Form 8-K PRUDENTIAL FINANCIAL For: May 04

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May 4, 2016 4:41 PM EDT

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 4, 2016

PRUDENTIAL FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

New Jersey

001-16707

22-3703799

(State or other jurisdiction

of incorporation)

(Commission File

Number)

(I.R.S. Employer

Identification No.)

751 Broad Street

Newark, New Jersey 07102

(Address of principal executive offices and zip code)

(973) 802-6000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02

Results of Operations and Financial Condition.

Prudential Financial, Inc. (the “Company”) furnishes herewith, as Exhibit 99.1, a news release announcing first quarter 2016 results.

See also the response to Item 7.01 below, which is incorporated herein by reference.

Item 7.01

Regulation FD Disclosure.

A.	Earnings Release. The Company furnishes herewith, as Exhibit 99.1, a news release announcing first quarter 2016 results.

B.	Quarterly Financial Supplement. The Company furnishes herewith, as Exhibit 99.2, the Quarterly Financial Supplement for first quarter 2016.

Conference Call and Related Materials. Members of the Company’s senior management will hold a conference call on Thursday, May 5, 2016 at 11:00 A.M. ET, to discuss the Company’s first quarter 2016 results. Related materials are available on the Company’s Investor Relations website at www.investor.prudential.com.

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits.



99.1		News release of Prudential Financial, Inc., dated May 4, 2016, announcing first quarter 2016 results (furnished and not filed).

99.2		Quarterly Financial Supplement for Prudential Financial, Inc. for first quarter 2016 (furnished and not filed).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: May 4, 2016


PRUDENTIAL FINANCIAL, INC.

By:		/s/ Robert D. Axel
Name:		Robert D. Axel
Title:		Senior Vice President and Principal Accounting Officer

Exhibit Index


Exhibit No.		Description

99.1		News release of Prudential Financial, Inc., dated May 4, 2016, announcing first quarter 2016 results (furnished and not filed).

99.2		Quarterly Financial Supplement for Prudential Financial, Inc. for first quarter 2016 (furnished and not filed).

Exhibit 99.1

LOGO


For Immediate Release	Contact:	Scot Hoffman
May 4, 2016		(973)802-2824

Prudential Financial, Inc.

Announces First Quarter 2016 Results

•

After-tax adjusted operating income of $997 million, or $2.18 per Common share, compared to $2.79 per Common share for year-ago quarter.

•

Current quarter adjusted operating income includes a pre-tax charge of $53 million in Individual Annuities to reflect the impact of market performance on deferred policy acquisition and other costs and reserves for guaranteed death and income benefits, with an unfavorable impact of approximately 8 cents per Common share.

•

For the year-ago quarter, adjusted operating income includes a net benefit to Individual Annuities results from an updated estimate of profitability reflecting market performance and a charge for integration costs in Individual Life for the acquired Hartford business, resulting in a net favorable impact of approximately 14 cents per Common share.

First Quarter Highlights

•

Individual Annuities current quarter gross sales of $2.0 billion include $1.3 billion of variable annuities without retained exposure to equity market related living benefit guarantees, reflecting our risk diversification strategies.

•

Retirement account values of $371.8 billion at March 31, compared to $365.3 billion a year earlier. Gross deposits and sales for the quarter of $8.7 billion included five full service case wins over $100 million and $1.6 billion of new investment only stable value business. Net sales of $648 million for the quarter.

•

Asset Management total assets under management surpass the $1 trillion milestone at March 31. Unaffiliated third party institutional and retail assets under management up 4% from a year earlier to $487.1 billion at March 31. Net outflows excluding money market of $3.1 billion for the quarter.

•

U.S. Individual Life sales, based on annualized new business premiums, of $145 million, up 17% from the year-ago quarter.

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Page 2.

•

Group Insurance sales of $311 million in current quarter, nearly double year-ago quarter new business. Total benefits ratio more favorable than year-ago quarter and within long term expected range.

•

International Insurance constant dollar basis sales of $781 million for the current quarter, up 12% from the year-ago quarter. Completed acquisition in March of indirect 40% ownership interest in AFP Habitat, a leading provider of retirement services in Chile.

•

Returned approximately $700 million to shareholders through Common stock repurchases and dividends.

•

Net income attributable to Prudential Financial, Inc. for first quarter 2016 of $1.336 billion, or $2.93 per Common share.

•

Other financial highlights:

•

Excluding net changes in value relating to foreign currency exchange rate remeasurement reflected in net income or loss and currency translation adjustments corresponding to realized investment gains and losses, book value per Common share excluding total accumulated other comprehensive income amounted to $75.46 at March 31, 2016, an increase of $1.87 from December 31, 2015 after payment of a quarterly Common Stock dividend of 70 cents per share.

•

Excluding holdings of the Closed Block division, net unrealized gains on general account fixed maturity investments of $34.6 billion at March 31, 2016 compared to $23.7 billion at December 31, 2015; gross unrealized losses of $2.2 billion at March 31, 2016, compared to $3.4 billion at December 31, 2015.

•

During the first quarter of 2016, the Company acquired 5.4 million shares of its Common Stock at a total cost of $375 million, for an average price of $69.38 per share, under the December 2015 authorization by Prudential’s Board of Directors to repurchase at management’s discretion up to $1.5 billion of the Company’s outstanding Common Stock during the period from January 1, 2016 through December 31, 2016. From the commencement of repurchases in July 2011, through March 31, 2016, the Company has acquired 70.4 million shares of its Common Stock at a total cost of $4.8 billion, for an average price of $67.79 per share.

NEWARK, N.J. – Prudential Financial, Inc. (NYSE: PRU) today reported after-tax adjusted operating income of $997 million ($2.18 per Common share) for the first quarter of 2016, compared to $1.298 billion ($2.79 per Common share) for the year-ago quarter. Net income attributable to Prudential Financial, Inc. was $1.336 billion ($2.93 per Common share) for the first quarter of 2016, compared to $2.036 billion ($4.37 per Common share) for the year-ago quarter.

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Page 3.

Information regarding adjusted operating income, a non-GAAP measure, is provided below.

“While first quarter results were adversely affected by macro environment headwinds and fluctuations in variable items which included non-coupon investment returns, our business performance remained solid. Sales and flows were mixed, with double digit sales growth in our international and U.S. protection businesses and positive net flows in Retirement, offset by net outflows in Asset Management. In our Annuities business, our recapture of living benefit risks from our reinsurance captive on April 1 marked a major milestone in our move to house all of the product risks together in our statutory entities, a key part of our strategic priority to reduce complexity and volatility in our businesses and increase transparency. Further, we strengthened our international footprint with the closing in March of our acquisition of an indirect interest in AFP Habitat, a leading provider of retirement services in Chile. We returned approximately $700 million to shareholders through share repurchases and our quarterly Common stock dividend and funded our Chilean investment during the quarter while maintaining our capital capacity at a level not meaningfully different than what we reported at year end. We remain confident that we will continue to execute on our key strategies including delivery of superior returns and strong cash flows,” said Chairman and Chief Executive Officer John Strangfeld.

Adjusted operating income is not calculated under generally accepted accounting principles (GAAP). Information regarding adjusted operating income, a non-GAAP measure, is discussed later in this press release under “Forward-Looking Statements and Non-GAAP Measure,” and a reconciliation of adjusted operating income to the most comparable GAAP measure is provided in the tables that accompany this release.

Results of Ongoing Operations

The Company’s ongoing operations include the U.S. Retirement Solutions and Investment Management, U.S. Individual Life and Group Insurance, and International Insurance divisions, as well as Corporate and Other Operations. In the following business-level discussion, adjusted operating income refers to pre-tax results.

The U.S. Retirement Solutions and Investment Management division reported adjusted operating income of $712 million for the first quarter of 2016, compared to $1.018 billion in the year-ago quarter.

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Page 4.

The Individual Annuities segment reported adjusted operating income of $328 million in the current quarter, compared to $529 million in the year-ago quarter. Current quarter results include a charge of $53 million, and results for the year-ago quarter included a benefit of $106 million, in each case reflecting an updated estimate of profitability for this business driven by market performance in relation to our assumptions. Excluding the effect of the foregoing items, results for the Individual Annuities segment decreased $42 million from the year-ago quarter. This decrease reflects lower asset-based fees driven by a decline in average variable annuity account values, higher expenses, and a lower contribution from net investment results including current quarter returns on non-coupon investments modestly below our average expectations.

The Retirement segment reported adjusted operating income of $219 million for the current quarter, compared to $284 million in the year-ago quarter. The decrease reflected lower contributions from net investment results and pension risk transfer case experience, together with lower fees and higher expenses. The contribution from net investment results was $36 million below the year-ago quarter, with current quarter returns on non-coupon investments about $40 million below our average expectations. The current quarter contribution to results from pension risk transfer case experience, while less favorable than the level of the year-ago quarter, was approximately $20 million greater than our average quarterly expectations.

The Asset Management segment reported adjusted operating income of $165 million for the current quarter, compared to $205 million in the year-ago quarter. The decrease reflected a $25 million lower contribution from the segment’s incentive, transaction, strategic investing and commercial mortgage activities, which amounted to $22 million for the current quarter. The remainder of the decrease came primarily from lower asset management fees driven by lower average equity assets under management, which was partly offset by higher fees from management of third-party fixed income assets.

The U.S. Individual Life and Group Insurance division reported adjusted operating income of $146 million for the first quarter of 2016, unchanged from $146 million in the year-ago quarter.

The Individual Life segment reported adjusted operating income of $120 million for the current quarter, compared to $116 million in the year-ago quarter. Results for the year-ago quarter included $9 million of integration costs related to the Company’s acquisition of The Hartford’s

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Page 5.

individual life insurance business on January 2, 2013. Excluding these integration costs, results decreased $5 million from the year-ago quarter, reflecting higher expenses. The net contribution to current quarter results from claims experience, inclusive of reinsurance, associated reserve updates and amortization was essentially unchanged from the year-ago quarter but about $35 million below our average expectations. The contribution from net investment results in the current quarter was also essentially unchanged from the year ago quarter. Lower returns on non-coupon investments, which were about $10 million below our average expectations, were offset by the impact of a larger investment base.

The Group Insurance segment reported adjusted operating income of $26 million in the current quarter, compared to $30 million in the year-ago quarter. The decrease reflected a $14 million lower contribution from investment results and higher expenses in the current quarter, which together more than offset more favorable underwriting results driven by group life. Current quarter investment results include returns on non-coupon investments approximately $10 million below our average expectations.

The International Insurance segment reported adjusted operating income of $779 million for the first quarter of 2016, compared to $834 million in the year-ago quarter.

Adjusted operating income of the segment’s Life Planner operations was $410 million for the current quarter, compared to $439 million in the year-ago quarter. The decrease reflected less favorable claims experience, higher expenses, and a lower contribution from net investment results in the current quarter, which together essentially offset the benefit of continued business growth. In addition, foreign currency exchange rates, including the impact of the Company’s currency hedging programs, had an unfavorable impact of $30 million in comparison to the year-ago quarter. The net contribution to results from claims experience for the current quarter, which was essentially consistent with our average expectations, was approximately $15 million below the level of the year-ago quarter. Current quarter net investment results included returns on non-coupon investments modestly below our average expectations.

