Form 8-K PRUDENTIAL FINANCIAL For: May 06

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May 6, 2015 4:20 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 6, 2015

PRUDENTIAL FINANCIAL, INC.

(Exact name of registrant as specified in its charter)


New Jersey	001-16707	22-3703799
(State or other jurisdiction	(Commission File	(I.R.S. Employer
of incorporation)	Number)	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 2015 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 2015 results.

B.	Quarterly Financial Supplement. The Company furnishes herewith, as Exhibit 99.2, the Quarterly Financial Supplement for first quarter 2015.

Conference Call and Related Materials. Members of the Company’s senior management will hold a conference call on Thursday, May 7, 2015 at 11:00 A.M. ET, to discuss the Company’s first quarter 2015 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 6, 2015, announcing first quarter 2015 results (furnished and not filed).

99.2		Quarterly Financial Supplement for Prudential Financial, Inc. for first quarter 2015 (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 6, 2015


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 6, 2015, announcing first quarter 2015 results (furnished and not filed).

99.2		Quarterly Financial Supplement for Prudential Financial, Inc. for first quarter 2015 (furnished and not filed).

Exhibit 99.1

LOGO


For Immediate Release	Contact:	Scot Hoffman
May 6, 2015		(973) 802-2824

PRUDENTIAL FINANCIAL, INC.

ANNOUNCES FIRST QUARTER 2015 RESULTS

•

After-tax adjusted operating income of $1.298 billion, or $2.79 per Common share, compared to $2.40 per Common share for year-ago quarter.¹

First Quarter Highlights

•

Pre-tax adjusted operating income for Individual Annuities, Retirement, and Asset Management businesses of $1.018 billion, up $73 million or 8% from year-ago quarter.

•

Individual Annuities account values of $161.1 billion at March 31, up 4% from a year earlier.

•

Retirement account values of $365.3 billion at March 31, up 11% from a year earlier, driven by strong net inflows as well as favorable market performance.

•

Asset Management unaffiliated third party institutional and retail assets under management of $469.2 billion at March 31, up 10% from a year earlier with net flows for the current quarter, excluding money market, of $7.7 billion.

•

Pre-tax adjusted operating income for U.S. Individual Life and Group Insurance businesses of $146 million, up $15 million or 11% from year-ago quarter, driven by improved group long-term disability results.

•

Pre-tax adjusted operating income for International Insurance businesses of $834 million, compared to $837 million in year-ago quarter; earnings up 4% excluding the impact of foreign currency exchange rates.

•

International Insurance constant dollar basis annualized new business premiums of $780 million for current quarter, reflecting growth in all distribution channels.

(more)

¹	Results for the year-ago quarter are for the Company’s Financial Services Businesses. See “Historic Separation of the Businesses” and “Elimination of the Separation of the Businesses: Closed Block Division” later in this press release for further information.

Page 2.

•

Significant items included in current quarter adjusted operating income:

•

Pre-tax net benefit of $106 million in Individual Annuities, including reduced amortization of deferred policy acquisition and other costs and release of reserves for guaranteed death and income benefits, reflecting market performance.

•

Pre-tax charge of $9 million in Individual Life for integration costs relating to the acquisition of The Hartford’s individual life insurance business.

The items above had a net favorable impact of approximately 14 cents per Common share on current quarter results.

•

For the year-ago quarter, a net charge to Individual Annuities results from updated estimates of profitability reflecting market performance, a charge for reserve refinements in International Insurance, and integration costs in Individual Life for the acquired Hartford business resulted in a net negative impact of 6 cents per Common share to adjusted operating income.

•

Net income attributable to Prudential Financial, Inc. for first quarter 2015 of $2.036 billion, or $4.37 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 $69.01 at March 31, 2015, an increase of $4.26 from December 31, 2014 after payment of a quarterly Common Stock dividend of 58 cents per share. This increase included $1.35 from the restructuring of the Company’s former Closed Block Business.²

•

Excluding holdings of the Closed Block division and Closed Block Business at March 31, 2015 and December 31, 2014, respectively, net unrealized gains on general account fixed maturity investments of $32.9 billion at March 31, 2015 compared to $30.4 billion at December 31, 2014; gross unrealized losses of $990 million at March 31, 2015, compared to $1.1 billion at December 31, 2014.

•

During the first quarter, the Company acquired 3.1 million shares of its Common Stock at a total cost of $250 million, for an average price of $80.91 per share, under the June 2014 authorization by Prudential’s Board of Directors to repurchase at management’s discretion up to $1.0 billion of the Company’s outstanding Common Stock during the period from July 1, 2014 through June 30, 2015. From the commencement of share repurchases in July 2011 through March 31, 2015, the Company has acquired 56.0 million shares of its Common Stock under its share repurchase authorizations at a total cost of $3.6 billion, for an average price of $65.20 per share.

(more)

²	See “Historic Separation of the Businesses” and “Elimination of the Separation of the Businesses: Closed Block Division” later in this press release for further information.

Page 3.

NEWARK, N.J. – Prudential Financial, Inc. (NYSE: PRU) today reported after-tax adjusted operating income of $1.298 billion ($2.79 per Common share) for the first quarter of 2015, compared to $1.137 billion ($2.40 per Common share) for the Company’s Financial Services Businesses in the year-ago quarter. Net income attributable to Prudential Financial, Inc. was $2.036 billion ($4.37 per Common share) for the first quarter of 2015, compared to $1.225 billion ($2.59 per Common share) for the Company’s Financial Services Businesses in the year-ago quarter. Information regarding adjusted operating income, a non-GAAP measure, is provided below.

“Our first quarter results reflect solid underlying performance across our businesses and represent a strong start for the year. In the U.S., our Annuities, Retirement and Asset Management businesses are benefiting from continued growth in account values and assets under management, with especially strong third party institutional and retail asset management flows in the quarter. Our U.S. insurance protection businesses continue to benefit from actions we have taken to improve results in our group insurance business. Further, we are nearing completion of the integration of the individual life insurance business we acquired from The Hartford, with remaining cost savings expected to be realized by the third quarter. Our international businesses continue to demonstrate strong core fundamentals, with constant dollar sales growth of 6% for the quarter driven by increases from each of our distribution channels and solid earnings results,” 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.

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Page 4.

The U.S. Retirement Solutions and Investment Management division reported adjusted operating income of $1.018 billion for the first quarter of 2015, compared to $945 million in the year-ago quarter.

The Individual Annuities segment reported adjusted operating income of $529 million in the current quarter, compared to $388 million in the year-ago quarter. Current quarter results include a benefit of $106 million, and results for the year-ago quarter include a charge of $21 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, adjusted operating income for the Individual Annuities segment increased $14 million from the year-ago quarter. Current quarter results benefited from higher asset-based fees due to growth in variable annuity account values, partly offset by higher expenses and a lower contribution from investment results.

The Retirement segment reported adjusted operating income of $284 million for the current quarter, compared to $364 million in the year-ago quarter. The decrease reflected a $95 million lower contribution from investment results in the current quarter and higher expenses, partly offset by a greater contribution from pension risk transfer case experience. The lower contribution from investment results included returns on non-coupon investments estimated to exceed average expectations by about $15 million in the current quarter and $80 million in the year-ago quarter, as well as lower fixed income returns. Case experience on pension risk transfer business was favorable in both the current quarter and year-ago quarter, with a net contribution to current quarter results approximately $45 million greater than our average quarterly expectations.

The Asset Management segment reported adjusted operating income of $205 million for the current quarter, compared to $193 million in the year-ago quarter. The increase was driven by a $15 million greater contribution from the segment’s incentive, transaction, strategic investing and commercial mortgage activities. The benefit to results from higher asset management fees driven by growth in assets under management was essentially offset by higher expenses, including expenses relating to business growth initiatives and commissions from higher retail sales.

The U.S. Individual Life and Group Insurance division reported adjusted operating income of $146 million for the first quarter of 2015, compared to $131 million in the year-ago quarter.

(more)

Page 5.

The Individual Life segment reported adjusted operating income of $116 million for the current quarter, compared to $125 million in the year-ago quarter. Results for the current quarter reflect absorption of $9 million of integration costs related to the Company’s acquisition of The Hartford’s individual life insurance business on January 2, 2013, while results for the year-ago quarter include $8 million of such costs. Segment results excluding integration costs decreased $8 million from the year-ago quarter, reflecting an adverse mortality fluctuation. Claims experience was less favorable than our average expectations in both the current quarter and the year-ago, with a net contribution to current quarter results about $35 million below our average expectations, inclusive of associated amortization and reserve updates.

The Group Insurance segment reported adjusted operating income of $30 million in the current quarter, compared to $6 million in the year-ago quarter. The increase was largely driven by more favorable group disability claims experience and lower expenses, partly offset by less favorable group life claims experience.

The International Insurance segment reported adjusted operating income of $834 million for the first quarter of 2015, compared to $837 million in the year-ago quarter. Excluding the impact of foreign currency exchange rates, adjusted operating income increased 4% over the year-ago quarter.

Adjusted operating income of the segment’s Life Planner operations was $439 million for the current quarter, compared to $419 million in the year-ago quarter. Results for the year-ago quarter included a $16 million charge from refinements of reserves and related items, primarily for the segment’s Korean operations. Excluding this charge, adjusted operating income increased $4 million from the year-ago quarter. The benefit to current quarter results from continued business growth was partly offset by higher expenses including technology costs. In addition, foreign currency exchange rates, including the impact of the Company’s currency hedging programs, had an unfavorable impact of $17 million in comparison to the year-ago quarter.

The segment’s Gibraltar Life and Other operations reported adjusted operating income of $395 million for the current quarter, compared to $418 million in the year-ago quarter. A greater contribution from investment results, including current quarter returns on non-coupon investments estimated to exceed average expectations by about $40 million, was largely offset by higher net

(more)

Page 6.

expenses including greater technology costs and a year-ago quarter benefit from fixed asset sales. In addition, foreign currency exchange rates, including the impact of the Company’s currency hedging programs, had an unfavorable impact of $19 million in comparison to the year-ago quarter.

Corporate and Other operations resulted in a loss, on an adjusted operating income basis, of $253 million in the first quarter of 2015, compared to a loss of $342 million in the year-ago quarter. The decreased loss reflected lower net expenses as well as a benefit to current quarter results from investment income on assets made available for general corporate purposes as a result of the Company’s restructuring of its former Closed Block Business on January 2, 2015.

Assets under management amounted to $1.204 trillion at March 31, 2015, compared to $1.176 trillion at December 31, 2014.

Net income attributable to Prudential Financial, Inc. amounted to $2.036 billion for the first quarter of 2015, compared to $1.225 billion for the Company’s Financial Services Businesses in the year-ago quarter.

