010 is pro forma for the acquisition of Star/Edison, which contributed 1.7% of share. |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Stable Sources of Earnings 5 Includes margin on multi-currency annuity products. Earnings are primarily the result of stable drivers. (2) $ in millions $1,598 $1,747 $1,843 $2,057 2007 2008 2009 2010 Mortality Margin and Expense & Other Margin Investment Margin Pre-Tax AOI International Insurance Operation (1) Pre-tax adjusted operating income for our International Insurance operations as presented above excludes the results of the International Investments businesses previously included in the International Investments segment and currently included within “Gibraltar Life and Other Operations” within the International Insurance segment for financial reporting purposes. 1) 2) |
 Investor Day 6.9.2011 Japan: Substantial Growth Opportunities Japan: Substantial Growth Opportunities in an Attractive Market in an Attractive Market • World’s second largest life insurance market: Life premiums $399 billion (1) • Household sector wealth $18.3 trillion, similar to U.S. on per-capita basis (2) • Expanding retirement market driven by aging population, increased emphasis on individual responsibility for financial security • Growing distribution opportunities include banks, independent distributors 6 1) For the year 2009, based on Swiss Re survey 2) Based on December 31, 2010 data; Sources: Federal Reserve, Bank of Japan, U.S. Census Bureau, Oanda |
 Investor Day 6.9.2011 World’s Largest Life Insurance Markets World’s Largest Life Insurance Markets 7 Country Country Rank Rank Life Premiums ($ billions) Life Premiums ($ billions) 2009 2009 United States United States 1 1 492 492 Japan Japan 2 2 399 399 United Kingdom United Kingdom 3 3 218 218 France France 4 4 194 194 Italy Italy 5 5 115 115 Germany Germany 6 6 112 112 China China 7 7 109 109 South Korea South Korea 8 8 57 57 India India 9 9 57 57 Taiwan Taiwan 10 10 52 52 Source: Swiss Re survey |
 Investor Day 6.9.2011 Growing Retirement Market Complements Growing Retirement Market Complements Substantial Premature Death Protection Market Substantial Premature Death Protection Market Source: National Institute of Population and Social Security Research, Japanese Journal of Population Population (in millions) 8 Japan Demographics Japan Demographics 15-64 years old 65 and over 0-14 years old |
 Investor Day 6.9.2011 Financial Assets in the Household Sector Financial Assets in the Household Sector of Select Major Economies of Select Major Economies Household Sector Financial Assets Household Sector Financial Assets Note: Data for Japan, USA, and UK is as of December 31, 2010; China is as of September 30, 2009; other markets are as of December 31, 2009 Source: Federal Reserve, Bank of Japan, Eurostat, Central Bureau of Statistics of China, OECD, US Census Bureau, Oanda. 9 Financial assets Population |
 Investor Day 6.9.2011 Portfolio Portfolio of of Financial Financial Assets Assets – – Japan Japan Source: Bank of Japan, Federal Reserve, Oanda $10.1T 10 Financial Assets in the Household Sector Financial Assets in the Household Sector December 31, 2010 December 31, 2010 Currency and Deposits 55.1% Bonds 2.7% Investment Trusts 3.5% Shares and Equities 6.3% Life Insurance and Pension Reserves 28.2% Other 4.2% 100% = $18.3 Trillion |
 Investor Day 6.9.2011 Household Sector Household Sector Pool of Currency and Deposits Pool of Currency and Deposits Japan has the largest pool of household assets in currency and deposits •~50% higher than that of the U.S. despite a population that is ~60% smaller •Greater than the currency and deposits of Germany, the United Kingdom and France combined 11 Household Sector Financial Assets in Currency and Deposits Note: Data for Japan, USA, and UK is as of December 31, 2010; China is as of September 30, 2009; other markets are as of December 31, 2009 Source: Federal Reserve, Bank of Japan, Eurostat, Central Bureau of Statistics of China, OECD, US Census Bureau, Oanda. 