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

PRUDENTIAL

FINANCIAL, INC.

2015 INVESTOR

DAY

JUNE

17, 2015

Exhibit 99.1

PRUDENTIAL

FINANCIAL, INC.

2015 INVESTOR

DAY

MARK

FINKELSTEIN

SENIOR

VICE

PRESIDENT

INVESTOR

RELATIONS

FORWARD-LOOKING

STATEMENTS

AND

NON-GAAP MEASURE

3

Investor Day 6.17.2015

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. 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.  Certain important factors that could cause actual

results

to

differ,

possibly

materially,

from

expectations

or

estimates

reflected

in

such

forward-looking

statements

can

be

found

in

the

“Risk Factors” section included in Prudential Financial, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2014.

Prudential Financial, Inc. does not intend, and is under no obligation, to update any particular forward-looking statement included in

this presentation.

This presentation also includes references to “adjusted operating income” and return on equity, which is based on adjusted

operating income.  Adjusted operating income is a measure of performance that is not calculated based on accounting principles

generally accepted in the United States of America (GAAP).  For additional information about adjusted operating income and the

comparable GAAP measure, including a reconciliation between the two, please refer to our Annual Reports on Form 10-K and

Quarterly

Reports

on

Form

10-Q,

which

are

available

on

our

Web

site

at

www.investor.prudential.com.

A

reconciliation

is

also

included as part of this presentation.

_______________________________________________________________________________

Prudential Financial, Inc. of the United States is not affiliated with Prudential PLC which is headquartered in the United Kingdom.

RECONCILIATIONS

BETWEEN

ADJUSTED

OPERATING

INCOME

AND

THE

COMPARABLE

GAAP MEASURE

(1)

4

Investor Day 6.17.2015

1)

Represents results of former Financial Services Businesses.

2)

Reflects restatement for the Company's retrospective adoption in 2012 of amended accounting guidance for deferred policy acquisition costs and a discretionary

change in accounting principle related to the Company's pension plans. Does not reflect restatement for the Company's retrospective adoption in 2013 of a

discretionary change in accounting principle for recognition of performance based incentive fee revenue.

($ millions)

2007

(2)

2014

Total pre-tax adjusted operating income

3,916

$    

5,892

$    

Income taxes, applicable to adjusted operating income

1,066

1,537

After-tax adjusted operating income

2,850

4,355

Reconciling items:

Realized investment gains (losses), net, and related charges and adjustments

(88)

(4,130)

Investment gains (losses) on trading account assets supporting insurance liabilities, net

-

339

Change in experience-rated contractholder liabilities due to asset value changes

13

(294)

Divested businesses

339

167

Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests

(354)

44

Total reconciling items, before income taxes

(90)

(3,874)

Income taxes, not applicable to adjusted operating income

(99)

(1,082)

Total reconciling items, after income taxes

9

(2,792)

Income (loss) from continuing operations (after-tax) before equity in earnings of operating joint ventures

2,859

1,563

Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests

179

(41)

Income (loss) from continuing operations attributable to Prudential Financial, Inc.

3,038

1,522

Earnings attributable to noncontrolling interests

67

57

Income (loss) from continuing operations (after-tax)

3,105

1,579

Income from discontinued operations, net of taxes

217

11

Net income (loss)

3,322

1,590

Less: Income attributable to noncontrolling interests

67

57

Net income (loss) attributable to Prudential Financial, Inc.

3,255

$    

1,533

$    

5

Investor Day 6.17.2015

RECONCILIATION

FOR

PRE

-TAX

ADJUSTED

OPERATING

INCOME

EXCLUDING

MARKET

DRIVEN

AND

DISCRETE

ITEMS

(1)

1)

2)

Includes adjustments to reflect updated estimates of profitability based on market performance in relation to our assumptions, as well as annual reviews of actuarial

assumptions and refinements of reserves and amortization of deferred policy acquisition and other costs.

($ millions)

2007

2014

Pre-tax adjusted operating income

3,916

$    

5,892

$   

Reconciling items:

Unlockings

and experience true-ups

(2)

130

(420)

Gains on sales of business/investments

51

-

Integration costs for Hartford Life

-

(32)

Other

(5)

-

Sub-total

176

(452)

Pre-tax adjusted operating income excluding market driven

and discrete items

3,740

$    

6,344

$   

Adjusted Operating Income (AOI) excluding market driven and discrete items as disclosed in company earnings conference call presentations and earnings

releases available at

www.investor.prudential.com.

RECONCILIATION

FOR

INTERNATIONAL

INSURANCE

PRE

-TAX

ADJUSTED

OPERATING

INCOME

EXCLUDING

MARKET

DRIVEN

AND

DISCRETE

ITEMS

(1)

6

Investor Day 6.17.2015

1)

AOI excluding market driven and discrete items as disclosed in company earnings conference call presentations and earnings releases available at

www.investor.prudential.com.

2)

Includes refinements of reserves and amortization of deferred policy acquisition and other costs.

($ millions)

2009

2010

2011

2012

2013

2014

International Insurance pre-tax adjusted operating income

1,651

$    

1,887

$    

2,263

$    

2,704

$    

3,152

$    

3,252

$   

Reconciling items:

Annual review of actuarial assumptions and reserve refinements

14

-

-

20

(190)

(95)

Gains on sales of investment

-

66

237

60

66

-

Impact of earthquake in Japan

-

-

(69)

-

-

-

Integration costs for Star/Edison

-

-

(213)

(138)

(28)

-

Other

15

-

-

-

-

-

Sub-total

29

66

(45)

(58)

(152)

(95)

International Insurance pre-tax adjusted operating

income excluding market driven and discrete items

1,622

$    

1,821

$    

2,308

$    

2,762

$    

3,304

$    

3,347

$   

(2)

RECONCILIATION

FOR

U.S. BUSINESSES

PRE

-TAX

ADJUSTED

OPERATING

INCOME

EXCLUDING

MARKET

DRIVEN

AND

DISCRETE

ITEMS

(1)

7

Investor Day 6.17.2015

1)

AOI excluding market driven and discrete items as disclosed in company earnings conference call presentations and earnings releases available at

www.investor.prudential.com.

2)

Includes adjustments to reflect updated estimates of profitability based on market performance in relation to our assumptions, as well as annual reviews of actuarial

assumptions and refinements of reserves and amortization of deferred policy acquisition and other costs.

3)

Includes gain on sale of investment in Afore XXI, as well as an impairment and gains on certain other investments.

($ millions)

2010

2011

2012

2013

2014

U.S. Businesses pre-tax adjusted operating income

2,694

$    

2,789

$    

2,661

$    

4,587

$    

3,988

$   

Reconciling items:

Unlockings

and experience true-ups

(2)

384

(202)

48

764

(306)

Gains on sales of business/investments

(3)

-

157

(34)

-

-

Integration costs for Hartford Life

-

-

(15)

(51)

(32)

Other

-

-

11

-

-

Sub-total

384

(45)

10

713

(338)

U.S. Businesses pre-tax adjusted operating

income excluding market driven and discrete items

2,310

$    

2,834

$    

2,651

$    

3,874

$    

4,326

$   

RECONCILIATION

FOR

SELECTED

BUSINESSES

PRE

-TAX

ADJUSTED

OPERATING

INCOME

EXCLUDING

MARKET

DRIVEN

AND

DISCRETE

ITEMS

(1)

8

Investor Day 6.17.2015

1)

AOI excluding market driven and discrete items as disclosed in company earnings conference call presentations and earnings releases available at

www.investor.prudential.com.

2)

Includes adjustments to reflect updated estimates of profitability based on market performance in relation to our assumptions, as well as annual reviews of actuarial

assumptions and refinements of reserves and amortization of deferred policy acquisition and other costs.

($ millions)

Individual Life &

Group Insurance

Retirement

Individual

Annuities &

Asset

Management

Individual Life &

Group Insurance

Retirement

Individual

Annuities & Asset

Management

Pre-tax adjusted operating income

656

$                      

565

$             

1,473

$          

521

$                      

1,215

$                   

2,252

$                   

Reconciling items:

Unlockings and experience true-ups

(2)

38

(15)

361

(179)

2

(129)

Integration costs for Hartford Life

-

-

-

(32)

-

-

Sub-total

38

(15)

361

(211)

2

(129)

Pre-tax adjusted operating income excluding

market driven and discrete items

618

$                      

580

$             

1,112

$          

732

$                      

1,213

$                   

2,381

$                   

2010

2014

RECONCILIATION

FOR

EARNINGS

PER

SHARE

EXCLUDING

MARKET

DRIVEN

AND

DISCRETE

ITEMS

(1)

9

Investor Day 6.17.2015

Adjusted Operating Income basis:

2010

2014

Earnings Per Share

5.64

$      

9.21

$      

Reconciling items:

Unlockings

and

experience

true-ups

(2)

0.52

(0.59)

Gains on sales of businesses/investments

0.09

-

Integration costs for Hartford Life

-

(0.04)

Sub-total

0.61

(0.63)

Earnings

Per

Share

-

excluding

market

driven

and

discrete

items

5.03

$      

9.84

$      

1)

As

disclosed

in

company

earnings

conference

call

presentations

and

earnings

releases

available

at

www.investor.prudential.com.