The segment’s Gibraltar Life and Other operations reported adjusted operating income of $369 million for the current quarter, compared to $395 million in the year-ago quarter. The decrease reflected a lower contribution from net investment results, which included current quarter returns on non-coupon investments approximately $20 million below our average expectations.

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Page 6.

The lower contribution from net investment results essentially offset the benefit of business growth including the initial contribution from the Company’s indirect investment acquired on March 2, 2016 in AFP Habitat, and more favorable claims experience in the current quarter. In addition, foreign currency exchange rates, including the impact of the Company’s currency hedging programs, had an unfavorable impact of $28 million in comparison to the year-ago quarter.

Corporate and Other operations resulted in a loss, on an adjusted operating income basis, of $312 million in the first quarter of 2016, compared to a loss of $253 million in the year-ago quarter. The increased loss came primarily from higher net expenses in the current quarter and a lower contribution from investment income.

Assets under management amounted to $1.218 trillion at March 31, 2016, compared to $1.184 trillion at December 31, 2015.

Net income attributable to Prudential Financial, Inc. amounted to $1.336 billion for the first quarter of 2016, compared to $2.036 billion for the year-ago quarter.

Current quarter net income includes $338 million of pre-tax net realized investment gains and related charges and adjustments. The foregoing net gains include net pre-tax gains of $282 million from products that contain embedded derivatives and associated derivative portfolios that are part of a hedging program related to the risks of these products, and $168 million primarily from net increases in the market value of derivatives used in risk management activities including asset and liability duration management. The foregoing gains were partly offset by pre-tax losses of $106 million from impairments and sales of credit-impaired investments, and $6 million from the net impact of other portfolio and related activities.

Net income for the current quarter reflects pre-tax increases of $216 million in recorded asset values and $130 million in recorded liabilities representing changes in value which are expected to ultimately accrue to contractholders. These changes primarily represent mark-to-market adjustments.

Net income for the current quarter also reflects pre-tax losses of $42 million from divested businesses, primarily reflecting results of the Closed Block division.

Net income for the year-ago quarter included $1.051 billion of pre-tax net realized investment gains and related charges and adjustments, including pre-tax gains of $417 million mainly from interest rate driven net increases in the market value of derivatives used in risk

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Page 7.

management activities including asset and liability duration management, $265 million from products that contain embedded derivatives and associated derivative portfolios that are part of a hedging program related to the risks of these products, and $400 million from the net impact of other portfolio and related activities. The foregoing gains were partly offset by pre-tax losses of $31 million from impairments and sales of credit-impaired investments.

Excluding holdings of the Closed Block division, gross unrealized losses on general account fixed maturity investments at March 31, 2016 amounted to $2.203 billion, including $1.627 billion on high and highest quality securities based on NAIC or equivalent ratings, and amounted to $3.398 billion at December 31, 2015. Net unrealized gains on these investments amounted to $34.566 billion at March 31, 2016, compared to $23.739 billion at December 31, 2015.

Forward-Looking Statements and Non-GAAP Measure

Certain of the statements included in this release constitute forward-looking statements within the meaning of the U. S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “includes,” “plans,” “assumes,” “estimates,” “projects,” “intends,” “should,” “will,” “shall,” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. There can be no assurance that future developments affecting Prudential Financial, Inc. and its subsidiaries will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (1) general economic, market and political conditions, including the performance and fluctuations of fixed income, equity, real estate and other financial markets; (2) the availability and cost of additional debt or equity capital or external financing for our operations; (3) interest rate fluctuations or prolonged periods of low interest rates; (4) the degree to which we choose not to hedge risks, or the potential ineffectiveness or insufficiency of hedging or risk management strategies we do implement; (5) any inability to access our credit facility; (6) reestimates of our reserves for future policy benefits and claims; (7) differences between actual

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Page 8.

experience regarding mortality, morbidity, persistency, utilization, interest rates or market returns and the assumptions we use in pricing our products, establishing liabilities and reserves or for other purposes; (8) changes in our assumptions related to deferred policy acquisition costs, value of business acquired or goodwill; (9) changes in assumptions for our pension and other postretirement benefit plans; (10) changes in our financial strength or credit ratings; (11) statutory reserve requirements associated with term and universal life insurance policies under Regulation XXX and Guideline AXXX; (12) investment losses, defaults and counterparty non-performance; (13) competition in our product lines and for personnel; (14) difficulties in marketing and distributing products through current or future distribution channels; (15) changes in tax law; (16) economic, political, currency and other risks relating to our international operations; (17) fluctuations in foreign currency exchange rates and foreign securities markets; (18) regulatory or legislative changes, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the U.S. Department of Labor’s fiduciary rules; (19) inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others; (20) adverse determinations in litigation or regulatory matters, and our exposure to contingent liabilities, including related to the remediation of certain securities lending activities administered by the Company; (21) domestic or international military actions, natural or man-made disasters including terrorist activities or pandemic disease, or other events resulting in catastrophic loss of life; (22) ineffectiveness of risk management policies and procedures in identifying, monitoring and managing risks; (23) possible difficulties in executing, integrating and realizing projected results of acquisitions, divestitures and restructurings; (24) interruption in telecommunication, information technology or other operational systems or failure to maintain the security, confidentiality or privacy of sensitive data on such systems; (25) changes in statutory or U.S. GAAP accounting principles, practices or policies; and (26) Prudential Financial, Inc.’s primary reliance, as a holding company, on dividends or distributions from its subsidiaries to meet debt payment obligations and the ability of the subsidiaries to pay such dividends or distributions in light of our ratings objectives and/or applicable regulatory restrictions. Prudential Financial, Inc. does not intend, and is under no obligation, to update any particular forward-looking statement included in this document.

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Page 9.

Adjusted operating income is a non-GAAP measure of performance. Adjusted operating income excludes “Realized investment gains (losses), net,” as adjusted, and related charges and adjustments. A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as our tax and capital profile.

Realized investment gains (losses) within certain of our businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of a hedging program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are classified as other trading account assets.

Adjusted operating income also excludes investment gains and losses on trading account assets supporting insurance liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of these transactions. In addition, adjusted operating income excludes the results of divested businesses, which are not relevant to our ongoing operations. Discontinued operations, which are presented as a separate component of net income under GAAP, are also excluded from adjusted operating income.

We believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. However, adjusted operating income is not a substitute for income determined in accordance with GAAP, and the adjustments made to derive adjusted operating income are important to an understanding of our overall results of operations. The schedules accompanying this release provide a reconciliation of adjusted operating income to income from continuing operations in accordance with GAAP.

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Page 10.

The information referred to above, as well as the risks of our businesses described in our Annual Report on Form 10-K for the year ended December 31, 2015, should be considered by readers when reviewing forward-looking statements contained in this release. Additional historic information relating to our financial performance is located on our Web site at www.investor.prudential.com.

Earnings Conference Call

Members of Prudential’s senior management will host a conference call on Thursday, May 5, 2016 at 11 a.m. ET, to discuss with the investment community the Company’s first quarter results. The conference call and an accompanying slide presentation will be broadcast live over the Company’s Investor Relations Web site at www.investor.prudential.com. Please log on fifteen minutes early in the event necessary software needs to be downloaded. The call will remain on the Investor Relations Web site for replay through May 20. Institutional investors, analysts, and other members of the professional financial community are invited to listen to the call and participate in Q&A by dialing (877) 777-1971 (domestic callers) or (612) 332-0819 (international callers). All others are encouraged to dial into the conference call in listen-only mode, using the same numbers. To listen to a replay of the conference call starting at 2:00 p.m. on May 5, through May 12, dial (800) 475-6701 (domestic callers) or (320) 365-3844 (international callers). The access code for the replay is 383123.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with over $1 trillion of assets under management as of March 31, 2016, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.

LOGO

Financial Highlights

(in millions, unaudited)


	Three Months Ended March 31
	2016			2015
Income Statement Data:
Adjusted Operating Income (1):
Revenues:
Premiums	$	5,577		$	5,913
Policy charges and fee income		1,511			1,554
Net investment income		3,017			3,005
Asset management fees, commissions and other income		1,187			1,335

Total revenues		11,292			11,807

Benefits and expenses:
Insurance and annuity benefits		5,984			6,216
Interest credited to policyholders’ account balances		907			884
Interest expense		325			317
Other expenses		2,751			2,645

Total benefits and expenses		9,967			10,062

Adjusted operating income before income taxes		1,325			1,745
Income taxes, applicable to adjusted operating income		328			447

After-tax adjusted operating income (1)		997			1,298

Reconciling Items:
Realized investment gains, net, and related charges and adjustments		338			1,051
Investment gains on trading account assets supporting insurance liabilities, net		216			83
Change in experience-rated contractholder liabilities due to asset value changes		(130	)		(197	)
Divested businesses:
Closed Block division		(73	)		(22	)
Other divested businesses		31			75
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		25			13

Total reconciling items, before income taxes		407			1,003
Income taxes, not applicable to adjusted operating income		40			252

Total reconciling items, after income taxes		367			751

Income from continuing operations (after-tax) before equity in earnings of operating joint ventures		1,364			2,049
Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(28	)		(13	)

Income from continuing operations attributable to Prudential Financial, Inc.		1,336			2,036
Earnings attributable to noncontrolling interests		33			10

Income from continuing operations (after-tax)		1,369			2,046
Income from discontinued operations, net of taxes		—			—

Net income		1,369			2,046
Less: Income attributable to noncontrolling interests		33			10

Net income attributable to Prudential Financial, Inc.	$	1,336		$	2,036

See footnotes on last page.

Page 1

Financial Highlights

(in millions, except per share data, unaudited)


	Three Months Ended March 31
	2016			2015
Earnings per share of Common Stock (diluted):

After-tax adjusted operating income	$	2.18		$	2.79
Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments		0.75			2.27
Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.48			0.18
Change in experience-rated contractholder liabilities due to asset value changes		(0.29	)		(0.43	)
Divested businesses:
Closed Block division		(0.16	)		(0.05	)
Other divested businesses		0.07			0.16
Difference in earnings allocated to participating unvested share-based payment awards		(0.01	)		(0.02	)

Total reconciling items, before income taxes		0.84			2.11
Income taxes, not applicable to adjusted operating income		0.09			0.53

Total reconciling items, after income taxes		0.75			1.58

Income (loss) from continuing operations (after-tax) attributable to Prudential Financial, Inc.		2.93			4.37
Income from discontinued operations, net of taxes		—			—

Net income (loss) attributable to Prudential Financial, Inc.	$	2.93		$	4.37

Weighted average number of outstanding Common shares (basic)		445.3			454.3

Weighted average number of outstanding Common shares (diluted)		453.2			463.0

Earnings related to interest, net of tax, on exchangeable surplus notes	$	4		$	4

Earnings allocated to participating unvested share-based payment awards for earnings per share calculation:
After-tax adjusted operating income	$	11		$	12
Income from continuing operations (after-tax)	$	14		$	19

Attributed Equity (as of end of period):

Total attributed equity	$	49,242		$	45,044
Per share of Common Stock - diluted (2)		109.66			98.16
Attributed equity excluding accumulated other comprehensive income	$	30,176		$	27,292
Per share of Common Stock - diluted		67.36			59.52
Number of diluted shares at end of period		448.0			458.5

Adjusted operating income before income taxes, by Segment (1):
Individual Annuities	$	328		$	529
Retirement		219			284
Asset Management		165			205

Total U.S. Retirement Solutions and Investment Management Division		712			1,018

Individual Life		120			116
Group Insurance		26			30

Total U.S. Individual Life and Group Insurance Division		146			146

International Insurance		779			834

Total International Insurance Division		779			834

Corporate and Other operations		(312	)		(253	)

Adjusted operating income before income taxes		1,325			1,745

Reconciling Items:
Realized investment gains, net, and related charges and adjustments		338			1,051
Investment gains on trading account assets supporting insurance liabilities, net		216			83
Change in experience-rated contractholder liabilities due to asset value changes		(130	)		(197	)
Divested businesses:
Closed Block division		(73	)		(22	)
Other divested businesses		31			75
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		25			13

Total reconciling items, before income taxes		407			1,003

Income from continuing operations before income taxes and equity in earnings of operating joint ventures for Prudential Financial, Inc.	$	1,732		$	2,748

See footnotes on last page.