10.1 6.8 4.4 2.6 1.9 1.6 0.8 2 4 6 8 10 12 |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Needs-Based Selling Over a Lifetime 12 1) Accident and Health (A&H) primarily includes daily hospitalization indemnity, cancer insurance, and accident and sickness riders. Client Age 20 30 40 50 60+ Client Focus Death Retirement Protection Income Needs Needs Prudential Solutions Term Insurance Term Insurance Whole Life Whole Life U.S. Dollar Retirement Income Accident & Health (1) Fixed Annuity Products • Lifetime client relationships • Needs-based selling through client life cycles • Innovative products serve evolving needs |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Protecting Financial Security For a Lifetime 1) Based on annual premium for new Prudential of Japan insureds in 2009 (male, married insured, individual policies); foreign-denominated activity translated to U.S. dollars at uniform exchange rates, Japanese yen 99 per U.S. dollar. 13 Aging population leads to demand for larger policy size. |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Japan Average Premium (1) 14 1) Based on annualized new business premiums for the year ended December 31, 2010 sold by Life Planners and Life Advisors. Foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar. 4,500 2,000 1,500 1,000 500 3,000 3,500 4,000 2,500 - Protection Accident & Health Annuity Retirement |
 Investor Day 6.9.2011 Investor Day 6.9.2011 International Insurance Meeting customer needs through… – Strong and diverse product portfolio – Complementary distribution capabilities – Strong relationships 15 |
 Investor Day 6.9.2011 Investor Day 6.9.2011 684 669 656 645 642 637 626 622 618 613 607 602 602 600 597 590 589 576 567 500 600 700 The Prudential Life Insurance Sony Life Insurance Tokio Marine & Nichido Life Insurance The Gibraltar Life Insurance Sompo Japan Himawari Life Insurance American Life Insurance Company (ALICO) JAPAN POST INSURANCE Fukoku Mutual Life Insurance American Family Life Assurance Company of Columbus (Aflac) Life Support Insurance Segment Average Aioi Life Insurance Nippon Life Insurance Sompo Japan DIY Life Insurance AXA Life Insurance The Dai-ichi Life Insurance Sumitomo Life Insurance Mitsui Life Insurance Meiji Yasuda Life Insurance Asahi Mutual Life Insurance No. 1 in Customer Satisfaction 16 Source: J.D. Power Asia Pacific 2011 Japan Life Insurance Contract Customer Satisfaction Study Rankings are based on numerical scores, and not necessarily on statistical significance. SM Included in the study but not ranked due to small sample size are: AIG Edison Life Insurance; AIG Star Life Insurance; Allianz Life Insurance Japan; Daido Life Insurance; Fukokushinrai Life Insurance; ING Life Insurance; Lifenet Insurance; Manulife Life Insurance; Mitsui Sumitomo Kirameki Life Insurance; NEXTIA Life Insurance (former SBI AXA Life Insurance); NIPPONKOA Life Insurance; ORIX Life Insurance; Taiyo Life Insurance; The FujiLife Insurance; The Prudential Gibraltar Financial Life Insurance (former Yamato Life Insurance); and Zurich Life Insurance. J.D. Power Asia Pacific 2011 Japan Life Insurance Contract Customer Satisfaction Study SM Customer Satisfaction Index Ranking (Based on a 1,000-point scale) Life Support Insurance Segment |
 Product Portfolio Serving Financial Security Needs Over a Lifetime Annualized Annualized New New Business Business Premiums Premiums (1) (1) Year ended December 31, 2010 Year ended December 31, 2010 1) For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar. 2) Pro-forma including approximation of Star and Edison businesses. Annualized Annualized New New Business Business Premiums Premiums (1) (1) (2) (2) Death Protection 46% Retirement 24% Annuity 12% A&H 18% Death Protection 44% Retirement 18% Annuity 16% A&H 22% $1,521 million $2,202 million Investor Day 6.9.2011 17 Pro Forma Year ended December 31, 2010 Pro Forma Year ended December 31, 2010 |
 Diverse Annualized New Business Premiums in Japan 18 1) For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented; Japanese yen 92 per U.S. dollar. Annualized Annualized New New Business Business Premiums Premiums (1) (1) ($ in millions) $289 $281 $296 $298 $344 $359 $398 $420 $555 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Death Protection Accident & Health Retirement Annuity Investor Day 6.9.2011 |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Distribution Channels in Japan 19 1) For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar. 2) Pro-forma including approximation of Star and Edison businesses. Annualized Annualized New New Business Business Premiums Premiums (1) (1) Year ended December 31, 2010 Year ended December 31, 2010 Annualized Annualized New New Business Business Premiums Premiums (1)(2) (1)(2) Pro Forma Year ended December 31, 2010 Pro Forma Year ended December 31, 2010 $1,521 million $2,202 million |