2)

Includes adjustments to reflect updated estimates of profitability based on market performance in relation to our assumptions, as well as annual reviews of actuarial

assumptions and refinements of reserves and amortization of deferred policy acquisition and other costs.

PRUDENTIAL

FINANCIAL, INC.

2015 INVESTOR

DAY

JOHN

STRANGFELD

CHAIRMAN

& CEO

BUILDING

PRUDENTIAL’S

INVESTOR

VALUE

PROPOSITION

2

Investor Day 6.17.2015

Repositioned

Company

1999 -

2004

Enhanced Business

Performance

2005 -

2007

Navigated

Crisis

2008 -

2009

Capitalized on

Market Dislocation

2010 -

2014

Financial

Objectives

and Results

•

Set 12% ROE target

•

Exceeded 12%

ROE

target

•

Balance

sheet

strength

•

Set and exceeded

13 –

14%

ROE target

Business

Priorities

and Actions

•

Redefined

core

business

lines

Life

Retirement

Asset Management

•

Transitioned US

distribution –

increased

presence

in

third party

channels

•

Reduced costs

•

Product

innovation

•

Initiated

PRT

research and

development effort

•

Strengthened

third

party

distribution

•

No TARP

•

Modest equity

raise

•

Enhanced

risk

profile

•

Strong organic

growth

in all major business

segments

•

Established leadership

in PRT

•

Improving return

prospects

•

Implemented Capital

Protection Framework

•

Balanced approach:

investing in businesses,

return to shareholders

Key

Transactions

Acquired:

•

Kyoei (Japan)

•

Skandia

Annuities

•

Cigna Retirement

Divested:

•

Healthcare

•

P&C

Formed:

•

Securities JV

(Wachovia)

Acquired:

•

Allstate Variable

Annuities

Divested:

•

Pru Equity Group

Divested:

•

Securities JV

Acquired:

•

Star and Edison

•

Hartford Life

Divested:

•

Global Commodities

•

Real Estate &

Relocation

THE

FUTURE…

2015 and Beyond: Fortify Leadership Position

BUILDING

PRUDENTIAL’S

INVESTOR

VALUE

PROPOSITION

•

Maintain

13

–

14%

ROE

across

cycle

•

Strong cash flow supporting balanced capital deployment

•

Solid earnings and book value growth with lower volatility

3

Investor Day 6.17.2015

•

Enhance capabilities in digital, data, infrastructure

•

Pursue

growth opportunities: existing businesses, selected

growth markets and M&A

•

Constructively navigate evolving regulatory environment

Achieve Key

Financial

Objectives

Business

Priorities

and

Actions

PRUDENTIAL

FINANCIAL, INC.

2015 INVESTOR

DAY

MARK

GRIER

VICE

CHAIRMAN

PRUDENTIAL

FINANCIAL, INC.

INTERNATIONAL

INSURANCE

CHARLES

LOWREY

EXECUTIVE

VICE

PRESIDENT

CHIEF

OPERATING

OFFICER

KEY

MESSAGES

2

•

Superior execution

•

Emphasize death protection

•

Core proprietary and complementary

third party distribution

•

Strong capital management

•

Growing retirement and inheritance needs

•

Rising income and wealth

•

Expanding markets

•

Growing third party distribution

Challenges

•

Economic environment

•

Currency and interest rate risks

•

Aging population in Japan

Growth

Prospects

Sustainable

High Returns

Investor Day 6.17.2015

HIGH

RETURN

BUSINESS

Historical Earnings

(1)

& ROE

(2)

•

International Insurance operations generate sustainable high ROE and

strong earnings

1)

Pre-tax adjusted operating income (AOI) excluding market driven and discrete items as shown in disclosure section.

2)

Return on equity (ROE) based on after-tax AOI as adjusted herein using an overall effective rate for the former Financial Services Businesses (FSB), and

average attributed equity excluding accumulated other comprehensive income and is adjusted to remove the impact of foreign currency exchange rate

remeasurement.

3

Star & Edison

Acquisition

Investor Day 6.17.2015

$1.6

$1.8

$2.3

$2.8

$3.3

$3.3

24.9%

22.0%

17.4%

18.3%

21.2%

19.8%

2009

2010

2011

2012

2013

2014

AOI ($ billions)

ROE

FOCUS

ON

PROTECTION

PRODUCTS

•

High margin protection products

•

Retirement financial security needs

•

Lifetime customer relationships

4

Premiums

In

Force

(1)(2)

Annualized

New

Business

Premiums

(1)(3)

1)

Japan only.  Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented; including Japanese yen 91 per U.S.

dollar.  U.S. dollar denominated activity is included based on the amounts as transacted in U.S. dollars.

2)

As of 12/31/14.  Annualized premiums in force, including paid-up policies and 10% of single premium. Percentages approximate.

3)

For the year ended 12/31/14.

4)

Savings includes annuities and yen based bank channel single premium whole life. Sales of yen based bank channel single premium whole life were

discontinued in 2013.

(4)

Investor Day 6.17.2015

(4)

Protection

51%

A&H

12%

Retirement

20%

Savings

17%

Death

Death

Protection

55%

A&H

7%

Retirement

19%

Savings

19%

FOCUS

ON

PROTECTION

PRODUCTS

–

BANK

CHANNEL

•

Excluding

discontinued

yen

savings

product

(1)

,

our

bank

channel

sales

are

growing

steadily

5

Annualized

New

Business

Premiums

(2)

1)

Represents discontinued yen based single premium whole life product (SPWL).

2)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods; Japanese yen 91 per U.S. dollar. Japanese bank channel

results only.

($ millions)

$202

$204

$190

$173

$149

$160

$172

$165

$168

$106

Investor Day 6.17.2015

56

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

Discontinued Yen

Based SPWL

Single Premium -

All

Other

3 and 5 Pay Whole

Life

10 Pay and Longer

Whole Life

96

44

22

$0.2

$0.3

$0.6

$0.8

$0.8

$0.9

$1.3

$1.4

$1.4

$1.6

$1.7

$1.9

$2.3

$2.7

$3.2

$3.3

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

HISTORY

OF

GROWTH

•

Majority of our earnings come from Japan operations

•

Sustained track record of earnings growth despite volatile financial

markets and challenging Japan macro environment

International

Insurance

Pre-tax

AOI

(1)

6

($ billions)

Star & Edison

Acquisition

Yamato

Acquisition

Aoba

Acquisition

Kyoei

Acquisition

•

Driven by a combination of organic growth, M&A, and successful

business integrations

1)

Not adjusted for market driven and discrete items.

Investor Day 6.17.2015

$0.2

$0.3

$0.6

$0.8

$0.8

$0.9

$1.3

$1.4

$1.4

$1.6

$1.7

$1.9

$2.3

$2.7

$3.2

$3.3

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

HISTORY

OF

GROWTH

•

Sustained earnings growth despite low/negative GDP growth in Japan

International

Insurance

Pre-tax

AOI

7

($ billions)

-0.2%

2.3%

0.4%

0.3%

1.7%

2.4%

1.3%

1.7%

2.2%

-1.0%

-5.5%

4.7%

-0.5%

1.8%

1.6%

0.0%

-9%

-6%

-3%

0%

3%

6%

9%

Japan GDP Growth Rate

(2)

1)

Not adjusted for market driven and discrete items.

2)

Source: Economic and Social Research Institute, Cabinet Office.  Based on annual real gross domestic product (GDP).

Investor Day 6.17.2015

HISTORY

OF

GROWTH

•

Sustained earnings growth despite foreign exchange (FX) rate volatility

International

Insurance

Pre-tax

AOI

(1)

8

($ billions)

1)

Not adjusted for market driven and discrete items.

Investor Day 6.17.2015

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

$0.2

$0.3

$0.6

$0.8

$0.8

$0.9

$1.3

$1.4

$1.4

$1.6

$1.7

$1.9

$2.3

$2.7

$3.2

$3.3

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

120

60

80

100

120

140

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

JPY/USD FX rate

(¥)

HISTORY

OF

GROWTH

•

Sustained earnings growth despite Japanese equity market volatility

(Index)

International

Insurance

Pre-tax

AOI

(1)

9

($ billions)

1)

Not adjusted for market driven and discrete items.