Current quarter net income includes $1.051 billion of pre-tax net realized investment gains and related charges and adjustments. The foregoing net gain includes pre-tax gains of $565 million primarily from interest rate driven net increases in the market value of derivatives used in risk management activities, including asset and liability duration management. The current quarter net gain also includes net pre-tax gains of $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, $227 million from general portfolio activities, and $25 million from net changes in non-yen asset and liability values relating to foreign currency exchange rates. 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 and Closed Block Business at March 31, 2015 and December 31, 2014, respectively, gross unrealized losses on general account fixed maturity investments at March 31, 2015 amounted to $990 million, including $822 million on high and highest quality securities based on NAIC or equivalent ratings, and amounted to $1.101 billion at December 31, 2014. Net unrealized gains on these investments amounted to $32.911 billion at March 31, 2015, compared to $30.394 billion at December 31, 2014.

(more)

Page 7.

Net income for the current quarter reflects pre-tax increases of $83 million in recorded asset values and $197 million in recorded liabilities representing changes in value which are expected to ultimately accrue to contractholders. These changes primarily represent interest rate related mark-to-market adjustments.

Net income for the current quarter also reflects pre-tax income of $53 million from divested businesses, primarily relating to income from long term care insurance which was largely driven by increases in market value of derivatives used in asset and liability duration management for this business, partly offset by a pre-tax loss from the Closed Block division.

Net income of the Company’s Financial Services Businesses for the year-ago quarter included $8 million of pre-tax net realized investment losses and related charges and adjustments and pre-tax income of $73 million from divested businesses, as well as pre-tax increases of $101 million in recorded asset values and $43 million in recorded liabilities representing changes in value which are expected to ultimately accrue to contractholders.

Historic Separation of the Businesses

From December 18, 2001, the date of demutualization, through December 31, 2014, the businesses of Prudential Financial, Inc. were separated into the Financial Services Businesses and the Closed Block Business for financial statement purposes. The Financial Services Businesses were comprised of the Company’s U.S. Retirement Solutions and Investment Management, U.S. Individual Life and Group Insurance, and International Insurance divisions and its Corporate and Other operations. The Closed Block Business was comprised of the assets and related liabilities of the Closed Block established at the time of Prudential’s demutualization, representing certain participating individual life insurance policies and annuities issued by Prudential Insurance for which experience based policy dividends are being paid or expected to be paid, and certain other assets and liabilities, known as the “Surplus and Related Assets.” The Company ceased offering these participating policies at the time of its demutualization. The Company’s former Class B stock reflected the performance of the Closed Block Business, while the Common Stock of Prudential Financial, Inc. reflected the performance of the Financial Services Businesses. The Surplus and

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Page 8.

Related Assets supported debt service on $1.75 billion of senior secured notes, known as “IHC Debt,” which were issued by a subsidiary of Prudential Financial, Inc. and accounted for as obligations of the Closed Block Business, as well as dividends on the Class B Stock. The IHC Debt was redeemed in December 2014.

Elimination of the Separation of the Businesses: Closed Block Division

On January 2, 2015, Prudential Financial, Inc. repurchased and cancelled all of the outstanding shares of the Class B Stock (the “Class B Repurchase”). This transaction resulted in the elimination of the Closed Block Business for financial statement purposes, although the Closed Block continues in effect for the foregoing life insurance policies and annuities, and its results are now included in the Company’s “Closed Block division” for periods subsequent to December 31, 2014. The Closed Block division is classified as a reporting segment of Prudential Financial, Inc. and its results are excluded from adjusted operating income under the Company’s definition of “divested businesses” which includes businesses that have been sold or exited, including businesses that have been placed in wind down and do not qualify for “discontinued operations” accounting treatment under U.S. GAAP.

For the first quarter of 2014, the Closed Block Business reported income from continuing operations before income taxes of $13 million, and net income attributable to Prudential Financial, Inc. of $13 million.

Consolidated Results

During the periods when the Class B Stock was outstanding, there was no legal separation of the Financial Services Businesses and the Closed Block Business, and holders of the Common Stock and the Class B Stock were both common stockholders of Prudential Financial, Inc. Subsequent to the Class B Repurchase, there remains no legal separation between the Closed Block and Prudential’s other businesses.

For the first quarter of 2014 on a consolidated basis, which includes the results of both the Financial Services Businesses and the Closed Block Business, Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1.238 billion.

(more)

Page 9.

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 facilities; (6) reestimates of our reserves for future policy benefits and claims; (7) differences between actual 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;

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Page 10.

(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; (19) inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others; (20) adverse determinations in litigation or regulatory matters and our exposure to contingent liabilities, including in connection with our divestiture or winding down of businesses; (21) domestic or international military actions, natural or man-made disasters including terrorist activities or pandemic disease, or other events resulting in catastrophic loss of life; (22) ineffectiveness of risk management policies and procedures in identifying, monitoring and managing risks; (23) effects of acquisitions, divestitures and restructurings, including possible difficulties in integrating and realizing projected results of acquisitions; (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.

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

(more)

Page 11.

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.

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, 2014, 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.

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Page 12.

Earnings Conference Call

Members of Prudential’s senior management will host a conference call on Thursday, May 7, 2015 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 22. 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) 332-0226 (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 7, through May 14, dial (800) 475-6701 (domestic callers) or (320) 365-3844 (international callers). The access code for the replay is 349035.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with over $1 trillion of assets under management as of March 31, 2015, 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
	2015			2014
Income Statement Data:
Adjusted Operating Income (1) (2):
Revenues:
Premiums	$	5,913		$	5,130
Policy charges and fee income		1,554			1,509
Net investment income		3,005			3,017
Asset management fees, commissions and other income		1,335			1,280

Total revenues		11,807			10,936

Benefits and expenses:
Insurance and annuity benefits		6,216			5,417
Interest credited to policyholders’ account balances		884			925
Interest expense		317			321
Other expenses		2,645			2,702

Total benefits and expenses		10,062			9,365

Adjusted operating income before income taxes		1,745			1,571
Income taxes, applicable to adjusted operating income		447			434

After-tax adjusted operating income (1) (2)		1,298			1,137

Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments		1,051			(8	)
Investment gains on trading account assets supporting insurance liabilities, net		83			101
Change in experience-rated contractholder liabilities due to asset value changes		(197	)		(43	)
Divested businesses:
Closed Block division		(22	)		—
Other divested businesses		75			73
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		13			11

Total reconciling items, before income taxes		1,003			134
Income taxes, not applicable to adjusted operating income		252			39

Total reconciling items, after income taxes		751			95

Income from continuing operations (after-tax) before equity in earnings of operating joint ventures (2)		2,049			1,232
Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(13	)		(11	)

Income from continuing operations attributable to Prudential Financial, Inc. (2)		2,036			1,221
Earnings attributable to noncontrolling interests		10			11

Income from continuing operations (after-tax) (2)		2,046			1,232
Income from discontinued operations, net of taxes		—			4

Net income (2)		2,046			1,236
Less: Income attributable to noncontrolling interests		10			11

Net income attributable to Prudential Financial, Inc. (2)	$	2,036		$	1,225

Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc.:
Net income attributable to Prudential Financial, Inc. (above) (2)	$	2,036		$	1,225
Net income of Closed Block Business attributable to Prudential Financial, Inc.		—			13

Consolidated net income attributable to Prudential Financial, Inc.	$	2,036		$	1,238

See footnotes on last page.

Page 1

Financial Highlights

(in millions, except per share data, unaudited)


	Three Months Ended March 31
	2015			2014
Earnings per share of Common Stock (diluted) (2) (3):

After-tax adjusted operating income	$	2.79		$	2.40
Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments		2.27			(0.02	)
Investment gains on trading account assets supporting insurance liabilities, net		0.18			0.21
Change in experience-rated contractholder liabilities due to asset value changes		(0.43	)		(0.09	)
Divested businesses:
Closed Block division		(0.05	)		—
Other divested businesses		0.16			0.16
Difference in earnings allocated to participating unvested share-based payment awards		(0.02	)		—

Total reconciling items, before income taxes		2.11			0.26
Income taxes, not applicable to adjusted operating income		0.53			0.08

Total reconciling items, after income taxes		1.58			0.18

Income from continuing operations (after-tax) attributable to Prudential Financial, Inc.		4.37			2.58
Income from discontinued operations, net of taxes		—			0.01

Net income attributable to Prudential Financial, Inc.	$	4.37		$	2.59

Weighted average number of outstanding Common shares (basic)		454.3			460.9

Weighted average number of outstanding Common shares (diluted)		463.0			470.3

Direct equity adjustment for earnings per share calculation (3)	$	—		$	(2	)
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 (2):
After-tax adjusted operating income	$	12		$	10
Income from continuing operations (after-tax)	$	19		$	11

Attributed Equity (as of end of period) (2):

Total attributed equity	$	45,044		$	36,770
Per share of Common Stock - diluted (4)		98.16			78.87
Attributed equity excluding accumulated other comprehensive income	$	27,292		$	26,117
Per share of Common Stock - diluted		59.52			56.02
Number of diluted shares at end of period		458.5			466.2

Adjusted operating income before income taxes, by Segment (1) (2):
Individual Annuities	$	529		$	388
Retirement		284			364
Asset Management		205			193

Total U.S. Retirement Solutions and Investment Management Division		1,018			945

Individual Life		116			125
Group Insurance		30			6

Total U.S. Individual Life and Group Insurance Division		146			131

International Insurance		834			837

Total International Insurance Division		834			837

Corporate and Other operations		(253	)		(342	)

Adjusted operating income before income taxes (2)		1,745			1,571

Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments		1,051			(8	)
Investment gains on trading account assets supporting insurance liabilities, net		83			101
Change in experience-rated contractholder liabilities due to asset value changes		(197	)		(43	)
Divested businesses:
Closed Block division		(22	)		—
Other divested businesses		75			73
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		13			11

Total reconciling items, before income taxes		1,003			134

Subtotal (2)		2,748			1,705

Income from continuing operations before income taxes and equity in earnings of operating joint ventures for Closed Block Business		—			13

Consolidated income from continuing operations before income taxes and equity in earnings of operating joint ventures for Prudential Financial, Inc.	$	2,748		$	1,718

See footnotes on last page.

Page 2

Financial Highlights

(in millions, or as otherwise noted, unaudited)


	Three Months Ended March 31
	2015			2014
*U.S. Retirement Solutions and Investment Management Division:*

Fixed and Variable Annuity Sales and Account Values:
Gross sales	$	2,227		$	2,321

Net sales	$	31		$	128

Total account value at end of period	$	161,127		$	155,276

Retirement Segment:

Full Service:

Deposits and sales	$	6,314		$	8,587

Net additions	$	85		$	2,584

Total account value at end of period	$	188,145		$	178,150

Institutional Investment Products:

Gross additions	$	969		$	1,733

Net withdrawals	$	(2,526	)	$	(1,284	)

Total account value at end of period	$	177,120		$	149,661

Asset Management Segment:
Assets managed by Investment Management and Advisory Services (in billions, as of end of period):
Institutional customers	$	380.9		$	352.2
Retail customers		198.4			172.9
General account		382.4			365.8

Total Investment Management and Advisory Services	$	961.7		$	890.9

Institutional Customers - Assets Under Management (in billions):
Gross additions, other than money market	$	16.8		$	10.9
Net additions, other than money market	$	3.7		$	1.9

Retail Customers - Assets Under Management (in billions):
Gross additions, other than money market	$	13.1		$	8.0
Net additions, other than money market	$	4.0		$	0.2

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

Individual Life Insurance Annualized New Business Premiums (5):
Variable life	$	18		$	9
Universal life		57			71
Term life		49			42

Total	$	124		$	122

Group Insurance Annualized New Business Premiums (5):
Group life	$	131		$	137
Group disability		31			33

Total	$	162		$	170

*International Insurance Division:*

International Insurance Annualized New Business Premiums (5) (6):
Actual exchange rate basis	$	673		$	692

Constant exchange rate basis	$	780		$	733

See footnotes on last page.