 Complementary Distribution Channels Drive Sales Growth in Japan 1) For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented. Japanese yen 92 per U.S. dollar. Annualized New Business Premiums Annualized New Business Premiums (1) (1) 20 ($ in millions) $979 $1,521 - 200 400 600 800 1,000 1,200 1,400 1,600 2007 2008 2009 2010 Life Planners Life Advisors Bank Channel Independent Agency Investor Day 6.9.2011 |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Complementary Distribution Channels Drive Sales Growth in Japan 21 ($ in millions) 1) For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented. Japanese yen 92 per U.S. dollar. Annualized New Business Premiums Annualized New Business Premiums (1) (1) $289 $281 $296 $298 $344 $359 $398 $420 $555 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Life Planner Life Advisor Bank Independent Agency |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Bank Channel Sales Growth Driven by Protection Products Annualized New Business Premiums (1) 1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented; Japanese yen 92 per U.S. dollar. 22 ($ in millions) $21 $25 $40 $48 $56 $78 $90 $104 $128 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Death Protection Accident & Health Retirement Annuity |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Prudential’s Key International Strategies: Suited to Japanese Market Opportunities • Target the affluent and mass affluent consumer • Needs-based selling: historical focus on life insurance; increasing emphasis on meeting retirement needs • Proprietary distribution model built on recruiting, selection and training • Growth through complementary distribution channels and opportunistic acquisitions 23 |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Life Planner Distribution • Life Planner – a selective, high quality sales force – Hire about 3 out of 100 candidates – Well trained and professional – Customer focused – Disciplined, and demonstrate “missionary zeal” • Emphasize protection products requiring analysis of client needs • Significant sales to small business/executive/professional market • Exceptional sales productivity and persistency 24 |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Teachers Association: Perennial Sales Opportunities 1) Numbers approximate as of March 31, 2011. Active Active Market Market Retirement Retirement Market Market 25 48% Gibraltar Policyholders 87% Gibraltar Policyholders 120,000 120,000 Retired Retired Teachers Teachers Association Association members members (1) (1) 20,000 20,000 – – 30,000 new 30,000 new teachers teachers hired hired each year each year 20,000 20,000 – – 30,000 30,000 teachers teachers retire retire each year each year 950,000 950,000 Active Active Teachers Teachers (1) (1) |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Teachers Association Core Relationship Contributes to Life Advisor Distribution • Relationship since 1952 • Approximately 600,000 members (1) • Access to approximately 950,000 teachers and school personnel through 47 prefectural (local) associations and 37,000 schools (1) • Annualized new business premiums in 2010, $181 million (2) Japanese Educational Mutual Aid Japanese Educational Mutual Aid Association of Welfare Foundation Association of Welfare Foundation (Teachers Association) (Teachers Association) 1) As of March 31, 2011. 2) Foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar. 26 |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Bancassurance Powered by Prudential Prudential Support Prudential Support • • Insurance education and training Insurance education and training backed by proven distribution model backed by proven distribution model • • Competitive products focused Competitive products focused on protection on protection • • Highly regarded brand, promises Highly regarded brand, promises backed by a strong company backed by a strong company • • Access Access to to expertise expertise of of “seconded” “seconded” former Prudential of Japan former Prudential of Japan Life Planners Life Planners (1) (1) 1) At certain banks. Bank Employee Bank Employee Life Insurance Sales Life Insurance Sales 27 |