Page 2

Financial Highlights

(in millions, or as otherwise noted, unaudited)


	Three Months Ended March 31
	2016			2015
*U.S. Retirement Solutions and Investment Management Division:*

Fixed and Variable Annuity Sales and Account Values:
Gross sales	$	2,017		$	2,227

Net sales	$	238		$	31

Total account value at end of period	$	152,733		$	161,127

Retirement Segment:

Full Service:

Deposits and sales	$	6,656		$	6,314

Net additions	$	1,370		$	85

Total account value at end of period	$	190,953		$	188,145

Institutional Investment Products:

Gross additions	$	2,061		$	969

Net withdrawals	$	(722	)	$	(2,526	)

Total account value at end of period	$	180,819		$	177,120

Asset Management Segment:
Assets managed by Investment Management and Advisory Services (in billions, as of end of period):
Institutional customers	$	403.6		$	380.9
Retail customers		198.6			198.4
General account		400.8			382.4

Total Investment Management and Advisory Services	$	1,003.0		$	961.7

Institutional Customers - Assets Under Management (in billions):
Gross additions, other than money market	$	12.5		$	16.8

Net additions (withdrawals), other than money market	$	(2.6	)	$	3.7

Retail Customers - Assets Under Management (in billions):
Gross additions, other than money market	$	10.2		$	13.1

Net additions (withdrawals), other than money market	$	(0.5	)	$	4.0

*U.S. Individual Life and Group Insurance Division:*

Individual Life Insurance Annualized New Business Premiums (3):
Term life	$	48		$	49
Guaranteed Universal life		51			40
Other Universal life		20			17
Variable life		26			18

Total	$	145		$	124

Group Insurance Annualized New Business Premiums (3):
Group life	$	232		$	131
Group disability		79			31

Total	$	311		$	162

*International Insurance Division:*

International Insurance Annualized New Business Premiums (3) (4):
Actual exchange rate basis	$	744		$	673

Constant exchange rate basis	$	781		$	695

See footnotes on last page.

Page 3

Financial Highlights

(in billions, as of end of period, unaudited)


	Three Months Ended March 31
	2016		2015
Assets and Asset Management Information:

Total assets	$	773.0	$	778.5

Assets under management (at fair market value):
Managed by U.S. Retirement Solutions and Investment Management Division:
Asset Management Segment - Investment Management and Advisory Services	$	1,003.0	$	961.7
Non-proprietary assets under management		167.0		195.8

Total managed by U.S. Retirement Solutions and Investment Management Division		1,170.0		1,157.5
Managed by U.S. Individual Life and Group Insurance Division		25.1		23.7
Managed by International Insurance Division		22.8		22.5

Total assets under management		1,217.9		1,203.7
Client assets under administration		170.5		159.3

Total assets under management and administration	$	1,388.4	$	1,363.0

See footnotes on last page.

Page 4

(1)

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 and discontinued operations; 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.

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)

Book value per share of Common Stock including accumulated other comprehensive income as of March 31, 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, and as of March 31, 2016 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.

(3)

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.

(4)

Actual amounts reflect the impact of currency fluctuations. Constant amounts reflect 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 5

Exhibit 99.2

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

First Quarter 2016

Reference is made to Prudential Financial, Inc.’s (PFI) filings with the Securities and Exchange Commission for general information, and consolidated financial information. All financial information in this document is unaudited.

May 4, 2016

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

CONTENTS


	Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4

Combined Statements of Operations		5
Combining Statements of Operations		6
Consolidated Balance Sheets		7
Combining Balance Sheets by Division		8
Short-Term and Long-Term Debt - Unaffiliated		9

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
Combined Statements of Operations		10
Combining Statements of Operations		11
Individual Annuities Sales Results and Account Values		12
Individual Annuities Account Value Activity		13
Individual Annuities Living Benefit Features		14
Individual Annuities Death Benefit Features		15
Retirement Segment Sales Results and Account Values		16
Supplementary Revenue and Assets Under Management Information for Asset Management Segment		17
Supplementary Assets Under Management Information for Asset Management Segment		18

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		19
Combining Statements of Operations		20
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force		21
Supplementary Information for Group Insurance		22

DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE		23

INTERNATIONAL INSURANCE DIVISION
Combined Statements of Operations		24
Combining Statements of Operations		25
Sales Results and Supplementary Information		26-27

INVESTMENT PORTFOLIO
Investment Portfolio Composition		28
Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		29
Investment Results		30
Investment Results - Japanese Insurance Operations		31
Investment Results - Excluding Japanese Insurance Operations		32

LINE ITEM IMPACT OF MARKET DRIVEN AND DISCRETE ITEMS - ADJUSTED OPERATING INCOME		33

KEY DEFINITIONS AND FORMULAS		34-36

RATINGS AND INVESTOR INFORMATION		37

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

This quarterly financial supplement reflects, for all periods presented, the retrospective adoption of a revised accounting standard related to the classification of certain debt issuance costs on Prudential Financial, Inc.’s consolidated balance sheet.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						%			2015												2016
2016			2015			Change			1Q			2Q			3Q			4Q			1Q

								Pre-tax adjusted operating income (loss) by division:
	712			1,018			-30%	U.S. Retirement Solutions and Investment Management Division		1,018			981			732			776			712
	146			146			0%	U.S. Individual Life and Group Insurance Division		146			312			227			126			146
	779			834			-7%	International Insurance Division		834			842			812			738			779
	(312	)		(253	)		-23%	Corporate and other operations		(253	)		(294	)		(308	)		(458	)		(312	)

	1,325			1,745			-24%	Total pre-tax adjusted operating income		1,745			1,841			1,463			1,182			1,325
	328			447			-27%	Income taxes, applicable to adjusted operating income		447			491			353			291			328

	997			1,298			-23%	After-tax adjusted operating income		1,298			1,350			1,110			891			997


								Reconciling items:
	338			1,051			-68%	Realized investment gains (losses), net, and related charges and adjustments		1,051			286			438			(196	)		338
	216			83			160%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		83			(220	)		(228	)		(159	)		216
	(130	)		(197	)		34%	Change in experience-rated contractholder liabilities due to asset value changes		(197	)		234			258			138			(130	)
								Divested businesses:
	(73	)		(22	)		-232%	Closed Block division		(22	)		52			108			(80	)		(73	)
	31			75			-59%	Other divested businesses		75			(109	)		8			(40	)		31
	25			13			92%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		13			45			2			(2	)		25

	407			1,003			-59%	Total reconciling items, before income taxes		1,003			288			586			(339	)		407
	40			252			-84%	Income taxes, not applicable to adjusted operating income		252			188			231			(181	)		40

	367			751			-51%	Total reconciling items, after income taxes		751			100			355			(158	)		367

	1,364			2,049			-33%	Income from continuing operations (after-tax) before equity in earnings of operating joint ventures		2,049			1,450			1,465			733			1,364
	(28	)		(13	)		-115%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(13	)		(44	)		—			2			(28	)

	1,336			2,036			-34%	Income from continuing operations attributable to Prudential Financial, Inc.		2,036			1,406			1,465			735			1,336
	33			10			230%	Earnings attributable to noncontrolling interests		10			53			2			5			33

	1,369			2,046			-33%	Income from continuing operations (after-tax)		2,046			1,459			1,467			740			1,369
	—			—			—	Income from discontinued operations, net of taxes		—			—			—			—			—

	1,369			2,046			-33%	Net income		2,046			1,459			1,467			740			1,369
	33			10			230%	Less: Income attributable to noncontrolling interests		10			53			2			5			33

	1,336			2,036			-34%	Net income attributable to Prudential Financial, Inc.		2,036			1,406			1,465			735			1,336

	11.9%			16.9%				Operating Return on Average Equity (based on adjusted operating income) (1)		16.9%			16.8%			13.5%			10.7%			11.9%

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

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2015												2016
2016			2015				1Q			2Q			3Q			4Q			1Q

						Earnings per share of Common Stock (diluted):
	2.18			2.79		After-tax adjusted operating income		2.79			2.91			2.40			1.94			2.18

						Reconciling items:
	0.75			2.27		Realized investment gains (losses), net, and related charges and adjustments		2.27			0.62			0.95			(0.43	)		0.75
	0.48			0.18		Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.18			(0.48	)		(0.50	)		(0.35	)		0.48
	(0.29	)		(0.43	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.43	)		0.51			0.56			0.30			(0.29	)
						Divested businesses:
	(0.16)			(0.05	)	Closed Block division		(0.05	)		0.11			0.23			(0.17	)		(0.16	)
	0.07			0.16		Other divested businesses		0.16			(0.24	)		0.02			(0.09	)		0.07
	(0.01	)		(0.02	)	Difference in earnings allocated to participating unvested share-based payment awards		(0.02	)		—			(0.01	)		—			(0.01	)

	0.84			2.11		Total reconciling items, before income taxes		2.11			0.52			1.25			(0.74	)		0.84
	0.09			0.53		Income taxes, not applicable to adjusted operating income		0.53			0.40			0.49			(0.40	)		0.09

	0.74			1.58		Total reconciling items, after income taxes		1.58			0.12			0.76			(0.34	)		0.75

	2.93			4.37		Income from continuing operations (after-tax) attributable to Prudential Financial, Inc.		4.37			3.03			3.16			1.60			2.93
	—			—		Income from discontinued operations, net of taxes		—			—			—			—			—

	2.93			4.37		Net income attributable to Prudential Financial, Inc.		4.37			3.03			3.16			1.60			2.93


	445.3			454.3		Weighted average number of outstanding Common shares (basic)		454.3			452.6			451.0			448.7			445.3
	453.2			463.0		Weighted average number of outstanding Common shares (diluted)		463.0			461.4			459.7			457.5			453.2

	4			4		Earnings related to interest, net of tax, on exchangeable surplus notes		4			5			4			4			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	11			12		After-tax adjusted operating income		12			13			12			8			11
	14			19		Income from continuing operations (after-tax)		19			14			15			6			14

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2015												2016
2016		2015			1Q			2Q			3Q			4Q			1Q

				*Capitalization Data (1):*
				Senior Debt:
				Short-term debt		3,013			3,620			1,833			1,216			969
				Long-term debt		14,690			14,242			14,309			13,783			13,795
				Junior Subordinated Long-Term Debt		4,884			5,884			5,884			5,811			5,813

				Attributed Equity:
				Including accumulated other comprehensive income		45,044			41,723			42,720			41,890			49,242
				Excluding accumulated other comprehensive income (2)		27,292			28,319			29,257			29,605			30,176
				Amount included above for foreign currency exchange rate remeasurement (3)		(4,353	)		(4,211	)		(4,034	)		(3,747	)		(3,628	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (3)		31,645			32,530			33,291			33,352			33,804


				Book value per share of Common Stock:
				Including accumulated other comprehensive income (4)		98.16			91.17			93.87			92.39			109.66
				Excluding accumulated other comprehensive income (2)		59.52			61.89			64.32			65.32			67.36
				Amount included above for foreign currency exchange rate remeasurement (3)		(9.49	)		(9.20	)		(8.87	)		(8.27	)		(8.10	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (3)		69.01			71.09			73.19			73.59			75.46


				Number of diluted shares at end of period (5)		458.5			457.6			454.9			453.2			448.0

				*Common Stock Price Range (based on closing price):*
	79.84		90.11	High		90.11			91.47			91.68			87.69			79.84
	58.00		75.32	Low		75.32			79.13			74.22			75.40			58.00
	72.22		80.31	Close		80.31			87.52			76.21			81.41			72.22


				*Common Stock market capitalization (1)*		36,421			39,550			34,249			36,398			32,001

(1)	As of end of period.

