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

Exhibit 99.2

Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

Fourth Quarter 2015

Reference is made to Prudential Financial, Inc.’s filings with the Securities and Exchange Commission for general information, and consolidated financial information, regarding Prudential Financial, Inc. (PFI), including its Closed Block Business for periods prior to first quarter 2015. All financial information in this document is unaudited.

February 10, 2016

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Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

CONTENTS

	Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4
Combined Statements of Operations		5
Combining Statements of Operations (Quarter)		6
Combining Statements of Operations		7
Consolidated Balance Sheets - PFI		8
Combined Balance Sheets - PFI Excluding Closed Block Business / Division		9
Combining Balance Sheets by Division		10
Short-Term and Long-Term Debt - Unaffiliated		11
U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
Combined Statements of Operations		12
Combining Statements of Operations		13
Individual Annuities Sales Results and Account Values		14
Individual Annuities Account Value Activity		15
Individual Annuities Living Benefit Features		16
Individual Annuities Death Benefit Features		17
Retirement Segment Sales Results and Account Values		18
Supplementary Revenue and Assets Under Management Information for Asset Management Segment		19
Supplementary Assets Under Management Information for Asset Management Segment		20
U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		21
Combining Statements of Operations		22
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force		23
Supplementary Information for Group Insurance		24
DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE		25
INTERNATIONAL INSURANCE DIVISION
Combined Statements of Operations		26
Combining Statements of Operations		27
Sales Results and Supplementary Information		28-29
INVESTMENT PORTFOLIO
Investment Portfolio Composition		30
Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		31
Investment Results		32
Investment Results - Japanese Insurance Operations		33
Investment Results - Excluding Japanese Insurance Operations		34
LINE ITEM IMPACT OF MARKET DRIVEN AND DISCRETE ITEMS - ADJUSTED OPERATING INCOME		35
RECLASSIFIED SUPPLEMENTARY INFORMATION		36
KEY DEFINITIONS AND FORMULAS		37-39
RATINGS AND INVESTOR INFORMATION		40

ii

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

From December 18, 2001, the date of demutualization, through December 31, 2014, the Company organized its principal operations into the Financial Services Businesses and the Closed Block Business, and had two classes of common stock. The Common Stock, which is publicly traded, reflected the performance of the Financial Services Businesses, while the Class B Stock, which was issued through a private placement, reflected the performance of the Closed Block Business. On January 2, 2015, Prudential Financial, Inc. repurchased and cancelled all of the 2.0 million shares of the Class B Stock. As a result, the Company no longer organizes its principal operations into the Financial Services Businesses and the Closed Block Business. The Company’s principal operations are comprised of four divisions, including a Closed Block division, which is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations. The results of the Closed Block division are excluded from adjusted operating income under the Company’s definition of “divested businesses” which includes businesses that have been sold or exited, including businesses that have been placed in wind down and do not qualify for “discontinued operations” accounting treatment under U.S. GAAP.

iii

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date						% Change			2014			2015
2015			2014						4Q			1Q			2Q			3Q			4Q
								Pre-tax adjusted operating income (loss) by division:
	3,507			3,467			1%	U.S. Retirement Solutions and Investment Management Division		823			1,018			981			732			776
	811			521			56%	U.S. Individual Life and Group Insurance Division		162			146			312			227			126
	3,226			3,252			-1%	International Insurance Division		686			834			842			812			738
	(1,313	)		(1,348	)		3%	Corporate and other operations		(326	)		(253	)		(294	)		(308	)		(458	)
	6,231			5,892			6%	Total pre-tax adjusted operating income		1,345			1,745			1,841			1,463			1,182
	1,582			1,537			3%	Income taxes, applicable to adjusted operating income		337			447			491			353			291
	4,649			4,355			7%	After-tax adjusted operating income (1)		1,008			1,298			1,350			1,110			891
								Reconciling items:
	1,579			(4,130	)		138%	Realized investment gains (losses), net, and related charges and adjustments		(2,717	)		1,051			286			438			(196	)
	(524	)		339			-255%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		144			83			(220	)		(228	)		(159	)
	433			(294	)		247%	Change in experience-rated contractholder liabilities due to asset value changes		(155	)		(197	)		234			258			138
								Divested businesses:
	58			—			—	Closed Block division		—			(22	)		52			108			(80	)
	(66	)		167			-140%	Other divested businesses		54			75			(109	)		8			(40	)
	58			44			32%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		7			13			45			2			(2	)
	1,538			(3,874	)		140%	Total reconciling items, before income taxes		(2,667	)		1,003			288			586			(339	)
	490			(1,082	)		145%	Income taxes, not applicable to adjusted operating income		(457	)		252			188			231			(181	)
	1,048			(2,792	)		138%	Total reconciling items, after income taxes		(2,210	)		751			100			355			(158	)
	5,697			1,563			264%	Income (loss) from continuing operations (after-tax) before equity in earnings of operating joint ventures (1)		(1,202	)		2,049			1,450			1,465			733
	(55	)		(41	)		-34%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(7	)		(13	)		(44	)		—			2
	5,642			1,522			271%	Income (loss) from continuing operations attributable to Prudential Financial, Inc. (1)		(1,209	)		2,036			1,406			1,465			735
	70			57			23%	Earnings attributable to noncontrolling interests		12			10			53			2			5
	5,712			1,579			262%	Income (loss) from continuing operations (after-tax) (1)		(1,197	)		2,046			1,459			1,467			740
	—			11			-100%	Income from discontinued operations, net of taxes		3			—			—			—			—
	5,712			1,590			259%	Net income (loss) (1)		(1,194	)		2,046			1,459			1,467			740
	70			57			23%	Less: Income attributable to noncontrolling interests		12			10			53			2			5
	5,642			1,533			268%	Net income (loss) attributable to Prudential Financial, Inc. (1)		(1,206	)		2,036			1,406			1,465			735
	14.5%			14.8%				Operating Return on Average Equity (based on adjusted operating income) (1)(2)		13.2%			16.9%			16.8%			13.5%			10.7%
								Reconciliation to Consolidated Net Income (Loss) Attributable to Prudential Financial, Inc.:
				1,533				Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		(1,206	)
				(152)				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		(253)
				1,381				Consolidated net income (loss) attributable to Prudential Financial, Inc.		(1,459	)

(1) Represents results of Financial Services Businesses for periods prior to first quarter 2015.

(2) See operating return on average equity definition for further information.

Page 1

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date							2014			2015
2015			2014				4Q			1Q			2Q			3Q			4Q
						Earnings per share of Common Stock (diluted): (1)
	10.04			9.21		After-tax adjusted operating income (2)		2.12			2.79			2.91			2.40			1.94
						Reconciling items:
	3.43			(8.83	)	Realized investment gains (losses), net, and related charges and adjustments		(5.84	)		2.27			0.62			0.95			(0.43	)
	(1.14	)		0.72		Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.31			0.18			(0.48	)		(0.50	)		(0.35	)
	0.94			(0.63	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.33	)		(0.43	)		0.51			0.56			0.30
						Divested businesses:
	0.13			—		Closed Block division		—			(0.05	)		0.11			0.23			(0.17	)
	(0.14	)		0.36		Other divested businesses		0.12			0.16			(0.24	)		0.02			(0.09	)
	(0.02	)		0.05		Difference in earnings allocated to participating unvested share-based payment awards		0.01			(0.02	)		—			(0.01	)		—
	3.20			(8.33	)	Total reconciling items, before income taxes		(5.73	)		2.11			0.52			1.25			(0.74	)
	1.07			(2.32	)	Income taxes, not applicable to adjusted operating income		(0.91	)		0.53			0.40			0.49			(0.40	)
	2.13			(6.01	)	Total reconciling items, after income taxes		(4.82	)		1.58			0.12			0.76			(0.34	)
	12.17			3.20		Income (loss) from continuing operations (after-tax) attributable to Prudential Financial, Inc. (2)		(2.70	)		4.37			3.03			3.16			1.60
	—			0.03		Income from discontinued operations, net of taxes		0.01			—			—			—			—
	12.17			3.23		Net income (loss) attributable to Prudential Financial, Inc. (2)		(2.69	)		4.37			3.03			3.16			1.60
	451.7			458.5		Weighted average number of outstanding Common shares (basic)		455.9			454.3			452.6			451.0			448.7
	460.4			467.7		Weighted average number of outstanding Common shares (diluted)		465.0			463.0			461.4			459.7			457.5
	—			(27	)	Direct equity adjustments for earnings per share calculation		(19	)		—			—			—			—
	17			17		Earnings related to interest, net of tax, on exchangeable surplus notes		4			4			5			4			4
						Earnings allocated to participating unvested share-based payment awards for earnings per share calculation
	45			39		After-tax adjusted operating income (2)		8			12			13			12			8
	54			14		Income from continuing operations (after-tax) (2)		2			19			14			15			6

(1) Diluted share count used in the diluted earnings per share calculation for GAAP measures is equal to weighted average basic common shares for the three months ended December 31, 2014, as all potential common shares are antidilutive due to the loss from continuing operations available to holders of Common Stock after direct equity adjustment.

(2) Represents results of Financial Services Businesses for periods prior to first quarter 2015.

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Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date					2014			2015
2015		2014			4Q			1Q			2Q			3Q			4Q
				Capitalization Data (1):
				Senior Debt:
				Short-term debt		1,746			3,013			3,621			1,833			1,216
				Long-term debt		14,947			14,819			14,380			14,445			13,843
				Junior Subordinated Long-Term Debt		4,884			4,884			5,884			5,884			5,884
				Attributed Equity:
				Including accumulated other comprehensive income		40,981			45,044			41,723			42,720			41,890
				Excluding accumulated other comprehensive income (2)		25,099			27,292			28,319			29,257			29,605
				Amount included above for foreign currency exchange rate remeasurement (3)		(4,783	)		(4,353	)		(4,211	)		(4,034	)		(3,747	)
				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (3)		29,882			31,645			32,530			33,291			33,352
				Book value per share of Common Stock:
				Including accumulated other comprehensive income (4)		88.80			98.16			91.17			93.87			92.39
				Excluding accumulated other comprehensive income (2)		54.39			59.52			61.89			64.32			65.32
				Amount included above for foreign currency exchange rate remeasurement (3)		(10.36	)		(9.49	)		(9.20	)		(8.87	)		(8.27	)
				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (3)		64.75			69.01			71.09			73.19			73.59
				Number of diluted shares at end of period (5)		461.5			458.5			457.6			454.9			453.2
				Common Stock Price Range (based on closing price):
	91.68		93.16	High		91.67			90.11			91.47			91.68			87.69
	74.22		77.61	Low		77.86			75.32			79.13			74.22			75.40
	81.41		90.46	Close		90.46			80.31			87.52			76.21			81.41
				Common Stock market capitalization (1)		41,141			36,421			39,550			34,249			36,398

(1) As of end of period. Represents financial position of Financial Services Businesses for periods prior to first quarter 2015.

(2) Foreign currency translation adjustments and the cumulative impact of foreign currency exchange rate remeasurement, except for those items remeasured through net income (loss), are a component of accumulated other comprehensive income.

(3) Represents cumulative impact of net gains and losses resulting from foreign currency exchange rate remeasurement and associated realized investment gains and losses included in net income (loss) and currency translation adjustments corresponding to realized investment gains and losses.

(4) Book value per share of Common Stock, including accumulated other comprehensive income, for the first, second and third quarter of 2015 includes a $500 million increase in equity and a 5.5 million increase in diluted shares reflecting the dilutive impact of exchangeable surplus notes when book value per share is greater than $90.85. The fourth quarter of 2015 includes a $500 million increase in equity and a 5.6 million increase in diluted shares, reflecting the dilutive impact of exchangeable surplus notes when book value per share is greater than $88.90.

(5) The number of diluted shares at end of period excludes the impact of exchangeable surplus notes due to the antidilutive impact of conversion.