 Investor Day 6.9.2011 Investor Day 6.9.2011 International Insurance Sustained Growth Reflects Success in Japanese Market 28 $917 $1,321 $1,428 $1,598 $1,747 $1,843 $2,057 Japan All Other Operations $ in millions Pre-Tax Adjusted Operating Income Pre-Tax Adjusted Operating Income (1) (1) $0 $500 $1,000 $1,500 $2,000 $2,500 2004 2005 2006 2007 2008 2009 2010 1) Pre-tax adjusted operating income for our International Insurance operations as presented above excludes the results of the International Investments businesses previously included in the International Investments segment and currently included within “Gibraltar Life and Other Operations” within the International Insurance segment for financial reporting purposes. The pre-tax adjusted operating income (loss) of our International Investments businesses was $28 million, $25 million, $(412) million, $63 million, $20 million, $(5) million and $(9) million in 2010, 2009, 2008, 2007, 2006, 2005 and 2004, respectively. |
 Investor Day 6.9.2011 Investor Day 6.9.2011 Key Takeaways 29 • Prudential’s largest business • A market leader in Japan • High margins, low volatility • Strong growth |
 |
 Investor Day 6.9.2011 Asset Management • Robust institutional and retail businesses attract and retain talented investment professionals • Substantial fee-based earnings that benefit from operating leverage • Limited capital requirements; sustainable high ROE • Seasoned skills in multiple asset classes support attractive general account investments • Investment management strength supports retirement, annuities, and insurance businesses 1 Leading Leading Third Third Party Party Asset Asset Manager Manager Competitive Competitive Advantage Advantage for for Prudential Prudential Businesses Businesses |
 Investor Day 6.9.2011 • Utilize significant talent base across multiple asset classes; established track records, and broad and deep client relationships to increase AUM (1) base • Grow high-quality earnings driven primarily by asset management fees • Manage business risks and strategically employ proprietary investing • Apply skill sets to support general account asset selection and management Prudential Investment Management Key Strategies 2 • Fee-driven growth potential • Favorable ROE • Competitive advantage for Prudential’s retirement, annuities and insurance businesses 1) Assets under management (AUM). |
 Investor Day 6.9.2011 Asset Management’s Competitive Strengths Appeal to Clients as well as Investment Professionals 1) As of March 31, 2011; AUM excludes affiliated institutional and retail assets under management. 3 Experience and Experience and Track Record Track Record Breadth and Depth Breadth and Depth of Capabilities of Capabilities Access to Capital Access to Capital and Co-investing and Co-investing Brand and Brand and Reputation Reputation Scale Scale Third Third Party Party Clients Clients $275 billion $275 billion third party AUM third party AUM (1) (1) 13% AUM CAGR 13% AUM CAGR Manager Manager Continuity Continuity (1) (1) 220 portfolio 220 portfolio managers managers Average tenure Average tenure 13 years 13 years (2005 (2005 – – 2010) 2010) |
 Investor Day 6.9.2011 Asset Management has Three Major Client Types 4 Total Total AUM: AUM: $569 $569 billion billion (1) (1) 1) As of March 31, 2011. • Public Pension Plans (DB/DC) • Corporate Pension Plans (DB/DC) • Union Pension Plans • Endowments • Foundations • Sovereign Wealth Funds • Non-affiliated Insurance Companies • Affiliated – Annuities – Retirement – Individual life • Proprietary Mutual Funds • Subadvisory relationships • U.S. individual life and group insurance • Retirement • Annuities • International Insurance (U.S. dollar assets) General Account General Account $214 billion $214 billion Institutional Institutional $246 billion $246 billion Retail Retail $109 billion $109 billion |
 Investor Day 6.9.2011 AUM and Revenues are Well Diversified by Client Type 5 1) As of March 31, 2011. 2) For the year ended December 31, 2010. $246 B $214 B $109 B $353 M $626 M $294 M Retail 19% General Account 38% Institutional 43% General Account 23% Retail 28% Institutional 49% Assets Assets Under Under Management Management $569 $569 billion billion (1) (1) Asset Asset Management Management Fees Fees $1.3 $1.3 billion billion (2) (2) |
 Investor Day 6.9.2011 AUM and Revenues are also Diversified by Asset Class 6 1) As of March 31, 2011. 2) For the year ended December 31, 2010. Public Fixed Income 56% Public Equity 24% Real Estate 5% Commercial Mortgages 6% Private Fixed Income 9% Public Fixed Income 32% Public Equity 30% Real Estate 22% Commercial Mortgages 5% Private Fixed Income 11% Public Private 48% of Fees from Fixed Income 71% of AUM from Fixed Income Assets Assets Under Under Management Management $569 $569 billion billion (1) (1) Asset Asset Management Management Fees Fees $1.3 $1.3 billion billion (2) (2) |