(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 as of March 31, June 30, and September 30, 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, and as of December 31, 2015 and March 31, 2016 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.

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

OPERATIONS HIGHLIGHTS


Year-to-date					2015								2016
2016		2015			1Q		2Q		3Q		4Q		1Q

				*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		380.9		380.6		380.9		389.1		403.6
				Retail customers		198.4		199.2		188.9		197.3		198.6
				General account		382.4		368.5		376.7		376.7		400.8

				Total Investment Management and Advisory Services		961.7		948.3		946.5		963.1		1,003.0
				Non-proprietary assets under management		195.8		191.5		178.2		175.5		167.0

				Total managed by U.S. Retirement Solutions and Investment Management Division		1,157.5		1,139.8		1,124.7		1,138.6		1,170.0
				Managed by U.S. Individual Life and Group Insurance Division		23.7		24.1		24.2		24.1		25.1
				Managed by International Insurance Division		22.5		22.9		22.2		21.0		22.8

				Total assets under management		1,203.7		1,186.8		1,171.1		1,183.7		1,217.9
				Client assets under administration		159.3		165.7		163.1		163.2		170.5

				Total assets under management and administration		1,363.0		1,352.5		1,334.2		1,346.9		1,388.4


				Assets managed or administered for customers outside of the United States at end of period		262.4		263.1		263.4		270.5		297.5

				*Distribution Representatives (1):*
				Prudential Agents		2,822		2,866		2,922		2,903		2,969
				International Life Planners		7,469		7,415		7,509		7,592		7,608
				Gibraltar Life Consultants		8,645		8,565		8,593		8,805		8,781

	47		47	*Prudential Agent productivity ($ thousands)*		47		53		57		68		47

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

COMBINED STATEMENTS OF OPERATIONS

(in millions)


Year-to-date						%			2015												2016
2016			2015			Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	5,577			5,913			-6%	Premiums		5,913			6,782			5,273			7,495			5,577
	1,511			1,554			-3%	Policy charges and fee income		1,554			1,383			1,552			1,514			1,511
	3,017			3,005			0%	Net investment income		3,005			2,974			3,015			2,964			3,017
	1,187			1,335			-11%	Asset management fees, commissions and other income		1,335			1,361			1,238			1,272			1,187

	11,292			11,807			-4%	Total revenues		11,807			12,500			11,078			13,245			11,292


								Benefits and Expenses (1):
	5,984			6,216			-4%	Insurance and annuity benefits		6,216			6,925			5,640			7,917			5,984
	907			884			3%	Interest credited to policyholders’ account balances		884			907			915			879			907
	325			317			3%	Interest expense		317			324			339			322			325
	(685	)		(647	)		-6%	Deferral of acquisition costs		(647	)		(664	)		(650	)		(691	)		(685	)
	479			428			12%	Amortization of acquisition costs		428			251			509			443			479
	2,957			2,864			3%	General and administrative expenses		2,864			2,916			2,862			3,193			2,957

	9,967			10,062			-1%	Total benefits and expenses		10,062			10,659			9,615			12,063			9,967

	1,325			1,745			-24%	Adjusted operating income before income taxes		1,745			1,841			1,463			1,182			1,325


								Reconciling items:
	1,418			1,662			-15%	Realized investment gains (losses), net, and related adjustments		1,662			(60	)		1,117			(461	)		1,418
	(1,080	)		(611	)		-77%	Related charges		(611	)		346			(679	)		265			(1,080	)

	338			1,051			-68%	Total realized investment gains (losses), net, and related charges and adjustments		1,051			286			438			(196	)		338

	216			83			160%	Investment gains(losses) on trading account assets supporting insurance liabilities, net		83			(220	)		(228	)		(159	)		216
	(130	)		(197	)		34%	Change in experience-rated contractholder liabilities due to asset value changes		(197	)		234			258			138			(130	)
								Divested businesses:
	(73	)		(22	)		-232%	Closed Block division		(22	)		52			108			(80	)		(73	)
	31			75			-59%	Other divested businesses		75			(109	)		8			(40	)		31
	25			13			92%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		13			45			2			(2	)		25

	407			1,003			-59%	Total reconciling items, before income taxes		1,003			288			586			(339	)		407


	1,732			2,748			-37%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures		2,748			2,129			2,049			843			1,732
	368			699			-47%	Income tax expense		699			679			584			110			368

	1,364			2,049			-33%	Income from continuing operations before equity in earnings of operating joint ventures		2,049			1,450			1,465			733			1,364

(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 5

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

COMBINING STATEMENTS OF OPERATIONS

(in millions)


	Three Months Ended March 31, 2016
	Total			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1) :
Premiums		5,577			671			1,219			3,696			(9	)
Policy charges and fee income		1,511			675			719			130			(13	)
Net investment income		3,017			1,198			582			1,120			117
Asset management fees, commissions and other income		1,187			1,164			166			98			(241	)

Total revenues		11,292			3,708			2,686			5,044			(146	)


Benefits and Expenses (1):
Insurance and annuity benefits		5,984			1,171			1,634			3,173			6
Interest credited to policyholders’ account balances		907			453			227			227			—
Interest expense		325			25			142			2			156
Deferral of acquisition costs		(685	)		(110	)		(162	)		(426	)		13
Amortization of acquisition costs		479			155			78			260			(14	)
General and administrative expenses		2,957			1,302			621			1,029			5

Total benefits and expenses		9,967			2,996			2,540			4,265			166


Adjusted operating income (loss) before income taxes		1,325			712			146			779			(312	)


	Three Months Ended March 31, 2015
	Total			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		5,913			1,213			1,188			3,519			(7	)
Policy charges and fee income		1,554			720			705			140			(11	)
Net investment income		3,005			1,217			549			1,099			140
Asset management fees, commissions and other income		1,335			1,248			186			148			(247	)

Total revenues		11,807			4,398			2,628			4,906			(125	)


Benefits and Expenses (1):
Insurance and annuity benefits		6,216			1,616			1,598			3,002			—
Interest credited to policyholders’ account balances		884			450			210			224			—
Interest expense		317			34			136			1			146
Deferral of acquisition costs		(647	)		(120	)		(139	)		(401	)		13
Amortization of acquisition costs		428			99			88			252			(11	)
General and administrative expenses		2,864			1,301			589			994			(20	)

Total benefits and expenses		10,062			3,380			2,482			4,072			128


Adjusted operating income (loss) before income taxes		1,745			1,018			146			834			(253	)

(1)

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

CONSOLIDATED BALANCE SHEETS

(in millions)


	03/31/2015		06/30/2015		09/30/2015		12/31/2015		03/31/2016

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $263,134; $262,820; $263,281; $265,416; $278,000)		299,422		290,063		290,778		290,323		314,529
Fixed maturities, held to maturity, at amortized cost (fair value $2,817; $2,674; $2,669; $2,624; $2,841)		2,513		2,396		2,380		2,308		2,411
Trading account assets supporting insurance liabilities, at fair value		20,626		20,267		20,408		20,522		21,447
Other trading account assets, at fair value		11,989		12,749		14,075		14,458		8,052
Equity securities, available for sale, at fair value (cost $7,045; $6,870; $6,755; $6,847; $7,026)		10,206		9,901		9,109		9,274		9,400
Commercial mortgage and other loans		47,478		48,569		50,048		50,559		50,798
Policy loans		11,693		11,652		11,624		11,657		11,805
Other long-term investments		11,001		10,678		10,591		9,986		10,281
Short-term investments		5,947		5,669		7,937		8,105		3,697

Total investments		420,875		411,944		416,950		417,192		432,420
Cash and cash equivalents		19,119		17,038		20,207		17,612		22,492
Accrued investment income		3,135		3,117		3,156		3,110		3,180
Deferred policy acquisition costs		15,639		16,569		16,206		16,718		15,998
Value of business acquired		2,514		2,994		2,847		2,828		2,582
Other assets		14,495		14,589		14,409		14,225		14,822
Separate account assets		302,706		296,341		280,616		285,570		281,501

Total assets		778,483		762,592		754,391		757,255		772,995


Liabilities:
Future policy benefits		220,840		216,555		222,220		224,384		234,728
Policyholders’ account balances		135,143		135,630		136,620		136,784		139,745
Securities sold under agreements to repurchase		7,766		7,863		8,107		7,882		8,357
Cash collateral for loaned securities		4,437		3,808		4,241		3,496		4,052
Income taxes		11,390		9,239		9,644		8,714		12,128
Senior short-term debt		3,013		3,620		1,833		1,216		969
Senior long-term debt		14,690		14,242		14,309		13,783		13,795
Junior subordinated long-term debt		4,884		5,884		5,884		5,811		5,813
Notes issued by consolidated variable interest entities		6,830		7,455		8,370		8,597		2,946
Other liabilities		21,210		19,663		19,777		19,095		19,696
Separate account liabilities		302,706		296,341		280,616		285,570		281,501

Total liabilities		732,909		720,300		711,621		715,332		723,730


Attributed Equity:
Accumulated other comprehensive income		17,752		13,404		13,463		12,285		19,066
Other attributed equity		27,292		28,319		29,257		29,605		30,176

Total attributed equity		45,044		41,723		42,720		41,890		49,242

Noncontrolling Interest		530		569		50		33		23

Total Equity		45,574		42,292		42,770		41,923		49,265

Total liabilities and equity		778,483		762,592		754,391		757,255		772,995

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

COMBINING BALANCE SHEETS BY DIVISION

(in millions)


	As of March 31, 2016

	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		432,420		60,338			372,082		129,193			53,842		173,880		15,167
Deferred policy acquisition costs		15,998		362			15,636		4,258			4,907		6,764		(293	)
Other assets		43,076		2,784			40,292		19,201			11,175		10,114		(198	)
Separate account assets		281,501		—			281,501		236,989			45,499		2,677		(3,664	)

Total assets		772,995		63,484			709,511		389,641			115,423		193,435		11,012


Liabilities:
Future policy benefits		234,728		49,417			185,311		65,960			15,539		99,441		4,371
Policyholders’ account balances		139,745		5,233			134,512		56,770			31,865		45,879		(2	)
Debt		20,577		—			20,577		2,999			7,589		34		9,955
Other liabilities		47,179		10,310			36,869		7,953			7,505		18,888		2,523
Separate account liabilities		281,501		—			281,501		236,989			45,499		2,677		(3,664	)