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Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

OPERATIONS HIGHLIGHTS

Year-to-date					2014					2015
2015		2014			4Q			1Q		2Q		3Q		4Q
				Assets Under Management and Administration ($ billions) (1) (2):
				Assets Under Management :
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
				Institutional customers		370.0			380.9		380.6		380.9		389.1
				Retail customers		186.1			198.4		199.2		188.9		197.3
				General account		377.4	��		382.4		368.5		376.7		376.7
				Total Investment Management and Advisory Services		933.5			961.7		948.3		946.5		963.1
				Non-proprietary assets under management		197.5			195.8		191.5		178.2		175.5
				Total managed by U.S. Retirement Solutions and Investment Management Division		1,131.0			1,157.5		1,139.8		1,124.7		1,138.6
				Managed by U.S. Individual Life and Group Insurance Division		23.0			23.7		24.1		24.2		24.1
				Managed by International Insurance Division		21.9			22.5		22.9		22.2		21.0
				Total assets under management		1,175.9			1,203.7		1,186.8		1,171.1		1,183.7
				Client assets under administration		154.5			159.3		165.7		163.1		163.2
				Total assets under management and administration		1,330.4			1,363.0		1,352.5		1,334.2		1,346.9
				Assets managed or administered for customers outside of the United States at end of period		248.3			262.4		263.1		263.4		270.5
				Distribution Representatives (1):
				Prudential Agents		2,784			2,822		2,866		2,922		2,903
				International Life Planners		7,352			7,469		7,415		7,509		7,592
				Gibraltar Life Consultants		8,707			8,645		8,565		8,593		8,805
	56		55	Prudential Agent productivity ($ thousands)		69			47		53		57		68

(1) As of end of period.

(2) At fair market value.

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Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

COMBINED STATEMENTS OF OPERATIONS

(in millions)

										PFI Excluding Closed Block Business (1)			Consolidated PFI
Year-to-date						%				2014			2015
2015			2014			Change				4Q			1Q			2Q			3Q			4Q
									Revenues (2):
	25,463			26,204			-3	%	Premiums		9,890			5,913			6,782			5,273			7,495
	6,003			6,124			-2	%	Policy charges and fee income		1,580			1,554			1,383			1,552			1,514
	11,958			12,046			-1	%	Net investment income		3,021			3,005			2,974			3,015			2,964
	5,206			5,270			-1	%	Asset management fees, commissions and other income		1,338			1,335			1,361			1,238			1,272
	48,630			49,644			-2	%	Total revenues		15,829			11,807			12,500			11,078			13,245
									Benefits and Expenses (2):
	26,698			27,539			-3	%	Insurance and annuity benefits		10,280			6,216			6,925			5,640			7,917
	3,585			3,720			-4	%	Interest credited to policyholders’ account balances		919			884			907			915			879
	1,302			1,308			0	%	Interest expense		328			317			324			339			322
	(2,652	)		(2,694	)		2	%	Deferral of acquisition costs		(672	)		(647	)		(664	)		(650	)		(691	)
	1,631			1,853			-12	%	Amortization of acquisition costs		526			428			251			509			443
	11,835			12,026			-2	%	General and administrative expenses		3,103			2,864			2,916			2,862			3,193
	42,399			43,752			-3	%	Total benefits and expenses		14,484			10,062			10,659			9,615			12,063
	6,231			5,892			6	%	Adjusted operating income before income taxes		1,345			1,745			1,841			1,463			1,182
									Reconciling items:
	2,258			(3,588	)		163	%	Realized investment gains (losses), net, and related adjustments		(2,274	)		1,662			(60	)		1,117			(461	)
	(679	)		(542	)		-25	%	Related charges		(443	)		(611	)		346			(679	)		265
	1,579			(4,130	)		138	%	Total realized investment gains (losses), net, and related charges and adjustments		(2,717	)		1,051			286			438			(196	)
	(524	)		339			-255	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		144			83			(220	)		(228	)		(159	)
	433			(294	)		247	%	Change in experience-rated contractholder liabilities due to asset value changes		(155	)		(197	)		234			258			138
									Divested businesses:
	58			—			—		Closed Block division		—			(22	)		52			108			(80	)
	(66	)		167			-140	%	Other divested businesses		54			75			(109	)		8			(40	)
	58			44			32	%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		7			13			45			2			(2	)
	1,538			(3,874	)		140	%	Total reconciling items, before income taxes		(2,667	)		1,003			288			586			(339	)
	7,769			2,018			285	%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		(1,322	)		2,748			2,129			2,049			843
	2,072			455			355	%	Income tax expense (benefit)		(120	)		699			679			584			110
	5,697			1,563			264	%	Income (loss) from continuing operations before equity in earnings of operating joint ventures		(1,202	)		2,049			1,450			1,465			733

(1) Represents results of Financial Services Businesses for periods prior to first quarter 2015.

(2) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on trading account assets supporting insurance liabilities; and revenues of divested businesses, and include revenues representing equity in earnings of operating joint ventures other than those classified as divested businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes; and benefits and expenses of divested businesses and include charges for income attributable to non controlling interests.

Page 5

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

COMBINING STATEMENTS OF OPERATIONS

(in millions)

	Quarter Ended December 31, 2015
	PFI Excluding Closed Block Division			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1) :
Premiums		7,495			3,005			1,190			3,307			(7	)
Policy charges and fee income		1,514			707			699			122			(14	)
Net investment income		2,964			1,188			562			1,078			136
Asset management fees, commissions and other income		1,272			1,198			177	��		164			(267	)
Total revenues		13,245			6,098			2,628			4,671			(152	)
Benefits and Expenses (1):
Insurance and annuity benefits		7,917			3,502			1,570			2,833			12
Interest credited to policyholders’ account balances		879			440			226			213			—
Interest expense		322			21			140			1			160
Deferral of acquisition costs		(691	)		(122	)		(198	)		(387	)		16
Amortization of acquisition costs		443			140			80			233			(10	)
General and administrative expenses		3,193			1,341			684			1,040			128
Total benefits and expenses		12,063			5,322			2,502			3,933			306
Adjusted operating income (loss) before income taxes		1,182			776			126			738			(458	)
	Quarter Ended December 31, 2014
	PFI Excluding Closed Block Business			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		9,890			5,373			1,183			3,338			(4	)
Policy charges and fee income		1,580			727			704			164			(15	)
Net investment income		3,021			1,261			565			1,084			111
Asset management fees, commissions and other income		1,338			1,249			183			151			(245	)
Total revenues		15,829			8,610			2,635			4,737			(153	)
Benefits and Expenses (1):
Insurance and annuity benefits		10,280			5,869			1,492			2,903			16
Interest credited to policyholders’ account balances		919			476			219			224			—
Interest expense		328			35			140			1			152
Deferral of acquisition costs		(672	)		(142	)		(151	)		(394	)		15
Amortization of acquisition costs		526			170			125			246			(15	)
General and administrative expenses		3,103			1,379			648			1,071			5
Total benefits and expenses		14,484			7,787			2,473			4,051			173
Adjusted operating income (loss) before income taxes		1,345			823			162			686			(326	)

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

Page 6

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

COMBINING STATEMENTS OF OPERATIONS

(in millions)

	Twelve Months Ended December 31, 2015
	PFI Excluding Closed Block Division			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1) :
Premiums		25,463			6,845			4,781			13,844			(7	)
Policy charges and fee income		6,003			2,885			2,637			530			(49	)
Net investment income		11,958			4,796			2,255			4,357			550
Asset management fees, commissions and other income		5,206			4,934			703			633			(1,064	)
Total revenues		48,630			19,460			10,376			19,364			(570	)
Benefits and Expenses (1):
Insurance and annuity benefits		26,698			8,664			6,146			11,872			16
Interest credited to policyholders’ account balances		3,585			1,804			901			880			—
Interest expense		1,302			104			558			5			635
Deferral of acquisition costs		(2,652	)		(487	)		(660	)		(1,565	)		60
Amortization of acquisition costs		1,631			550			139			989			(47	)
General and administrative expenses		11,835			5,318			2,481			3,957			79
Total benefits and expenses		42,399			15,953			9,565			16,138			743
Adjusted operating income (loss) before income taxes		6,231			3,507			811			3,226			(1,313	)
	Twelve Months Ended December 31, 2014
	PFI Excluding Closed Block Business			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		26,204			6,901			4,907			14,424			(28	)
Policy charges and fee income		6,124			2,866			2,710			596			(48	)
Net investment income		12,046			4,959			2,233			4,434			420
Asset management fees, commissions and other income		5,270			4,901			733			612			(976	)
Total revenues		49,644			19,627			10,583			20,066			(632	)
Benefits and Expenses (1):
Insurance and annuity benefits		27,539			8,817			6,355			12,284			83
Interest credited to policyholders’ account balances		3,720			1,905			854			961			—
Interest expense		1,308			142			542			4			620
Deferral of acquisition costs		(2,694	)		(564	)		(549	)		(1,641	)		60
Amortization of acquisition costs		1,853			594			353			961			(55	)
General and administrative expenses		12,026			5,266			2,507			4,245			8
Total benefits and expenses		43,752			16,160			10,062			16,814			716
Adjusted operating income (loss) before income taxes		5,892			3,467			521			3,252			(1,348	)

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

Page 7

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

CONSOLIDATED BALANCE SHEETS - PFI

(in millions)

	Consolidated PFI
	12/31/2014		03/31/2015		06/30/2015		09/30/2015		12/31/2015
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $265,116; $263,134; $262,820; $263,281; $265,416)		299,090		299,422		290,063		290,778		290,323
Fixed maturities, held to maturity, at amortized cost (fair value $2,902; $2,817; $2,674; $2,669; $2,624)		2,575		2,513		2,396		2,380		2,308
Trading account assets supporting insurance liabilities, at fair value		20,263		20,626		20,267		20,408		20,522
Other trading account assets, at fair value		10,874		11,989		12,749		14,075		14,458
Equity securities, available for sale, at fair value (cost $6,921; $7,045; $6,870; $6,755; $6,847)		9,861		10,206		9,901		9,109		9,274
Commercial mortgage and other loans		46,432		47,478		48,569		50,048		50,559
Policy loans		11,712		11,693		11,652		11,624		11,657
Other long-term investments		10,921		11,001		10,678		10,591		9,986
Short-term investments		8,258		5,947		5,669		7,937		8,105
Total investments		419,986		420,875		411,944		416,950		417,192
Cash and cash equivalents		14,918		19,119		17,038		20,207		17,612
Accrued investment income		3,130		3,135		3,117		3,156		3,110
Deferred policy acquisition costs		15,971		15,639		16,569		16,206		16,718
Value of business acquired		2,836		2,514		2,994		2,847		2,828
Other assets		13,379		14,624		14,728		14,545		14,358
Separate account assets		296,435		302,706		296,341		280,616		285,570
Total assets		766,655		778,612		762,731		754,527		757,388
Liabilities:
Future policy benefits		217,766		220,840		216,555		222,220		224,384
Policyholders’ account balances		136,150		135,143		135,630		136,620		136,784
Securities sold under agreements to repurchase		9,407		7,766		7,863		8,107		7,882
Cash collateral for loaned securities		4,241		4,437		3,808		4,241		3,496
Income taxes		9,881		11,390		9,239		9,644		8,714
Senior short-term debt		3,839		3,013		3,621		1,833		1,216
Senior long-term debt		14,947		14,819		14,380		14,445		13,843
Junior subordinated long-term debt		4,884		4,884		5,884		5,884		5,884
Notes issued by consolidated variable interest entities		6,058		6,830		7,455		8,370		8,597
Other liabilities		20,698		21,210		19,663		19,777		19,095
Separate account liabilities		296,435		302,706		296,341		280,616		285,570
Total liabilities		724,306		733,038		720,439		711,757		715,465
Attributed Equity:
Accumulated other comprehensive income		16,050		17,752		13,404		13,463		12,285
Other attributed equity		25,720		27,292		28,319		29,257		29,605
Total attributed equity		41,770		45,044		41,723		42,720		41,890
Noncontrolling Interest		579		530		569		50		33
Total Equity		42,349		45,574		42,292		42,770		41,923
Total liabilities and equity		766,655		778,612		762,731		754,527		757,388

Page 8

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

COMBINED BALANCE SHEETS - PFI EXCLUDING CLOSED BLOCK BUSINESS / DIVISION

(in millions)