 Investor Day 6.9.2011 AUM Spans Six Distinct Investment Disciplines 7 Investment Manager Investment Manager Investment Investment Discipline Discipline Public/Private Public/Private 3/31/11 3/31/11 AUM AUM (1) (1) Jennison Associates Fundamental Equity Public $ 86 Quantitative Management Associates (QMA) Quantitative Equity Public 47 Prudential Fixed Income (PFIM) Public Fixed Income Public 273 Jennison Associates Public Fixed Income Public 47 Prudential Capital Group (PCG) Private Fixed Income Private 54 Prudential Mortgage Capital Company (PMCC) Real Estate Debt Private 34 Prudential Real Estate Investors (PREI) Real Estate Equity Private 28 1) In billions. Total AUM: $569 |
 Investor Day 6.9.2011 Public Fixed Income 8 Prudential Fixed Income Prudential Fixed Income Jennison Fixed Income Jennison Fixed Income • $273 billion AUM (1) • $47 billion in fixed income AUM (1) • Operations in U.S., Europe, and Asia • Operations in U.S. • Comprehensive product line • Focused product line – Broad market strategies – Core, Core Plus – Intermediate Gov/Credit – Long Duration/LDI – Corporates – High Yield – Emerging Markets – US Bank Loans – Alternatives/CDOs – U.S. strategies – Intermediate and long duration – Core • 276 Institutional clients (1) • 94 Institutional clients (1) • 180 Investment professionals (1) • 12 Investment professionals (1) 1) As of March 31, 2011. |
 Investor Day 6.9.2011 Public Equity Jennison Associates Quantitative Management Associates • $86 billion in equity AUM (1) • $47 billion in equity AUM (1) • Fundamental • Quantitative • Growth • Blend • Value • Multi-Cap • Equity income • Midcap growth • Small Cap • Sector strategies • Global • Core • Value • All Cap • Mid Cap • Small Cap • Global • International • Emerging Markets • Index • Asset Allocation • Domestic and Global • Domestic and Global • 162 Institutional equity clients (1) • 140 Institutional clients (1) • 48 Investment professionals (2) • 35 Investment professionals (1) 1) As of March 31, 2011. 2) As of May 24, 2011. 9 |
 Investor Day 6.9.2011 Private Fixed Income 10 1) As of March 31, 2011. Prudential Capital Group Prudential Capital Group Prudential Mortgage Capital Company Prudential Mortgage Capital Company • $54 billion AUM (1) in private debt • $34 billion AUM (1) in commercial mortgages • Operations in U.S. and Europe • Operations in U.S. and Japan • Direct origination network • Direct origination network • $10 billion originations in 2010 • $9 billion originations in 2010 • Over 900 Borrowers • Over 2,000 Borrowers • 140 Investment professionals (1) • 105 Investment professionals (1) |
 Investor Day 6.9.2011 Prudential Real Estate Investors 11 1) As of March 31, 2011. Prudential Real Estate Investors Prudential Real Estate Investors • $28 billion AUM (1) • Operations in U.S., Europe, Asia, and Latin America • One of few global real estate investment managers • 21 offices worldwide (1) • 490 Institutional clients (1) • 56 Funds managed (1) • Asia (5), Europe (18), Mexico (7), U.S. (17), REITS (9) • 216 investment professionals (1) |
 Investor Day 6.9.2011 66% 84% 84% 68% 85% 74% 1 Year 3 Year 5 Year As of 3/31/10 As of 3/31/11 Our Investment Performance Track Record is Strong 12 % of Total Third Party Assets Under Management % of Total Third Party Assets Under Management Exceeding Benchmark Exceeding Benchmark 1) 70% ($247 billion) of Retail and Institutional assets under management as of March 31, 2011 is actively managed against a benchmark. • Percentage of AUM exceeding their respective benchmarks has been strong in the 1, 3, and 5 year periods (1) |
 Investor Day 6.9.2011 Net flows exclude money market flows, one-time transfers, and acquisition/disposition events Third Party Net Institutional Flows Reached Record Levels in 2010 13 $ billions Percent of beginning of year AUM $(5) $ $5 $10 $15 $20 $25 $30 $35 Equity Real Estate Fixed Income Total 2007 2008 2009 2010 6 7 10 19 |
 Investor Day 6.9.2011 $(2) $- $2 $4 $6 $8 Third Party Retail Client Flows Also Reached Record Levels in 2010 14 $ billions Net flows exclude money market flows, one-time transfers, and acquisition/disposition events 1 - 18 13 Percent of beginning of year AUM Equity Real Estate Fixed Income Total 2008 2007 2009 2010 |
 Investor Day 6.9.2011 $414 $420 $430 $438 $434 $439 $422 $395 $386 $409 $444 $457 $472 $484 $518 $537 $569 $0 $100 $200 $300 $400 $500 $600 Assets Under Management by Asset Class Growth in AUM has Driven Growth in Asset Management Fees 15 1) At end of period. $ billions $ millions (1) Fixed Income Real Estate Equity $262 $271 $265 $283 $281 $288 $289 $257 $239 $254 $269 $287 $304 $311 $320 $338 $356 $0 $50 $100 $150 $200 $250 $300 $350 $400 Asset Management Fees by Asset Class |