Investor Day 6.17.2015

17,451

6,000

9,000

12,000

15,000

18,000

21,000

Nikkei 225

$0.2

$0.3

$0.6

$0.8

$0.8

$0.9

$1.3

$1.4

$1.4

$1.6

$1.7

$1.9

$2.3

$2.7

$3.2

$3.3

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

HISTORY

OF

GROWTH

•

Sustained earnings growth despite declining interest rates

(% Yield)

International

Insurance

Pre-tax

AOI

(1)

10

($ billions)

1)

Not adjusted for market driven and discrete items.

.3%

Investor Day 6.17.2015

$0.2

$0.3

$0.6

$0.8

$0.8

$0.9

$1.3

$1.4

$1.4

$1.6

$1.7

$1.9

$2.7

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0.0

0.5

1.0

1.5

2.0

2.5

JGB 10Y

$3.2

$3.3

$2.3

FOUR

PILLARS

FOR

PROFITABLE

GROWTH

11

Superior

Execution in

Existing

Business

Product

Development

to Meet

Customer

Needs

Distribution

Expansion in

Proprietary

and Third

Party Channels

Complementing

Organic Growth

with M&A

Our Growth

Strategies

Investor Day 6.17.2015

CORE

FUNDAMENTAL

GROWTH

OPPORTUNITIES

12

Life Planner

Operations

•

Continuing Life Planner

force growth

•

Expansion in selected markets

•

Inheritance market opportunity in Japan

Gibraltar

Life &

Other

Operations

•

Life Consultant force stabilized and poised

to grow

•

Expansion in selected markets and third

party distribution

•

Inheritance market opportunity in Japan

Investor Day 6.17.2015

CHALLENGES

AND

POSITIONING

13

Challenges

•

Selectivity limits pace of growth of Life

Planner force

•

Expected gradual attrition of large

acquired blocks of business partly offsets

business growth

•

Aging Japanese population

•

Currency risk

•

Interest rate risk

Prudential Positioning

•

Expanding complementary third party

distribution

•

Building operations in selected growth

markets

•

Proven track record of M&A and

business integrations

•

Product solution for retirement financial

security and inheritance protection needs

•

Lifetime client relationships support

subsequent sales for changing needs

•

Currency hedging programs for income

and equity

•

Limited portfolio turnover, strong asset

liability management, emphasis on

mortality and expense margins

Investor Day 6.17.2015

PRUDENTIAL

FINANCIAL, INC.

INTERNATIONAL

INSURANCE

JOHN

HANRAHAN

SENIOR

VICE

PRESIDENT

CHIEF

FINANCIAL

OFFICER

KEY

MESSAGES

15

•

Exposure

•

Sensitivity

•

Risk mitigation

Interest Rate

•

Exposure

•

Sensitivity

•

Risk mitigation

FX

Capital

Management

•

Generation

•

Utilization

•

Solvency margin ratios

Investor Day 6.17.2015

CURRENCY

EXPOSURE

•

Less than half of Japan’s earnings are yen sensitive

–

Certain expenses related to non-yen denominated business are paid in yen and are

reducing exposure of earnings to yen value changes

•

Contributing factors to declining yen AOI as a percentage to total AOI include

increase in USD investments, disproportionately higher yen expenses, and weaker

yen currency exchange rate

16

1)

Percentage based on pre-tax AOI excluding market driven and discrete items for our Japanese insurance operations.

USD/JPY Plan Rate

80

91

Japan Earnings

(1)

(Currency Mix)

Investor Day 6.17.2015

49%

37%

51%

63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013

1Q15

Non

-Yen

Yen

CURRENCY

SENSITIVITY

International Insurance 1Q 2015

Earnings

at

Different

Yen

Hedging

Rates

(1)

1)

Based on actual and alternative assumed hedging rates for Japanese yen income to U.S. dollars.

17

Hypothetical

Hedging Rates

¥110

¥120

¥130

¥140

Difference from Actual

Hedging Rate

21%

32%

43%

54%

Pro Forma Impact to

AOI

(6)%

(9)%

(11)%

(13)%

($ millions)

Investor Day 6.17.2015

Pro Forma AOI at

indicated rates

834

781

759

741

726

0

300

600

900

¥110

¥120

¥130

¥140

¥91

Actual

Rate

HEDGING

OBJECTIVES

18

•

Protect Enterprise Earnings and ROE

•

Protect Long-term Value

•

Insulate Solvency Margin Ratio

Investor Day 6.17.2015

HEDGING

CURRENCY

EXPOSURE

19

•

Yen Hedging Strategy

$1.9

$15.5

$12.1

$0.7

$0.8

Hedge Type

Forwards

USD Assets

Yen Debt

Dual Currency Bonds

Protects Long-term Value

Protects Near-term

Earnings and Cash Flow

Protection

Income Hedge

Equity Hedge

($ billions)

Investor Day 6.17.2015

Existing Hedges as of

3/31/15

YEN

EARNINGS

HEDGE

Historical Yen Spot Rates vs. Hedging Rates

2010

2011

2012

2013

2014

(¥)

¥106

¥92

¥85

¥80

¥82

•

Expected yen-based AOI is hedged over a 36 month rolling period using a

series of FX forwards with laddered maturities

•

Each quarter’s expected yen earnings are hedged over the preceding 9

quarters. The hedged rate is an average of these transactions.

2009

2015

¥91

¥99

20

Investor Day 6.17.2015

70

80

90

100

110

120

130

USD/JPY Spot Rate

Hedging Rate

Trailing 3-Yr Rolling Avg. Spot Rate

FAIR

VALUE

OF

YEN

EQUITY

HEDGE

(1)

Equity

Hedges

1)

As of 3/31/15.

21

Equity

Hedge FX Sensitivity

Spot Rate as of

3/31/15

10%

JPY

Appreciation

10% JPY

Depreciation

USD/JPY Rate

¥120

¥108

¥132

Fair

Value of Equity Hedges

($ billions)

2.4

1.2

3.7

Maturity Profile of Equity Hedge Settlements

•

$13.6 billion “notional” value of yen exposure

-

$2.4 billion

fair value of PFI hedges

-

Cash is realized over time as settlements occur

Investor Day 6.17.2015

24%

18%

58%

0%

25%

50%

75%

100%

2015

2016

2017 +

YEN

EQUITY

HEDGE

ILLUSTRATION

(1)

22

Weakening Yen

USD Assets

Worth More ¥

Cash from

Japan

Stable Yen

Strengthening

Yen

•

We

protect

our

equity

investment

in

Japan

by

primarily

purchasing

U.S.

dollar

investments in Japan

•

We hedge these bonds primarily internally, to insulate Solvency Margin

Ratios from FX volatility.  This can create cash flow transfers between Japan

and the U.S.

~800%

SMR

~800%

SMR

~800%

SMR

1)

Broadly equivalent solvency margin ratio (SMR) over time.

USD Assets

Worth Same ¥

No Cash

Movement

USD Assets

Worth Less ¥

Cash to

Japan

Investor Day 6.17.2015

KEY

MITIGANTS

FOR

INTEREST

RATE

EXPOSURE

•

Low portfolio turnover

•

Strong asset liability management

•

Emphasis

on

protection

products

–

stable

earnings

from

mortality

and

expense margins

•

Reprice new business when appropriate to maintain margins

•

Fixed annuity products designed to mitigate interest rate risk (i.e.,

bi-weekly repricing for new business, market value adjustments)

23

Key Mitigants

10 Year Government Bond Yield

•

Interest rates have been low in Japan for many years

Investor Day 6.17.2015

0%

1%

2%

3%

4%

5%

6%

7%

8%

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

JGB

UST

1)

Pre-tax AOI excluding market driven and discrete items as shown in disclosure section. The analysis represents assumed investment of renewal premiums and

reinvestment

of

investment

income

and

proceeds

from

maturing

investments

at

market

interest

rates

25

bps

higher

or

lower

than

actual

rates

during

the

year.

($ millions)

•

In the near-term, earnings are not materially impacted by modest

changes in interest rates

IMPACT

OF

CHANGING

INTEREST

RATE

ENVIRONMENT

Earnings

(1)

+/-

25 bps =

~$15 million

in near-term

24

Sensitivity

of

AOI

to

Interest

Rate

(-25

bp)

2014

2015

2016

2017

Pro

Forma

Impact

to

2014

Pre-tax

AOI

($

millions)

(15)

(45)

(75)

(105)

Investor Day 6.17.2015

3,347

3,332

3,362

2014

If Interest rates

-25 bps

If interest rates

+25bps

Investment Margin

Mortality, Expense &

Other Margin

•

Redeployed

excess

capital

of

more

than

60%

of

after-tax

AOI

since

2009

(1)

•

As the Japan business matures, we expect capital returned to increase relative to earnings

as less capital will be needed to support growth

•

Japan returns capital to the U.S. through diverse means and in accordance with regulatory

standards

HISTORICAL

CAPITAL

GENERATION

AND

REDEPLOYMENT

25

($ billions)

Historical Capital Redeployment

1)

Through 2014.