Page 3

Financial Highlights

(in billions, as of end of period)


	Three Months Ended March 31
	2015		2014
Assets and Asset Management Information:

Total assets	$	778.6	$	746.7

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	$	961.7	$	890.9
Non-proprietary assets under management		195.8		197.8

Total managed by U.S. Retirement Solutions and Investment Management Division		1,157.5		1,088.7
Managed by U.S. Individual Life and Group Insurance Division		23.7		23.1
Managed by International Insurance Division		22.5		19.1

Total assets under management		1,203.7		1,130.9
Client assets under administration		159.3		120.5

Total assets under management and administration	$	1,363.0	$	1,251.4

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.

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

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

(2)	Represents results of the former Financial Services Businesses for the three months ended March 31, 2014 and attributed equity of the Financial Services Businesses as of that date.

(3)

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

(4)

Book value per share of Common Stock including accumulated other comprehensive income for the first quarter of 2015 includes a $500 million increase in equity and a 5.5 million increase in diluted shares reflecting the dilutive impact of exchangeable surplus notes. These notes are currently dilutive when book value per share is greater than $90.85.

(5)

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.

(6)

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 91 per U.S. dollar and Korean won 1120 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 2015

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

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

CONTENTS


	Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4

Combined Statements of Operations		5
Combining Statements of Operations		6
Consolidated Balance Sheets - PFI		7
Combined Balance Sheets - PFI Excluding Closed Block Business / Division		8
Combining Balance Sheets by Division		9
Short-Term and Long-Term Debt - Unaffiliated		10

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
Combined Statements of Operations		11
Combining Statements of Operations		12
Individual Annuities Sales Results and Account Values		13
Individual Annuities Account Value Activity		14
Individual Annuities Living Benefit Features		15
Individual Annuities Death Benefit Features		16
Retirement Segment Sales Results and Account Values		17
Supplementary Revenue and Assets Under Management Information for Asset Management Segment		18
Supplementary Assets Under Management Information for Asset Management Segment		19

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		20
Combining Statements of Operations		21
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force		22
Supplementary Information for Individual Life Insurance		23
Supplementary Information for Group Insurance		24

DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE		25

INTERNATIONAL INSURANCE DIVISION
Combined Statements of Operations		26
Combining Statements of Operations		27
Sales Results and Supplementary Information		28-29

INVESTMENT PORTFOLIO
Investment Portfolio Composition		30
Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		31
Investment Results		32
Investment Results - Japanese Insurance Operations		33
Investment Results - Excluding Japanese Insurance Operations		34

KEY DEFINITIONS AND FORMULAS		35-37

RATINGS AND INVESTOR INFORMATION		38

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

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

This quarterly financial supplement reflects, for all periods presented, an adjustment to the calculation of operating return on average equity (based on adjusted operating income) to remove the cumulative impact from foreign currency exchange rate remeasurement from attributed equity. See operating return on average equity definition for further information.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						% Change			2014												2015
2015			2014			% Change			1Q			2Q			3Q			4Q			1Q

								Pre-tax adjusted operating income (loss) by division:
	1,018			945			8%	U.S. Retirement Solutions and Investment Management Division		945			876			823			823			1,018
	146			131			11%	U.S. Individual Life and Group Insurance Division		131			204			24			162			146
	834			837			0%	International Insurance Division		837			884			845			686			834
	(253	)		(342	)		26%	Corporate and other operations		(342	)		(341	)		(339	)		(326	)		(253	)

	1,745			1,571			11%	Total pre-tax adjusted operating income		1,571			1,623			1,353			1,345			1,745
	447			434			3%	Income taxes, applicable to adjusted operating income		434			447			319			337			447

	1,298			1,137			14%	After-tax adjusted operating income (1)		1,137			1,176			1,034			1,008			1,298


								Reconciling items:
	1,051			(8	)		13238%	Realized investment gains (losses), net, and related charges and adjustments		(8	)		(273	)		(1,132	)		(2,717	)		1,051
	83			101			-18%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		101			225			(131	)		144			83
	(197	)		(43	)		-358%	Change in experience-rated contractholder liabilities due to asset value changes		(43	)		(189	)		93			(155	)		(197	)
								Divested businesses:
	(22	)		—			—	Closed Block division		—			—			—			—			(22	)
	75			73			3%	Other divested businesses		73			47			(7	)		54			75
	13			11			18%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		11			18			8			7			13

	1,003			134			649%	Total reconciling items, before income taxes		134			(172	)		(1,169	)		(2,667	)		1,003
	252			39			546%	Income taxes, not applicable to adjusted operating income		39			(58	)		(606	)		(457	)		252

	751			95			691%	Total reconciling items, after income taxes		95			(114	)		(563	)		(2,210	)		751

	2,049			1,232			66%	Income (loss) from continuing operations (after-tax) before equity in earnings of operating joint ventures (1)		1,232			1,062			471			(1,202	)		2,049
	(13	)		(11	)		-18%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(11	)		(17	)		(6	)		(7	)		(13	)

	2,036			1,221			67%	Income (loss) from continuing operations attributable to Prudential Financial, Inc. (1)		1,221			1,045			465			(1,209	)		2,036
	10			11			-9%	Earnings attributable to noncontrolling interests		11			23			11			12			10

	2,046			1,232			66%	Income (loss) from continuing operations (after-tax) (1)		1,232			1,068			476			(1,197	)		2,046
	—			4			-100%	Income from discontinued operations, net of taxes		4			4			—			3			—

	2,046			1,236			66%	Net income (loss) (1)		1,236			1,072			476			(1,194	)		2,046
	10			11			-9%	Less: Income attributable to noncontrolling interests		11			23			11			12			10

	2,036			1,225			66%	Net income (loss) attributable to Prudential Financial, Inc. (1)		1,225			1,049			465			(1,206	)		2,036

	16.9%			16.0%				Operating Return on Average Equity (based on adjusted operating income) (1)(2)		16.0%			16.1%			13.8%			13.2%			16.9%

								Reconciliation to Consolidated Net Income (Loss) Attributable to Prudential Financial, Inc.:
				1,225				Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		1,225			1,049			465			(1,206	)
				13				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		13			41			47			(253	)

				1,238				Consolidated net income (loss) attributable to Prudential Financial, Inc.		1,238			1,090			512			(1,459	)

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

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

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2014												2015
2015			2014				1Q			2Q			3Q			4Q			1Q

						Earnings per share of Common Stock (diluted): (1)
	2.79			2.40		After-tax adjusted operating income (2)		2.40			2.49			2.20			2.12			2.79

						Reconciling items:
	2.27			(0.02	)	Realized investment gains (losses), net, and related charges and adjustments		(0.02	)		(0.58	)		(2.42	)		(5.84	)		2.27
	0.18			0.21		Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.21			0.48			(0.28	)		0.31			0.18
	(0.43	)		(0.09	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.09	)		(0.40	)		0.20			(0.33	)		(0.43	)
						Divested businesses:
	(0.05	)		—		Closed Block division		—			—			—			—			(0.05	)
	0.16			0.16		Other divested businesses		0.16			0.10			(0.01	)		0.12			0.16
	(0.02	)		—		Difference in earnings allocated to participating unvested share-based payment awards		—			—			0.01			0.01			(0.02	)

	2.11			0.26		Total reconciling items, before income taxes		0.26			(0.40	)		(2.50	)		(5.73	)		2.11
	0.53			0.08		Income taxes, not applicable to adjusted operating income		0.08			(0.12	)		(1.29	)		(0.91	)		0.53

	1.58			0.18		Total reconciling items, after income taxes		0.18			(0.28	)		(1.21	)		(4.82	)		1.58

	4.37			2.58		Income (loss) from continuing operations (after-tax) attributable to Prudential Financial, Inc. (2)		2.58			2.21			0.99			(2.70	)		4.37
	—			0.01		Income from discontinued operations, net of taxes		0.01			0.01			—			0.01			—

	4.37			2.59		Net income (loss) attributable to Prudential Financial, Inc. (2)		2.59			2.22			0.99			(2.69	)		4.37


	454.3			460.9		Weighted average number of outstanding Common shares (basic)		460.9			459.4			458.0			455.9			454.3
	463.0			470.3		Weighted average number of outstanding Common shares (diluted)		470.3			468.5			467.2			465.0			463.0

	—			(2	)	Direct equity adjustments for earnings per share calculation		(2	)		(3	)		(3	)		(19	)		—
	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*
	12			10		After-tax adjusted operating income (2)		10			12			9			8			12
	19			11		Income from continuing operations (after-tax) (2)		11			10			4			2			19

(1)

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

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

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2014												2015
2015		2014			1Q			2Q			3Q			4Q			1Q

				*Capitalization Data (1):*
				Senior Debt:
				Short-term debt		3,944			3,729			4,354			1,746			3,013
				Long-term debt		16,081			17,004			16,113			14,947			14,819
				Junior Subordinated Long-Term Debt		4,884			4,884			4,884			4,884			4,884

				Attributed Equity:
				Including accumulated other comprehensive income		36,770			39,663			40,203			40,981			45,044
				Excluding accumulated other comprehensive income (2)		26,117			26,771			26,875			25,099			27,292
				Amount included above for foreign currency exchange rate remeasurement (3)		(2,668	)		(2,818	)		(3,193	)		(4,783	)		(4,353	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (3)		28,785			29,589			30,068			29,882			31,645


				Book value per share of Common Stock:
				Including accumulated other comprehensive income (4)		78.87			85.35			86.76			88.80			98.16
				Excluding accumulated other comprehensive income (2)		56.02			57.61			58.00			54.39			59.52
				Amount included above for foreign currency exchange rate remeasurement (3)		(5.72	)		(6.06	)		(6.89	)		(10.36	)		(9.49	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (3)		61.74			63.67			64.89			64.75			69.01


				Number of diluted shares at end of period (5)		466.2			464.7			463.4			461.5			458.5

				*Common Stock Price Range (based on closing price):*
	90.11		91.23	High		91.23			91.10			93.16			91.67			90.11
	75.32		80.45	Low		80.45			77.61			85.75			77.86			75.32
	80.31		84.65	Close		84.65			88.77			87.94			90.46			80.31


				*Common Stock market capitalization (1)*		38,973			40,692			40,197			41,141			36,421

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

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

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

(4)

(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 2015

OPERATIONS HIGHLIGHTS


Year-to-date					2014								2015
2015		2014			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		352.2		367.0		363.7		370.0		380.9
				Retail customers		172.9		180.1		180.0		186.1		198.4
				General account		365.8		374.4		373.8		377.4		382.4