Total liabilities		723,730		64,960			658,770		370,671			107,997		166,919		13,183


Attributed Equity:
Accumulated other comprehensive income (loss)		19,066		12			19,054		1,754			1,103		17,464		(1,267	)
Other attributed equity		30,176		(1,489	)		31,665		17,220			6,323		8,998		(876	)

Total attributed equity		49,242		(1,477	)		50,719		18,974			7,426		26,462		(2,143	)

Noncontrolling Interest		23		1			22		(4	)		—		54		(28	)

Total Equity		49,265		(1,476	)		50,741		18,970			7,426		26,516		(2,171	)


Total liabilities and equity		772,995		63,484			709,511		389,641			115,423		193,435		11,012



	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		37,775		1,996			35,779		15,081			11,143		8,246		1,309
Separate account assets		285,570		—			285,570		242,058			44,446		2,553		(3,487	)

Total assets		757,255		62,127			695,128		395,121			111,200		175,153		13,654


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		20,810		—			20,810		2,846			7,251		29		10,684
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		715,332		63,536			651,796		379,846			105,370		153,089		13,491


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		757,255		62,127			695,128		395,121			111,200		175,153		13,654

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED

(in millions)


	As of March 31, 2016								As of December 31, 2015
	Senior debt				Junior Subordinated Long-term Debt				Senior debt				Junior Subordinated Long-term Debt		Total Debt
	Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt		Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt
*Borrowings by use of proceeds:*
Capital Debt		85		5,735		5,813		11,633		194		5,875		5,811		11,880
Operating Debt - Investment related		365		6,469		—		6,834		438		6,573		—		7,011
Operating Debt - Specified businesses		519		1,001		—		1,520		584		770		—		1,354
Limited recourse and non-recourse borrowing		—		590		—		590		—		565		—		565

Total debt		969		13,795		5,813		20,577		1,216		13,783		5,811		20,810


	As of March 31, 2016								As of December 31, 2015
	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		10,639		939		55		11,633		10,888		941		51		11,880
Operating Debt - Investment related		5,163		72		1,599		6,834		5,328		72		1,611		7,011
Operating Debt - Specified businesses		1,123		397		—		1,520		970		384		—		1,354
Limited recourse and non-recourse borrowing		—		590		—		590		—		565		—		565

Total debt		16,925		1,998		1,654		20,577		17,186		1,962		1,662		20,810

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $839 million and $841 million of surplus notes as of March 31, 2016 and December 31, 2015, respectively.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(in millions)


Year-to-date						%			2015												2016
2016			2015			Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	671			1,213			-45%	Premiums		1,213			1,939			688			3,005			671
	675			720			-6%	Policy charges and fee income		720			740			718			707			675
	1,198			1,217			-2%	Net investment income		1,217			1,186			1,205			1,188			1,198
	1,164			1,248			-7%	Asset management fees, commissions and other income		1,248			1,291			1,197			1,198			1,164

	3,708			4,398			-16%	Total revenues		4,398			5,156			3,808			6,098			3,708


								Benefits and Expenses (1):
	1,171			1,616			-28%	Insurance and annuity benefits		1,616			2,330			1,216			3,502			1,171
	453			450			1%	Interest credited to policyholders’ account balances		450			446			468			440			453
	25			34			-26%	Interest expense		34			24			25			21			25
	(110	)		(120	)		8%	Deferral of acquisition costs		(120	)		(128	)		(117	)		(122	)		(110	)
	155			99			57%	Amortization of acquisition costs		99			132			179			140			155
	1,302			1,301			0%	General and administrative expenses		1,301			1,371			1,305			1,341			1,302

	2,996			3,380			-11%	Total benefits and expenses		3,380			4,175			3,076			5,322			2,996

	712			1,018			-30%	Adjusted operating income before income taxes		1,018			981			732			776			712

(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 10

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(in millions)


	Three Months Ended March 31, 2016
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		671			32			639			—
Policy charges and fee income		675			620			55			—
Net investment income		1,198			161			1,019			18
Asset management fees, commissions and other income		1,164			296			180			688

Total revenues		3,708			1,109			1,893			706


Benefits and Expenses (1):
Insurance and annuity benefits		1,171			111			1,060			—
Interest credited to policyholders’ account balances		453			100			353			—
Interest expense		25			18			4			3
Deferral of acquisition costs		(110	)		(100	)		(7	)		(3	)
Amortization of acquisition costs		155			144			7			4
General and administrative expenses		1,302			508			257			537

Total benefits and expenses		2,996			781			1,674			541

Adjusted operating income before income taxes		712			328			219			165


	Three Months Ended March 31, 2015
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		1,213			29			1,184			—
Policy charges and fee income		720			669			51			—
Net investment income		1,217			151			1,041			25
Asset management fees, commissions and other income		1,248			338			202			708

Total revenues		4,398			1,187			2,478			733


Benefits and Expenses (1):
Insurance and annuity benefits		1,616			48			1,568			—
Interest credited to policyholders’ account balances		450			81			369			—
Interest expense		34			25			7			2
Deferral of acquisition costs		(120	)		(109	)		(8	)		(3	)
Amortization of acquisition costs		99			89			5			5
General and administrative expenses		1,301			524			253			524

Total benefits and expenses		3,380			658			2,194			528

Adjusted operating income before income taxes		1,018			529			284			205

(1)

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(in millions)


Year-to-date							2015												2016
2016			2015				1Q			2Q			3Q			4Q			1Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	149,441			155,083		Beginning total account value		155,083			157,552			155,424			146,685			149,441
	683			1,421		Sales: Highest Daily Suite - risk retained by Prudential(1)		1,421			846			735			680			683
	374			—		Highest Daily Suite - externally reinsured living benefits		—			559			500			486			374
	944			794		Other variable annuities (2)		794			921			880			910			944

	2,001			2,215		Total sales		2,215			2,326			2,115			2,076			2,001
	(1,748	)		(2,167	)	Surrenders and withdrawals		(2,167	)		(2,170	)		(1,965	)		(1,989	)		(1,748	)

	253			48		Net sales		48			156			150			87			253
	(355	)		(400	)	Benefit payments		(400	)		(390	)		(400	)		(351	)		(355	)

	(102	)		(352	)	Net flows		(352	)		(234	)		(250	)		(264	)		(102	)
	764			3,713		Change in market value, interest credited, and other		3,713			(983	)		(7,594	)		3,909			764
	(857	)		(892	)	Policy charges		(892	)		(911	)		(895	)		(889	)		(857	)

	149,246			157,552		Ending total account value		157,552			155,424			146,685			149,441			149,246


						Variable Annuities Account Value by Product:
	111,229			119,801		Highest Daily Suite - risk retained by Prudential (1)		119,801			117,723			110,390			112,060			111,229
	1,893			—		Highest Daily Suite - externally reinsured living benefits		—			553			1,011			1,513			1,893
	36,124			37,751		Other variable annuities (2)		37,751			37,148			35,284			35,868			36,124

	149,246			157,552		Ending total account value		157,552			155,424			146,685			149,441			149,246


						Fixed Annuities and other products (3):
	3,504			3,581		Beginning total account value		3,581			3,575			3,552			3,532			3,504
	16			12		Sales		12			15			8			13			16
	(31	)		(29	)	Surrenders and withdrawals		(29	)		(33	)		(30	)		(32	)		(31	)

	(15	)		(17	)	Net redemptions		(17	)		(18	)		(22	)		(19	)		(15	)
	(88	)		(88	)	Benefit payments		(88	)		(99	)		(91	)		(91	)		(88	)

	(103	)		(105	)	Net flows		(105	)		(117	)		(113	)		(110	)		(103	)
	86			99		Interest credited and other		99			94			94			83			86
	—			—		Policy charges		—			—			(1	)		(1	)		—

	3,487			3,575		Ending total account value		3,575			3,552			3,532			3,504			3,487


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (4):
	580			638		Insurance Agents		638			673			611			627			580
	385			394		Wirehouses		394			443			429			415			385
	783			855		Independent Financial Planners		855			881			788			761			783
	269			340		Bank Distribution		340			344			295			286			269

	2,017			2,227		Total		2,227			2,341			2,123			2,089			2,017

(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 12

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(in millions)


Year-to-date							2015												2016
2016			2015				1Q			2Q			3Q			4Q			1Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	9,942			9,852		Beginning balance		9,852			9,728			9,724			10,030			9,942
	238			308		Premiums and deposits		308			302			276			279			238
	(141	)		(198	)	Surrenders and withdrawals		(198	)		(184	)		(176	)		(146	)		(141	)

	97			110		Net sales		110			118			100			133			97
	(105	)		(105	)	Benefit payments		(105	)		(123	)		(109	)		(109	)		(105	)

	(8	)		5		Net flows		5			(5	)		(9	)		24			(8	)
	64			64		Interest credited and other		64			63			66			70			64
	19			(193	)	Net transfers (to) from separate account		(193	)		(61	)		249			(181	)		19
	—			—		Policy charges		—			(1	)		—			(1	)		—

	10,017			9,728		Ending balance		9,728			9,724			10,030			9,942			10,017


						Account Values in Separate Account (1):
	143,003			148,812		Beginning balance		148,812			151,399			149,252			140,187			143,003
	1,779			1,919		Premiums and deposits		1,919			2,039			1,847			1,810			1,779
	(1,638	)		(1,998	)	Surrenders and withdrawals		(1,998	)		(2,019	)		(1,819	)		(1,875	)		(1,638	)

	141			(79	)	Net sales (redemptions)		(79	)		20			28			(65	)		141
	(338	)		(383	)	Benefit payments		(383	)		(366	)		(382	)		(333	)		(338	)

	(197	)		(462	)	Net flows		(462	)		(346	)		(354	)		(398	)		(197	)
	786			3,748		Change in market value, interest credited and other		3,748			(952	)		(7,566	)		3,922			786
	(19	)		193		Net transfers (to) from general account		193			61			(249	)		181			(19	)
	(857	)		(892	)	Policy charges		(892	)		(910	)		(896	)		(889	)		(857	)

	142,716			151,399		Ending balance		151,399			149,252			140,187			143,003			142,716

(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 13

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(in millions)


	2015								2016
	1Q		2Q		3Q		4Q		1Q

LIVING BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1):

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		5,594		5,276		4,933		4,767		4,658
Guaranteed minimum withdrawal benefits		707		666		588		578		552
Guaranteed minimum income benefits		3,271		3,151		2,861		2,870		2,780
Guaranteed minimum withdrawal & income benefits - risk retained by Prudential		123,093		121,358		114,539		116,724		116,818
Guaranteed minimum withdrawal & income benefits - externally reinsured		—		553		1,011		1,513		1,893

Total		132,665		131,004		123,932		126,452		126,701


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature - risk retained by Prudential		114,797		112,770		105,926		107,411		106,699
Account Values with Auto-Rebalancing Feature - externally reinsured		—		553		1,011		1,513		1,893
Account Values without Auto-Rebalancing Feature		17,868		17,681		16,995		17,528		18,109

Total		132,665		131,004		123,932		126,452		126,701


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature - risk retained by Prudential		1,880		2,350		4,259		4,019		4,395
Net Amount at Risk with Auto-Rebalancing Feature - externally reinsured		—		—		—		—		—
Net Amount at Risk without Auto-Rebalancing Feature		816		905		1,296		1,194		1,225