2)

After-tax AOI reflects the effective tax rate of the former FSB.

Forms of Cumulative Redeployment

$7.0

Investor Day 6.17.2015

Dividends

13%

Debt

Repayment

27%

Affiliate

Lending

21%

Acquisition

Funding and

Other

39%

$11.0

Cumulative

2009 -

2014

$1.2

$1.4

$1.7

$2.0

$2.3

$2.4

$0.7

$0.4

$1.6

$1.3

$1.5

$1.5

2009

2010

2011

2012

2013

2014

After-Tax AOI

Capital Redeployed

(2)

SOLVENCY

MARGIN

RATIO

26

SMR

(1)

March 31, 2015

Stressed Scenario

Prudential of Japan

844%

~745%

Gibraltar

Life

(2)

882%

~740%

1)

Based on Japanese statutory accounting and risk measurement standards applicable to regulatory filings as of 3/31/15.

2)

Gibraltar consolidated basis.

3)

Represents indicated change applied to asset valuations.

•

Solvency margin position of Prudential’s Japanese insurance

companies

–

well

capitalized

and

financially

secure

•

Well

above

our

target

SMR

of

600%

-

700%

Stressed

Scenario

(3)

•

Japan Equity

•

Real Estate                       

•

USD & AUD FX Rates

•

Interest Rates                   

Down 55%

Down 35%

Strengthening 20%

Up 100 bps

Investor Day 6.17.2015

PRUDENTIAL

FINANCIAL, INC.

U.S. BUSINESSES

STEPHEN

PELLETIER

EXECUTIVE

VICE

PRESIDENT

CHIEF

OPERATING

OFFICER

EXECUTIVE

SUMMARY

•

Prudential’s U.S. business portfolio has been designed to:

–

Generate sustainable earnings

and attractive returns

–

Be resilient in the face of headwinds

–

Provide diversification and facilitate risk management

–

Position us for growth opportunities

•

We integrate our distinctive set of investment and insurance capabilities

to deliver a range of solutions to meet changing customer needs

•

We invest within and across businesses to enhance the customer

experience and enable new growth opportunities

2

Investor Day 6.17.2015

OUR

BUSINESS

MIX

GENERATES

SUSTAINABLE

EARNINGS

3

Pre-Tax

Earnings

(1)

1)

Adjusted Operating Income (AOI) excluding market driven and discrete items as shown in disclosure section.

Retirement

Annuities

Asset Management

Group Insurance

Individual Life

AOI

(1)

CAGR

17%

(~15% -

16%

excluding Hartford)

($ billions)

Investor Day 6.17.2015

$2.3

$2.8

$2.7

$3.9

$4.3

$0.0

$1.0

$2.0

$3.0

$4.0

2010

2011

2012

2013

2014

THE

U.S. BUSINESS

PORTFOLIO

IS

WELL-BALANCED

BY

TYPE

OF

RISK

4

Principal Risks

2014

Earnings

(1)

$4.3 billion

Equity Markets, Interest Rates, Longevity

Credit, Longevity, Interest Rates

Equity Markets

Mortality, Interest Rates, Credit

Mortality, Morbidity

1)

Pre-tax AOI excluding market driven and discrete items as shown in disclosure section.

Annuities

Retirement

Asset

Management

Individual Life

Group Insurance

Investor Day 6.17.2015

OUR

BUSINESS

MIX

CREATES

HIGH

QUALITY,

DIVERSIFIED

EARNINGS

STREAMS

5

Pre-Tax

Earnings

(1)

($ millions)

Individual Annuities

Asset Management

Retirement

Individual Life

Group Insurance

$ 1,112

$ 2,381

$ 1,213

$ 732

$ 618

$ 580

2010

2014

Underwriting

Spread

Fee

Primary

Source of Earnings

Business

1)

AOI excluding market driven and discrete items as shown in disclosure section.

Investor Day 6.17.2015

OUR

BUSINESS

MIX

DRIVES

ATTRACTIVE

RETURN

PROSPECTS

6

ROE Potential

(1)

Mid-High

Teens

Low

Double Digits

Growth

Potential

Asset Management

Retirement

Annuities

Individual Life

Group Insurance

Investor Day 6.17.2015

1)

Return on equity (ROE) potential ranges based on after-tax AOI using an overall effective tax rate for Prudential Financial, Inc. excluding the Closed Block division,

and  average attributed equity excluding accumulated other comprehensive income. Reflects view of weighted average potential returns over long term using base

case assumptions.

EVOLVING

CUSTOMER

NEEDS

CREATE

GROWTH

OPPORTUNITIES

THAT

WE

ARE

WELL-POSITIONED

TO

ADDRESS

7

Movement toward derisking in large Defined Benefit markets

•

Building on Pension Risk Transfer (PRT)

market leadership in U.S.; pursuing

international opportunities

•

Offering range of institutional investment

solutions, including fixed income and

liability driven investing

•

Expanding voluntary benefits offerings

Employers’ need to control benefit costs while offering employees an

attractive suite of benefit options

•

Redesigning defined contribution plans

•

Enhancing life insurance policy features

•

Expanding Prudential Advisors outreach

beyond the traditional approach

Increasing individual responsibility for financial security,

resulting in a growing need for more certain outcomes

•

Expanding retail investment offerings

•

Expanding annuity offerings to include

non-equity aligned and

investment-focused products

Older population controlling vast majority of financial assets

Investor Day 6.17.2015

WE

ARE

INVESTING

WITHIN

AND

ACROSS

BUSINESSES

TO

ENHANCE

THE

CUSTOMER

EXPERIENCE

AND

ENABLE

NEW

GROWTH

OPPORTUNITIES

8

2014 investment

in our

businesses 

~$100 million

(1)

Digital Experience

Data Analytics

Systems Upgrades

Talent

1)

Approximate pre-tax amount spent, after impact of cost savings and efficiencies realized.

Investor Day 6.17.2015

WE

ARE

MAINTAINING

A

STRONG

FOUNDATION

FROM

WHICH

TO

GENERATE

SUSTAINABLE

PROFITABLE

GROWTH

9

Asset Management

–

Generating earnings that are driven primarily and increasingly by “core” asset management fees

–

Experiencing sustained, positive net flows driven by strong investment performance

–

Investing in new asset management capabilities and product offerings, and expanding international presence

–

Hired a significant number of investment professionals

Retirement

–

Continuing to invest in advancing PRT leadership capabilities

–

Investing in Full Service business to position for long term profitability and growth

Group Insurance

–

Rationalized product portfolio and market segment focus

–

Completing disability turnaround to position for resumed controlled growth

–

Making improvements in pricing, underwriting, and claims management practices

Individual Life Insurance

–

Generating sales that reflect a more diversified product mix

–

Completed final steps of Hartford integration; run-rate benefits expected to be fully realized by third quarter

2015

Annuities

–

Executing product diversification strategy, improving risk profile and offering a broad range of solutions

Investor Day 6.17.2015

PRUDENTIAL

FINANCIAL, INC.

RETIREMENT

CHRISTINE

MARCKS

PRESIDENT

PRUDENTIAL

RETIREMENT

PRUDENTIAL

RETIREMENT:

STRENGTH, BREADTH

AND

DEPTH

ACROSS

MARKETS

2

1)

2014 PLANSPONSOR DC Recordkeeping Survey, based on total recordkeeping assets as of 12/31/13.

Mission: To serve the retirement security needs of institutions and individuals

#6

in DC assets

(1)

Leading provider in our

chosen markets

#1

in Stable Value

(2)

#1

in PRT

(3)

Defined Contribution (DC)

Full spectrum of retirement

products and solutions

Defined

Benefit (DB)

Non-qualified

Investment-Only Stable Value

Other Institutional Investments

Pension Risk Transfer (PRT)

Structured Settlements

Investor Day 6.17.2015

2)

3)

Internally managed, domestic institutional, tax-exempt, Stable Value Assets as of 12/31/13 – Pensions and Investments’ Money Managers Directory, 5/31/15.

LIMRA Group Annuity Survey 1Q15.

STRONG

AND

CONSISTENT

ACCOUNT

VALUE

GROWTH

3

$205

$230

$290

$323

$364

Full Service

Pension Risk Transfer

Investment-Only Stable Value

Other Institutional Investment Products

Account Values

(1)

($ billions)

1)

As of end of period.