				Total Investment Management and Advisory Services		890.9		921.5		917.5		933.5		961.7
				Non-proprietary assets under management		197.8		200.6		197.4		197.5		195.8

				Total managed by U.S. Retirement Solutions and Investment Management Division		1,088.7		1,122.1		1,114.9		1,131.0		1,157.5
				Managed by U.S. Individual Life and Group Insurance Division		23.1		23.4		22.3		23.0		23.7
				Managed by International Insurance Division		19.1		20.1		23.0		21.9		22.5

				Total assets under management		1,130.9		1,165.6		1,160.2		1,175.9		1,203.7
				Client assets under administration		120.5		125.4		152.6		154.5		159.3

				Total assets under management and administration		1,251.4		1,291.0		1,312.8		1,330.4		1,363.0


				Assets managed or administered for customers outside of the United States at end of period		251.7		262.2		261.0		248.3		262.4

				*Distribution Representatives (1):*
				Prudential Agents		2,759		2,795		2,822		2,784		2,822
				International Life Planners		7,194		7,074		7,213		7,352		7,469
				Gibraltar Life Consultants		8,806		8,670		8,601		8,707		8,645

	47		44	*Prudential Agent productivity ($ thousands)*		44		51		53		69		47

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

COMBINED STATEMENTS OF OPERATIONS

(in millions)


																					Consolidated
									PFI Excluding Closed Block Business (1)												PFI
Year-to-date						% Change			2014												2015
2015			2014			% Change			1Q			2Q			3Q			4Q			1Q

								Revenues (2):
	5,913			5,130			15%	Premiums		5,130			5,261			5,923			9,890			5,913
	1,554			1,509			3%	Policy charges and fee income		1,509			1,523			1,512			1,580			1,554
	3,005			3,017			0%	Net investment income		3,017			2,968			3,040			3,021			3,005
	1,335			1,280			4%	Asset management fees, commissions and other income		1,280			1,361			1,291			1,338			1,335

	11,807			10,936			8%	Total revenues		10,936			11,113			11,766			15,829			11,807


								Benefits and Expenses (2):
	6,216			5,417			15%	Insurance and annuity benefits		5,417			5,419			6,423			10,280			6,216
	884			925			-4%	Interest credited to policyholders’ account balances		925			934			942			919			884
	317			321			-1%	Interest expense		321			319			340			328			317
	(647	)		(668	)		3%	Deferral of acquisition costs		(668	)		(679	)		(675	)		(672	)		(647	)
	428			469			-9%	Amortization of acquisition costs		469			482			376			526			428
	2,864			2,901			-1%	General and administrative expenses		2,901			3,015			3,007			3,103			2,864

	10,062			9,365			7%	Total benefits and expenses		9,365			9,490			10,413			14,484			10,062

	1,745			1,571			11%	Adjusted operating income before income taxes		1,571			1,623			1,353			1,345			1,745


								Reconciling items:
	1,662			49			3292%	Realized investment gains (losses), net, and related adjustments		49			(202	)		(1,161	)		(2,274	)		1,662
	(611	)		(57	)		-972%	Related charges		(57	)		(71	)		29			(443	)		(611	)

	1,051			(8	)		13238%	Total realized investment gains (losses), net, and related charges and adjustments		(8	)		(273	)		(1,132	)		(2,717	)		1,051

	83			101			-18%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		101			225			(131	)		144			83
	(197	)		(43	)		-358%	Change in experience-rated contractholder liabilities due to asset value changes		(43	)		(189	)		93			(155	)		(197	)
								Divested businesses:
	(22	)		—			—	Closed Block division		—			—			—			—			(22	)
	75			73			3%	Other divested businesses		73			47			(7	)		54			75
	13			11			18%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		11			18			8			7			13

	1,003			134			649%	Total reconciling items, before income taxes		134			(172	)		(1,169	)		(2,667	)		1,003


	2,748			1,705			61%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		1,705			1,451			184			(1,322	)		2,748
	699			473			48%	Income tax expense (benefit)		473			389			(287	)		(120	)		699

	2,049			1,232			66%	Income (loss) from continuing operations before equity in earnings of operating joint ventures		1,232			1,062			471			(1,202	)		2,049

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

(2)

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

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

COMBINING STATEMENTS OF OPERATIONS

(in millions)


	Three Months Ended March 31, 2015
	PFI Excluding Closed Block Division			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		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	)


	Three Months Ended March 31, 2014
	PFI Excluding Closed Block Business			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		5,130			197			1,240			3,696			(3	)
Policy charges and fee income		1,509			695			688			138			(12	)
Net investment income		3,017			1,276			558			1,084			99
Asset management fees, commissions and other income		1,280			1,187			172			157			(236	)

Total revenues		10,936			3,355			2,658			5,075			(152	)


Benefits and Expenses (1):
Insurance and annuity benefits		5,417			660			1,621			3,113			23
Interest credited to policyholders’ account balances		925			476			210			239			—
Interest expense		321			36			124			—			161
Deferral of acquisition costs		(668	)		(128	)		(143	)		(412	)		15
Amortization of acquisition costs		469			132			99			250			(12	)
General and administrative expenses		2,901			1,234			616			1,048			3

Total benefits and expenses		9,365			2,410			2,527			4,238			190


Adjusted operating income (loss) before income taxes		1,571			945			131			837			(342	)

(1)

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

CONSOLIDATED BALANCE SHEETS - PFI

(in millions)


	Consolidated PFI
	03/31/2014		06/30/2014		09/30/2014		12/31/2014		03/31/2015

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $272,829; $277,756; $273,760; $265,116; $263,134)		295,321		304,472		301,067		299,090		299,422
Fixed maturities, held to maturity, at amortized cost (fair value $3,537; $3,464; $3,183; $2,902; $2,817)		3,275		3,171		2,880		2,575		2,513
Trading account assets supporting insurance liabilities, at fair value		20,935		21,273		20,507		20,263		20,626
Other trading account assets, at fair value		8,021		8,665		9,321		10,874		11,989
Equity securities, available for sale, at fair value (cost $7,291; $7,218; $7,099; $6,921; $7,045)		10,191		10,222		9,878		9,861		10,206
Commercial mortgage and other loans		42,392		42,964		44,836		46,432		47,478
Policy loans		11,833		11,966		11,857		11,712		11,693
Other long-term investments		10,477		10,923		10,860		10,921		11,001
Short-term investments		6,023		5,663		5,535		8,258		5,947

Total investments		408,468		419,319		416,741		419,986		420,875
Cash and cash equivalents		12,472		12,160		17,222		14,918		19,119
Accrued investment income		3,134		3,162		3,209		3,130		3,135
Deferred policy acquisition costs		16,617		16,669		16,585		15,971		15,639
Value of business acquired		3,610		3,499		3,394		2,836		2,514
Other assets		14,273		13,927		14,380		13,379		14,624
Separate account assets		288,161		296,801		292,616		296,435		302,706

Total assets		746,735		765,537		764,147		766,655		778,612


Liabilities:
Future policy benefits		211,540		215,219		215,847		217,766		220,840
Policyholders’ account balances		137,244		138,545		139,133		136,150		135,143
Securities sold under agreements to repurchase		8,348		8,786		9,039		9,407		7,766
Cash collateral for loaned securities		5,282		4,889		4,569		4,241		4,437
Income taxes		6,860		8,504		8,634		9,881		11,390
Senior short-term debt		4,019		3,804		4,429		3,839		3,013
Senior long-term debt		17,681		18,604		17,713		14,947		14,819
Junior subordinated long-term debt		4,884		4,884		4,884		4,884		4,884
Notes issued by consolidated variable interest entities		4,101		4,573		5,397		6,058		6,830
Other liabilities		19,751		19,121		19,534		20,698		21,210
Separate account liabilities		288,161		296,801		292,616		296,435		302,706

Total liabilities		707,871		723,730		721,795		724,306		733,038


Attributed Equity:
Accumulated other comprehensive income		10,798		13,077		13,501		16,050		17,752
Other attributed equity		27,425		28,118		28,268		25,720		27,292

Total attributed equity		38,223		41,195		41,769		41,770		45,044

Noncontrolling Interest		641		612		583		579		530

Total Equity		38,864		41,807		42,352		42,349		45,574

Total liabilities and equity		746,735		765,537		764,147		766,655		778,612

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

COMBINED BALANCE SHEETS - PFI EXCLUDING CLOSED BLOCK BUSINESS / DIVISION

(in millions)


	PFI Excluding Closed Block Business (1)								PFI Excluding Closed Block Division
	03/31/2014		06/30/2014		09/30/2014		12/31/2014		03/31/2015

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $232,097; $236,069; $232,413; $225,342; $225,741)		251,059		258,673		256,119		255,425		258,359
Fixed maturities, held to maturity, at amortized cost (fair value $3,537; $3,464; $3,183; $2,902; $2,817)		3,275		3,171		2,880		2,575		2,513
Trading account assets supporting insurance liabilities, at fair value		20,935		21,273		20,507		20,263		20,626
Other trading account assets, at fair value		7,692		8,351		9,003		10,524		11,671
Equity securities, available for sale, at fair value (cost $4,785; $4,867; $4,815; $4,732; $4,782)		6,249		6,433		6,377		6,339		6,593
Commercial mortgage and other loans		32,471		33,000		34,549		36,957		37,890
Policy loans		6,862		7,021		6,928		6,798		6,813
Other long-term investments		8,393		8,309		8,315		8,155		8,105
Short-term investments		4,625		4,278		4,789		6,221		4,978

Total investments		341,561		350,509		349,467		353,257		357,548
Cash and cash equivalents		11,294		11,335		15,447		13,718		17,709
Accrued investment income		2,532		2,583		2,605		2,579		2,581
Deferred policy acquisition costs		16,229		16,300		16,219		15,561		15,239
Value of business acquired		3,610		3,499		3,394		2,836		2,514
Other assets		13,412		13,224		13,788		11,378		14,026
Separate account assets		288,161		296,801		292,616		296,435		302,706

Total assets		676,799		694,251		693,536		695,764		712,323


Liabilities:
Future policy benefits		161,466		165,179		165,985		167,903		171,057
Policyholders’ account balances		131,899		133,217		133,814		130,840		129,854
Securities sold under agreements to repurchase		4,864		4,895		4,979		5,492		4,308
Cash collateral for loaned securities		4,035		3,596		3,270		3,064		3,024
Income taxes		7,328		8,929		9,078		10,536		12,132
Senior short-term debt		3,944		3,729		4,354		1,746		3,013
Senior long-term debt		16,081		17,004		16,113		14,947		14,819
Junior subordinated long-term debt		4,884		4,884		4,884		4,884		4,884
Notes issued by consolidated variable interest entities		4,101		4,573		5,397		6,058		6,830
Other liabilities		12,625		11,169		12,260		12,299		12,594
Separate account liabilities		288,161		296,801		292,616		296,435		302,706

Total liabilities		639,388		653,976		652,750		654,204		665,221


Attributed Equity:
Accumulated other comprehensive income		10,653		12,892		13,328		15,882		17,739
Other attributed equity		26,117		26,771		26,875		25,099		28,833