	PFI Excluding Closed Block Business (1)		PFI Excluding Closed Block Division
	12/31/2014		03/31/2015		06/30/2015		09/30/2015		12/31/2015
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $225,342; $225,741; $225,742; $226,686; $229,099)		255,425		258,359		250,739		251,953		252,528
Fixed maturities, held to maturity, at amortized cost (fair value $2,902; $2,817; $2,674; $2,669; $2,624)		2,575		2,513		2,396		2,380		2,308
Trading account assets supporting insurance liabilities, at fair value		20,263		20,626		20,267		20,408		20,522
Other trading account assets, at fair value		10,524		11,671		12,439		13,776		14,170
Equity securities, available for sale, at fair value (cost $4,732; $4,782; $4,811; $4,848; $4,982)		6,339		6,593		6,671		6,385		6,548
Commercial mortgage and other loans		36,957		37,890		38,731		40,206		40,788
Policy loans		6,798		6,813		6,804		6,814		6,867
Other long-term investments		8,155		8,105		7,841		7,621		7,065
Short-term investments		6,221		4,978		4,571		6,143		6,638
Total investments		353,257		357,548		350,459		355,686		357,434
Cash and cash equivalents		13,718		17,709		16,029		19,554		16,527
Accrued investment income		2,579		2,581		2,598		2,618		2,603
Deferred policy acquisition costs		15,561		15,239		16,178		15,824		16,345
Value of business acquired		2,836		2,514		2,994		2,847		2,828
Other assets		11,378		14,026		14,239		14,181		13,954
Separate account assets		296,435		302,706		296,341		280,616		285,570
Total assets		695,764		712,323		698,838		691,326		695,261
Liabilities:
Future policy benefits		167,903		171,057		166,890		172,662		174,845
Policyholders’ account balances		130,840		129,854		130,358		131,359		131,534
Securities sold under agreements to repurchase		5,492		4,308		4,592		5,259		5,421
Cash collateral for loaned securities		3,064		3,024		2,679		2,851		2,095
Income taxes		10,536		12,132		9,985		10,406		9,535
Senior short-term debt		1,746		3,013		3,621		1,833		1,216
Senior long-term debt		14,947		14,819		14,380		14,445		13,843
Junior subordinated long-term debt		4,884		4,884		5,884		5,884		5,884
Notes issued by consolidated variable interest entities		6,058		6,830		7,455		8,370		8,597
Other liabilities		12,299		12,594		12,864		13,451		13,389
Separate account liabilities		296,435		302,706		296,341		280,616		285,570
Total liabilities		654,204		665,221		655,049		647,136		651,929
Attributed Equity:
Accumulated other comprehensive income		15,882		17,739		13,406		13,459		12,283
Other attributed equity		25,099		28,833		29,814		30,681		31,016
Total attributed equity		40,981		46,572		43,220		44,140		43,299
Noncontrolling Interest		579		530		569		50		33
Total Equity		41,560		47,102		43,789		44,190		43,332
Total liabilities and equity		695,764		712,323		698,838		691,326		695,261

(1) Represents financial position of Financial Services Businesses for periods prior to first quarter 2015.

Page 9

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

COMBINING BALANCE SHEETS BY DIVISION

(in millions)

	As of December 31, 2015
	Consolidated PFI		Closed Block Division			PFI Excluding Closed Block Division		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		417,192		59,758			357,434		132,934		50,547		157,800		16,153
Deferred policy acquisition costs		16,718		373			16,345		5,048		5,064		6,554		(321	)
Other assets		37,908		1,996			35,912		15,081		11,143		8,246		1,442
Separate account assets		285,570		—			285,570		242,058		44,446		2,553		(3,487	)
Total assets		757,388		62,127			695,261		395,121		111,200		175,153		13,787
Liabilities:
Future policy benefits		224,384		49,539			174,845		63,585		15,053		91,931		4,276
Policyholders’ account balances		136,784		5,250			131,534		55,833		31,987		43,711		3
Debt		20,943		—			20,943		2,846		7,251		29		10,817
Other liabilities		47,784		8,747			39,037		15,524		6,633		14,865		2,015
Separate account liabilities		285,570		—			285,570		242,058		44,446		2,553		(3,487	)
Total liabilities		715,465		63,536			651,929		379,846		105,370		153,089		13,624
Attributed Equity:
Accumulated other comprehensive income (loss)		12,285		2			12,283		576		504		12,897		(1,694	)
Other attributed equity		29,605		(1,411	)		31,016		14,686		5,326		9,119		1,885
Total attributed equity		41,890		(1,409	)		43,299		15,262		5,830		22,016		191
Noncontrolling Interest		33		—			33		13		—		48		(28	)
Total Equity		41,923		(1,409	)		43,332		15,275		5,830		22,064		163
Total liabilities and equity		757,388		62,127			695,261		395,121		111,200		175,153		13,787
	As of December 31, 2014
	Consolidated PFI		Closed Block Business			PFI Excluding Closed Block Business		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		419,986		66,729			353,257		132,397		50,134		156,414		14,312
Deferred policy acquisition costs		15,971		410			15,561		5,493		4,233		6,156		(321	)
Other assets		34,263		3,752			30,511		15,909		10,971		6,735		(3,104	)
Separate account assets		296,435		—			296,435		251,040		45,939		2,330		(2,874	)
Total assets		766,655		70,891			695,764		404,839		111,277		171,635		8,013
Liabilities:
Future policy benefits		217,766		49,863			167,903		61,305		14,350		88,287		3,961
Policyholders’ account balances		136,150		5,310			130,840		56,158		29,798		44,866		18
Debt		23,670		2,093			21,577		5,758		8,386		38		7,395
Other liabilities		50,285		12,836			37,449		13,631		6,444		14,741		2,633
Separate account liabilities		296,435		—			296,435		251,040		45,939		2,330		(2,874	)
Total liabilities		724,306		70,102			654,204		387,892		104,917		150,262		11,133
Attributed Equity:
Accumulated other comprehensive income (loss)		16,050		168			15,882		2,421		1,355		13,377		(1,271	)
Other attributed equity		25,720		621			25,099		13,965		5,005		7,942		(1,813	)
Total attributed equity		41,770		789			40,981		16,386		6,360		21,319		(3,084	)
Noncontrolling Interest		579		—			579		561		—		54		(36	)
Total Equity		42,349		789			41,560		16,947		6,360		21,373		(3,120	)
Total liabilities and equity		766,655		70,891			695,764		404,839		111,277		171,635		8,013

Page 10

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED

(in millions)

	PFI Excluding Closed Block Division								PFI Excluding Closed Block Business
	As of December 31, 2015								As of December 31, 2014
	Senior debt				Junior Subordinated Long-term Debt				Senior debt				Junior Subordinated Long-term Debt
	Short-term Debt		Long-term Debt				Total Debt		Short-term Debt		Long-term Debt				Total Debt
Borrowings by use of proceeds:
Capital Debt		194		5,906		5,884		11,984		454		7,997		4,884		13,335
Operating Debt - Investment related		438		6,602		—		7,040		1,754		4,958		—		6,712
Operating Debt - Specified businesses		584		770		—		1,354		1,631		1,489		—		3,120
Limited recourse and non-recourse borrowing		—		565		—		565		—		503		—		503
Total debt		1,216		13,843		5,884		20,943		3,839		14,947		4,884		23,670
	PFI Excluding Closed Block Division								PFI Excluding Closed Block Business
	As of December 31, 2015								As of December 31, 2014
	Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total		Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total
Borrowings by sources:
Capital Debt		10,992		941		51		11,984		12,241		1,041		53		13,335
Operating Debt - Investment related		5,356		73		1,611		7,040		4,013		494		2,205		6,712
Operating Debt - Specified businesses		970		384		—		1,354		2,125		995		—		3,120
Limited recourse and non-recourse borrowing		—		565		—		565		—		503		—		503
Total debt		17,318		1,963		1,662		20,943		18,379		3,033		2,258		23,670

(1) Includes Prudential Funding, LLC.

(2) Capital debt at Prudential Insurance Co. of America includes $841 million and $941 million of surplus notes as of December 31, 2015 and 2014, respectively.

Page 11

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

COMBINED STATEMENTS OF OPERATIONS - U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION

(in millions)

Year-to-date						%			2014			2015
2015			2014			Change			4Q			1Q			2Q			3Q			4Q
								Revenues (1):
	6,845			6,901			-1%	Premiums		5,373			1,213			1,939			688			3,005
	2,885			2,866			1%	Policy charges and fee income		727			720			740			718			707
	4,796			4,959			-3%	Net investment income		1,261			1,217			1,186			1,205			1,188
	4,934			4,901			1%	Asset management fees, commissions and other income		1,249			1,248			1,291			1,197			1,198
	19,460			19,627			-1%	Total revenues		8,610			4,398			5,156			3,808			6,098
								Benefits and Expenses (1):
	8,664			8,817			-2%	Insurance and annuity benefits		5,869			1,616			2,330			1,216			3,502
	1,804			1,905			-5%	Interest credited to policy holders’ account balances		476			450			446			468			440
	104			142			-27%	Interest expense		35			34			24			25			21
	(487	)		(564	)		14%	Deferral of acquisition costs		(142	)		(120	)		(128	)		(117	)		(122	)
	550			594			-7%	Amortization of acquisition costs		170			99			132			179			140
	5,318			5,266			1%	General and administrative expenses		1,379			1,301			1,371			1,305			1,341
	15,953			16,160			-1%	Total benefits and expenses		7,787			3,380			4,175			3,076			5,322
	3,507			3,467			1%	Adjusted operating income before income taxes		823			1,018			981			732			776

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests.

Page 12

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

COMBINING STATEMENTS OF OPERATIONS - U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION

(in millions)

	Twelve Months Ended December 31, 2015												Quarter Ended December 31, 2015
	Total U.S.  Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management			Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		6,845			117			6,728			—			3,005			29			2,976			—
Policy charges and fee income		2,885			2,668			217			—			707			653			54			—
Net investment income		4,796			603			4,082			111			1,188			153			1,005			30
Asset management fees, commissions and other income		4,934			1,307			794			2,833			1,198			306			191			701
Total revenues		19,460			4,695			11,821			2,944			6,098			1,141			4,226			731
Benefits and Expenses (1):
Insurance and annuity benefits		8,664			314			8,350			—			3,502			79			3,423			—
Interest credited to policyholders’ account balances		1,804			363			1,441			—			440			95			345			—
Interest expense		104			69			25			10			21			14			4			3
Deferral of acquisition costs		(487	)		(430	)		(46	)		(11	)		(122	)		(105	)		(14	)		(3	)
Amortization of acquisition costs		550			465			66			19			140			121			14			5
General and administrative expenses		5,318			2,117			1,054			2,147			1,341			527			286			528
Total benefits and expenses		15,953			2,898			10,890			2,165			5,322			731			4,058			533
Adjusted operating income before income taxes		3,507			1,797			931			779			776			410			168			198
	Twelve Months Ended December 31, 2014												Quarter Ended December 31, 2014
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management			Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		6,901			105			6,796			—			5,373			28			5,345			—
Policy charges and fee income		2,866			2,649			217			—			727			671			56			—
Net investment income		4,959			630			4,209			120			1,261			158			1,071			32
Asset management fees, commissions and other income		4,901			1,326			855			2,720			1,249			334			208			707
Total revenues		19,627			4,710			12,077			2,840			8,610			1,191			6,680			739
Benefits and Expenses (1):
Insurance and annuity benefits		8,817			481			8,336			—			5,869			144			5,725			—
Interest credited to policyholders’ account balances		1,905			429			1,476			—			476			110			366			—
Interest expense		142			107			25			10			35			27			6			2
Deferral of acquisition costs		(564	)		(498	)		(50	)		(16	)		(142	)		(123	)		(16	)		(3	)
Amortization of acquisition costs		594			543			31			20			170			151			14			5
General and administrative expenses		5,266			2,181			1,044			2,041			1,379			560			276			543
Total benefits and expenses		16,160			3,243			10,862			2,055			7,787			869			6,371			547
Adjusted operating income before income taxes		3,467			1,467			1,215			785			823			322			309			192

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests.