 Investor Day 6.9.2011 Quality of Revenues Increasing 16 1) Asset management fees and incentive, transaction, principal investing and commercial mortgage (ITPICM) revenues. 2) As originally reported. Asset Management Fees ITPICM Growing AUM Base Reduced proprietary investing exposure Exited commercial mortgage securitization conduit $1.1 billion $1.1 billion $1.3 billion $1.3 billion 2007 Asset Management Fees 2007 Asset Management Fees + + “ITPICM” “ITPICM” = = $1.6 $1.6 billion billion (1)(2) (1)(2) 2010 Asset Management Fees 2010 Asset Management Fees + + “ITPICM” “ITPICM” = = $1.5 $1.5 billion billion (1) (1) |
 Investor Day 6.9.2011 $550 $701 $232 $55 $487 2006 2007 2008 2009 2010 Asset Management segment pre-tax adjusted operating income Asset Management segment pre-tax adjusted operating income, excluding contribution of Incentive, Transaction, Principal Investing and Commercial Mortgage Activities ("ITPICM") Building Sustainable Earnings Power 17 Pre-Tax Adjusted Operating Income Pre-Tax Adjusted Operating Income 1) Based on after-tax adjusted operating income for the year ended December 31, 2010 and overall effective tax rate for the Financial Services Businesses. 2) ITPICM contribution represents revenues net of directly associated costs before allocated compensation including Incentive Awards; excludes agency origination activities. (2) $ millions 20% ROE (1) |
 Investor Day 6.9.2011 • Robust institutional and retail businesses attract and retain talented investment professionals • Strong investment performance has contributed to significant third party flows and growth in AUM • Asset management fees have been a stable percentage of AUM historically and are expected to grow about in line with AUM • Asset management business has operating leverage; therefore, AOI attributable to asset management fees grows faster than revenue from fees • ITPICM activities are sources of additional revenue and AOI, but are managed to be smaller and more stable than in the past • Our business model positions us well for continued growth and high ROE Key Takeaways 18 |
 PRUDENTIAL ANNUITIES PRUDENTIAL ANNUITIES MARKET-LEADING VALUE PROPOSITION MARKET-LEADING VALUE PROPOSITION DRIVES GROWING RETURNS AND IMPROVING RISK PROFILE DRIVES GROWING RETURNS AND IMPROVING RISK PROFILE STEVE PELLETIER STEVE PELLETIER PRESIDENT PRESIDENT PRUDENTIAL ANNUITIES PRUDENTIAL ANNUITIES |
 • Highly differentiated and sustainable strategy • #1 in advisor-sold variable annuity sales (1) • Leading positions in independent financial planner, wirehouse, bank and insurance agent channels • “Highest Daily” living benefits serve retirement income security needs of attractive, growing market • Contract-level product based risk management protects account values; proven through financial market meltdown Prudential Annuities Superior Value Proposition and Business Prospects 1 • Business growth driven by strong net flows • Growing returns on increasing base • Popularity of auto- rebalancing products drives improving overall risk profile • Demographic “push” and individual retirement responsibility provide sustained growth opportunity 1) Source: VARDS 1Q’11 Report, Advisor-sold, excludes group/retirement plan contracts. Proven Value Proposition Proven Value Proposition Market Leadership Market Leadership Strong Business Prospects Strong Business Prospects Investor Day 6.9.2011 |
 Investor Day 6.9.2011 Drivers of Market Leadership 2 • Innovative retirement income guarantee features • Proven product-based risk management protecting account values • Sophisticated hedging capabilities • Broad multi-channel distribution • Scale supporting efficient cost structure • Brand, reputation and demonstrated commitment to market |
 Investor Day 6.9.2011 ($ millions) Variable Annuity Variable Annuity Assets Under Management Assets Under Management (1) (1) Advisor-Sold Variable Variable Annuity Annuity Sales Sales (1) (1) Prudential Annuities 1Q11 Asset and Sales Rankings 1) Source: VARDS 1Q’11 report. Advisor-sold, excludes group/retirement plan contracts. ($ millions) 3 |
 Investor Day 6.9.2011 Building Multi-Channel Distribution Strength 4 Prudential Prudential Individual Individual Annuity Annuity Gross Gross Sales Sales (1) (1) 1) In millions; includes variable and fixed annuities. 2008 2008 $10,329 $10,329 2010 2010 $21,754 $21,754 Insurance Agents 24% Bank 7% Independent 57% Insurance Agents 13% Bank 17% Wirehouse 21% Independent 49% Wirehouse 12% |