Total attributed equity		36,770		39,663		40,203		40,981		46,572

Noncontrolling Interest		641		612		583		579		530

Total Equity		37,411		40,275		40,786		41,560		47,102

Total liabilities and equity		676,799		694,251		693,536		695,764		712,323

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

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

COMBINING BALANCE SHEETS BY DIVISION

(in millions)


	As of March 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		420,875		63,327			357,548		133,368		51,486		156,391		16,303
Deferred policy acquisition costs		15,639		400			15,239		5,161		4,160		6,228		(310	)
Other assets		39,392		2,562			36,830		17,157		11,045		9,049		(421	)
Separate account assets		302,706		—			302,706		255,029		48,681		2,473		(3,477	)

Total assets		778,612		66,289			712,323		410,715		115,372		174,141		12,095


Liabilities:
Future policy benefits		220,840		49,783			171,057		62,796		14,834		89,273		4,154
Policyholders’ account balances		135,143		5,289			129,854		56,034		29,821		43,985		14
Debt		22,716		—			22,716		3,473		8,366		46		10,831
Other liabilities		51,633		12,745			38,888		15,062		7,108		15,303		1,415
Separate account liabilities		302,706		—			302,706		255,029		48,681		2,473		(3,477	)

Total liabilities		733,038		67,817			665,221		392,394		108,810		151,080		12,937


Attributed Equity:
Accumulated other comprehensive income (loss)		17,752		13			17,739		2,918		1,569		14,403		(1,151	)
Other attributed equity		27,292		(1,541	)		28,833		14,891		4,993		8,605		344

Total attributed equity		45,044		(1,528	)		46,572		17,809		6,562		23,008		(807	)

Noncontrolling Interest		530		—			530		512		—		53		(35	)

Total Equity		45,574		(1,528	)		47,102		18,321		6,562		23,061		(842	)


Total liabilities and equity		778,612		66,289			712,323		410,715		115,372		174,141		12,095



	As of December 31, 2014

	Consolidated PFI		Closed Block Business			PFI Excluding Closed Block Business		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		419,986		66,729			353,257		132,397		50,134		156,414		14,312
Deferred policy acquisition costs		15,971		410			15,561		5,493		4,233		6,156		(321	)
Other assets		34,263		3,752			30,511		15,909		10,971		6,735		(3,104	)
Separate account assets		296,435		—			296,435		251,040		45,939		2,330		(2,874	)

Total assets		766,655		70,891			695,764		404,839		111,277		171,635		8,013


Liabilities:
Future policy benefits		217,766		49,863			167,903		61,305		14,350		88,287		3,961
Policyholders’ account balances		136,150		5,310			130,840		56,158		29,798		44,866		18
Debt		23,670		2,093			21,577		5,758		8,386		38		7,395
Other liabilities		50,285		12,836			37,449		13,631		6,444		14,741		2,633
Separate account liabilities		296,435		—			296,435		251,040		45,939		2,330		(2,874	)

Total liabilities		724,306		70,102			654,204		387,892		104,917		150,262		11,133


Attributed Equity:
Accumulated other comprehensive income (loss)		16,050		168			15,882		2,421		1,355		13,377		(1,271	)
Other attributed equity		25,720		621			25,099		13,965		5,005		7,942		(1,813	)

Total attributed equity		41,770		789			40,981		16,386		6,360		21,319		(3,084	)

Noncontrolling Interest		579		—			579		561		—		54		(36	)

Total Equity		42,349		789			41,560		16,947		6,360		21,373		(3,120	)


Total liabilities and equity		766,655		70,891			695,764		404,839		111,277		171,635		8,013

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED

(in millions)


	PFI Excluding Closed Block Division								PFI Excluding Closed Block Business
	As of March 31, 2015								As of December 31, 2014
	Senior debt				Junior Subordinated Long-term Debt		Total 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		454		8,597		4,884		13,935		454		7,997		4,884		13,335
Operating Debt - Investment related		1,355		5,268		—		6,623		1,754		4,958		—		6,712
Operating Debt - Specified businesses		1,204		434		—		1,638		1,631		1,489		—		3,120
Limited recourse and non-recourse borrowing		—		520		—		520		—		503		—		503

Total debt		3,013		14,819		4,884		22,716		3,839		14,947		4,884		23,670


	PFI Excluding Closed Block Division								PFI Excluding Closed Block Business
	As of March 31, 2015								As of December 31, 2014
	Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total		Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total
*Borrowings by sources:*
Capital Debt		12,842		1,041		52		13,935		12,241		1,041		53		13,335
Operating Debt - Investment related		4,057		362		2,204		6,623		4,013		494		2,205		6,712
Operating Debt - Specified businesses		584		1,054		—		1,638		2,125		995		—		3,120
Limited recourse and non-recourse borrowing		—		520		—		520		—		503		—		503

Total debt		17,483		2,977		2,256		22,716		18,379		3,033		2,258		23,670

(1)	Includes Prudential Funding, LLC.

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

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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

(in millions)


Year-to-date						% Change			2014												2015
2015			2014			% Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	1,213			197			516%	Premiums		197			201			1,130			5,373			1,213
	720			695			4%	Policy charges and fee income		695			715			729			727			720
	1,217			1,276			-5%	Net investment income		1,276			1,193			1,229			1,261			1,217
	1,248			1,187			5%	Asset management fees, commissions and other income		1,187			1,244			1,221			1,249			1,248

	4,398			3,355			31%	Total revenues		3,355			3,353			4,309			8,610			4,398


								Benefits and Expenses (1):
	1,616			660			145%	Insurance and annuity benefits		660			651			1,637			5,869			1,616
	450			476			-5%	Interest credited to policyholders’ account balances		476			481			472			476			450
	34			36			-6%	Interest expense		36			35			36			35			34
	(120	)		(128	)		6%	Deferral of acquisition costs		(128	)		(147	)		(147	)		(142	)		(120	)
	99			132			-25%	Amortization of acquisition costs		132			139			153			170			99
	1,301			1,234			5%	General and administrative expenses		1,234			1,318			1,335			1,379			1,301

	3,380			2,410			40%	Total benefits and expenses		2,410			2,477			3,486			7,787			3,380

	1,018			945			8%	Adjusted operating income before income taxes		945			876			823			823			1,018

(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 11

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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

(in millions)


	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


	Three Months Ended March 31, 2014
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		197			29			168			—
Policy charges and fee income		695			642			53			—
Net investment income		1,276			165			1,087			24
Asset management fees, commissions and other income		1,187			321			223			643

Total revenues		3,355			1,157			1,531			667


Benefits and Expenses (1):
Insurance and annuity benefits		660			115			545			—
Interest credited to policyholders’ account balances		476			105			371			—
Interest expense		36			27			6			3
Deferral of acquisition costs		(128	)		(116	)		(7	)		(5	)
Amortization of acquisition costs		132			122			5			5
General and administrative expenses		1,234			516			247			471

Total benefits and expenses		2,410			769			1,167			474

Adjusted operating income before income taxes		945			388			364			193

(1)

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014												2015
2015			2014				1Q			2Q			3Q			4Q			1Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	155,083			150,467		Beginning total account value		150,467			151,620			155,890			153,172			155,083
	1,421			1,606		Sales: Highest Daily Suite (1)		1,606			1,865			1,828			1,688			1,421
	794			698		Other variable annuities (2)		698			786			733			753			794

	2,215			2,304		Total sales		2,304			2,651			2,561			2,441			2,215
	(2,167	)		(2,158	)	Surrenders and withdrawals		(2,158	)		(2,187	)		(2,152	)		(2,217	)		(2,167	)

	48			146		Net sales		146			464			409			224			48
	(400	)		(340	)	Benefit payments		(340	)		(406	)		(345	)		(368	)		(400	)

	(352	)		(194	)	Net flows		(194	)		58			64			(144	)		(352	)
	3,713			2,194		Change in market value, interest credited, and other		2,194			5,081			(1,891	)		2,945			3,713
	(892	)		(847	)	Policy charges		(847	)		(869	)		(891	)		(890	)		(892	)

	157,552			151,620		Ending total account value		151,620			155,890			153,172			155,083			157,552


						Variable Annuities Account Value by Product:
	119,801			113,804		Highest Daily suite (1)		113,804			117,596			115,853			117,627			119,801
	37,751			37,816		Other variable annuities (2)		37,816			38,294			37,319			37,456			37,751

	157,552			151,620		Ending total account value		151,620			155,890			153,172			155,083			157,552


						Fixed Annuities and other products (3):
	3,581			3,673		Beginning total account value		3,673			3,656			3,638			3,611			3,581
	12			17		Sales		17			13			13			8			12
	(29	)		(35	)	Surrenders and withdrawals		(35	)		(34	)		(30	)		(39	)		(29	)

	(17	)		(18	)	Net redemptions		(18	)		(21	)		(17	)		(31	)		(17	)
	(88	)		(71	)	Benefit payments		(71	)		(75	)		(109	)		(85	)		(88	)

	(105	)		(89	)	Net flows		(89	)		(96	)		(126	)		(116	)		(105	)
	99			73		Interest credited and other		73			78			100			86			99
	—			(1	)	Policy charges		(1	)		—			(1	)		—			—

	3,575			3,656		Ending total account value		3,656			3,638			3,611			3,581			3,575


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (4):
	638			604		Insurance Agents		604			648			624			633			638
	394			440		Wirehouses		440			525			561			482			394
	855			940		Independent Financial Planners		940			1,098			1,036			993			855
	340			337		Bank Distribution		337			393			353			341			340

	2,227			2,321		Total		2,321			2,664			2,574			2,449			2,227

(1)	Includes variable annuities with “Highest Daily” optional living benefits 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 13

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014												2015
2015			2014				1Q			2Q			3Q			4Q			1Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	9,852			10,054		Beginning balance		10,054			9,881			9,811			9,816			9,852
	308			251		Premiums and deposits		251			370			374			336			308
	(198	)		(220	)	Surrenders and withdrawals		(220	)		(222	)		(215	)		(218	)		(198	)

	110			31		Net sales		31			148			159			118			110
	(105	)		(91	)	Benefit payments		(91	)		(94	)		(127	)		(103	)		(105	)

	5			(60	)	Net flows		(60	)		54			32			15			5
	64			98		Interest credited and other		98			103			68			68			64
	(193	)		(210	)	Net transfers to separate account		(210	)		(227	)		(94	)		(47	)		(193	)
	—			(1	)	Policy charges		(1	)		—			(1	)		—			—

	9,728			9,881		Ending balance		9,881			9,811			9,816			9,852			9,728


						Account Values in Separate Account (1):
	148,812			144,086		Beginning balance		144,086			145,395			149,717			146,967			148,812
	1,919			2,070		Premiums and deposits		2,070			2,294			2,200			2,113			1,919
	(1,998	)		(1,973	)	Surrenders and withdrawals		(1,973	)		(1,999	)		(1,967	)		(2,038	)		(1,998	)