Total		2,696		3,255		5,555		5,213		5,620

(1)	At end of period.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(in millions)


	2015								2016
	1Q		2Q		3Q		4Q		1Q

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		119,854		118,425		112,070		114,402		114,662
Net amount at risk		377		470		894		737		648
Minimum return, anniversary contract value, or maximum contract value:
Account value		34,432		33,665		31,366		31,658		31,188
Net amount at risk		2,709		3,058		4,711		4,212		4,367

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		114,797		113,323		106,937		108,924		108,592
Account Values without Auto-Rebalancing Feature		39,489		38,767		36,499		37,136		37,258

Total		154,286		152,090		143,436		146,060		145,850


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		699		980		2,305		1,919		2,025
Net Amount at Risk without Auto-Rebalancing Feature		2,387		2,548		3,300		3,030		2,990

Total		3,086		3,528		5,605		4,949		5,015

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(in millions)


Year-to-date							2015												2016
2016			2015				1Q			2Q			3Q			4Q			1Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	188,961			184,196		Beginning total account value		184,196			188,145			188,807			184,515			188,961
	6,656			6,314		Deposits and sales		6,314			5,040			9,422			4,908			6,656
	(5,286	)		(6,229	)	Withdrawals and benefits		(6,229	)		(4,683	)		(5,072	)		(5,575	)		(5,286	)
	622			3,864		Change in market value, interest credited, interest income and other activity		3,864			305			(8,642	)		5,113			622

	190,953			188,145		Ending total account value		188,145			188,807			184,515			188,961			190,953


	1,370			85		Net additions (withdrawals)		85			357			4,350			(667	)		1,370


						Stable value account values included above		44,733			45,007			45,731			45,971			46,865

						Institutional Investment Products:
	179,964			179,641		Beginning total account value		179,641			177,120			183,798			181,662			179,964
	2,061			969		Additions		969			9,147			2,031			3,425			2,061
	(2,783	)		(3,495	)	Withdrawals and benefits		(3,495	)		(3,808	)		(3,940	)		(4,145	)		(2,783	)
	2,198			1,629		Change in market value, interest credited and interest income		1,629			83			1,106			658			2,198
	(621	)		(1,624	)	Other (1)		(1,624	)		1,256			(1,333	)		(1,636	)		(621	)

	180,819			177,120		Ending total account value		177,120			183,798			181,662			179,964			180,819


	(722	)		(2,526	)	Net additions (withdrawals)		(2,526	)		5,339			(1,909	)		(720	)		(722	)


						Amounts included in ending total account value above:
	68,624			69,113		Investment-only stable value wraps		69,113			67,958			68,097			66,827			68,624
	32,364			29,176		Longevity reinsurance (2)		29,176			36,252			34,628			33,453			32,364
	79,831			78,831		Group annuities and other products		78,831			79,588			78,937			79,684			79,831

	180,819			177,120		Ending total account value		177,120			183,798			181,662			179,964			180,819

(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 16

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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				%			2015								2016
2016		2015		Change			1Q		2Q		3Q		4Q		1Q

						Analysis of revenues by type:
	524		530		-1%	Asset management fees		530		540		536		529		524
	71		72		-1%	Other related revenues		72		52		49		68		71
	111		131		-15%	Service, distribution and other revenues		131		184		119		134		111

	706		733		-4%	Total Asset Management segment revenues		733		776		704		731		706


						Analysis of asset management fees by source:
	242		228		6%	Institutional customers		228		230		234		231		242
	169		189		-11%	Retail customers		189		197		191		187		169
	113		113		0%	General account		113		113		111		111		113

	524		530		-1%	Total asset management fees		530		540		536		529		524


Supplementary Assets Under Management Information (in billions):
	March 31, 2016
	Equity		Fixed Income		Real Estate		Total
Institutional customers		59.2		304.1		40.3		403.6
Retail customers		116.0		80.5		2.1		198.6
General account		6.4		392.4		2.0		400.8

Total		181.6		777.0		44.4		1,003.0


	March 31, 2015
	Equity		Fixed Income		Real Estate		Total
Institutional customers		65.4		278.7		36.8		380.9
Retail customers		129.7		66.4		2.3		198.4
General account		8.1		372.5		1.8		382.4

Total		203.2		717.6		40.9		961.7

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(in billions)


Year-to-date							2015												2016
2016			2015				1Q			2Q			3Q			4Q			1Q

						Institutional Customers - Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	347.1			323.6		Beginning assets under management		323.6			334.1			335.9			338.6			347.1
	12.5			16.8		Additions		16.8			18.3			15.5			16.3			12.5
	(15.1	)		(13.1	)	Withdrawals		(13.1	)		(11.5	)		(10.8	)		(10.3	)		(15.1	)
	12.7			6.6		Change in market value		6.6			(5.0	)		(1.7	)		2.2			12.7
	(1.0	)		0.2		Net money market flows		0.2			—			(0.2	)		0.3			(1.0	)
	3.1			—		Other (1)		—			—			(0.1	)		—			3.1

	359.3			334.1		Ending assets under management		334.1			335.9			338.6			347.1			359.3
	44.3			46.8		Affiliated institutional assets under management		46.8			44.7			42.3			42.0			44.3

	403.6			380.9		Total assets managed for institutional customers at end of period		380.9			380.6			380.9			389.1			403.6


	(2.6	)		3.7		Net institutional additions (withdrawals), excluding money market activity		3.7			6.8			4.7			6.0			(2.6	)


						Retail Customers - Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	128.9			126.8		Beginning assets under management		126.8			135.1			135.2			125.9			128.9
	10.2			13.1		Additions		13.1			10.3			8.2			9.3			10.2
	(10.7	)		(9.1	)	Withdrawals		(9.1	)		(10.7	)		(9.8	)		(10.5	)		(10.7	)
	(1.2	)		4.3		Change in market value		4.3			0.5			(7.6	)		4.2			(1.2	)
	(0.1	)		—		Net money market flows		—			—			—			—			(0.1	)
	0.7			—		Other (1)		—			—			(0.1	)		—			0.7

	127.8			135.1		Ending assets under management		135.1			135.2			125.9			128.9			127.8
	70.8			63.3		Affiliated retail assets under management		63.3			64.0			63.0			68.4			70.8

	198.6			198.4		Total assets managed for retail customers at end of period		198.4			199.2			188.9			197.3			198.6


	(0.5	)		4.0		Net retail additions (withdrawals), excluding money market activity		4.0			(0.4	)		(1.6	)		(1.2	)		(0.5	)

(1)	“Other” activity represents transfers from the Retirement Segment as a result of changes in the client contract form, impact of acquired business of $3.4B as of March 4, 2016 and FX related to International assets under management.

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(in millions)


Year-to-date						%			2015												2016
2016			2015			Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	1,219			1,188			3%	Premiums		1,188			1,200			1,203			1,190			1,219
	719			705			2%	Policy charges and fee income		705			516			717			699			719
	582			549			6%	Net investment income		549			551			593			562			582
	166			186			-11%	Asset management fees, commissions and other income		186			184			156			177			166

	2,686			2,628			2%	Total revenues		2,628			2,451			2,669			2,628			2,686


								Benefits and Expenses (1):
	1,634			1,598			2%	Insurance and annuity benefits		1,598			1,471			1,507			1,570			1,634
	227			210			8%	Interest credited to policyholders’ account balances		210			237			228			226			227
	142			136			4%	Interest expense		136			140			142			140			142
	(162	)		(139	)		-17%	Deferral of acquisition costs		(139	)		(157	)		(166	)		(198	)		(162	)
	78			88			-11%	Amortization of acquisition costs		88			(127	)		98			80			78
	621			589			5%	General and administrative expenses		589			575			633			684			621

	2,540			2,482			2%	Total benefits and expenses		2,482			2,139			2,442			2,502			2,540


	146			146			0%	Adjusted operating income before income taxes		146			312			227			126			146

(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 19

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(in millions)


	Three Months Ended March 31, 2016
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		1,219			210			1,009
Policy charges and fee income		719			570			149
Net investment income		582			436			146
Asset management fees, commissions and other income		166			150			16

Total revenues		2,686			1,366			1,320


Benefits and Expenses (1):
Insurance and annuity benefits		1,634			614			1,020
Interest credited to policyholders’ account balances		227			164			63
Interest expense		142			141			1
Deferral of acquisition costs		(162	)		(162	)		—
Amortization of acquisition costs		78			77			1
General and administrative expenses		621			412			209

Total benefits and expenses		2,540			1,246			1,294


Adjusted operating income before income taxes		146			120			26


	Three Months Ended March 31, 2015
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		1,188			232			956
Policy charges and fee income		705			563			142
Net investment income		549			403			146
Asset management fees, commissions and other income		186			153			33

Total revenues		2,628			1,351			1,277


Benefits and Expenses (1):
Insurance and annuity benefits		1,598			615			983
Interest credited to policyholders’ account balances		210			155			55
Interest expense		136			134			2
Deferral of acquisition costs		(139	)		(139	)		—
Amortization of acquisition costs		88			86			2
General and administrative expenses		589			384			205

Total benefits and expenses		2,482			1,235			1,247


Adjusted operating income before income taxes		146			116			30

(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 20

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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							2015												2016
2016			2015				1Q			2Q			3Q			4Q			1Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1) :

	48			49		Term life		49			52			51			52			48
	51			40		Guaranteed Universal life		40			48			59			73			51
	20			17		Other Universal life		17			17			23			32			20
	26			18		Variable life		18			13			25			22			26

	145			124		Total		124			130			158			179			145


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	29			25		Prudential Agents		25			27			30			31			29
	116			99		Third party distribution		99			103			128			148			116

	145			124		Total		124			130			158			179			145


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	24,487			22,526		Beginning balance		22,526			22,617			23,734			23,922			24,487
	809			737		Premiums and deposits		737			830			762			890			809
	(251	)		(267	)	Surrenders and withdrawals		(267	)		(277	)		(246	)		(242	)		(251	)

	558			470		Net sales		470			553			516			648			558
	(125	)		(137	)	Benefit payments		(137	)		(128	)		(118	)		(109	)		(125	)

	433			333		Net flows		333			425			398			539			433
	(224	)		(29	)	Interest credited and other		(29	)		895			31			296			(224	)
	99			115		Net transfers from separate account		115			124			106			87			99
	(358	)		(328	)	Policy charges		(328	)		(324	)		(350	)		(357	)		(358	)
	—			—		Acquisition		—			(3	)		3			—			—

	24,437			22,617		Ending balance		22,617			23,734			23,922			24,487			24,437


						*Separate Account Liabilities:*
	27,027			27,888		Beginning balance		27,888			28,246			28,055			26,183			27,027
	456			391		Premiums and deposits		391			307			291			420			456
	(217	)		(214	)	Surrenders and withdrawals		(214	)		(225	)		(204	)		(239	)		(217	)

	239			177		Net sales		177			82			87			181			239
	(51	)		(34	)	Benefit payments		(34	)		(42	)		(26	)		(42	)		(51	)

	188			143		Net flows		143			40			61			139			188
	(5	)		563		Change in market value, interest credited and other		563			124			(1,598	)		1,020			(5	)
	(99	)		(115	)	Net transfers to general account		(115	)		(124	)		(106	)		(87	)		(99	)
	(224	)		(233	)	Policy charges		(233	)		(231	)		(229	)		(228	)		(224	)
	—			—		Acquisition		—			—			—			—			—