 Investor Day 6.9.2011 Product Design: The Highest Daily Lock-In Hypothetical for illustrative purposes only. 5 Prudential’s unique Highest Daily Product Prudential’s unique Highest Daily Product is a powerful feature that continues to drive strong sales is a powerful feature that continues to drive strong sales. 5 Account Value This is a hypothetical example for illustrative purposes only. It does not reflect a specific annuity or the performance of any investment. Source for percentages: Standard & Poor's, Barclay's Capital; based on analysis of 2,245 rolling ten-year periods assuming 80% allocation to equities and 20% allocation to bonds. What are the chances of a daily lock-in capturing the best day? 100% What are the chances of a quarterly lock-in capturing the best day? 6% What are the chances of an annual lock-in capturing the best day? 2% |
 Investor Day 6.9.2011 Product Embedded Risk Management Protects Account Values at Contract Level 6 Note: For illustrative purposes, not representative of actual results. Powerful algorithmic risk mitigation tool protects client account Powerful algorithmic risk mitigation tool protects client account values in market downturns and improves our risk profile. values in market downturns and improves our risk profile. 6 Account Value without auto-rebalancing Account Value with auto-rebalancing Time Account Value |
   Investor Day 6.9.2011 $0 $50,000 $100,000 $150,000 $200,000 $250,000 0 60 120 Protected Withdrawal Value Total Account Value Bond Fund Value Account Value and “Protected Withdrawal Value” “PWV”: notional amount for calculation of lifetime annual withdrawals Year 0 6 12 7 Account value available to customer Market Downturn Scenario Market Downturn Scenario (1) (1) (“PWV”) 1) Highest Daily Lifetime Income (HDI) – sub-accounts suffer 30% decline in year 1, followed by 0% sub-account return thereafter; bond fund assumed annual return of 3%. No withdrawals through end of year 12. All quoted returns are net of fund management and base policy fees. The fee for HDI was explicitly deducted from the account value on a quarterly basis. |
    Investor Day 6.9.2011 Guaranteed Lifetime Withdrawals Client’s Account Value Pays First Account Value Client Age 60 72 85 Year 0 12 25 Annual Payments = $10,000, 5% x Protected Value Accumulation Period Accumulation Period Retirement Period Retirement Period = Customer account value withdrawals = Prudential funds Market Downturn Scenario Market Downturn Scenario (1) (1) 81 8 $0 1) Highest Daily Lifetime Income (HDI) – sub-accounts suffer 30% decline in year 1, followed by 0% sub-account return thereafter; bond fund assumed annual return of 3%. Withdrawals commence at end of year 12. All quoted returns are net of fund management and base policy fees. The fee for HDI was explicitly deducted from the account value on a quarterly basis. |
 Investor Day 6.9.2011 Auto-Rebalancing Proven Through Financial Market Crisis… and Beyond 9 This illustration analysis for HD Lifetime Seven assumes a $500,000 initial investment into the AST Capital Growth Portfolio & AST Investment Grade Bond Portfolio and election on February 23, 2009 of the 90% limit on bond fund allocation. $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 Protected Withdrawal Value +28% HD7 Account Value +26% Account Value w/o Auto-rebalancing Formula (3%) S&P 500 (2%) Account Value % of HD Account Value Invested in Customer-Selected Funds (1) 1) Assumes investment of funds in S&P 500 index on launch date of HD Lifetime Seven, January 28, 2008. |
 Investor Day 6.9.2011 7.2% 0.1% 18.0% 6.0% -1% 1% 3% 5% 7% 9% 11% 13% 15% 17% 19% 20% loss of account value 33% loss of account value Comparison of a VA with Auto-Rebalancing to a VA without Auto-Rebalancing 10 Probability that a client’s account value suffers a 20% or 33% loss over a hypothetical ten-year period (1) Variable Annuity (“VA”) with Auto-Rebalancing Variable Annuity without Auto-Rebalancing Based on Ernst & Young Monte Carlo simulation Limited “opportunity cost” ~40 bps mean return reduction 1) Key assumptions used in analysis: Fees (same for both VAs): Mortality and Expense charge of 1.35%, Asset Management fees of .95%, and lifetime withdrawal benefit fee of 1%. Asset allocation: 55-year-old client’s original asset allocation assumed to be 70% equities and 30% fixed-income. Asset transfer algorithm: The algorithm used in this analysis is the same algorithm employed in Prudential’s Highest Daily Income Benefit and Premier variable annuities. This analysis is not intended to be indicative of actual results for Prudential’s or any other provider’s variable annuity. While the algorithm is intended to reduce account value volatility, it is not a tool to optimize investment results. The projections generated by the Ernst & Young Monte Carlo simulation regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. The analysis presents a range of possible outcomes; the calculated results will vary with each use and over time. |