	(79	)		97		Net sales (redemptions)		97			295			233			75			(79	)
	(383	)		(320	)	Benefit payments		(320	)		(387	)		(327	)		(350	)		(383	)

	(462	)		(223	)	Net flows		(223	)		(92	)		(94	)		(275	)		(462	)
	3,748			2,169		Change in market value, interest credited and other		2,169			5,056			(1,859	)		2,963			3,748
	193			210		Net transfers from general account		210			227			94			47			193
	(892	)		(847	)	Policy charges		(847	)		(869	)		(891	)		(890	)		(892	)

	151,399			145,395		Ending balance		145,395			149,717			146,967			148,812			151,399

(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 14

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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

(in millions)


	2014								2015
	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		6,514		6,322		5,947		5,756		5,594
Guaranteed minimum withdrawal benefits		851		829		767		736		707
Guaranteed minimum income benefits		3,578		3,545		3,382		3,324		3,271
Guaranteed minimum withdrawal & income benefits		115,079		119,442		118,124		120,404		123,093

Total		126,022		130,138		128,220		130,220		132,665


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		109,139		112,695		111,033		112,724		114,797
Account Values without Auto-Rebalancing Feature		16,883		17,443		17,187		17,496		17,868

Total		126,022		130,138		128,220		130,220		132,665


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,761		1,504		2,017		2,034		1,880
Net Amount at Risk without Auto-Rebalancing Feature		895		781		911		871		816

Total		2,656		2,285		2,928		2,905		2,696

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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

(in millions)


	2014								2015
	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		113,733		117,486		115,725		117,592		119,854
Net amount at risk		440		402		437		403		377
Minimum return, anniversary contract value, or maximum contract value:
Account value		34,750		35,230		34,299		34,298		34,432
Net amount at risk		2,806		2,572		2,987		2,855		2,709

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		109,139		112,695		111,033		112,724		114,797
Account Values without Auto-Rebalancing Feature		39,344		40,021		38,991		39,166		39,489

Total		148,483		152,716		150,024		151,890		154,286


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		624		546		823		765		699
Net Amount at Risk without Auto-Rebalancing Feature		2,622		2,428		2,601		2,493		2,387

Total		3,246		2,974		3,424		3,258		3,086

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014												2015
2015			2014				1Q			2Q			3Q			4Q			1Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	184,196			173,502		Beginning total account value		173,502			178,150			181,577			180,535			184,196
	6,314			8,587		Deposits and sales		8,587			4,528			5,190			5,629			6,314
	(6,229	)		(6,003	)	Withdrawals and benefits		(6,003	)		(6,066	)		(4,221	)		(6,311	)		(6,229	)
	3,864			2,064		Change in market value, interest credited, interest income and other activity		2,064			4,965			(2,011	)		4,343			3,864

	188,145			178,150		Ending total account value		178,150			181,577			180,535			184,196			188,145


	85			2,584		Net additions (withdrawals)		2,584			(1,538	)		969			(682	)		85


						Stable value account values included above		44,461			44,174			44,464			44,671			44,733

						Institutional Investment Products:
	179,641			149,402		Beginning total account value		149,402			149,661			148,971			175,526			179,641
	969			1,733		Additions		1,733			2,075			30,962			8,523			969
	(3,495	)		(3,017	)	Withdrawals and benefits		(3,017	)		(4,602	)		(3,634	)		(4,783	)		(3,495	)
	1,629			1,441		Change in market value, interest credited and interest income		1,441			1,753			940			1,699			1,629
	(1,624	)		102		Other (1)		102			84			(1,713	)		(1,324	)		(1,624	)

	177,120			149,661		Ending total account value		149,661			148,971			175,526			179,641			177,120


	(2,526	)		(1,284	)	Net additions (withdrawals)		(1,284	)		(2,527	)		27,328			3,740			(2,526	)


						Amounts included in ending total account value above:
	69,113			72,845		Investment-only stable value wraps		72,845			72,407			71,323			69,814			69,113
	29,176			2,357		Longevity reinsurance (2)		2,357			2,399			29,509			30,839			29,176
	78,831			74,459		Group annuities and other products		74,459			74,165			74,694			78,988			78,831

	177,120			149,661		Ending total account value		149,661			148,971			175,526			179,641			177,120

(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 17

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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				% Change			2014								2015
2015		2014		% Change			1Q		2Q		3Q		4Q		1Q

						Analysis of revenues by type:
	530		489		8%	Asset management fees		489		507		510		515		530
	72		66		9%	Other related revenues		66		67		62		67		72
	131		112		17%	Service, distribution and other revenues		112		139		149		157		131

	733		667		10%	Total Asset Management segment revenues		667		713		721		739		733


						Analysis of asset management fees by source:
	228		214		7%	Institutional customers		214		225		216		222		228
	189		173		9%	Retail customers		173		177		186		184		189
	113		102		11%	General account		102		105		108		109		113

	530		489		8%	Total asset management fees		489		507		510		515		530


Supplementary Assets Under Management Information (in billions):
	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


	March 31, 2014
	Equity		Fixed Income		Real Estate		Total
Institutional customers		63.2		254.0		35.0		352.2
Retail customers		118.0		52.7		2.2		172.9
General account		9.0		355.4		1.4		365.8

Total		190.2		662.1		38.6		890.9

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

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

(in billions)


Year-to-date							2014												2015
2015			2014				1Q			2Q			3Q			4Q			1Q

						Institutional Customers - Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	323.6			300.5		Beginning assets under management		300.5			310.4			323.5			320.7			323.6
	16.8			10.9		Additions		10.9			10.5			10.0			10.9			16.8
	(13.1	)		(9.0	)	Withdrawals		(9.0	)		(7.8	)		(11.4	)		(13.4	)		(13.1	)
	6.6			8.0		Change in market value		8.0			10.3			(1.0	)		5.8			6.6
	0.2			(0.1	)	Net money market flows		(0.1	)		0.1			—			—			0.2
	—			0.1		Other (1)		0.1			—			(0.4	)		(0.4	)		—

	334.1			310.4		Ending assets under management		310.4			323.5			320.7			323.6			334.1
	46.8			41.8		Affiliated institutional assets under management		41.8			43.5			43.0			46.4			46.8

	380.9			352.2		Total assets managed for institutional customers at end of period		352.2			367.0			363.7			370.0			380.9


	3.7			1.9		Net institutional additions (withdrawals), excluding money market activity		1.9			2.7			(1.4	)		(2.5	)		3.7


						Retail Customers - Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	126.8			115.0		Beginning assets under management		115.0			117.0			122.5			122.7			126.8
	13.1			8.0		Additions		8.0			8.4			8.5			11.9			13.1
	(9.1	)		(7.8	)	Withdrawals		(7.8	)		(7.7	)		(7.3	)		(9.3	)		(9.1	)
	4.3			1.8		Change in market value		1.8			4.8			(1.0	)		1.6			4.3
	—			—		Net money market flows		—			—			—			—			—
	—			—		Other		—			—			—			(0.1	)		—

	135.1			117.0		Ending assets under management		117.0			122.5			122.7			126.8			135.1
	63.3			55.9		Affiliated retail assets under management		55.9			57.6			57.3			59.3			63.3

	198.4			172.9		Total assets managed for retail customers at end of period		172.9			180.1			180.0			186.1			198.4


	4.0			0.2		Net retail additions, excluding money market activity		0.2			0.7			1.2			2.6			4.0

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

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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

(in millions)


Year-to-date						% Change			2014												2015
2015			2014			% Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	1,188			1,240			-4%	Premiums		1,240			1,241			1,243			1,183			1,188
	705			688			2%	Policy charges and fee income		688			681			637			704			705
	549			558			-2%	Net investment income		558			540			570			565			549
	186			172			8%	Asset management fees, commissions and other income		172			198			180			183			186

	2,628			2,658			-1%	Total revenues		2,658			2,660			2,630			2,635			2,628


								Benefits and Expenses (1):
	1,598			1,621			-1%	Insurance and annuity benefits		1,621			1,550			1,692			1,492			1,598
	210			210			0%	Interest credited to policyholders’ account balances		210			211			214			219			210
	136			124			10%	Interest expense		124			129			149			140			136
	(139	)		(143	)		3%	Deferral of acquisition costs		(143	)		(130	)		(125	)		(151	)		(139	)
	88			99			-11%	Amortization of acquisition costs		99			100			29			125			88
	589			616			-4%	General and administrative expenses		616			596			647			648			589

	2,482			2,527			-2%	Total benefits and expenses		2,527			2,456			2,606			2,473			2,482


	146			131			11%	Adjusted operating income before income taxes		131			204			24			162			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 20

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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

(in millions)


	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


	Three Months Ended March 31, 2014
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		1,240			214			1,026
Policy charges and fee income		688			541			147
Net investment income		558			399			159
Asset management fees, commissions and other income		172			142			30

Total revenues		2,658			1,296			1,362


Benefits and Expenses (1):
Insurance and annuity benefits		1,621			548			1,073
Interest credited to policyholders’ account balances		210			149			61
Interest expense		124			122			2
Deferral of acquisition costs		(143	)		(143	)		—
Amortization of acquisition costs		99			96			3
General and administrative expenses		616			399			217

Total benefits and expenses		2,527			1,171			1,356


Adjusted operating income before income taxes		131			125			6

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014												2015
2015			2014				1Q			2Q			3Q			4Q			1Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1):

	18			9		Variable life		9			11			10			22			18
	57			71		Universal life		71			46			43			59			57
	49			42		Term life		42			46			44			49			49

	124			122		Total		122			103			97			130			124


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	25			22		Prudential Agents		22			25			24			27			25
	99			100		Third party distribution		100			78			73			103			99

	124			122		Total		122			103			97			130			124


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	22,526			21,842		Beginning balance		21,842			22,119			22,239			22,570			22,526
	737			769		Premiums and deposits		769			681			696			734			737
	(267	)		(237	)	Surrenders and withdrawals		(237	)		(311	)		(274	)		(308	)		(267	)

	470			532		Net sales		532			370			422			426			470
	(137	)		(105	)	Benefit payments		(105	)		(110	)		(111	)		(104	)		(137	)

	333			427		Net flows		427			260			311			322			333
	(29	)		65		Interest credited and other		65			66			231			(137	)		(29	)
	115			105		Net transfers from separate account		105			110			110			107			115
	(328	)		(320	)	Policy charges		(320	)		(316	)		(321	)		(336	)		(328	)
	—			—		Acquisition		—			—			—			—			—

	22,617			22,119		Ending balance		22,119			22,239			22,570			22,526			22,617


						*Separate Account Liabilities:*
	27,888			26,916		Beginning balance		26,916			27,153			27,968			27,455			27,888
	391			369		Premiums and deposits		369			283			278			420			391
	(214	)		(239	)	Surrenders and withdrawals		(239	)		(203	)		(219	)		(212	)		(214	)

	177			130		Net sales		130			80			59			208			177
	(34	)		(32	)	Benefit payments		(32	)		(28	)		(20	)		(24	)		(34	)