	26,887			28,246		Ending balance		28,246			28,055			26,183			27,027			26,887


						FACE AMOUNT IN FORCE (3):

						Term life		659,900			670,043			679,979			689,527			697,687
						Guaranteed Universal life		111,756			114,212			117,360			121,290			124,061
						Other Universal life		43,165			43,213			43,469			44,051			44,203
						Variable life		168,000			166,490			164,363			164,020			162,960

						Total		982,820			993,958			1,005,171			1,018,889			1,028,910

(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 21

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(dollar amounts in millions)


Year-to-date					2015												2016
2016		2015			1Q			2Q			3Q			4Q			1Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	232		131	Group life		131			10			38			25			232
	79		31	Group disability		31			14			19			5			79

	311		162	Total		162			24			57			30			311


				Future Policy Benefits (1) (2):
				Group life		2,156			2,083			1,994			2,185			2,103
				Group disability		30			21			11			3			29

				Total		2,186			2,104			2,005			2,188			2,132


				Policyholders’ Account Balances (1):
				Group life		8,025			8,120			8,234			8,359			8,271
				Group disability		231			264			200			210			216

				Total		8,256			8,384			8,434			8,569			8,487


				Separate Account Liabilities (1):
				Group life		26,764			24,550			23,646			23,292			24,339
				Group disability		—			—			—			—			—

				Total		26,764			24,550			23,646			23,292			24,339


				Group Life Insurance:
	1,009		978	Gross premiums, policy charges and fee income (3)		978			1,006			974			982			1,009
	955		918	Earned premiums, policy charges and fee income		918			955			926			932			955
	89.4%		92.8%	Benefits ratio (4)		92.8	%		88.3	%		88.6	%		87.1	%		89.4	%
	10.8%		10.6%	Administrative operating expense ratio		10.6	%		10.5	%		10.8	%		12.2	%		10.8	%
				Persistency ratio		92.8	%		92.6	%		92.0	%		91.3	%		96.1	%

				Group Disability Insurance:
	216		199	Gross premiums, policy charges and fee income (3)		199			205			213			196			216
	203		180	Earned premiums, policy charges and fee income		180			172			197			188			203
	82.2%		72.2%	Benefits ratio (5)		72.2	%		76.3	%		81.8	%		85.3	%		82.2	%
	31.9%		32.7%	Administrative operating expense ratio		32.7	%		34.1	%		32.7	%		36.9	%		31.9	%
				Persistency ratio		89.5	%		88.6	%		87.7	%		87.0	%		94.9	%

				Total Group Insurance (6):
	88.1%		89.4%	Benefits ratio		89.4	%		86.5	%		87.4	%		86.8	%		88.1	%

(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 89.4%, 87.1%, 88.6%, 86.5%, and 92.8% for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively, and 89.4%, and 92.8% for year-to-date March 2016 and 2015, 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 82.2%, 85.3%, 81.8%, 61.6%, and 72.2% for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively, and 82.2%, and 72.2% for year-to-date March 2016 and 2015, 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 88.1%, 86.8%, 87.4%, 82.7%, and 89.4% for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively, and 88.1%, and 89.4% for year-to-date March 2016 and 2015, respectively.

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(in millions)


Year-to-date							2015												2016
2016			2015				1Q			2Q			3Q			4Q			1Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	4,916			5,376		Beginning balance		5,376			5,046			5,186			4,735			4,916
	100			109		Capitalization		109			112			104			105			100
	(144	)		(89	)	Amortization - operating results		(89	)		(92	)		(163	)		(121	)		(144	)
	(717	)		(343	)	Amortization - realized investment gains and losses		(343	)		89			(399	)		178			(717	)
	(25	)		(7	)	Impact of unrealized (gains) or losses on AFS securities		(7	)		31			7			19			(25	)
	—			—		Other		—			—			—			—			—

	4,130			5,046		Ending balance		5,046			5,186			4,735			4,916			4,130


						INDIVIDUAL LIFE INSURANCE:
	4,883			4,056		Beginning balance		4,056			3,985			4,652			4,683			4,883
	162			139		Capitalization		139			148			166			197			162
	(77	)		(86	)	Amortization - operating results		(86	)		128			(97	)		(78	)		(77	)
	(26	)		(23	)	Amortization - realized investment gains and losses		(23	)		37			(22	)		9			(26	)
	(215	)		(101	)	Impact of unrealized (gains) or losses on AFS securities		(101	)		354			(16	)		72			(215	)

	4,727			3,985		Ending balance		3,985			4,652			4,683			4,883			4,727


						GROUP INSURANCE:
	181			177		Beginning balance		177			175			183			182			181
	—			—		Capitalization		—			9			—			1			—
	(1	)		(2	)	Amortization - operating results		(2	)		(1	)		(1	)		(2	)		(1	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	180			175		Ending balance		175			183			182			181			180


						DEFERRED SALES INDUCEMENTS
						INDIVIDUAL ANNUITIES:
	1,188			1,513		Beginning balance		1,513			1,367			1,377			1,176			1,188
	1			3		Capitalization		3			2			1			2			1
	(51	)		(31	)	Amortization - operating results		(31	)		(30	)		(56	)		(45	)		(51	)
	(216	)		(118	)	Amortization - realized investment gains and losses		(118	)		29			(148	)		50			(216	)
	(6	)		—		Impact of unrealized (gains) or losses on AFS securities		—			9			2			5			(6	)
	—			—		Other		—			—			—			—			—

	916			1,367		Ending balance		1,367			1,377			1,176			1,188			916

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


Year-to-date						% Change			2015												2016
2016			2015			% Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	3,696			3,519			5%	Premiums		3,519			3,633			3,385			3,307			3,696
	130			140			-7%	Policy charges and fee income		140			139			129			122			130
	1,120			1,099			2%	Net investment income		1,099			1,099			1,081			1,078			1,120
	98			148			-34%	Asset management fees, commissions and other income		148			166			155			164			98

	5,044			4,906			3%	Total revenues		4,906			5,037			4,750			4,671			5,044


								Benefits and Expenses (1):
	3,173			3,002			6%	Insurance and annuity benefits		3,002			3,133			2,904			2,833			3,173
	227			224			1%	Interest credited to policyholders’ account balances		224			224			219			213			227
	2			1			100%	Interest expense		1			1			2			1			2
	(426	)		(401	)		-6%	Deferral of acquisition costs		(401	)		(395	)		(382	)		(387	)		(426	)
	260			252			3%	Amortization of acquisition costs		252			255			249			233			260
	1,029			994			4%	General and administrative expenses		994			977			946			1,040			1,029

	4,265			4,072			5%	Total benefits and expenses		4,072			4,195			3,938			3,933			4,265


	779			834			-7%	Adjusted operating income before income taxes		834			842			812			738			779

(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 24

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Three Months Ended March 31, 2016
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		3,696			1,940			1,756
Policy charges and fee income		130			92			38
Net investment income		1,120			464			656
Asset management fees, commissions and other income		98			63			35

Total revenues		5,044			2,559			2,485


Benefits and Expenses (1):
Insurance and annuity benefits		3,173			1,709			1,464
Interest credited to policyholders’ account balances		227			59			168
Interest expense		2			1			1
Deferral of acquisition costs		(426	)		(213	)		(213	)
Amortization of acquisition costs		260			131			129
General and administrative expenses		1,029			462			567

Total benefits and expenses		4,265			2,149			2,116


Adjusted operating income before income taxes		779			410			369


	Three Months Ended March 31, 2015
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		3,519			1,830			1,689
Policy charges and fee income		140			87			53
Net investment income		1,099			434			665
Asset management fees, commissions and other income		148			91			57

Total revenues		4,906			2,442			2,464


Benefits and Expenses (1):
Insurance and annuity benefits		3,002			1,591			1,411
Interest credited to policyholders’ account balances		224			55			169
Interest expense		1			1			—
Deferral of acquisition costs		(401	)		(209	)		(192	)
Amortization of acquisition costs		252			128			124
General and administrative expenses		994			437			557

Total benefits and expenses		4,072			2,003			2,069


Adjusted operating income before income taxes		834			439			395

(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 25

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2015								2016
2016		2015			1Q		2Q		3Q		4Q		1Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	1,583		1,470	Japan, excluding Gibraltar Life		1,470		1,257		1,285		1,239		1,583
	1,794		1,742	Gibraltar Life		1,742		2,060		1,786		1,719		1,794
	449		447	All other countries		447		455		443		471		449

	3,826		3,659	Total		3,659		3,772		3,514		3,429		3,826


				Annualized new business premiums:
	237		199	Japan, excluding Gibraltar Life		199		146		160		164		237
	409		357	Gibraltar Life		357		413		408		370		409
	98		117	All other countries		117		112		103		116		98

	744		673	Total		673		671		671		650		744


				Annualized new business premiums by distribution channel:
	335		316	Life Planner Operations		316		258		263		280		335
	161		146	Gibraltar Life Consultants		146		172		162		150		161
	194		153	Banks		153		174		186		166		194
	54		58	Independent Agency		58		67		60		54		54

	744		673	Total		673		671		671		650		744

				Constant exchange rate basis (2):
				Net premiums, policy charges and fee income:

	1,677		1,603	Japan, excluding Gibraltar Life		1,603		1,380		1,425		1,364		1,677
	1,921		1,878	Gibraltar Life		1,878		2,239		1,969		1,870		1,921
	480		434	All other countries		434		441		461		492		480

	4,078		3,915	Total		3,915		4,060		3,855		3,726		4,078


				Annualized new business premiums:
	250		217	Japan, excluding Gibraltar Life		217		162		177		181		250
	425		369	Gibraltar Life		369		428		432		390		425
	106		109	All other countries		109		107		107		121		106

	781		695	Total		695		697		716		692		781


				Annualized new business premiums by distribution channel:
	356		326	Life Planner Operations		326		269		284		302		356
	169		153	Gibraltar Life Consultants		153		179		175		161		169
	199		157	Banks		157		178		194		172		199
	57		59	Independent Agency		59		71		63		57		57

	781		695	Total		695		697		716		692		781

(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 26

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2015												2016
	1Q			2Q			3Q			4Q			1Q

Face amount of individual policies in force at end of period (in billions) (1) (2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		307			310			313			316			321
Gibraltar Life		327			328			330			331			334
All other countries		113			114			115			118			119

Total		747			752			758			765			774


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		3,162			3,194			3,234			3,278			3,341
Gibraltar Life		7,189			7,149			7,146			7,146			7,150
All other countries		1,880			1,911			1,944			1,980			2,007

Total		12,231			12,254			12,324			12,404			12,498


International life insurance policy persistency:

Life Planner Operations:
13 months		92.3	%		92.0	%		92.6	%		92.8	%		93.0	%
25 months		85.9	%		85.7	%		85.5	%		85.4	%		85.6	%

Gibraltar Life (3):
13 months		92.0	%		92.4	%		92.6	%		92.9	%		93.2	%
25 months		82.7	%		82.8	%		83.4	%		84.0	%		84.8	%

Number of Life Planners at end of period:
Japan		3,436			3,385			3,478			3,528			3,650
All other countries		4,033			4,030			4,031			4,064			3,958