Page 13

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES SALES RESULTS AND ACCOUNT VALUES

(in millions)

Year-to-date							2014			2015
2015			2014				4Q			1Q			2Q			3Q			4Q
						SALES AND ACCOUNT VALUES:
						Variable Annuities:
	155,083			150,467		Beginning total account value		153,172			155,083			157,552			155,424			146,685
	3,682			6,987		Sales: Highest Daily Suite - risk retained by Prudential (1)		1,688			1,421			846			735			680
	1,545			—		Highest Daily Suite - externally reinsured living benefits		—			—			559			500			486
	3,505			2,970		Other variable annuities (2)		753			794			921			880			910
	8,732			9,957		Total sales		2,441			2,215			2,326			2,115			2,076
	(8,291	)		(8,714	)	Surrenders and withdrawals		(2,217	)		(2,167	)		(2,170	)		(1,965	)		(1,989	)
	441			1,243		Net sales		224			48			156			150			87
	(1,541	)		(1,459	)	Benefit payments		(368	)		(400	)		(390	)		(400	)		(351	)
	(1,100	)		(216	)	Net flows		(144	)		(352	)		(234	)		(250	)		(264	)
	(955	)		8,329		Change in market value, interest credited, and other		2,945			3,713			(983	)		(7,594	)		3,909
	(3,587	)		(3,497	)	Policy charges		(890	)		(892	)		(911	)		(895	)		(889	)
	149,441			155,083		Ending total account value		155,083			157,552			155,424			146,685			149,441
						Variable Annuities Account Value by Product:
	112,060			117,627		Highest Daily Suite - risk retained by Prudential (1)		117,627			119,801			117,723			110,390			112,060
	1,513			—		Highest Daily Suite - externally reinsured living benefits		—			—			553			1,011			1,513
	35,868			37,456		Other variable annuities (2)		37,456			37,751			37,148			35,284			35,868
	149,441			155,083		Ending total account value		155,083			157,552			155,424			146,685			149,441
						Fixed Annuities and other products (3):
	3,581			3,673		Beginning total account value		3,611			3,581			3,575			3,552			3,532
	48			51		Sales		8			12			15			8			13
	(124	)		(138	)	Surrenders and withdrawals		(39	)		(29	)		(33	)		(30	)		(32	)
	(76	)		(87	)	Net redemptions		(31	)		(17	)		(18	)		(22	)		(19	)
	(369	)		(340	)	Benefit payments		(85	)		(88	)		(99	)		(91	)		(91	)
	(445	)		(427	)	Net flows		(116	)		(105	)		(117	)		(113	)		(110	)
	370			337		Interest credited and other		86			99			94			94			83
	(2	)		(2	)	Policy charges		—			—			—			(1	)		(1	)
	3,504			3,581		Ending total account value		3,581			3,575			3,552			3,532			3,504
						SALES BY DISTRIBUTION CHANNEL:
						Variable and Fixed Annuities (4):
	2,549			2,509		Insurance Agents		633			638			673			611			627
	1,681			2,008		Wirehouses		482			394			443			429			415
	3,285			4,067		Independent Financial Planners		993			855			881			788			761
	1,265			1,424		Bank Distribution		341			340			344			295			286
	8,780			10,008		Total		2,449			2,227			2,341			2,123			2,089

(1) Includes variable annuities with “Highest Daily” optional living benefits retained by Prudential and predecessor “Lifetime Five” feature.

(2) Includes Prudential Defined Income (PDI), and products without guaranteed minimum income and withdrawal benefits.

(3) Includes single premium immediate annuities.

(4) Amounts represent gross sales.

Page 14

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)

Year-to-date							2014			2015
2015			2014				4Q			1Q			2Q			3Q			4Q
						INDIVIDUAL ANNUITIES:
						Account Values in General Account (1):
	9,852			10,054		Beginning balance		9,816			9,852			9,728			9,724			10,030
	1,165			1,331		Premiums and deposits		336			308			302			276			279
	(704	)		(875	)	Surrenders and withdrawals		(218	)		(198	)		(184	)		(176	)		(146	)
	461			456		Net sales		118			110			118			100			133
	(446	)		(415	)	Benefit payments		(103	)		(105	)		(123	)		(109	)		(109	)
	15			41		Net flows		15			5			(5	)		(9	)		24
	263			337		Interest credited and other		68			64			63			66			70
	(186	)		(578	)	Net transfers (to) from separate account		(47	)		(193	)		(61	)		249			(181	)
	(2	)		(2	)	Policy charges		—			—			(1	)		—			(1	)
	9,942			9,852		Ending balance		9,852			9,728			9,724			10,030			9,942
						Account Values in Separate Account (1):
	148,812			144,086		Beginning balance		146,967			148,812			151,399			149,252			140,187
	7,615			8,677		Premiums and deposits		2,113			1,919			2,039			1,847			1,810
	(7,711	)		(7,977	)	Surrenders and withdrawals		(2,038	)		(1,998	)		(2,019	)		(1,819	)		(1,875	)
	(96	)		700		Net sales (redemptions)		75			(79	)		20			28			(65	)
	(1,464	)		(1,384	)	Benefit payments		(350	)		(383	)		(366	)		(382	)		(333	)
	(1,560	)		(684	)	Net flows		(275	)		(462	)		(346	)		(354	)		(398	)
	(848	)		8,329		Change in market value, interest credited and other		2,963			3,748			(952	)		(7,566	)		3,922
	186			578		Net transfers (to) from general account		47			193			61			(249	)		181
	(3,587	)		(3,497	)	Policy charges		(890	)		(892	)		(910	)		(896	)		(889	)
	143,003			148,812		Ending balance		148,812			151,399			149,252			140,187			143,003

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

Page 15

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES LIVING BENEFIT FEATURES

(in millions)

	2014		2015
	4Q		1Q		2Q		3Q		4Q
LIVING BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		5,756		5,594		5,276		4,933		4,767
Guaranteed minimum withdrawal benefits		736		707		666		588		578
Guaranteed minimum income benefits		3,324		3,271		3,151		2,861		2,870
Guaranteed minimum withdrawal & income benefits - risk retained by Prudential		120,404		123,093		121,358		114,539		116,724
Guaranteed minimum withdrawal & income benefits - externally reinsured		—		—		553		1,011		1,513
Total		130,220		132,665		131,004		123,932		126,452
Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature - risk retained by Prudential		112,724		114,797		112,770		105,926		107,411
Account Values with Auto-Rebalancing Feature - externally reinsured		—		—		553		1,011		1,513
Account Values without Auto-Rebalancing Feature		17,496		17,868		17,681		16,995		17,528
Total		130,220		132,665		131,004		123,932		126,452
Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature - risk retained by Prudential		2,034		1,880		2,350		4,259		4,019
Net Amount at Risk with Auto-Rebalancing Feature - externally reinsured		—		—		—		—		—
Net Amount at Risk without Auto-Rebalancing Feature		871		816		905		1,296		1,194
Total		2,905		2,696		3,255		5,555		5,213

(1) At end of period.

Page 16

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES DEATH BENEFIT FEATURES

(in millions)

	2014		2015
	4Q		1Q		2Q		3Q		4Q
DEATH BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		117,592		119,854		118,425		112,070		114,402
Net amount at risk		403		377		470		894		737
Minimum return, anniversary contract value, or maximum contract value:
Account value		34,298		34,432		33,665		31,366		31,658
Net amount at risk		2,855		2,709		3,058		4,711		4,212
Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		112,724		114,797		113,323		106,937		108,924
Account Values without Auto-Rebalancing Feature		39,166		39,489		38,767		36,499		37,136
Total		151,890		154,286		152,090		143,436		146,060
Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		765		699		980		2,305		1,919
Net Amount at Risk without Auto-Rebalancing Feature		2,493		2,387		2,548		3,300		3,030
Total		3,258		3,086		3,528		5,605		4,949

(1) At end of period.

Page 17

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - RETIREMENT SEGMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)

Year-to-date							2014			2015
2015			2014				4Q			1Q			2Q			3Q			4Q
						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES
						Full Service:
	184,196			173,502		Beginning total account value		180,535			184,196			188,145			188,807			184,515
	25,684			23,934		Deposits and sales		5,629			6,314			5,040			9,422			4,908
	(21,559	)		(22,601	)	Withdrawals and benefits		(6,311	)		(6,229	)		(4,683	)		(5,072	)		(5,575	)
	640			9,361		Change in market value, interest credited, interest income and other activity		4,343			3,864			305			(8,642	)		5,113
	188,961			184,196		Ending total account value		184,196			188,145			188,807			184,515			188,961
	4,125			1,333		Net additions (withdrawals)		(682	)		85			357			4,350			(667	)
						Stable value account values included above		44,671			44,733			45,007			45,731			45,971
						Institutional Investment Products:
	179,641			149,402		Beginning total account value		175,526			179,641			177,120			183,798			181,662
	15,572			43,293		Additions		8,523			969			9,147			2,031			3,425
	(15,388	)		(16,036	)	Withdrawals and benefits		(4,783	)		(3,495	)		(3,808	)		(3,940	)		(4,145	)
	3,476			5,833		Change in market value, interest credited and interest income		1,699			1,629			83			1,106			658
	(3,337	)		(2,851	)	Other (1)		(1,324	)		(1,624	)		1,256			(1,333	)		(1,636	)
	179,964			179,641		Ending total account value		179,641			177,120			183,798			181,662			179,964
	184			27,257		Net additions (withdrawals)		3,740			(2,526	)		5,339			(1,909	)		(720	)
						Amounts included in ending total account value above:
	66,827			69,814		Investment-only stable value wraps		69,814			69,113			67,958			68,097			66,827
	33,453			30,839		Longevity reinsurance (2)		30,839			29,176			36,252			34,628			33,453
	79,684			78,988		Group annuities and other products		78,988			78,831			79,588			78,937			79,684
	179,964			179,641		Ending total account value		179,641			177,120			183,798			181,662			179,964

(1) “Other” activity includes the effect of foreign exchange rate changes, as well as changes in asset balances for externally managed accounts.

(2) Represents notional amounts based on present value of future benefits under longevity reinsurance contracts which have not been significantly pre-funded.

Page 18

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION FOR ASSET MANAGEMENT SEGMENT

						Supplementary Revenue Information (in millions):
Year-to-date				%			2014		2015
2015		2014		Change			4Q		1Q		2Q		3Q		4Q
						Analysis of revenues by type:
	2,135		2,021		6%	Asset management fees		515		530		540		536		529
	241		262		-8%	Other related revenues		67		72		52		49		68
	568		557		2%	Service, distribution and other revenues		157		131		184		119		134
	2,944		2,840		4%	Total Asset Management segment revenues		739		733		776		704		731
						Analysis of asset management fees by source:
	923		877		5%	Institutional customers		222		228		230		234		231
	764		720		6%	Retail customers		184		189		197		191		187
	448		424		6%	General account		109		113		113		111		111
	2,135		2,021		6%	Total asset management fees		515		530		540		536		529

Supplementary Assets Under Management Information (in billions):
	December 31, 2015
	Equity		Fixed Income		Real Estate		Total
Institutional customers		59.9		289.9		39.3		389.1
Retail customers		121.4		73.7		2.2		197.3
General account		7.4		367.5		1.8		376.7
Total		188.7		731.1		43.3		963.1
	December 31, 2014
	Equity		Fixed Income		Real Estate		Total
Institutional customers		63.8		270.0		36.2		370.0
Retail customers		122.8		61.0		2.3		186.1
General account		7.7		368.1		1.6		377.4
Total		194.3		699.1		40.1		933.5

Page 19

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in billions)

Year-to-date							2014			2015
2015			2014				4Q			1Q			2Q			3Q			4Q
						Institutional Customers - Assets Under Management:
						Assets gathered by Investment Management & Advisory Services sales force:
	323.6			300.5		Beginning assets under management		320.7			323.6			334.1			335.9			338.6
	66.9			42.3		Additions		10.9			16.8			18.3			15.5			16.3
	(45.7	)		(41.6	)	Withdrawals		(13.4	)		(13.1	)		(11.5	)		(10.8	)		(10.3	)
	2.1			23.1		Change in market value		5.8			6.6			(5.0	)		(1.7	)		2.2
	0.3			—		Net money market flows		—			0.2			—			(0.2	)		0.3
	(0.1	)		(0.7	)	Other (1)		(0.4	)		—			—			(0.1	)		—
	347.1			323.6		Ending assets under management		323.6			334.1			335.9			338.6			347.1
	42.0			46.4		Affiliated institutional assets under management		46.4			46.8			44.7			42.3			42.0
	389.1			370.0		Total assets managed for institutional customers at end of period		370.0			380.9			380.6			380.9			389.1
	21.2			0.7		Net institutional additions (withdrawals), excluding money market activity		(2.5	)		3.7			6.8			4.7			6.0
				��
						Retail Customers - Assets Under Management:
						Assets gathered by Investment Management & Advisory Services sales force:
	126.8			115.0		Beginning assets under management		122.7			126.8			135.1			135.2			125.9
	40.9			36.8		Additions		11.9			13.1			10.3			8.2			9.3
	(40.1	)		(32.1	)	Withdrawals		(9.3	)		(9.1	)		(10.7	)		(9.8	)		(10.5	)
	1.4			7.2		Change in market value		1.6			4.3			0.5			(7.6	)		4.2
	—			—		Net money market flows		—			—			—			—			—
	(0.1	)		(0.1	)	Other		(0.1	)		—			—			(0.1	)		—
	128.9			126.8		Ending assets under management		126.8			135.1			135.2			125.9			128.9
	68.4			59.3		Affiliated retail assets under management		59.3			63.3			64.0			63.0			68.4
	197.3			186.1		Total assets managed for retail customers at end of period		186.1			198.4			199.2			188.9			197.3
	0.8			4.7		Net retail additions (withdrawals), excluding money market activity		2.6			4.0			(0.4	)		(1.6	)		(1.2	)

(1) “Other” activity represents transfers from the Retirement Segment, as a result of changes in the client contract form; and FX related to International assets under management.