Investor Day 6.17.2015

$141

$140

$148

$174

$184

$28

$30

$64

$59

$92

$18

$41

$61

$73

$70

$18

$19

$17

$17

$18

2010

2011

2012

2013

2014

SIGNIFICANT

EARNINGS

GROWTH

SINCE

2010

4

Pre-Tax AOI

(1)

($ millions)

~$110

~$280

Non-coupon investments returns, case experience on pension risk transfer business more favorable than average expectations,

and significant mortgage loan prepayment income.

1)

Adjusted Operating income (AOI).

Investor Day 6.17.2015

$565

$594

$638

$1,039

$1,215

2010

2011

2012

2013

2014

PRUDENTIAL

AS

A

PENSION

LEADER

5

Since

1928

PROVIDING

INTEGRATED

PENSION PLAN

SERVICES

2

nd

LARGEST

ACTIVE INSTITUTIONAL

MANAGER OF DOMESTIC

FIXED INCOME

(1)

23   25

LARGEST

CORPORATE

DB

PLANS

(2)

USE PRUDENTIAL

INVESTMENT

MANAGEMENT

of

the

1)

Pensions & Investments Top Money Manager List, May 2015. Ranked by total worldwide institutional assets under management, as of 12/31/14.

2)

Based on U.S. Plan Sponsor rankings in Pensions & Investments, as of 12/31/14.

Investor Day 6.17.2015

PENSION

RISK

TRANSFER

PHILIP

WALDECK

SENIOR

VICE

PRESIDENT

PENSION

& STRUCTURED

SOLUTIONS

PROGRESSION

OF

EXPERTISE

& CAPABILITIES

The Pension Risk Transfer team’s expertise has substantially benefited

from experience with U.K. and jumbo U.S. pension risk transfer markets.

2007

2009

2011

2012

2014

Applied U.K. longevity

underwriting best practices

Developed unique

capabilities for GM

and Verizon

7

Applied best

practices further

into the market

resulting in key

case wins

Closed U.S. and

U.K. transactions

Large

sponsor

opportunities

identified

1928

First pension

guarantee

written

•

Established core team

•

Explored emerging U.K.

solutions

•

Adapted/modernized

for U.S. market

2006

Investor Day 6.17.2015

PRT MARKET

IS

LARGE

AND

GROWING

8

1)

Pension Protection Fund, estimated in U.S. dollars, as of 12/31/14. 

2)

Investment Company Institute, as of 12/31/14. 

3)

Towers Watson Global Pension Assets Study 2015.

$1.5

trillion

(3)

$1.9

trillion

(1)

$3.2

trillion

(2)

Pension

Liabilities

U.K.

U.S.

Canada

33

5

1

Number of

Transactions

Over $1 billion

PRT Transactions

Since 2007

$186 billion

$50 billion

$4 billion

World

39

$240 billion

>$6.6 trillion

Investor Day 6.17.2015

PRUDENTIAL’S

COMPETITIVE

ADVANTAGE

IN

PRT MARKET

Deep Expertise Across Multiple Disciplines

Proven Structuring Skills

Demonstrated Service Excellence

Track Record of Successful Execution

Experience and Credibility in the Pension Market

Financial Strength

9

Investor Day 6.17.2015

PRUDENTIAL’S

PRT BUSINESS

HAS

EXPERIENCED

SIGNIFICANT

GROWTH

OVER

THE

PAST

FOUR

YEARS

(1)

10

$75 billion

(2)

PENSION LIABILITIES

550,000

RETIREES

130+

PLANS IN U.S. & U.K.

1)

Through 3/31/15.

2)

Includes ~$35 billion of longevity reinsurance.

Investor Day 6.17.2015

PRUDENTIAL’S

EDGE: CREATIVE

SOLUTIONS

11

Execution Confidence

•

Advanced purchase agreement

•

Proven documentation and process

•

Seamless transition, payments and

personalized communications

Asset

•

Asset in kind (AIK) transfer

•

Client risk hedging strategies

Liability

•

Data adjustments

•

Lump sum adjustments

•

Tailored mortality tables

Transaction Structure

•

Customized price roll forward

•

Independent fiduciary

•

Sponsor-owned insurer

Meet Client Needs

Manage Risk

Investor Day 6.17.2015

CRITICAL

SUCCESS

FACTORS, KEY

RISKS

AND

MITIGANTS

Types of Risk

Investment

Liquidity

Asset/Liability

Management

Insurance

Concentration

Pricing

12

Investor Day 6.17.2015

CRITICAL

SUCCESS

FACTORS, KEY

RISKS

AND

MITIGANTS

Pricing

Prudent best estimates

“AA” loss absorption

capacity

Negotiated price

adjustment triggers

13

Investor Day 6.17.2015

CRITICAL

SUCCESS

FACTORS, KEY

RISKS

AND

MITIGANTS

Investment

Primarily high quality

corporate bonds

Well-diversified portfolio

Prudent default

assumptions

14

Investor Day 6.17.2015

Investment

CRITICAL

SUCCESS

FACTORS, KEY

RISKS

AND

MITIGANTS

Liquidity

Long-dated, illiquid

liabilities

Disciplined cash flow

management

15

Investor Day 6.17.2015

CRITICAL

SUCCESS

FACTORS, KEY

RISKS

AND

MITIGANTS

Insurance

Very limited benefit

optionality

Significant & credible

plan mortality

experience

16

Investor Day 6.17.2015

CRITICAL

SUCCESS

FACTORS, KEY

RISKS

AND

MITIGANTS

Asset/Liability

Management

Manage within tight

duration corridors

Rigorous ongoing

monitoring

17

Investor Day 6.17.2015

Asset/Liability

Management

CRITICAL

SUCCESS

FACTORS, KEY

RISKS

AND

MITIGANTS

Concentration

Deliberately building

diversified book over time

More credible experience data

Better pricing: Fewer

competitors & complex

execution needs

18

Investor Day 6.17.2015

WELL-DIVERSIFIED

BUSINESS

MIX

19

Northeast

U.S.

16%

South U.S.

16%

Midwest U.S.

17%

West

U.S.

9%

U.K.

42%

15%

57%

28%

Geographic Diversity

(1)

Age Distribution

(1)

•

Also well-diversified by Gender, Industry, Benefit Size, and Occupation (blue/white collar)

•

Average liability duration: Buy-Out 9-10 years, Longevity Reinsurance 8-12 years

Below 60

Above 80

60-80

1)

Number of annuitants as of 3/31/15.

Investor Day 6.17.2015

STRONG

INVESTMENT

RISK

MANAGEMENT

Representative Funded PRT Asset Portfolio

Key Attributes

•

High quality

•

Well-matched to liability

•

Well-diversified

•

Assets in-kind reduce risk

and expense:

–

Taxes

–

Transaction costs

–

Interest rates and

spreads locked in

20

Other (e.g. Agency

Mortgage Backed

Securities)

Investment Grade

Public Securities

~45%

Investment Grade

Private Securities

~20%

Mortgage Loans

~20%

Below Investment

Grade

Alternatives

~5%

~5%

~5%

Investor Day 6.17.2015

COMPLEMENTARY

PROFIT

EMERGENCE

PATTERNS

21

1-5

6-10

11-15

16-20

21-25

26-30

31-35

36-40

41-45

46-50

  Longevity Reinsurance

  Funded Buy-out

Projection Years

Annual Expected AOI Pattern, Net of Defaults

($1 Billion Representative Case)

Investor Day 6.17.2015

RETURN

SENSITIVITIES

(1)

22

1)

Impacts are approximate. The sensitivities may vary by transaction. Sensitivities are meant to reflect a moderately adverse/beneficial scenario.

2)

Internal rate of return (IRR).

Credible plan-specific

mortality experience data

Complementary long-

term exposures not

reflected in pricing

Tight key rate duration

management mitigates risk

Diversified, high-

quality investments

Base Mortality

Mortality

Improvement

Interest Rates

Credit Defaults

-0.5%

-2%

-1%

-3%

+0.5%

+2%

+3%

+1%

Mortality

rates +/-1%

Long-term

interest rates

+/-100bps

Default shock of 1%/lower

default probability by half

Mortality trend improvement +/-0.25%

MITIGANTS

Target IRR

(2)

11-15%

Capital is set at the higher of regulatory and economic frameworks;

We further analyze sensitivity of returns to changes in key underwriting assumptions

-3%

-2%

-1%

+1%

+2%

+3%

Blue shaded area indicates shock scenario

ASSUMPTIONS

Investor Day 6.17.2015

PRUDENTIAL

PRT: AN

ATTRACTIVE

GROWTH

OPPORTUNITY

•

Premier franchise in a very attractive market

•

Leverages best of Prudential –

deep partnership and collaboration across

business units and functions, building on nearly 140 years of mortality risk and

90 years of longevity risk experience

•

Opportunity identified early; built unparalleled platform of expertise and solid

risk management over a decade

•

Currently expect returns on PRT block to be at or above our targets

•

Ongoing growth opportunity with solid expected returns and sustainable

competitive advantages

•

Commitment, talent & intense focus

23

Investor Day 6.17.2015

PRUDENTIAL

FINANCIAL, INC.