	143			98		Net flows		98			52			39			184			143
	563			484		Change in market value, interest credited and other		484			1,110			(201	)		594			563
	(115	)		(105	)	Net transfers to general account		(105	)		(110	)		(110	)		(107	)		(115	)
	(233	)		(240	)	Policy charges		(240	)		(237	)		(241	)		(238	)		(233	)
	—			—		Acquisition		—			—			—			—			—

	28,246			27,153		Ending balance		27,153			27,968			27,455			27,888			28,246


						FACE AMOUNT IN FORCE (3):

						Variable life		173,382			171,043			169,493			168,852			168,000
						Universal life		147,519			149,274			150,697			152,706			154,921
						Term life		627,425			634,132			640,758			650,233			659,900

						Total		948,326			954,449			960,948			971,791			982,820

(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 22

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

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

(dollar amounts in millions)


Year-to-date					2014								2015
2015		2014			1Q		2Q		3Q		4Q		1Q

				Individual Life Insurance:

				Policy Surrender Experience:
	255		286	Cash value of surrenders		286		278		289		274		255
	2.2%		2.6%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		2.6%		2.5%		2.5%		2.4%		2.2%

				Death benefits per $1,000 of in force (1):
	5.96		5.06	Variable and universal life		5.06		4.61		4.62		4.82		5.96
	1.57		1.31	Term life		1.31		1.20		1.19		1.27		1.57
	4.03		3.51	Total, Individual Life Insurance		3.51		3.13		3.16		3.28		4.03

(1)	Annualized, for interim reporting periods. Amounts are stated net of reinsurance.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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

(dollar amounts in millions)


Year-to-date					2014												2015
2015		2014			1Q			2Q			3Q			4Q			1Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	131		137	Group life		137			10			14			28			131
	31		33	Group disability		33			12			13			9			31

	162		170	Total		170			22			27			37			162


				Future Policy Benefits (1) (2):
				Group life		2,198			2,132			2,074			2,219			2,156
				Group disability		30			21			11			3			30

				Total		2,228			2,153			2,085			2,222			2,186


				Policyholders’ Account Balances (1):
				Group life		7,853			7,923			7,953			8,106			8,025
				Group disability		254			217			223			236			231

				Total		8,107			8,140			8,176			8,342			8,256


				Separate Account Liabilities (1):
				Group life		22,938			24,525			24,515			24,305			26,764
				Group disability		—			—			—			—			—

				Total		22,938			24,525			24,515			24,305			26,764


				Group Life Insurance:
	978		1,004	Gross premiums, policy charges and fee income (3)		1,004			1,002			953			1,018			978
	918		973	Earned premiums, policy charges and fee income		973			966			955			914			918
	92.8%		89.6%	Benefits ratio		89.6	%		89.3	%		89.9	%		88.1	%		92.8	%
	10.6%		11.2%	Administrative operating expense ratio		11.2	%		9.9	%		11.5	%		12.0	%		10.6	%
				Persistency ratio		94.9	%		94.2	%		93.5	%		93.2	%		92.8	%

				Group Disability Insurance:
	199		221	Gross premiums, policy charges and fee income (3)		221			221			220			220			199
	180		200	Earned premiums, policy charges and fee income		200			199			213			206			180
	72.2%		100.5%	Benefits ratio		100.5	%		83.9	%		133.8	%		79.1	%		72.2	%
	32.7%		29.0%	Administrative operating expense ratio		29.0	%		29.4	%		31.4	%		30.9	%		32.7	%
				Persistency ratio		87.0	%		85.6	%		84.6	%		83.9	%		89.5	%

(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.

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014												2015
2015			2014				1Q			2Q			3Q			4Q			1Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	5,376			5,490		Beginning balance		5,490			5,513			5,521			5,554			5,376
	109			116		Capitalization		116			132			127			123			109
	(89	)		(122	)	Amortization - operating results		(122	)		(129	)		(141	)		(151	)		(89	)
	(343	)		41		Amortization - realized investment gains and losses		41			9			34			(144	)		(343	)
	(7	)		(12	)	Impact of unrealized (gains) or losses on AFS securities		(12	)		(4	)		13			(6	)		(7	)
	—			—		Other		—			—			—			—			—

	5,046			5,513		Ending balance		5,513			5,521			5,554			5,376			5,046


						INDIVIDUAL LIFE INSURANCE:
	4,056			4,112		Beginning balance		4,112			4,089			4,057			4,185			4,056
	139			143		Capitalization		143			130			125			149			139
	(86	)		(96	)	Amortization - operating results		(96	)		(98	)		(27	)		(124	)		(86	)
	(23	)		2		Amortization - realized investment gains and losses		2			1			5			(31	)		(23	)
	(101	)		(72	)	Impact of unrealized (gains) or losses on AFS securities		(72	)		(65	)		25			(123	)		(101	)

	3,985			4,089		Ending balance		4,089			4,057			4,185			4,056			3,985


						GROUP INSURANCE:
	177			183		Beginning balance		183			180			178			176			177
	—			—		Capitalization		—			—			—			2			—
	(2	)		(3	)	Amortization - operating results		(3	)		(2	)		(2	)		(1	)		(2	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	175			180		Ending balance		180			178			176			177			175


						DEFERRED SALES INDUCEMENTS
						INDIVIDUAL ANNUITIES:
	1,513			1,813		Beginning balance		1,813			1,756			1,687			1,645			1,513
	3			7		Capitalization		7			7			4			3			3
	(31	)		(50	)	Amortization - operating results		(50	)		(52	)		(56	)		(57	)		(31	)
	(118	)		(11	)	Amortization - realized investment gains and losses		(11	)		(21	)		3			(78	)		(118	)
	—			(3	)	Impact of unrealized (gains) or losses on AFS securities		(3	)		(3	)		7			—			—
	—			—		Other		—			—			—			—			—

	1,367			1,756		Ending balance		1,756			1,687			1,645			1,513			1,367

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


Year-to-date						% Change			2014												2015
2015			2014			% Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	3,519			3,696			-5%	Premiums		3,696			3,822			3,568			3,338			3,519
	140			138			1%	Policy charges and fee income		138			138			156			164			140
	1,099			1,084			1%	Net investment income		1,084			1,128			1,138			1,084			1,099
	148			157			-6%	Asset management fees, commissions and other income		157			164			140			151			148

	4,906			5,075			-3%	Total revenues		5,075			5,252			5,002			4,737			4,906


								Benefits and Expenses (1):
	3,002			3,113			-4%	Insurance and annuity benefits		3,113			3,217			3,051			2,903			3,002
	224			239			-6%	Interest credited to policyholders’ account balances		239			242			256			224			224
	1			—			—	Interest expense		—			2			1			1			1
	(401	)		(412	)		3%	Deferral of acquisition costs		(412	)		(420	)		(415	)		(394	)		(401	)
	252			250			1%	Amortization of acquisition costs		250			256			209			246			252
	994			1,048			-5%	General and administrative expenses		1,048			1,071			1,055			1,071			994

	4,072			4,238			-4%	Total benefits and expenses		4,238			4,368			4,157			4,051			4,072


	834			837			0%	Adjusted operating income before income taxes		837			884			845			686			834

(1)

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

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	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


	Three Months Ended March 31, 2014
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		3,696			1,884			1,812
Policy charges and fee income		138			91			47
Net investment income		1,084			431			653
Asset management fees, commissions and other income		157			73			84

Total revenues		5,075			2,479			2,596


Benefits and Expenses (1):
Insurance and annuity benefits		3,113			1,637			1,476
Interest credited to policyholders’ account balances		239			60			179
Interest expense		—			—			—
Deferral of acquisition costs		(412	)		(209	)		(203	)
Amortization of acquisition costs		250			134			116
General and administrative expenses		1,048			438			610

Total benefits and expenses		4,238			2,060			2,178


Adjusted operating income before income taxes		837			419			418

(1)

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2014								2015
2015		2014			1Q		2Q		3Q		4Q		1Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	1,470		1,538	Japan, excluding Gibraltar Life		1,538		1,303		1,302		1,230		1,470
	1,742		1,859	Gibraltar Life		1,859		2,185		1,944		1,776		1,742
	447		437	All other countries		437		472		478		496		447

	3,659		3,834	Total		3,834		3,960		3,724		3,502		3,659


				Annualized new business premiums:
	199		227	Japan, excluding Gibraltar Life		227		157		161		161		199
	357		361	Gibraltar Life		361		437		409		377		357
	117		104	All other countries		104		115		113		123		117

	673		692	Total		692		709		683		661		673


				Annualized new business premiums by distribution channel:
	316		331	Life Planner Operations		331		272		274		284		316
	146		158	Gibraltar Life Consultants		158		210		174		159		146
	153		144	Banks		144		156		170		156		153
	58		59	Independent Agency		59		71		65		62		58

	673		692	Total		692		709		683		661		673


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	1,795		1,680	Japan, excluding Gibraltar Life		1,680		1,411		1,437		1,454		1,795
	2,099		2,036	Gibraltar Life		2,036		2,384		2,111		2,036		2,099
	464		418	All other countries		418		436		446		495		464

	4,358		4,134	Total		4,134		4,231		3,994		3,985		4,358


				Annualized new business premiums:
	245		249	Japan, excluding Gibraltar Life		249		171		178		189		245
	414		384	Gibraltar Life		384		457		427		413		414
	121		100	All other countries		100		104		105		122		121

	780		733	Total		733		732		710		724		780


				Annualized new business premiums by distribution channel:
	366		349	Life Planner Operations		349		275		283		311		366
	175		171	Gibraltar Life Consultants		171		220		186		179		175
	171		150	Banks		150		161		173		166		171
	68		63	Independent Agency		63		76		68		68		68

	780		733	Total		733		732		710		724		780

(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 91 per U.S. dollar and Korean won 1120 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2014												2015
	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		336			338			342			345			350
Gibraltar Life		373			372			373			374			374
All other countries		112			115			116			118			120

Total		821			825			831			837			844


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		3,015			3,043			3,077			3,111			3,162
Gibraltar Life		7,217			7,161			7,137			7,224			7,189
All other countries		1,766			1,794			1,821			1,855			1,880

Total		11,998			11,998			12,035			12,190			12,231


International life insurance policy persistency:

Life Planner Operations:
13 months		93.0	%		92.9	%		92.5	%		92.3	%		92.3	%
25 months		85.9	%		86.0	%		86.2	%		86.0	%		85.9	%

Gibraltar Life (3):
13 months		91.0	%		91.0	%		91.2	%		91.5	%		92.0	%
25 months		81.8	%		81.9	%		82.2	%		82.2	%		82.7	%

Number of Life Planners at end of period:
Japan		3,298			3,212			3,275			3,328			3,436
All other countries		3,896			3,862			3,938			4,024			4,033

Total Life Planners		7,194			7,074			7,213			7,352			7,469


Gibraltar Life Consultants		8,806			8,670			8,601			8,707			8,645

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 91 per U.S. dollar and Korean won 1120 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