Page 20

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

COMBINED STATEMENTS OF OPERATIONS - U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION

(in millions)

Year-to-date						%			2014			2015
2015			2014			Change			4Q			1Q			2Q			3Q			4Q
								Revenues (1):
	4,781			4,907			-3%	Premiums		1,183			1,188			1,200			1,203			1,190
	2,637			2,710			-3%	Policy charges and fee income		704			705			516			717			699
	2,255			2,233			1%	Net investment income		565			549			551			593			562
	703			733			-4%	Asset management fees, commissions and other income		183			186			184			156			177
	10,376			10,583			-2%	Total revenues		2,635			2,628			2,451			2,669			2,628
								Benefits and Expenses (1):
	6,146			6,355			-3%	Insurance and annuity benefits		1,492			1,598			1,471			1,507			1,570
	901			854			6%	Interest credited to policyholders’ account balances		219			210			237			228			226
	558			542			3%	Interest expense		140			136			140			142			140
	(660	)		(549	)		-20%	Deferral of acquisition costs		(151	)		(139	)		(157	)		(166	)		(198	)
	139			353			-61%	Amortization of acquisition costs		125			88			(127	)		98			80
	2,481			2,507			-1%	General and administrative expenses		648			589			575			633			684
	9,565			10,062			-5%	Total benefits and expenses		2,473			2,482			2,139			2,442			2,502
	811			521			56%	Adjusted operating income before income taxes		162			146			312			227			126

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses.

Page 21

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

COMBINING STATEMENTS OF OPERATIONS - U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION

(in millions)

	Twelve Months Ended December 31, 2015									Quarter Ended December 31, 2015
	Total U.S.  Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		4,781			896			3,885			1,190			216			974
Policy charges and fee income		2,637			2,054			583			699			553			146
Net investment income		2,255			1,669			586			562			421			141
Asset management fees, commissions and other income		703			614			89			177			157			20
Total revenues		10,376			5,233			5,143			2,628			1,347			1,281
Benefits and Expenses (1):
Insurance and annuity benefits		6,146			2,278			3,868			1,570			598			972
Interest credited to policyholders’ account balances		901			644			257			226			164			62
Interest expense		558			550			8			140			139			1
Deferral of acquisition costs		(660	)		(650	)		(10	)		(198	)		(197	)		(1	)
Amortization of acquisition costs		139			133			6			80			78			2
General and administrative expenses		2,481			1,643			838			684			466			218
Total benefits and expenses		9,565			4,598			4,967			2,502			1,248			1,254
Adjusted operating income before income taxes		811			635			176			126			99			27
	Twelve Months Ended December 31, 2014									Quarter Ended December 31, 2014
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		4,907			848			4,059			1,183			205			978
Policy charges and fee income		2,710			2,143			567			704			562			142
Net investment income		2,233			1,620			613			565			411			154
Asset management fees, commissions and other income		733			615			118			183			153			30
Total revenues		10,583			5,226			5,357			2,635			1,331			1,304
Benefits and Expenses (1):
Insurance and annuity benefits		6,355			2,140			4,215			1,492			524			968
Interest credited to policyholders’ account balances		854			606			248			219			154			65
Interest expense		542			533			9			140			138			2
Deferral of acquisition costs		(549	)		(547	)		(2	)		(151	)		(149	)		(2	)
Amortization of acquisition costs		353			345			8			125			124			1
General and administrative expenses		2,507			1,651			856			648			422			226
Total benefits and expenses		10,062			4,728			5,334			2,473			1,213			1,260
Adjusted operating income before income taxes		521			498			23			162			118			44

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses.

Page 22

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - INDIVIDUAL LIFE ANNUALIZED NEW BUSINESS PREMIUMS, ACCOUNT VALUE ACTIVITY, AND FACE AMOUNT IN FORCE

(in millions)

Year-to-date							2014			2015
2015			2014				4Q			1Q			2Q			3Q			4Q
						ANNUALIZED NEW BUSINESS PREMIUMS (1) :
	204			181		Term life		49			49			52			51			52
	220			149		Guaranteed Universal life		43			40			48			59			73
	89			70		Other Universal life		16			17			17			23			32
	78			52		Variable life		22			18			13			25			22
	591			452		Total		130			124			130			158			179
						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
	113			98		Prudential Agents		27			25			27			30			31
	478			354		Third party distribution		103			99			103			128			148
	591			452		Total		130			124			130			158			179
						ACCOUNT VALUE ACTIVITY:
						Policyholders’ Account Balances (2):
	22,526			21,842		Beginning balance		22,570			22,526			22,617			23,734			23,922
	3,219			2,880		Premiums and deposits		734			737			830			762			890
	(1,032	)		(1,130	)	Surrenders and withdrawals		(308	)		(267	)		(277	)		(246	)		(242	)
	2,187			1,750		Net sales		426			470			553			516			648
	(492	)		(430	)	Benefit payments		(104	)		(137	)		(128	)		(118	)		(109	)
	1,695			1,320		Net flows		322			333			425			398			539
	1,193			225		Interest credited and other		(137	)		(29	)		895			31			296
	432			432		Net transfers from separate account		107			115			124			106			87
	(1,359	)		(1,293	)	Policy charges		(336	)		(328	)		(324	)		(350	)		(357	)
	—			—		Acquisition		—			—			(3	)		3			—
	24,487			22,526		Ending balance		22,526			22,617			23,734			23,922			24,487
						Separate Account Liabilities:
	27,888			26,916		Beginning balance		27,455			27,888			28,246			28,055			26,183
	1,409			1,350		Premiums and deposits		420			391			307			291			420
	(882	)		(873	)	Surrenders and withdrawals		(212	)		(214	)		(225	)		(204	)		(239	)
	527			477		Net sales		208			177			82			87			181
	(144	)		(104	)	Benefit payments		(24	)		(34	)		(42	)		(26	)		(42	)
	383			373		Net flows		184			143			40			61			139
	109			1,987		Change in market value, interest credited and other		594			563			124			(1,598	)		1,020
	(432	)		(432	)	Net transfers to general account		(107	)		(115	)		(124	)		(106	)		(87	)
	(921	)		(956	)	Policy charges		(238	)		(233	)		(231	)		(229	)		(228	)
	—			—		Acquisition		—			—			—			—			—
	27,027			27,888		Ending balance		27,888			28,246			28,055			26,183			27,027
						FACE AMOUNT IN FORCE (3):
						Term life		650,233			659,900			670,043			679,979			689,527
						Guaranteed Universal life		109,538			111,756			114,212			117,360			121,290
						Other Universal life		43,168			43,165			43,213			43,469			44,051
						Variable life		168,852			168,000			166,490			164,363			164,020
						Total		971,791			982,820			993,958			1,005,171			1,018,889

(1) Excludes corporate-owned life insurance.

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

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

Page 23

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)

Year-to-date							2014			2015
2015			2014				4Q			1Q			2Q			3Q			4Q
						GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	204			189		Group life		28			131			10			38			25
	69			67		Group disability		9			31			14			19			5
	273			256		Total		37			162			24			57			30
						Future Policy Benefits (1) (2):
						Group life		2,219			2,156			2,083			1,994			2,185
						Group disability		3			30			21			11			3
						Total		2,222			2,186			2,104			2,005			2,188
						Policyholders’ Account Balances (1):
						Group life		8,106			8,025			8,120			8,234			8,359
						Group disability		236			231			264			200			210
						Total		8,342			8,256			8,384			8,434			8,569
						Separate Account Liabilities (1):
						Group life		24,305			26,764			24,550			23,646			23,292
						Group disability		—			—			—			—			—
						Total		24,305			26,764			24,550			23,646			23,292
						Group Life Insurance:
	3,940			3,977		Gross premiums, policy charges and fee income (3)		1,018			978			1,006			974			982
	3,731			3,808		Earned premiums, policy charges and fee income		914			918			955			926			932
	89.2%			89.2%		Benefits ratio (4)		88.1	%		92.8	%		88.3	%		88.6	%		87.1	%
	11.0%			11.1%		Administrative operating expense ratio		12.0	%		10.6	%		10.5	%		10.8	%		12.2	%
						Persistency ratio		93.2	%		92.8	%		92.6	%		92.0	%		91.3	%
						Group Disability Insurance:
	813			882		Gross premiums, policy charges and fee income (3)		220			199			205			213			196
	737			818		Earned premiums, policy charges and fee income		206			180			172			197			188
	79.2%			87.0%		Benefits ratio (5)		79.1	%		72.2	%		76.3	%		81.8	%		85.3	%
	34.1%			30.2%		Administrative operating expense ratio		30.9	%		32.7	%		34.1	%		32.7	%		36.9	%
						Persistency ratio		83.9	%		89.5	%		88.6	%		87.7	%		87.0	%
						Total Group Insurance (6):
	87.5	%		88.8	%	Benefits ratio		86.4	%		89.4	%		86.5	%		87.4	%		86.8	%

(1) As of end of period.

(2) The amounts shown exclude liabilities for unpaid claims and claim adjustment expenses.

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

(4) Group Life Insurance benefit ratios excluding market driven and discrete items. See Group Insurance Benefit Ratios definition for historical information. Benefit ratios including market driven and discrete items are 87.1%, 88.6%, 86.5%, 92.8%, and 88.1% for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively, and 88.7%, and 89.3% for year-to-date December 2015 and 2014, respectively.

(5) Group Disability Insurance benefit ratios excluding market driven and discrete items. See Group Insurance Benefit Ratios definition for historical information. Benefits ratios including market driven and discrete items are 85.3%, 81.8%, 61.6%, 72.2%, and 79.1% for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively, and 75.7%, and 99.8% for year-to-date December 2015 and 2014, respectively.

(6) Group Insurance benefit ratios excluding market driven and discrete items. See Group Insurance Benefit Ratios definition for historical information. Benefits ratios including market driven and discrete items are 86.8%, 87.4%, 82.7%, 89.4%, and 86.4% for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively, and 86.6%, and 91.1% for year-to-date December 2015 and 2014, respectively.

Page 24

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE

(in millions)

Year-to-date							2014			2015
2015			2014				4Q			1Q			2Q			3Q			4Q
						DEFERRED POLICY ACQUISITION COSTS
						INDIVIDUAL ANNUITIES:
	5,376			5,490		Beginning balance		5,554			5,376			5,046			5,186			4,735
	430			498		Capitalization		123			109			112			104			105
	(465	)		(543	)	Amortization - operating results		(151	)		(89	)		(92	)		(163	)		(121	)
	(475	)		(60	)	Amortization - realized investment gains and losses		(144	)		(343	)		89			(399	)		178
	50			(9	)	Impact of unrealized (gains) or losses on AFS securities		(6	)		(7	)		31			7			19
	—			—		Other		—			—			—			—			—
	4,916			5,376		Ending balance		5,376			5,046			5,186			4,735			4,916
						INDIVIDUAL LIFE INSURANCE:
	4,056			4,112		Beginning balance		4,185			4,056			3,985			4,652			4,683
	650			547		Capitalization		149			139			148			166			197
	(133	)		(345	)	Amortization - operating results		(124	)		(86	)		128			(97	)		(78	)
	1			(23	)	Amortization - realized investment gains and losses		(31	)		(23	)		37			(22	)		9
	309			(235	)	Impact of unrealized (gains) or losses on AFS securities		(123	)		(101	)		354			(16	)		72
	4,883			4,056		Ending balance		4,056			3,985			4,652			4,683			4,883
						GROUP INSURANCE:
	177			183		Beginning balance		176			177			175			183			182
	10			2		Capitalization		2			—			9			—			1
	(6	)		(8	)	Amortization - operating results		(1	)		(2	)		(1	)		(1	)	��	(2	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—
	181			177		Ending balance		177			175			183			182			181
						DEFERRED SALES INDUCEMENTS
						INDIVIDUAL ANNUITIES:
	1,513			1,813		Beginning balance		1,645			1,513			1,367			1,377			1,176
	8			21		Capitalization		3			3			2			1			2
	(162	)		(215	)	Amortization - operating results		(57	)		(31	)		(30	)		(56	)		(45	)
	(187	)		(107	)	Amortization - realized investment gains and losses		(78	)		(118	)		29			(148	)		50
	16			1		Impact of unrealized losses on AFS securities		—			—			9			2			5
	—			—		Other		—			—			—			—			—
	1,188			1,513		Ending balance		1,513			1,367			1,377			1,176			1,188