ANNUITIES

ROBERT

O’DONNELL

PRESIDENT

PRUDENTIAL

ANNUITIES

INDIVIDUAL

ANNUITIES

CONTINUES

TO

BE

A

CORE

COMPONENT

OF

PRUDENTIAL'S

DIVERSIFIED

BUSINESS

MIX

2

Product Mix

Policyholder

Behavior

In Force

Cash Flow

Balance Sheet

Strength

Our product mix diversifies our risk profile while

meeting customers’ retirement income needs

Sophisticated approach using data analytics and

emerging policyholder behavior experience

In force expected cash flows continue to provide

significant value

Our living benefit liability is supported by high

quality on-balance sheet assets

Investor Day 6.17.2015

PRODUCT

MIX

PRODUCT

PORTFOLIO

–

DIVERSIFYING

OUR

RISK

4

•

A fixed single premium

immediate annuity

•

Highest minimum income

payments

•

No death benefit

•

Monthly rate setting

capability

(2)

•

Lower minimum income

payments

•

Secure Value Account

•

ROP

(1)

/ optional enhanced

death benefit

•

Monthly rate setting

capability

(2)

“Highest

Daily”

Suite

(HDI)

•

Higher minimum income

payments

•

No equity exposure

•

ROP

(1)

death benefit

•

Monthly rate setting

capability

(2)

Prudential

Defined

Income

(PDI)

•

No living benefit

•

Accumulation focused

•

Account value death

benefit / optional ROP

(1)

High

Capital Market & Behavior Risk

Prudential

Premier

Investment

Variable

Annuity

(PPI)

High

Low

1)

Return of Premium (ROP) is a standard death benefit on variable annuity contracts.  Optional ROP is available on PPI contracts for an extra charge.

2)

For new business.

Prudential

Immediate

Income

Annuity

(PII)

Investor Day 6.17.2015

PRODUCT

DIVERSIFICATION

5

Annual Gross Sales

2012

$20.0 billion

2014

$10.0 billion

1)

Includes Legacy variable annuities, fixed annuities and base contracts with no living benefit guarantees.

2015 and 2016 new business risk profile will be impacted by our HDI 3.0 reinsurance transaction

HDI

91%

Other

9%

(1)

HDI

70%

PDI

19%

PPI

1%

Other

10%

(1)

Investor Day 6.17.2015

EXTERNAL

REINSURANCE

AGREEMENT

Prudential Annuities has entered into a new business reinsurance

transaction with Union Hamilton

•

Transaction covers the HDI 3.0 living benefit rider

•

Covers approximately 50% of new business written in 2015 and 2016

•

Reduces growth of exposure to new contracts with living benefits

•

Accelerates the diversification strategy

6

Investor Day 6.17.2015

PRUDENTIAL

FINANCIAL, INC.

ANNUITIES

YANELA

FRIAS

VICE

PRESIDENT, FINANCE

PRUDENTIAL

ANNUITIES

POLICYHOLDER

BEHAVIOR

SOPHISTICATED

APPROACH

USING

DATA

ANALYTICS

AND

EMERGING

POLICYHOLDER

BEHAVIOR

EXPERIENCE

•

Partnered with industry leaders to create enhanced data analytic

capabilities

•

These enhanced capabilities drive a more thorough understanding of

factors influencing policyholder behavior and improve our ability to

interpret emerging trends in our data

•

Data analytic capabilities were leveraged to refine our annual

assumption setting process

9

Investor Day 6.17.2015

DATA

ANALYTICS

DROVE

INCREASED

SOPHISTICATION

OF

GLWB

(1)

LAPSE

RATE

ASSUMPTIONS

•

Traditional “In-the-

Moneyness” remains a key

driver of lapses

•

Lapse rates now incorporate

the impact of interest rates

on alternative income

solutions

•

The relative value of a

policy’s guarantee to current

market options influences

lapse behavior

GLWB LAPSE

RATES

1)

Guaranteed Lifetime Withdrawal Benefit.

10

Investor Day 6.17.2015

"At the Money" Policy

20% "In the Money" Policy

Prior "At the Money" Policy

Prior 20% "In the Money" Policy

IN

FORCE

CASH

FLOW

ANALYSIS

PROFILE

OF

BASELINE

ASSUMPTIONS

FOR

IN

FORCE

CONTRACTS

1)

Based on GAAP best estimates as of 12/31/14.

2)

Return includes 2% dividend yield.

3)

Policyholder behavior assumptions for guaranteed lifetime withdrawal benefit products only.

Capital

Markets

Policyholder

Behavior

(3)

Assumptions underlying cash flows reflect our current best estimates

Baseline Assumptions

(1)

Equity Market Return

(2)

3.5% increasing to 8.0% by year 6

Fixed Income Return

1.8% grading to 5.5% by year 10

Blended Return

2.9% grading to 6.6% by year 10

Cash Flows assume Living Benefit Liability is fully hedged

Dynamic Lapse Assumption

Lapse rates based upon in-the-

moneyness and level of interest rates

Benefit Utilization

95% take lifetime withdrawals

Benefit Efficiency

86% of guaranteed amount

12

Investor Day 6.17.2015

$17.9

$32.2

$0.7

($13.1)

($1.9)

Fees, Net of Expenses

Hedging Costs

Benefits, Net of

Hedging Recoveries

Investment Income

PV of Contract Cash

Flows

IN

FORCE

CASH

FLOWS

REMAIN

STRONG

1)

Reflects

total

remaining

contract

cash

flows

based

upon

the

in

force

book

of

business

and

initial

interest

rates

as

of

12/31/14.

Excludes

any

benefit

from

release

of

capital and excess reserves.

2)

Cash flows are shown on a present value (PV) basis, are discounted at the forward curve, and reflect the results of hedging activity.

BASELINE

SCENARIO

CASH

FLOWS

(1)(2)

Living

Benefit

Fees

$14.8

($ billions)

13

Investor Day 6.17.2015

($4.0)

($8.8)

2012

2014

THE

INCREASED

ECONOMIC

VALUE

OF

THE

IN

FORCE

IS

NOT

REFLECTED

IN

THE

GAAP LIABILITY

The

risk

neutral

nature

of

the

assumptions

used

to

derive

the

FAS

133/157

(1)

reserve

drive

a

meaningful disparity between the change in the economic cash flows and the GAAP liability

GROSS

GAAP LIABILITY

(3)

CASH

FLOWS

(2)

1)

Reserves for variable annuity living benefits are accounted for as embedded derivatives under U.S. GAAP.

2)

Present value of expected cash flows in baseline scenario.

3)

Includes Post NPR living benefit and SOP03-1 Reserve.

($

billions)

($

billions)

14

Investor Day 6.17.2015

IN

A

RANGE

OF

CAPITAL

MARKET

SCENARIOS, THE

IN

FORCE

BOOK

PRODUCES

POSITIVE

CASH

FLOWS

1)

Reflects total contract cash flows based upon the in force book of business and initial interest rates as of 12/31/14. Excludes any benefit from release of capital and

excess reserves. Each scenario reflects impact of our dynamic lapse assumptions on policyholder behavior.

2)

Cash flows are shown on a present value basis, are discounted at the forward curve, and reflect the results of hedging activity.

3)

Scenario reflects an immediate up shock of 30% on 12/31/14, followed by baseline equity market returns thereafter with fixed income returns 100 bps above the

expected long term rate.

4)

Scenario reflects an immediate down shock of 30% on 12/31/14, followed by baseline equity returns, coupled with a 100 bps decline in fixed income returns over year 1.

5)

Scenario reflects annual equity return of -13% including dividend yield.

($

billions)

15

PV OF

TOTAL

CONTRACT

CASH

FLOWS

(1)(2)

Investor Day 6.17.2015

Equity Markets

Immediate Shock

Post-shock Annual Equity Returns

Positive Markets

(3)

Baseline

Negative Markets

(4)

Break Even

(5)

+30%

n/a

-30%

n/a

Baseline

Baseline

Baseline

-13% annually

Fixed Income

Long Term Assumption

+100 bps

Baseline

Year End -100 bps over

year 1; flat thereafter

Year End -100 bps over

year 1; flat thereafter

$23.1

$17.9

$5.2

$0.0

STRONG

CASH

FLOWS

EVEN

IF

POLICYHOLDER

BEHAVIOR

DEVIATES

FROM

EXPECTATIONS

1)

Reflects total contract cash flows based upon the in force book of business and initial interest rates as of 12/31/14. Excludes any benefit from release of capital and

excess reserves. Each scenario reflects impact of our dynamic lapse assumptions on policyholder behavior.