Total Life Planners		7,469			7,415			7,509			7,592			7,608


Gibraltar Life Consultants		8,645			8,565			8,593			8,805			8,781

(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 27

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2016									December 31, 2015
	Total Portfolio		Closed Block Division		PFI Excluding Closed Block Division					Total Portfolio		Closed Block Division		PFI Excluding Closed Block Division
	Total Portfolio		Closed Block Division		Amount		% of Total			Total Portfolio		Closed Block Division		Amount		% of Total
Fixed maturities:
Public, available-for-sale, at fair value		263,592		24,935		238,657		65.5	%		240,133		23,505		216,628		63.1	%
Public, held-to-maturity, at amortized cost		1,917		—		1,917		0.5	%		1,834		—		1,834		0.5	%
Private, available-for-sale, at fair value		50,751		14,489		36,262		9.9	%		50,057		14,290		35,767		10.4	%
Private, held-to-maturity, at amortized cost		494		—		494		0.1	%		474		—		474		0.1	%
Trading account assets supporting insurance liabilities, at fair value		21,447		—		21,447		5.9	%		20,522		—		20,522		6.0	%
Other trading account assets, at fair value		1,904		294		1,610		0.4	%		1,849		288		1,561		0.5	%
Equity securities, available-for-sale, at fair value		9,388		2,574		6,814		1.9	%		9,263		2,726		6,537		1.9	%
Commercial mortgage and other loans, at book value		50,470		9,695		40,775		11.2	%		50,257		9,771		40,486		11.8	%
Policy loans, at outstanding balance		11,805		4,763		7,042		1.9	%		11,657		4,790		6,867		2.0	%
Other long-term investments (1)		9,869		2,942		6,927		1.9	%		9,470		2,921		6,549		1.9	%
Short-term investments		3,479		646		2,833		0.8	%		7,717		1,467		6,250		1.8	%

Subtotal (2)		425,116		60,338		364,778		100.0	%		403,233		59,758		343,475		100.0	%

Invested assets of other entities and operations (3)		7,304		—		7,304					13,959		—		13,959

Total investments		432,420		60,338		372,082					417,192		59,758		357,434

Fixed Maturities by Credit Quality (2):


	March 31, 2016											December 31, 2015
	PFI Excluding Closed Block Division											PFI Excluding Closed Block Division
	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		176,193		31,205		566		206,832		85.9	%		166,400		21,997		1,271		187,126		85.6	%
2		25,253		2,548		591		27,210		11.3	%		24,238		2,260		1,044		25,454		11.6	%

Subtotal - High or Highest Quality Securities		201,446		33,753		1,157		234,042		97.2	%		190,638		24,257		2,315		212,580		97.2	%

3		4,630		259		206		4,683		1.9	%		3,870		320		149		4,041		1.8	%
4		1,771		82		101		1,752		0.7	%		1,591		142		59		1,674		0.8	%
5		204		52		7		249		0.1	%		176		67		3		240		0.1	%
6		219		18		1		236		0.1	%		199		11		1		209		0.1	%

Subtotal - Other Securities		6,824		411		315		6,920		2.8	%		5,836		540		212		6,164		2.8	%

Total		208,270		34,164		1,472		240,962		100.0	%		196,474		24,797		2,527		218,744		100.0	%


Private Fixed Maturities:
NAIC Rating (4)
1		10,859		815		110		11,564		31.4	%		10,950		786		174		11,562		31.9	%
2		19,678		1,396		360		20,714		56.3	%		19,493		1,438		501		20,430		56.3	%

Subtotal - High or Highest Quality Securities		30,537		2,211		470		32,278		87.7	%		30,443		2,224		675		31,992		88.2	%

3		3,502		106		201		3,407		9.3	%		3,215		88		143		3,160		8.7	%
4		617		11		24		604		1.6	%		741		8		41		708		2.0	%
5		244		14		11		247		0.7	%		239		11		9		241		0.7	%
6		275		12		25		262		0.7	%		168		9		3		174		0.4	%

Subtotal - Other Securities		4,638		143		261		4,520		12.3	%		4,363		116		196		4,283		11.8	%

Total		35,175		2,354		731		36,798		100.0	%		34,806		2,340		871		36,275		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 March 31, 2016 and December 31, 2015, 924 securities with amortized cost of $4,683 million (fair value $4,817 million) and 938 securities with amortized cost of $4,253 million (fair value $4,325 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

INVESTMENT PORTFOLIO COMPOSITION (1)

(in millions)


	March 31, 2016					December 31, 2015
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value		122,702		79.0	%		109,257		77.6	%
Public, held-to-maturity, at amortized cost		1,917		1.2	%		1,834		1.3	%
Private, available-for-sale, at fair value		9,977		6.5	%		9,747		6.9	%
Private, held-to-maturity, at amortized cost		494		0.3	%		474		0.3	%
Trading account assets supporting insurance liabilities, at fair value		2,069		1.3	%		2,020		1.4	%
Other trading account assets, at fair value		585		0.4	%		647		0.5	%
Equity securities, available-for-sale, at fair value		2,699		1.7	%		2,660		1.9	%
Commercial mortgage and other loans, at book value		10,085		6.5	%		9,756		6.9	%
Policy loans, at outstanding balance		2,364		1.5	%		2,208		1.6	%
Other long-term investments (3)		2,381		1.5	%		1,742		1.3	%
Short-term investments		217		0.1	%		417		0.3	%

Total		155,490		100.0	%		140,762		100.0	%


	March 31, 2016					December 31, 2015
	Amount		% of Total			Amount		% of Total
Excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value		115,955		55.3	%		107,371		53.0	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		26,285		12.6	%		26,020		12.8	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		19,378		9.3	%		18,502		9.1	%
Other trading account assets, at fair value		1,025		0.5	%		914		0.4	%
Equity securities, available-for-sale, at fair value		4,115		2.0	%		3,877		1.9	%
Commercial mortgage and other loans, at book value		30,690		14.7	%		30,730		15.2	%
Policy loans, at outstanding balance		4,678		2.2	%		4,659		2.3	%
Other long-term investments (3)		4,546		2.2	%		4,807		2.4	%
Short-term investments		2,616		1.2	%		5,833		2.9	%

Total		209,288		100.0	%		202,713		100.0	%

(1)	Excludes Closed Block Division.

(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 29

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

INVESTMENT RESULTS (1)

(in millions)


	Three Months Ended March 31
	2016									2015
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (4)			Amount			Realized Gains / (Losses)			Yield (4)			Amount			Realized Gains / (Losses)
General Account (2)
Fixed maturities		3.90	%		2,268			(37	)		3.96	%		2,200			346
Equity securities		5.02	%		64			(5	)		5.21	%		61			45
Commercial mortgage and other loans		4.30	%		378			14			4.40	%		352			5
Policy loans		4.85	%		84			—			4.88	%		83			—
Short-term investments and cash equivalents		0.59	%		27			—			0.22	%		9			—
Other investments		3.13	%		65			1,986			7.85	%		169			1,545

Gross investment income before investment expenses		3.78	%		2,886			1,958			3.96	%		2,874			1,941
Investment expenses		-0.14	%		(96	)		—			-0.15	%		(93	)		—

Subtotal		3.64	%		2,790			1,958			3.81	%		2,781			1,941

Investment results of other entities and operations (3)					268			21						279			47
Less, investment income related to adjusted operating income reconciling items					(41	)								(55	)

Total					3,017			1,979						3,005			1,988

(1)	Excludes Closed Block Division.

(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.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2016								2015
	Investment Income						Realized Gains / (Losses)		Investment Income						Realized Gains / (Losses)
	Yield (1)			Amount			Realized Gains / (Losses)		Yield (1)			Amount			Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities		3.10	%		815			185		3.16	%		789			318
Equity securities		3.59	%		14			5		3.65	%		14			7
Commercial mortgage and other loans		4.38	%		108			6		4.43	%		92			1
Policy loans		3.86	%		22			—		3.82	%		21			—
Short-term investments and cash equivalents		0.90	%		2			—		0.29	%		1			—
Other investments (2)		2.32	%		16			615		8.96	%		55			157

Gross investment income before investment expenses		3.19	%		977			811		3.36	%		972			483
Investment expenses		-0.12	%		(39	)		—		-0.14	%		(40	)		—

Total		3.07	%		938			811		3.22	%		932			483

(1)

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

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)

(in millions)


	Three Months Ended March 31
	2016									2015
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Excluding Japanese Insurance Operations (2):
Fixed maturities		4.55	%		1,453			(222	)		4.61	%		1,411			28
Equity securities		5.64	%		50			(10	)		5.93	%		47			38
Commercial mortgage and other loans		4.26	%		270			8			4.39	%		260			4
Policy loans		5.33	%		62			—			5.37	%		62			—
Short-term investments and cash equivalents		0.58	%		25			—			0.22	%		8			—
Other investments		3.51	%		49			1,371			7.40	%		114			1,388

Gross investment income before investment expenses		4.16	%		1,909			1,147			4.35	%		1,902			1,458
Investment expenses		-0.15	%		(57	)		—			-0.15	%		(53	)		—

Total		4.01	%		1,852			1,147			4.20	%		1,849			1,458

(1)	Excludes Closed Block Division.

(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)

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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

(in millions)


	First Quarter 2016															First Quarter 2015
	Premiums		Policy Charges and Fee Income		Insurance and Annuity Benefits		Interest Credited to Policy- holders’ Account Balances		Amorti- zation of Acqui- sition Costs		General and Adminis- trative Expenses		Pre-Tax Adjusted Operating Income			Premiums		Policy Charges and Fee Income		Insurance and Annuity Benefits			Interest Credited to Policy- holders’ Account Balances			Amorti- zation of Acqui- sition Costs			General and Adminis- trative Expenses			Pre-Tax Adjusted Operating Income
Individual Annuities:
Market performance and experience true-ups		—		—		18		10		23		2		(53	)		—		—		(46	)		(16	)		(43	)		(1	)		106
Total of above items		—		—		18		10		23		2		(53	)		—		—		(46	)		(16	)		(43	)		(1	)		106
Reported amount		—		—		111		100		144		508					—		—		48			81			89			524
Amount excluding impact of items indicated above		—		—		93		90		121		506					—		—		94			97			132			525

Individual Life:
Business integration costs		—		—		—		—		—		—		—			—		—		—			—			—			9			(9	)
Total of above items		—		—		—		—		—		—		—			—		—		—			—			—			9			(9	)
Reported amount		—		—		—		—		—		—					—		—		—			—			—			384
Amount excluding impact of items indicated above		—		—		—		—		—		—					—		—		—			—			—			375

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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, and discontinued operations; 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.

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:

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. 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. 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 34

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

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. 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.

14. 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.

15. General Account:

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

16. Gibraltar Life:

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

17. 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.

18. 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.

19. Group Insurance Benefits Ratios:

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

20. 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.

21. 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.

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

KEY DEFINITIONS AND FORMULAS

22. 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.

23. International Life Planners:

Captive insurance agents in our Life Planner Operations.

24. Non-recourse and Limited-recourse Debt:

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

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

Adjusted operating income after-tax, 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). 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. Return on average equity (based on income from continuing operations) is 11.7%, 6.9%, 13.9%,13.0%, and 18.9% for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.

26. Policy Persistency - Group Insurance:

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

27. Policy Persistency - International Insurance:

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

28. Prudential Agents:

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

29. Prudential Agent productivity:

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

30. 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.

31. 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 36

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2016

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of May 4, 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 May 4, 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 37

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