Page 25

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)

Year-to-date						% Change			2014			2015
2015			2014						4Q			1Q			2Q			3Q			4Q
								Revenues (1):
	13,844			14,424			-4%	Premiums		3,338			3,519			3,633			3,385			3,307
	530			596			-11%	Policy charges and fee income		164			140			139			129			122
	4,357			4,434			-2%	Net investment income		1,084			1,099			1,099			1,081			1,078
	633			612			3%	Asset management fees, commissions and other income		151			148			166			155			164
	19,364			20,066			-3%	Total revenues		4,737			4,906			5,037			4,750			4,671
								Benefits and Expenses (1):
	11,872			12,284			-3%	Insurance and annuity benefits		2,903			3,002			3,133			2,904			2,833
	880			961			-8%	Interest credited to policyholders’ account balances		224			224			224			219			213
	5			4			25%	Interest expense		1			1			1			2			1
	(1,565	)		(1,641	)		5%	Deferral of acquisition costs		(394	)		(401	)		(395	)		(382	)		(387	)
	989			961			3%	Amortization of acquisition costs		246			252			255			249			233
	3,957			4,245			-7%	General and administrative expenses		1,071			994			977			946			1,040
	16,138			16,814			-4%	Total benefits and expenses		4,051			4,072			4,195			3,938			3,933
	3,226			3,252			-1%	Adjusted operating income before income taxes		686			834			842			812			738

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

Page 26

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)

	Twelve Months Ended December 31, 2015									Quarter Ended December 31, 2015
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		13,844			6,728			7,116			3,307			1,628			1,679
Policy charges and fee income		530			339			191			122			82			40
Net investment income		4,357			1,751			2,606			1,078			448			630
Asset management fees, commissions and other income		633			354			279			164			91			73
Total revenues		19,364			9,172			10,192			4,671			2,249			2,422
Benefits and Expenses (1):
Insurance and annuity benefits		11,872			5,933			5,939			2,833			1,448			1,385
Interest credited to policyholders’ account balances		880			204			676			213			47			166
Interest expense		5			3			2			1			1			—
Deferral of acquisition costs		(1,565	)		(752	)		(813	)		(387	)		(186	)		(201	)
Amortization of acquisition costs		989			472			517			233			111			122
General and administrative expenses		3,957			1,727			2,230			1,040			461			579
Total benefits and expenses		16,138			7,587			8,551			3,933			1,882			2,051
Adjusted operating income before income taxes		3,226			1,585			1,641			738			367			371
	Twelve Months Ended December 31, 2014									Quarter Ended December 31, 2014
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		14,424			6,883			7,541			3,338			1,620			1,718
Policy charges and fee income		596			373			223			164			106			58
Net investment income		4,434			1,727			2,707			1,084			429			655
Asset management fees, commissions and other income		612			284			328			151			88			63
Total revenues		20,066			9,267			10,799			4,737			2,243			2,494
Benefits and Expenses (1):
Insurance and annuity benefits		12,284			6,014			6,270			2,903			1,434			1,469
Interest credited to policyholders’ account balances		961			221			740			224			49			175
Interest expense		4			2			2			1			—			1
Deferral of acquisition costs		(1,641	)		(774	)		(867	)		(394	)		(189	)		(205	)
Amortization of acquisition costs		961			453			508			246			116			130
General and administrative expenses		4,245			1,762			2,483			1,071			459			612
Total benefits and expenses		16,814			7,678			9,136			4,051			1,869			2,182
Adjusted operating income before income taxes		3,252			1,589			1,663			686			374			312

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

Page 27

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)

Year-to-date					2014		2015
2015		2014			4Q		1Q		2Q		3Q		4Q
				INTERNATIONAL INSURANCE OPERATING DATA:
				Actual exchange rate basis (1):
				Net premiums, policy charges and fee income:
	5,251		5,373	Japan, excluding Gibraltar Life		1,230		1,470		1,257		1,285		1,239
	7,307		7,764	Gibraltar Life		1,776		1,742		2,060		1,786		1,719
	1,816		1,883	All other countries		496		447		455		443		471
	14,374		15,020	Total		3,502		3,659		3,772		3,514		3,429
				Annualized new business premiums:
��	669		706	Japan, excluding Gibraltar Life		161		199		146		160		164
	1,548		1,584	Gibraltar Life		377		357		413		408		370
	448		455	All other countries		123		117		112		103		116
	2,665		2,745	Total		661		673		671		671		650
				Annualized new business premiums by distribution channel:
	1,117		1,161	Life Planner Operations		284		316		258		263		280
	630		701	Gibraltar Life Consultants		159		146		172		162		150
	679		626	Banks		156		153		174		186		166
	239		257	Independent Agency		62		58		67		60		54
	2,665		2,745	Total		661		673		671		671		650
				Constant exchange rate basis (2):
				Net premiums, policy charges and fee income:
	5,772		5,358	Japan, excluding Gibraltar Life		1,300		1,603		1,380		1,425		1,364
	7,956		7,650	Gibraltar Life		1,803		1,878		2,239		1,969		1,870
	1,828		1,695	All other countries		466		434		441		461		492
	15,556		14,703	Total		3,569		3,915		4,060		3,855		3,726
				Annualized new business premiums:
	737		702	Japan, excluding Gibraltar Life		169		217		162		177		181
	1,619		1,506	Gibraltar Life		370		369		428		432		390
	444		394	All other countries		110		109		107		107		121
	2,800		2,602	Total		649		695		697		716		692
				Annualized new business premiums by distribution channel:
	1,181		1,096	Life Planner Operations		279		326		269		284		302
	668		659	Gibraltar Life Consultants		156		153		179		175		161
	701		605	Banks		154		157		178		194		172
	250		242	Independent Agency		60		59		71		63		57
	2,800		2,602	Total		649		695		697		716		692

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

(2) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 106 per U.S. dollar and Korean won 1100 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 28

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

	2014			2015
	4Q			1Q			2Q			3Q			4Q
Face amount of individual policies in force at end of period (in billions) (1) (2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		303			307			310			313			316
Gibraltar Life		327			327			328			330			331
All other countries		111			113			114			115			118
Total		741			747			752			758			765
Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		3,111			3,162			3,194			3,234			3,278
Gibraltar Life		7,224			7,189			7,149			7,146			7,146
All other countries		1,855			1,880			1,911			1,944			1,980
Total		12,190			12,231			12,254			12,324			12,404
International life insurance policy persistency:
Life Planner Operations:
13 months		92.3	%		92.3	%		92.0	%		92.6	%		92.8	%
25 months		86.0	%		85.9	%		85.7	%		85.5	%		85.4	%
Gibraltar Life (3):
13 months		91.5	%		92.0	%		92.4	%		92.6	%		92.9	%
25 months		82.2	%		82.7	%		82.8	%		83.4	%		84.0	%
Number of Life Planners at end of period:
Japan		3,328			3,436			3,385			3,478			3,528
All other countries		4,024			4,033			4,030			4,031			4,064
Total Life Planners		7,352			7,469			7,415			7,509			7,592
Gibraltar Life Consultants		8,707			8,645			8,565			8,593			8,805

(1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 106 per U.S. dollar and Korean won 1100 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

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

(3) Reflects business sold by Life Consultants and Independent Agents.

Page 29

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

INVESTMENT PORTFOLIO COMPOSITION

(in millions)

	December 31, 2015									December 31, 2014
	Total Portfolio		Closed Block Division		PFI Excluding Closed Block Division					Total Portfolio		Closed Block Business		PFI Excluding Closed Block Business
					Amount		% of Total							Amount		% of Total
Fixed maturities:
Public, available-for-sale, at fair value		240,133		23,505		216,628		63.1	%		249,165		28,626		220,539		64.5	%
Public, held-to-maturity, at amortized cost		1,834		—		1,834		0.5	%		2,000		—		2,000		0.6	%
Private, available-for-sale, at fair value		50,057		14,290		35,767		10.4	%		49,777		15,039		34,738		10.1	%
Private, held-to-maturity, at amortized cost		474		—		474		0.1	%		575		—		575		0.2	%
Trading account assets supporting insurance liabilities, at fair value		20,522		—		20,522		6.0	%		20,263		—		20,263		5.9	%
Other trading account assets, at fair value		1,849		288		1,561		0.5	%		1,806		350		1,456		0.4	%
Equity securities, available-for-sale, at fair value		9,263		2,726		6,537		1.9	%		9,853		3,522		6,331		1.8	%
Commercial mortgage and other loans, at book value		50,257		9,771		40,486		11.8	%		46,013		9,475		36,538		10.7	%
Policy loans, at outstanding balance		11,657		4,790		6,867		2.0	%		11,712		4,914		6,798		2.0	%
Other long-term investments (1)		9,470		2,921		6,549		1.9	%		9,935		2,766		7,169		2.1	%
Short-term investments		7,717		1,467		6,250		1.8	%		7,911		2,037		5,874		1.7	%
Subtotal (2)		403,233		59,758		343,475		100.0	%		409,010		66,729		342,281		100.0	%
Invested assets of other entities and operations (3)		13,959		—		13,959					10,976		—		10,976
Total investments		417,192		59,758		357,434					419,986		66,729		353,257

Fixed Maturities by Credit Quality (2):

	December 31, 2015											December 31, 2014
	PFI Excluding Closed Block Division											PFI Excluding Closed Block Business
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total
Public Fixed Maturities:
NAIC Rating (4)
1		166,400		21,997		1,271		187,126		85.6	%		167,392		24,613		549		191,456		85.9	%
2		24,238		2,260		1,044		25,454		11.6	%		22,321		3,054		279		25,096		11.3	%
Subtotal - High or Highest Quality Securities		190,638		24,257		2,315		212,580		97.2	%		189,713		27,667		828		216,552		97.2	%
3		3,870		320		149		4,041		1.8	%		3,661		359		32		3,988		1.8	%
4		1,591		142		59		1,674		0.8	%		1,684		188		32		1,840		0.8	%
5		176		67		3		240		0.1	%		171		73		6		238		0.1	%
6		199		11		1		209		0.1	%		196		11		1		206		0.1	%
Subtotal - Other Securities		5,836		540		212		6,164		2.8	%		5,712		631		71		6,272		2.8	%
Total		196,474		24,797		2,527		218,744		100.0	%		195,425		28,298		899		222,824		100.0	%
Private Fixed Maturities:
NAIC Rating (4)
1		10,950		786		174		11,562		31.9	%		8,730		1,102		15		9,817		27.8	%
2		19,493		1,438		501		20,430		56.3	%		19,790		1,880		123		21,547		60.9	%
Subtotal - High or Highest Quality Securities		30,443		2,224		675		31,992		88.2	%		28,520		2,982		138		31,364		88.7	%
3		3,215		88		143		3,160		8.7	%		2,958		178		26		3,110		8.8	%
4		741		8		41		708		2.0	%		544		16		18		542		1.5	%
5		239		11		9		241		0.7	%		270		10		18		262		0.8	%
6		168		9		3		174		0.4	%		68		11		2		77		0.2	%
Subtotal - Other Securities		4,363		116		196		4,283		11.8	%		3,840		215		64		3,991		11.3	%
Total		34,806		2,340		871		36,275		100.0	%		32,360		3,197		202		35,355		100.0	%

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

(2) Excludes (i) assets of our asset management operations, including assets managed for third parties, (ii) derivative operations and (iii) those assets classified as “Separate account assets” on our balance sheet.

(3) Includes invested assets of our asset management and derivative operations. Excludes assets of our asset management operations managed for third parties and those assets classified as “Separate account assets” on our balance sheet.