2)

Cash flows are shown on a present value basis, are discounted at the forward curve, and reflect the results of hedging activity.

3)

Capital market and benefit utilization assumptions are unchanged relative to the baseline scenario.

4)

Scenario reflects an increase in benefit efficiency from 86% to 95% across all periods. Capital market and benefit utilization assumptions are unchanged relative to

the baseline scenario.

PV OF

TOTAL

CONTRACT

CASH

FLOWS

(1)(2)

($

billions)

16

Investor Day 6.17.2015

Lower Lapses

(3)

Baseline

Higher Benefit

Efficiency

(4)

Lapses

All periods reduced by

20%

Baseline

Baseline

Benefit Efficiency

Baseline

Baseline

95% of guaranteed

amount

$18.5

$17.9

$12.6

RESILIENT

CASH

FLOWS

DESPITE

SEVERELY

ADVERSE

MARKETS

AND

POLICYHOLDER

BEHAVIOR

STRESSES

1)

Reflects total contract cash flows based upon the in force book of business and initial interest rates as of 12/31/14. Excludes any benefit from release of capital and

excess reserves. Each scenario reflects impact of our dynamic lapse assumptions on policyholder behavior.

2)

Cash flows are shown on a present value basis, are discounted at the forward curve, and reflect the results of hedging activity.

3)

Benefit utilization assumptions are unchanged relative to the baseline scenario.

4)

Scenario reflects an increase in benefit efficiency from 86% to 95% across all periods. Benefit utilization assumptions are unchanged relative to the baseline scenario.

($

billions)

17

PV OF

TOTAL

CONTRACT

CASH

FLOWS

(1)(2)

Investor Day 6.17.2015

Lower Lapses and Negative

Markets

(3)

Baseline

Higher Benefit Efficiency and

Negative Markets

(4)

Lapses

All periods reduced by 20%

Baseline

Baseline

Benefit Efficiency

Baseline

Baseline

95% of guaranteed amount

Equity Markets

Immediate -30% equity shock

Baseline markets thereafter

Baseline

Immediate -30% equity shock

Baseline markets thereafter

Fixed Income

Year End -100 bps over year 1;                      

flat thereafter

Baseline

Year End -100 bps over year 1;        

flat thereafter

$3.1

$17.9

$0.4

CASH

FLOWS

REMAIN

POSITIVE

ACROSS

ALL

OF

THE

STOCHASTICALLY

MODELED

PATHS

Min=$3.3

(3)

Equity market decline of ~45% coupled with the 10 year Treasury rate falling below 1%

Low PV of Cash

Flows Scenario

High PV of Cash

Flows Scenario

Stochastic Cash Flows

(1)

($ billions)

1)

Reflects capital market shocks only.

2)

Represents average outcome of 30 most unfavorable scenarios out of 1,000 projected capital market paths.

3)

This scenario includes cumulative equity market returns of -38% over 5 years and -8% over 10 years in addition to an average 10-year treasury rate of 1.93%

over 10 years, including a low of 0.97%.

18

(2)

Investor Day 6.17.2015

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

Max=$41.8

Mean Cash

Flows= $17.1

CTE 97= $5.2

BALANCE

SHEET

STRENGTH

GAAP BALANCE

SHEET

-

ANNUITY

FOOTPRINT

(1)

1)

Includes fixed annuities.

2)

Hedge Target Liability is a modified GAAP measure of our living benefit liability; differences between the Hedge Target Liability and the GAAP Liability are included in

Other Liabilities. Includes living benefits reinsured to captive and risk retained in direct writing entities.

3)

Refers to Guaranteed Minimum Death and Income Benefit Reserves.

4)

Accumulated Other Comprehensive Income.

5)

Includes approximately ~$3.6 billion of equity attributable to Pruco Re.

~$24 billion of

liquid assets

~$22 billion of

long term liabilities

20

Investor Day 6.17.2015

Assets

Liabilities

Separate Account

$143.7

Separate Account

$143.7

Invested Assets

$  17.9

General Account

$    8.7

Hedge Assets

$    5.7

Hedge Target Liability

(2)

$    8.7

Other

$    0.6

Other

$    3.9

DAC,

DSI & VOBA

$    6.9

SOP 03-1 (GMDB/GMIB)

(3)

$    0.8

Total Assets

$174.8

Total Liabilities

$165.8

AOCI

(4)

$0.3

Other Attributed Equity

(5)

$8.7

Total Equity

$9.0

Balance Sheet

12/31/2014 ($ billions)

CLAIM

ABSORPTION

RESOURCES

IN

VA CAPTIVE

EXCEED

STATUTORY

RESERVE

CREDIT

(1)(2)

1)

As of December 31.

2)

Claim absorption resources represent total assets available to pay claims.

3)

Represents the risk associated with the living benefits reinsured to the captive.

4)

Other primarily represents Asset Adequacy Testing (AAT) reserves.

10 yr. Treasury

(1)

$9.1

$2.4

$12.2

($ billions)

Reserve Credit

Capital and Other

(4)

Hedge

Target

Liability

(3)

21

Investor Day 6.17.2015

$4.3

$3.5

$5.3

$(1.2)

$8.0

$3.8

$3.6

$4.2

1.78%                                                   3.04%                                                   2.17%

2012

2013

2014

$0.5

INDIVIDUAL

ANNUITIES

CONTINUES

TO

BE

A

CORE

COMPONENT

OF

PRUDENTIAL'S

DIVERSIFIED

BUSINESS

MIX

Product Mix

Policyholder

Behavior

In Force

Cash Flow

Balance Sheet

Strength

Our product mix diversifies our risk profile while

meeting customers’ retirement income needs

Sophisticated approach using data analytics and

emerging policyholder behavior experience

In force expected cash flows continue to provide

significant value

Our living benefit liability is supported by high

quality on-balance sheet assets

Investor Day 6.17.2015

22

PRUDENTIAL

FINANCIAL, INC.

FINANCIAL

MANAGEMENT

ROBERT

FALZON

EXECUTIVE

VICE

PRESIDENT

CHIEF

FINANCIAL

OFFICER

DEFINING

SUCCESS

2

Drivers

Stakeholder Value Creation

•

Diversified and balanced mix of

insurance and market risks

Business Focus

•

“AA” standards for capital, leverage

and liquidity

•

Comprehensive risk management

framework

Financial

Strength

•

Targeted sustainable ROE of 13-14%

through a market cycle

•

Growth in earnings and book value

Balanced and

Sustainable

Sources of

Earnings

•

Cash flow

(1)

~60% of after-tax AOI over

time

•

Capital deployment, including growing

shareholder dividend

Consistency

and

Transparency

of Earnings

Investor Day 6.17.2015

1)

Includes capital deployed in subsidiaries.

Talent

Collaboration

Innovation

Execution

Superior

Client

Experience

FOCUS

ON

PROTECTION, RETIREMENT

AND

ASSET

MANAGEMENT

PROVIDES

A

DIVERSIFIED

AND

BALANCED

MIX

OF

INSURANCE

AND

MARKET

RISKS

3

1)

Adjusted operating income (AOI) excluding market driven and discrete items as shown in disclosure section; exhibit excludes Corporate & Other

Operations pre-tax loss of $1.3 billion.

2)

Includes U.S. Individual Life and Group Insurance.

Full Year 2014

Pre-tax Earnings

Insurance

Risk

Market

Risk

Investor Day 6.17.2015

(2)

International

Insurance

44%

U.S.

Insurance

9%

Retirement

16%

Individual

Annuities

21%

Asset

Management

10%

(1)

$6.3

Billion

WE

HAVE

SUBSTANTIAL

ON

BALANCE

SHEET

CAPITAL

CAPACITY

4

($ billions)

March 31, 2015

GAAP

Equity

(1)

$31.6

Capital

Debt

(2)

$13.9

Total Available Capital

$45.5

Estimated

Gross

On

Balance

Sheet

Capital

Capacity

(3)

>$4.5

Capital

Earmarked

for

Reduction

of

Capital

Debt

~$2.0

Estimated

On

Balance

Sheet

Capital

Capacity

(3)

>$2.5

1)

GAAP equity excluding accumulated other comprehensive income (AOCI) and the impact of foreign currency exchange rate remeasurement. This

measure of equity includes the non-economic impact of non-performance risk (net of deferred policy acquisition costs), which we exclude from “Equity” as

defined on subsequent slides, for purposes of calculating Total and Financial Leverage ratios.

2)

As reported; subsequent slides related to capital structure and total debt gives pro-forma effect to senior capital debt repayment of $1.4 billion with

earmarked proceeds from dividend declared by Prudential Insurance in second quarter 2015.

3)

Based on targeted Risk Based Capital (RBC) ratio of 400% for Prudential Insurance and equivalent levels of capital at other insurance operating entities.