 Investor Day 6.9.2011 Improving Risk Profile 14 11 Variable Annuity Account Values with Living Benefits with auto-rebalancing feature Variable Annuity Account Values without any Living Benefit options Variable Annuity Account Values with Living Benefits with auto-rebalancing feature The accelerated growth in our overall block has also increased the percentage of algorithmic mechanism based account values, which will continue to improve the level and volatility of returns. |
 Investor Day 6.9.2011 2008 2009 2010 Strong Net Sales Contribute to Growing Account Value Base (1) 12 1) Account values as of end of period; includes variable and fixed annuities. In billions. $63.3 $63.3 $10.3 $10.4 $84.0 $84.0 $14.6 $7.6 $106.2 $106.2 Account values Net sales Market appreciation and other activity |
 Investor Day 6.9.2011 Well Positioned to Retain Auto-Rebalancing Business In-Force 13 Less Than 1% Less Than 1% 1% to 3% 1% to 3% Over 3% Over 3% 6% 2% 92% 54% 10% 36% 25% 5% 70% Surrender Surrender Charges Charges Applicable Applicable to to Account Account Values Values (1) (1) 1) Surrender charges as percentage of variable annuity account values; as of March 31, 2011. Auto-Rebalancing $65 B Non-Auto-Rebalancing $45 B Total $110 B |
 Investor Day 6.9.2011 Growing Returns on an Increasing Base 14 1) Excludes market driven and other discrete items disclosed by the company including unlockings of deferred policy acquisition and other costs and reserves for guaranteed minimum death and income benefits. See “Reconciliation for Individual Annuities pre-tax adjusted operating income excluding disclosed items” within this presentation for further information. 2) Pretax adjusted operating income excluding disclosed items as percentage of average account values for variable and fixed annuities. ($ millions) Adjusted Operating Income – Excluding Disclosed Items Investor Day 6.9.2011 |
 Improving Product Mix and Market Performance Drive Growing Returns 15 Net revenues (1) as percentage of average account values (2) Operating expenses (1) as percentage of average account values (2) “ROA”: Pretax adjusted operating income excluding disclosed items as percentage of average account values (2) 2007 2008 2009 2010 1Q11 Investor Day 6.9.2011 2.31% 2.32% 2.48% 2.53% 2.55% 1.55% 1.60% 1.95% 1.80% 1.69% 0.76% 0.72% 0.53% 0.73% 0.86% 1) “Net revenues” and “operating expenses” based on adjusted operating income excluding market driven and other discrete items disclosed by the company including unlockings of deferred policy acquisition and other costs and reserves. “Net revenues” and “operating expenses” reflect reclassification of certain amounts included in reported revenue and expense line items (e.g., asset management fees netted against revenues for purposes of this display). 2) Annualized for interim period. |
 Investor Day 6.9.2011 • Market leadership driven by superior value proposition • Expanding distribution strength across multiple channels • Popularity of auto-rebalancing products driving improving risk profile • Product structure, strong net sales and market performance producing increasing returns on a growing base of business • Sustainable, profitable growth in an attractive market Key Takeaways 16 |
 PRUDENTIAL FINANCIAL, INC. JOHN STRANGFELD CHAIRMAN AND CEO |
 Investor Day 6.9.2011 Key Takeaways Key Takeaways 1 • Attractive return opportunities in high quality businesses, supported by strong balance sheet • Balanced portfolio of selected risks; improving risk profile • Expanding distribution: market leadership across multiple channels • Growth engines in International Insurance, Annuities and Asset Management • Capital management: balanced approach to investing in businesses, returning capital to investors • Proven acquisition and integration track record • Seasoned management team; focus on talent and leadership |