(4) Reflects equivalent ratings for investments of the international insurance operations. Includes, as of December 31, 2015 and 2014, 938 securities with amortized cost of $4,253 million (fair value $4,325 million) and 1,330 securities with amortized cost of $6,864 million (fair value $7,342 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 30

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

INVESTMENT PORTFOLIO COMPOSITION (1)

(in millions)

	December 31, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value		109,257		77.6	%		111,991		79.5	%
Public, held-to-maturity, at amortized cost		1,834		1.3	%		2,000		1.4	%
Private, available-for-sale, at fair value		9,747		6.9	%		8,835		6.3	%
Private, held-to-maturity, at amortized cost		474		0.3	%		575		0.4	%
Trading account assets supporting insurance liabilities, at fair value		2,020		1.4	%		1,910		1.4	%
Other trading account assets, at fair value		647		0.5	%		672		0.5	%
Equity securities, available-for-sale, at fair value		2,660		1.9	%		2,504		1.8	%
Commercial mortgage and other loans, at book value		9,756		6.9	%		8,215		5.8	%
Policy loans, at outstanding balance		2,208		1.6	%		2,146		1.5	%
Other long-term investments (3)		1,742		1.3	%		1,606		1.1	%
Short-term investments		417		0.3	%		406		0.3	%
Total		140,762		100.0	%		140,860		100.0	%
	December 31, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
Excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value		107,371		53.0	%		108,548		53.9	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		26,020		12.8	%		25,903		12.9	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		18,502		9.1	%		18,353		9.1	%
Other trading account assets, at fair value		914		0.4	%		784		0.4	%
Equity securities, available-for-sale, at fair value		3,877		1.9	%		3,827		1.9	%
Commercial mortgage and other loans, at book value		30,730		15.2	%		28,323		14.0	%
Policy loans, at outstanding balance		4,659		2.3	%		4,652		2.3	%
Other long-term investments (3)		4,807		2.4	%		5,563		2.8	%
Short-term investments		5,833		2.9	%		5,468		2.7	%
Total		202,713		100.0	%		201,421		100.0	%

(1) For the Financial Services Businesses for periods prior to first quarter 2015 and excluding Closed Block Division for periods ended after December 31, 2014.

(2) Excludes assets classified as “Separate account assets” on our balance sheet.

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

Page 31

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

INVESTMENT RESULTS (1)

(in millions)

	Quarter Ended December 31
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (4)			Amount						Yield (4)			Amount
General Account (2)
Fixed maturities		3.95	%		2,228			452			3.88	%		2,184			308
Equity securities		4.80	%		58			(39	)		4.87	%		57			9
Commercial mortgage and other loans		4.47	%		388			6			4.93	%		374			(15	)
Policy loans		4.93	%		84			—			4.98	%		85			—
Short-term investments and cash equivalents		0.35	%		16			—			0.20	%		7			—
Other investments		3.87	%		81			(803	)		8.75	%		189			133
Gross investment income before investment expenses		3.84	%		2,855			(384	)		3.99	%		2,896			435
Investment expenses		-0.16	%		(106	)		—			-0.15	%		(107	)		—
Subtotal		3.68	%		2,749			(384	)		3.84	%		2,789			435
Investment results of other entities and operations (3)					266			19						285			53
Less, investment income related to adjusted operating income reconciling items					(51	)								(53	)
Total					2,964			(365	)					3,021			488
	Twelve Months Ended December 31
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (4)			Amount						Yield (4)			Amount
General Account (2)
Fixed maturities		4.03	%		8,876			1,408			3.90	%		8,762			753
Equity securities		5.67	%		266			3			5.97	%		275			81
Commercial mortgage and other loans		4.52	%		1,482			3			4.79	%		1,338			32
Policy loans		5.01	%		334			—			5.08	%		341			—
Short-term investments and cash equivalents		0.25	%		43			1			0.21	%		26			—
Other investments		5.91	%		489			1,643			9.10	%		753			(523	)
Gross investment income before investment expenses		3.98	%		11,490			3,058			4.05	%		11,495			343
Investment expenses		-0.16	%		(394	)		—			-0.15	%		(362	)		—
Subtotal		3.82	%		11,096			3,058			3.90	%		11,133			343
Investment results of other entities and operations (3)					1,080			134						1,116			132
Less, investment income related to adjusted operating income reconciling items					(218	)								(203	)
Total					11,958			3,192						12,046			475

(1) For the Financial Services Businesses for periods prior to first quarter 2015 and excluding Closed Block Division for periods ended after December 31, 2014.

(2) Excludes commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders, derivative operations, assets of our asset management operations, including assets managed for third parties, and those assets classified as “Separate account assets” on our balance sheet. Realized gains / (losses) for Other investments includes changes in fair value of product-related and other derivatives and embedded derivatives.

(3) Includes invested income of commercial loans, trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and our asset management and derivative operations.

(4) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest related items, such as settlements of duration management swaps which are reported in realized investment gains and losses and included in adjusted operating income. Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets. Prior period’s yields are presented on a basis consistent with the current period presentation.

Page 32

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)

	Quarter Ended December 31
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (1)			Amount						Yield (1)			Amount
Japanese Insurance Operations:
Fixed maturities		3.15	%		793			495			3.08	%		820			299
Equity securities		4.22	%		16			3			3.68	%		15			8
Commercial mortgage and other loans		4.19	%		100			1			3.97	%		76			3
Policy loans		3.94	%		22			—			3.92	%		21			—
Short-term investments and cash equivalents		0.51	%		2			—			0.21	%		1			—
Other investments (2)		2.99	%		21			(64	)		4.83	%		30			(93	)
Gross investment income before investment expenses		3.24	%		954			435			3.17	%		963			217
Investment expenses		-0.11	%		(34	)		—			-0.13	%		(39	)		—
Total		3.13	%		920			435			3.04	%		924			217
	Twelve Months Ended December 31
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (1)			Amount						Yield (1)			Amount
Japanese Insurance Operations:
Fixed maturities		3.23	%		3,190			1,349			3.06	%		3,301			799
Equity securities		4.77	%		69			49			5.06	%		84			49
Commercial mortgage and other loans		4.45	%		390			4			4.20	%		294			12
Policy loans		3.93	%		84			—			3.93	%		88			—
Short-term investments and cash equivalents		0.32	%		5			—			0.24	%		4			—
Other investments (2)		5.32	%		133			(35	)		6.67	%		155			201
Gross investment income before investment expenses		3.38	%		3,871			1,367			3.20	%		3,926			1,061
Investment expenses		-0.13	%		(155	)		—			-0.13	%		(153	)		—
Total		3.25	%		3,716			1,367			3.07	%		3,773			1,061

(1) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest related items, such as settlements of duration management swaps which are reported in realized investment gains and losses and included in adjusted operating income. Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets. Prior period’s yields are presented on a basis consistent with the current period presentation.

(2) Realized gains / (losses) for Other investments includes changes in fair value of product-related and other derivatives and embedded derivatives.

Page 33

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)

(in millions)

	Quarter Ended December 31
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount						Yield (3)			Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities		4.60	%		1,435			(43	)		4.59	%		1,364			9
Equity securities		5.04	%		42			(42	)		5.48	%		42			1
Commercial mortgage and other loans		4.58	%		288			5			5.26	%		298			(18	)
Policy loans		5.40	%		62			—			5.48	%		64			—
Short-term investments and cash equivalents		0.34	%		14			—			0.20	%		6			—
Other investments		4.30	%		60			(739	)		10.28	%		159			226
Gross investment income before investment expenses		4.22	%		1,901			(819	)		4.59	%		1,933			218
Investment expenses		-0.19	%		(72	)		—			-0.17	%		(68	)		—
Total		4.03	%		1,829			(819	)		4.42	%		1,865			218
	Twelve Months Ended December 31
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount						Yield (3)			Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities		4.67	%		5,686			59			4.69	%		5,461			(46	)
Equity securities		6.07	%		197			(46	)		6.49	%		191			32
Commercial mortgage and other loans		4.55	%		1,092			(1	)		4.98	%		1,044			20
Policy loans		5.52	%		250			—			5.66	%		253			—
Short-term investments and cash equivalents		0.25	%		38			1			0.21	%		22			—
Other investments		6.17	%		356			1,678			10.03	%		598			(724	)
Gross investment income before investment expenses		4.37	%		7,619			1,691			4.70	%		7,569			(718	)
Investment expenses		-0.17	%		(239	)		—			-0.17	%		(209	)		—
Total		4.20	%		7,380			1,691			4.53	%		7,360			(718	)

(1) For the Financial Services Businesses for periods prior to first quarter 2015 and excluding Closed Block Division for periods ended after December 31, 2014.

(2) Excludes assets of commercial loans, trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders, derivative operations, assets of our asset management operations, including assets managed for third parties, and those assets classified as “Separate account assets” on our balance sheet. Realized gains / (losses) for Other investments includes changes in fair value of product-related and other derivatives and embedded derivatives.

(3) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest related items, such as settlements of duration management swaps which are reported in realized investment gains and losses and included in adjusted operating income. Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets. Prior period’s yields are presented on a basis consistent with the current period presentation.

Page 34

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

LINE ITEM IMPACT OF MARKET DRIVEN AND DISCRETE ITEMS - ADJUSTED OPERATING INCOME

(in millions)

	Fourth Quarter 2015
				Policy						Interest
				Charges			Insurance			Credited to		Amortization			General			Pre-Tax
				and			and			Policyholders’		of			and			Adjusted
				Fee			Annuity			Account		Acquisition			Administrative			Operating
	Premiums			Income			Benefits			Balances		Costs			Expenses			Income
Individual Annuities:
Quarterly adjustments for market performance and current quarter experience		—			—			(8	)		1		1			(1	)		7
Total of above items		—			—			(8	)		1		1			(1	)		7
Reported amount		—			—			79			95		121			527
Amount excluding impact of items indicated above		—			—			87			94		120			528
Retirement:
Reserve refinements		—			—			—			—		—			—			—
Total of above items		—			—			—			—		—			—			—
Reported amount		—			—			—			—		—			—
Amount excluding impact of items indicated above		—			—			—			—		—			—
Individual Life:
Reserve refinements		—			(9	)		20			—		(9	)		—			(20	)
Business integration costs		—			—			—			—		—			—			—
Total of above items		—			(9	)		20			—		(9	)		—			(20	)
Reported amount		—			553			598			—		78			—
Amount excluding impact of items indicated above		—			562			578			—		87			—
International Insurance - Life Planner operations:
Reserve refinements		—			—			—			—		—			—			—
Total of above items		—			—			—			—		—			—			—
Reported amount		—			—			—			—		—			—
Amount excluding impact of items indicated above		—			—			—			—		—			—
International Insurance - Gibraltar Life & Other operations:
Reserve refinements		—			—			—			—		—			—			—
Total of above items		—			—			—			—		—			—			—
Reported amount		—			—			—			—		—			—
Amount excluding impact of items indicated above		—			—			—			—		—			—
Corporate & Other:
Charge related to the administration of certain separate account investments		—			—			—			—		—			80			(80	)
Total of above items		—			—			—			—		—			80			(80	)
Reported amount		—			—			—			—		—			128
Amount excluding impact of items indicated above		—			—			—			—		—			48
	Fourth Quarter 2014
				Policy						Interest
				Charges			Insurance			Credited to		Amortization			General			Pre-Tax
				and			and			Policyholders’		of			and			Adjusted
				Fee			Annuity			Account		Acquisition			Administrative			Operating
	Premiums			Income			Benefits			Balances		Costs			Expenses			Income
Individual Annuities:
Quarterly adjustments for market performance and current quarter experience		—			—			47			8		13			—			(68	)
Total of above items		—			—			47			8		13			—			(68	)
Reported amount		—			—			144			110		151			—
Amount excluding impact of items indicated above		—			—			97			102		138			—
Retirement:
Reserve refinements		—			—			(15	)		—		—			—			15
Total of above items		—			—			(15	)		—		—			—			15
Reported amount		—			—			5,725			—		—			—
Amount excluding impact of items indicated above		—			—			5,740			—		—			—
Individual Life:
Reserve refinements		—			—			9			—		—			—			(9	)
Business integration costs		—			—			—			—		—			8			(8	)
Total of above items		—			—			9			—		—			8			(17	)
Reported amount		—			—			524			—		—			422
Amount excluding impact of items indicated above		—			—			515			—		—			414
International Insurance - Life Planner operations:
Reserve refinements		(17	)		—			(9	)		—		—			—			(8	)
Total of above items		(17	)		—			(9	)		—		—			—			(8	)
Reported amount		1,620			—			1,434			—		—			—
Amount excluding impact of items indicated above		1,637			—			1,443			—		—			—
International Insurance - Gibraltar Life & Other operations:
Reserve refinements		(60	)		—			13			—		—			—			(73	)
Total of above items		(60	)		—			13			—		—			—			(73	)
Reported amount		1,718			—			1,469			—		—			—
Amount excluding impact of items indicated above		1,778			—			1,456			—		—			—
Corporate & Other:
Charge related to the administration of certain separate account investments		—			—			—			—		—			—			—
Total of above items		—			—			—			—		—			—			—
Reported amount		—			—			—			—		—			—
Amount excluding impact of items indicated above		—			—			—			—		—			—