Investor Day 6.17.2015

70%

12%

18%

Senior Capital Debt

Junior Subordinated

Capital Debt (Hybrids)

Equity

March 31, 2015

Financial

Leverage Ratio

CAPITAL

STRUCTURE

NEAR

TARGET

5

1)    Gives pro-forma effect to senior capital debt repayment of $1.4 billion with earmarked proceeds from dividend declared by Prudential Insurance in second

quarter 2015.

2)

Total equity including non-controlling interests and excluding the impact of foreign currency exchange rate remeasurement, non-performance risk (net of

deferred policy acquisition costs), and AOCI.

3)

Defined as senior capital debt plus 75% hybrids divided by the senior capital debt plus 100% hybrids plus total equity as defined above. 

(2)

Composition

of

Outstanding

Capital

Target Range

27.3%

<

15%

70-75%

Investor Day 6.17.2015

(1)

(3)

<

25%

TOTAL

LEVERAGE

RATIO

WITHIN

TARGET

OF

<

45%

6

$25.5

$24.5

$22.7

$25.2

(5)

(6)

$23.7

Composition of Outstanding Debt

(1)

($ billions)

(6)

Investor Day 6.17.2015

38%

24%

22%

30%

34%

6%

18%

20%

21%

21%

56%

58%

58%

49%

45%

12/31/11

12/31/12

12/31/13

12/31/14

3/31/15

Operating

Debt

(2)

Junior Subordinated Capital

Debt (Hybrids)

Senior

Capital

Debt

(3)

Total

Leverage

Ratio

(4)

1)

Represents the former Financial Services Businesses (FSB) for periods prior to 3/31/15.

2)

Operating debt is utilized to finance business funding needs to meet specific purposes tied to assets or revenue sources as well to finance invested assets or

portfolios of invested assets, proceeds of which will service the debt.

3)

Senior capital debt is utilized to meet capital requirements of the Prudential businesses.

4)

Defined as total debt divided by total debt plus total equity including non-controlling interest adjusted to exclude the impact of foreign currency exchange rate

remeasurement, non-performance risk (net of deferred policy acquisition costs), and AOCI totaling $7.9 billion, $11.5 billion, $6.3 billion, $13.6 billion and $16.6 billion

as of 12/31/ 2011, 2012, 2013, 2014 and 3/31/15, respectively.

5)

Reflects the retrospective adoption of amended accounting guidance for deferred policy acquisition costs effective 1/1/12, which reduced GAAP equity by $2.8 billion.

Also reflects a discretionary change in accounting principle related to the Company's pension plans.

6)

12/31/14 gives pro-forma effect to Closed Block restructuring; 3/31/15 assumes capital debt repayment of $1.4 billion with earmarked proceeds from dividend

declared by Prudential Insurance in second quarter 2015.

46.6%

45.1%

44.0%

49.3%

49.9%

SUBSTANTIAL

HOLDING

COMPANY

CASH

AND

SOURCES

OF

LIQUIDITY

7

1)

Prudential Financial, Inc. (PFI) cash, cash equivalents and short-term investments, less short-term intercompany borrowings and commercial paper. 

2)

PFI

has

access

to

liquid

assets

through

a

10-year

contingent

funding

facility,

established

in

November

2013,

that

can

be

used

to

meet

liquidity

needs

and/or

to

downstream as capital to operating subsidiaries.

3)

Includes $1.8 billion shared with Prudential Funding, LLC, a subsidiary of PICA. Effective 4/14/15, we renegotiated the two existing facilities into one $4 billion

5-year facility available to both PFI and PICA.

4)

Primarily includes Enterprise Liquidity Account which is a facility for lending and borrowing of funds between PFI and its subsidiaries on a daily basis.

5)

Represents estimated total capacity. $128 million of PFI commercial paper was outstanding as of 3/31/15.

Investor Day 6.17.2015

Targeted Cash Level

$1.3

Targeted Cash Level

$1.3

$2.4

$9.7

$1.5

$3.8

$1.0

$1.0

Net Cash

Contingent Capital

Facility

Committed Credit Lines

Internal Sources

Commercial Paper

Capacity

Total Liquidity

Resources

$3.7

$11.0

(1)

(2)

(3)

(4)

(5)

As of March 31, 2015

($ billions)

PFI Alternate Sources of Liquidity

MANAGING

RISK

THROUGH

MULTIPLE

LENSES

8

•

Focus on economics while striking a balance between various regimes

Investor Day 6.17.2015

GAAP

Stat

Economics

Tax

RISK

MANAGEMENT

STRATEGIES

9

•

Product Design

•

Diversification

•

Asset Liability

Management

•

Hedging

•

Risk Appetite & Limits

Market Risk

(Credit, Equity, Interest

Rate, FX)

•

Pooling

•

Diversification

/ Risk

Selection

•

Product Design

•

Actuarial Capabilities

•

Internal Controls

•

Business Continuation

Planning

•

Contingency Planning

•

Systems Security

Insurance Risk

(Longevity, Mortality, Morbidity,

Policyholder Behavior)

Operational Risk

(Systems, Security, Compliance,

Reputation)

Investor Day 6.17.2015

MORTALITY

AND

LONGEVITY

RISK

EXPOSURE:

BUSINESS

MIX

PRODUCES

OFFSETTING

IMPACTS

10

1)

Increase based on longevity improvement greater than base improvement assumptions.

2)

Decrease based on longevity improvement less than base improvement assumptions.

3)

Based on business in force as of 12/31/14.

Life Expectancy

Increase

(1)

Life Expectancy

Decrease

(2)

Investor Day 6.17.2015

Individual Life & International Insurance

Mortality Risk

Retirement & Annuities

Longevity Risk

MARKET

RISK

MANAGEMENT

11

“Tail Risk”

“Normal

Market Volatility”

•

Portfolio and

Product Hedging

•

Excess Capital

•

Macro Hedging

•

Management

Actions

•

Capital Protection

Framework

Investor Day 6.17.2015

CAPITAL

PROTECTION

FRAMEWORK

12

On Balance Sheet

Capital Capacity

Credit Facilities

Derivatives /

Hedging

Equity Market

Decline

Interest Rate

Shock

Credit Shock

Currency Shock

50%-60% varying

by country

U.S.     325 bps 100 bps

Japan  150 bps   50 bps

Great Depression

Yen appreciates to

~80/USD

Contingent

Capital

Tail

Stress

Parameters

Our Toolbox

Expected Outcome

•

Maintain adequate and

competitive regulatory

capital position at

insurance companies

•

Temporary increase in

Financial Leverage Ratio

•

Maintain adequate cash

position at parent

company

1)

Tail event stress parameters assume immediate shock.

Up

Down

Investor Day 6.17.2015

(1)

ROE based on after-tax AOI excluding market driven and discrete items; gives effect to direct equity adjustment for earnings per share calculation. Based on

2010

2014

10.2%

15.8%

Return

on

Equity

(2)(3)

TRACK

RECORD

OF

FINANCIAL

PERFORMANCE

(1)

1)

Amounts attributable to PFI; represents results of the former FSB. Per share data amounts on diluted basis.

2)

Excluding market driven and discrete items as shown in disclosure section; based on application of 35% tax rate for EPS and ROE calculations. 

3)

average attributed equity excluding AOCI and adjusted to remove amount included for foreign currency exchange rate remeasurement.

4)

Excludes AOCI and adjusted to remove amount included for foreign currency exchange rate remeasurement.

13

$5.03

$9.84

Earnings

Per

Share

(2)

2010

2014

Investor Day 6.17.2015

Targeted Sustainable ROE of 13% -

14%

2010

2014

$51.28

$64.75

Book

Value

Per

Share

(4)

Dividends

$0.6

Dividends

$0.7

Dividends

$0.7

Dividends

$0.8

Dividends

$1.0

Share

Repurchases

$1.0

Share

Repurchases

$0.7

Share

Repurchases

$0.8

Share

Repurchases

$1.0

M&A

$2.2

M&A

$0.6

M&A

$0.1

2010

2011

2012

2013

2014

STRONG

HISTORY

OF

CAPITAL

DEPLOYMENT

14

$3.9

$1.4

$2.2

$2.1

($ billions)

•

Expected capital available for redeployment, ~60% of after-tax adjusted operating income

over time, allows us to consistently return capital to shareholders and deploy toward other

accretive uses

Investor Day 6.17.2015

KEY

TAKEAWAYS

15

•

Diversified and complementary mix of businesses and risks

•

Strong capital and liquidity positions

–

Substantial on balance sheet capital capacity

–

Improved total leverage ratio

•

Focused on risk management and capital preservation

•

Strong profitability and opportunities for growth

•

Strong track record of capital redeployment supported by capital generated from

our balanced mix of businesses

Investor Day 6.17.2015