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

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

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2015									December 31, 2014
	Consolidated Portfolio		Closed Block Division		PFI Excluding Closed Block Division					Consolidated Portfolio		Closed Block Business		PFI Excluding Closed Block Business
					PFI Excluding Closed Block Division									PFI Excluding Closed Block Business
					Amount		% of Total							Amount		% of Total
Fixed maturities:
Public, available-for-sale, at fair value		248,990		26,102		222,888		64.5	%		249,165		28,626		220,539		64.5	%
Public, held-to-maturity, at amortized cost		1,962		—		1,962		0.6	%		2,000		—		2,000		0.6	%
Private, available-for-sale, at fair value		50,283		14,961		35,322		10.2	%		49,777		15,039		34,738		10.1	%
Private, held-to-maturity, at amortized cost		551		—		551		0.1	%		575		—		575		0.2	%
Trading account assets supporting insurance liabilities, at fair value		20,626		—		20,626		6.0	%		20,263		—		20,263		5.9	%
Other trading account assets, at fair value		1,756		318		1,438		0.4	%		1,806		350		1,456		0.4	%
Equity securities, available-for-sale, at fair value		10,198		3,613		6,585		1.9	%		9,853		3,522		6,331		1.8	%
Commercial mortgage and other loans, at book value		47,121		9,588		37,533		10.9	%		46,013		9,475		36,538		10.7	%
Policy loans, at outstanding balance		11,693		4,880		6,813		2.0	%		11,712		4,914		6,798		2.0	%
Other long-term investments (1)		10,102		2,896		7,206		2.1	%		9,935		2,766		7,169		2.1	%
Short-term investments		5,593		969		4,624		1.3	%		7,911		2,037		5,874		1.7	%

Subtotal (2)		408,875		63,327		345,548		100.0	%		409,010		66,729		342,281		100.0	%

Invested assets of other entities and operations (3)		12,000		—		12,000					10,976		—		10,976

Total investments		420,875		63,327		357,548					419,986		66,729		353,257

Fixed Maturities by Credit Quality (2):


	March 31, 2015											December 31, 2014
	PFI Excluding Closed Block Division											PFI Excluding Closed Block Business
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total
Public Fixed Maturities:

NAIC Rating (4)
1		166,734		26,583		315		193,002		85.7	%		167,392		24,613		549		191,456		85.9	%
2		22,256		3,319		199		25,376		11.3	%		22,321		3,054		279		25,096		11.3	%

Subtotal - High or Highest Quality Securities		188,990		29,902		514		218,378		97.0	%		189,713		27,667		828		216,552		97.2	%

3		3,988		413		48		4,353		1.9	%		3,661		359		32		3,988		1.8	%
4		1,741		198		28		1,911		0.9	%		1,684		188		32		1,840		0.8	%
5		174		93		3		264		0.1	%		171		73		6		238		0.1	%
6		199		9		1		207		0.1	%		196		11		1		206		0.1	%

Subtotal - Other Securities		6,102		713		80		6,735		3.0	%		5,712		631		71		6,272		2.8	%

Total		195,092		30,615		594		225,113		100.0	%		195,425		28,298		899		222,824		100.0	%


Private Fixed Maturities:
NAIC Rating (4)
1		9,173		1,133		33		10,273		28.6	%		8,730		1,102		15		9,817		27.8	%
2		20,438		1,966		275		22,129		61.6	%		19,790		1,880		123		21,547		60.9	%

Subtotal - High or Highest Quality Securities		29,611		3,099		308		32,402		90.2	%		28,520		2,982		138		31,364		88.7	%

3		2,609		153		48		2,714		7.6	%		2,958		178		26		3,110		8.8	%
4		401		14		13		402		1.1	%		544		16		18		542		1.5	%
5		323		9		24		308		0.9	%		270		10		18		262		0.8	%
6		80		11		3		88		0.2	%		68		11		2		77		0.2	%

Subtotal - Other Securities		3,413		187		88		3,512		9.8	%		3,840		215		64		3,991		11.3	%

Total		33,024		3,286		396		35,914		100.0	%		32,360		3,197		202		35,355		100.0	%

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

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

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

(4)

Reflects equivalent ratings for investments of the international insurance operations. Includes, as of March 31, 2015 and December 31, 2014, respectively, 1,110 securities with amortized cost of $5,299 million (fair value $5,617 million) and 1,330 securities with amortized cost of $6,864 million (fair value, $7,342 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

INVESTMENT PORTFOLIO COMPOSITION (1)

(in millions)


	March 31, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value		110,039		78.6	%		111,991		79.5	%
Public, held-to-maturity, at amortized cost		1,962		1.4	%		2,000		1.4	%
Private, available-for-sale, at fair value		9,150		6.6	%		8,835		6.3	%
Private, held-to-maturity, at amortized cost		551		0.4	%		575		0.4	%
Trading account assets supporting insurance liabilities, at fair value		1,965		1.4	%		1,910		1.4	%
Other trading account assets, at fair value		657		0.5	%		672		0.5	%
Equity securities, available-for-sale, at fair value		2,683		1.9	%		2,504		1.8	%
Commercial mortgage and other loans, at book value		8,579		6.1	%		8,215		5.8	%
Policy loans, at outstanding balance		2,171		1.5	%		2,146		1.5	%
Other long-term investments (2)		2,005		1.4	%		1,606		1.1	%
Short-term investments		337		0.2	%		406		0.3	%

Total		140,099		100.0	%		140,860		100.0	%


	March 31, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
Excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value		112,849		54.9	%		108,548		53.9	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		26,172		12.7	%		25,903		12.9	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		18,661		9.1	%		18,353		9.1	%
Other trading account assets, at fair value		781		0.4	%		784		0.4	%
Equity securities, available-for-sale, at fair value		3,902		1.9	%		3,827		1.9	%
Commercial mortgage and other loans, at book value		28,954		14.1	%		28,323		14.0	%
Policy loans, at outstanding balance		4,642		2.3	%		4,652		2.3	%
Other long-term investments (3)		5,201		2.5	%		5,563		2.8	%
Short-term investments		4,287		2.1	%		5,468		2.7	%

Total		205,449		100.0	%		201,421		100.0	%

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

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

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

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

INVESTMENT RESULTS (1)

(in millions)


	Three Months Ended March 31
	2015								2014
	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		3.96	%		2,200			346		3.79	%		2,157			195
Equity securities		5.21	%		61			45		5.46	%		63			33
Commercial mortgage and other loans		4.40	%		352			5		4.57	%		307			(4	)
Policy loans		4.88	%		83			—		4.85	%		82			—
Short-term investments and cash equivalents		0.22	%		9			—		0.25	%		6			—
Other investments		7.85	%		169			1,545		11.72	%		250			(174	)

Gross investment income before investment expenses		3.96	%		2,874			1,941		4.03	%		2,865			50
Investment expenses		-0.15	%		(93	)		—		-0.14	%		(72	)		—

Subtotal		3.81	%		2,781			1,941		3.89	%		2,793			50

Investment results of other entities and operations (3)					279			47					270			21
Less, investment income related to adjusted operating income reconciling items					(55	)							(46	)

Total					3,005			1,988					3,017			71

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

(2)

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

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

(4)

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

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2015								2014
	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		3.16	%		789			318		2.93	%		797			223
Equity securities		3.65	%		14			7		3.97	%		18			12
Commercial mortgage and other loans		4.43	%		92			1		3.99	%		67			(2	)
Policy loans		3.82	%		21			—		3.71	%		21			—
Short-term investments and cash equivalents		0.29	%		1			—		0.28	%		1			—
Other investments (2)		8.96	%		55			157		7.83	%		48			133

Gross investment income before investment expenses		3.36	%		972			483		3.08	%		952			366
Investment expenses		-0.14	%		(40	)		—		-0.13	%		(37	)		—

Total		3.22	%		932			483		2.95	%		915			366

(1)

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

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)

(in millions)


	Three Months Ended March 31
	2015								2014
	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		4.61	%		1,411			28		4.61	%		1,360			(28	)
Equity securities		5.93	%		47			38		6.40	%		45			21
Commercial mortgage and other loans		4.39	%		260			4		4.77	%		240			(2	)
Policy loans		5.37	%		62			—		5.44	%		61			—
Short-term investments and cash equivalents		0.22	%		8			—		0.24	%		5			—
Other investments		7.40	%		114			1,388		13.30	%		202			(307	)

Gross investment income before investment expenses		4.35	%		1,902			1,458		4.77	%		1,913			(316	)
Investment expenses		-0.15	%		(53	)		—		-0.14	%		(35	)		—

Total		4.20	%		1,849			1,458		4.63	%		1,878			(316	)

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

(2)

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

(3)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

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

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. For periods prior to first quarter 2015, attributed equity for the Financial Services Businesses represents all of the Company’s equity that is not included in the Closed Block Business or attributable to noncontrolling interests. For periods subsequent to December 31, 2014, attributed equity represents all of Prudential Financial, Inc. equity that is not attributable to noncontrolling interests.

6. Book value per share of Common Stock:

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

7. Borrowings - Capital Debt:

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

8. Borrowings - Operating Debt - Investment Related:

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

9. Borrowings - Operating Debt - Specified Businesses:

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

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

KEY DEFINITIONS AND FORMULAS

10. Client Assets:

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

11. Divested Businesses:

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

12. Earned Premiums:

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

13. Earnings Per Share of Common Stock:

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

14. Full Service Retirement:

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

15. Full Service Stable Value:

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

16. General Account:

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

17. Gibraltar Life:

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

18. Gibraltar Life Consultants:

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

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

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

20. Group Life Insurance and Group Disability Insurance Benefits Ratios:

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

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

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

22. Individual Annuities - Net Amounts at Risk:

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

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

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

LOGO

KEY DEFINITIONS AND FORMULAS

23. Insurance and Annuity Benefits:

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

24. International Life Planners:

Captive insurance agents in our Life Planner Operations.

25. Non-recourse and Limited-recourse Debt:

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

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

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

An alternative measure to operating return on average equity (based on adjusted operating income) is return on average equity (based on income from continuing operations). For periods subsequent to December 31, 2014, return on average equity (based on income from continuing operations) represents income from continuing operations after-tax, attributable to consolidated Prudential Financial, Inc., as determined in accordance with GAAP, annualized for interim periods, divided by average total attributed equity. For periods prior to first quarter 2015, return on average equity represents income from continuing operations after-tax, for the Financial Services Businesses, attributable to Prudential Financial, Inc. (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average total attributed equity for the Financial Services Businesses. Return on average equity (based on income from continuing operations) is 18.9%, (12.1)%, 4.6% 10.9% and 13.8% for the three months ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively.

27. Policy Persistency - Group Insurance:

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

28. Policy Persistency - International Insurance:

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

29. Prudential Agents:

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

30. Prudential Agent productivity:

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

31. Separate Accounts:

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

32. Wrap-Fee Products:

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

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2015

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RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of May 6, 2015


	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	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA-	NR	NR
The Prudential Gibraltar Financial Life Insurance Co. Ltd.	NR	AA-	NR	NR
Prudential Life Insurance Co. of Taiwan, Inc.	NR	twAA+	NR	NR

CREDIT RATINGS:
as of May 6, 2015

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 38

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Form 8-K PRUDENTIAL FINANCIAL For: May 06

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