Page 35

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

RECLASSIFIED SUPPLEMENTARY INFORMATION - INTERNATIONAL INSURANCE SEGMENT

(dollar amounts in millions, unless otherwise noted)

Year ended December 31			2014								2015
2013			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Constant exchange rate basis (1):
		Net premiums, policy charges and fee income:
	5,087	Japan, excluding Gibraltar Life		1,504		1,270		1,284		1,300		1,603		1,380		1,425
	10,016	Gibraltar Life		1,824		2,128		1,895		1,803		1,878		2,239		1,969
	1,575	All other countries		397		413		419		466		434		441		461
	16,678	Total		3,725		3,811		3,598		3,569		3,915		4,060		3,855
		Annualized new business premiums:
	714	Japan, excluding Gibraltar Life		222		152		159		169		217		162		177
	1,598	Gibraltar Life		345		407		384		370		369		428		432
	320	All other countries		91		97		96		110		109		107		107
	2,632	Total		658		656		639		649		695		697		716
		Annualized new business premiums by distribution channel:
	1,034	Life Planners		313		249		255		279		326		269		284
	697	Gibraltar Life Consultants		150		191		162		156		153		179		175
	699	Banks		139		150		162		154		157		178		194
	202	Independent Agency		56		66		60		60		59		71		63
	2,632	Total		658		656		639		649		695		697		716
		Face amount of individual policies in force at end of period (in billions) (1) (2):
	291	Japan, excluding Gibraltar Life		294		296		299		303		307		310		313
	325	Gibraltar Life		326		326		327		327		327		328		330
	106	All other countries		107		109		110		111		113		114		115
	722	Total		727		731		736		741		747		752		758

(1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 106 per U.S. dollar and Korean won 1100 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

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

Page 36

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure of performance that excludes “Realized investment gains (losses), net”, as adjusted, and related charges and adjustments; net investment gains and losses on trading account assets supporting insurance liabilities; change in experience-rated contractholder liabilities due to asset value changes; results of divested businesses, discontinued operations, and results of the Closed Block Business for periods prior to first quarter 2015; earnings attributable to noncontrolling interests; and the related tax effects thereof. Adjusted operating income includes equity in earnings of operating joint ventures and the related tax effects thereof. Revenues and benefits and expenses shown as components of adjusted operating income, are presented on the same basis as pre-tax adjusted operating income and are adjusted for the items above as well.

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 does not equate to “Income from continuing operations” as determined in accordance with GAAP but is the measure of profit or loss we use to evaluate segment performance. Adjusted operating income is not a substitute for income determined in accordance with GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability factors of our businesses.

2. After-tax adjusted operating income:

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

3. Annualized New Business Premiums:

Premiums from new sales that are expected to be collected over a one year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the company’s domestic individual life and international insurance operations are included in annualized new business premiums based on a 10% credit. Amounts ascribed to Gibraltar Life Consultants include production by captive agents associated with consolidated joint venture of Gibraltar Life and Other Operations.

4. Assets Under Management:

Fair market value or account value of assets which Prudential manages directly in proprietary products, such as mutual funds and variable annuities, in separate accounts, wrap-fee products and the general account, and assets invested in investment options included in the Company’s products that are managed by third party sub-managers (i.e., the non-proprietary investment options in the Company’s products).

5. Attributed Equity:

Amount of capital assigned to each of the Company’s segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment’s risks. For periods prior to first quarter 2015, attributed equity for the Financial Services Businesses represents all of the Company’s equity that is not included in the Closed Block Business or attributable to noncontrolling interests. For periods subsequent to December 31, 2014, attributed equity represents all of Prudential Financial, Inc. equity that is not attributable to noncontrolling interests.

6. Book value per share of Common Stock:

Equity attributed to Prudential Financial, Inc. for periods subsequent to December 31, 2014 and Financial Services Businesses for periods prior to first quarter 2015 divided by the number of Common shares outstanding at end of period, on a diluted basis.

7. Borrowings - Capital Debt:

Borrowings that are or will be used for capital requirements at Prudential Financial, Inc as well as borrowings invested in equity or debt securities of direct or indirect subsidiaries of Prudential Financial, Inc., and subsidiary borrowings, utilized for capital requirements.

8. Borrowings - Operating Debt - Investment Related:

Debt issued to finance specific investment assets or portfolios of investment assets, including institutional spread lending investment portfolios as well as institutional and insurance company portfolio cash flow timing differences.

9. Borrowings - Operating Debt - Specified Businesses:

Borrowings primarily associated with the individual annuity and asset management businesses.

Page 37

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

KEY DEFINITIONS AND FORMULAS

10. Client Assets:

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

11. Divested Businesses:

Businesses that have been sold or exited, including businesses that have been placed in wind down, but that did not qualify for “discontinued operations” accounting treatment under U.S. GAAP.

12. Earned Premiums:

The portion of a premium, net of any amount ceded, that represents coverage already provided or that belongs to the insurer based on the part of the policy period that has passed.

13. Earnings Per Share of Common Stock:

From December 18, 2001, the date of demutualization, through December 31, 2014, the Company had two separate classes of common stock. The Common Stock reflected the performance of the Financial Services Businesses and the Class B Stock reflected the performance of the Closed Block Business. Earnings per share were calculated separately for each of these two classes of common stock and included a direct equity adjustment to modify the earnings available to each of the classes of common stock for the difference between the allocation of general and administrative expenses to each of the businesses and the cash flows between the businesses related to these expenses. Accordingly, earnings per share of Common Stock for periods through December 31, 2014 reflect earnings attributable to the Financial Services Businesses. On January 2, 2015, Prudential Financial Inc. repurchased and cancelled all of the 2.0 million shares of the Class B Stock. Accordingly, earnings per share of Common Stock for periods subsequent to December 31, 2014 reflect the consolidated earnings of Prudential Financial Inc. In addition, the Class B Repurchase resulted in the elimination of the separation of the Financial Services Businesses and the Closed Block Business. As a result, there is no direct equity adjustment recorded for periods subsequent to December 31, 2014. Earnings per share of the Class B Stock for periods through December 31, 2014 are not presented herein, as they are not meaningful due to the Class B Repurchase.

14. Full Service Retirement:

The Full Service Retirement line of business provides retirement plan products and services to public, private and not-for-profit organizations. This business provides recordkeeping, plan administration, actuarial advisory services, participant education and communication services, trustee services and institutional and retail investment funds. This business mainly services defined contribution and defined benefit plans; non-qualified plans are also serviced. For clients with both defined contribution and defined benefit plans, integrated recordkeeping services are available.

15. Full Service Stable Value:

Our Full Service Stable Value products represent fixed rate options on investment funds offered to Retirement customers. These products contain an obligation to pay interest at a specified rate for a specific period of time. Upon termination these products repay account balances at market value immediately or may be liquidated at book value over time. Substantially all of these products are either fully or partially participating, with annual or semi-annual resets giving effect to previous investment experience. These products are issued through the general account, separate accounts or client-owned trusts. Profits from partially participating general account products result from the spread between the rate of return on investment assets and the interest rates credited to the customer, less expenses. For fully participating products, generally subject to a minimum interest rate guarantee, we earn fee income.

16. General Account:

Invested assets and policyholder liabilities and reserves for which the Company bears the investment risk. Excludes assets recognized for statutory purposes that are specifically allocated to a separate account. General account assets also include assets of the parent company, Prudential Financial, Inc.

17. Gibraltar Life:

Includes results from consolidated joint venture operation of Gibraltar Life and Other Operations.

18. Gibraltar Life Consultants:

Captive insurance agents for Gibraltar Life. Count and policy persistency do not include captive agents associated with consolidated joint venture of Gibraltar Life and Other Operations.

19. Group Life Insurance and Group Disability Insurance Administrative Operating Expense Ratios:

Ratio of administrative operating expenses (excluding commissions) to gross premiums, policy charges and fee income.

20. Group Insurance Benefits Ratios:

Ratio of policyholder benefits to earned premiums, policy charges and fee income.

Group Life Insurance benefits ratios excluding market driven and discrete items for periods previously reported are 89.7%, 89.3%, and 89.6% for the three months ended September 30, 2014, June 30, 2014, and March 31, 2014, respectively, and 89.5% and 90.9% for year-to-date December 2013 and 2012.

Group Disability Insurance benefits ratios excluding market driven and discrete items for periods previously reported are 84.6%, 83.9%, and 100.5% for the three months ended September 30, 2014, June 30, 2014, and March 31, 2014, respectively, and 93.9% and 98.9% for year-to-date December 2013 and 2012.

Group Insurance benefits ratios excluding market driven and discrete items for periods previously reported are 88.9%, 88.3%, and 91.5% for the three months ended September 30, 2014, June 30, 2014, and March 31, 2014, respectively, and 90.3% and 92.4% for year-to-date December 2013 and 2012.

21. Individual Annuity Account Values in General Account and Separate Account:

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

22. Individual Annuities - Net Amounts at Risk:

Living Benefit Features - For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance.

Death Benefit Features - Net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.

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Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

KEY DEFINITIONS AND FORMULAS

23. Insurance and Annuity Benefits:

Total death benefits, annuity benefits, disability benefits, other policy benefits, and losses paid or incurred, under insurance and annuity contracts, plus the change in reserves for future policy benefits, losses and loss adjustment expenses.

24. International Life Planners:

Captive insurance agents in our Life Planner Operations.

25. Non-recourse and Limited-recourse Debt:

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

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

Adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation for periods prior to March 31, 2015) , annualized for interim periods, divided by average attributed equity excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement on page 3.

An alternative measure to operating return on average equity (based on adjusted operating income) is return on average equity (based on income from continuing operations). For periods subsequent to December 31, 2014, return on average equity (based on income from continuing operations) represents income from continuing operations after-tax, attributable to consolidated Prudential Financial, Inc., as determined in accordance with GAAP, annualized for interim periods, divided by average total attributed equity. For periods prior to first quarter 2015, return on average equity represents income from continuing operations after-tax, for the Financial Services Businesses, attributable to Prudential Financial, Inc. (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average total attributed equity for the Financial Services Businesses. Return on average equity (based on income from continuing operations) is 6.9%, 13.9%,13.0%, 18.9%, and (12.1)% for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014, respectively.

27. Policy Persistency - Group Insurance:

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

28. Policy Persistency - International Insurance:

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

29. Prudential Agents:

Captive insurance agents in our insurance operations in the United States.

30. Prudential Agent productivity:

Commissions on new sales of all products by Prudential Agents under contract for the entire period, divided by the number of those Prudential Agents. Excludes commissions on new sales by Prudential Agents hired or departed during the period. For interim reporting periods, the productivity measures are annualized.

31. Separate Accounts:

Assets of our insurance companies allocated under certain policies and contracts that are segregated from the general account and other separate accounts. The policyholder or contractholder predominantly bears the risk of investments held in a separate account.

32. Wrap-Fee Products:

Investment products generating asset-based fees in which the funds of the customer are generally invested in other investment products such as mutual funds.

Page 39

Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2015

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of February 10, 2016

	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+	AA-	A1	A+
PRUCO Life Insurance Company	A+	AA-	A1	A+
PRUCO Life Insurance Company of New Jersey	A+	AA-	NR *	A+
Prudential Annuities Life Assurance Corporation	A+	AA-	NR	A+
Prudential Retirement Insurance and Annuity Company	A+	AA-	A1	A+
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	NR	A+	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	A+	NR	NR
The Prudential Gibraltar Financial Life Insurance Co. Ltd.	NR	A+	NR	NR
Prudential Life Insurance Co. of Taiwan, Inc.	NR	twAA+	NR	NR
CREDIT RATINGS:
as of February 10, 2016
Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-1	P-2	F2
Long-Term Senior Debt	a-	A	Baa1	BBB+
Junior Subordinated Long-Term Debt	bbb	BBB+	Baa2	BBB-
The Prudential Insurance Company of America :
Capital and surplus notes	a	A	A3	A-
Prudential Funding, LLC:
Short-Term Debt	AMB-1	A-1+	P-1	F1
Long-Term Senior Debt	a+	AA-	A2	A
PRICOA Global Funding I
Long-Term Senior Debt	aa-	AA-	A1	A+

* NR indicates not rated.

(1) Prudential Life Insurance Co. of Taiwan was assigned a financial strength rating by Taiwan Ratings Corporation, a partner of Standard and Poor’s.

INVESTOR INFORMATION:

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

Common Stock:

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

Page 40