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Form 8-K PRUDENTIAL FINANCIAL For: Nov 05

November 5, 2014 4:14 PM EST

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): November�5, 2014

PRUDENTIAL FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

New Jersey 001-16707 22-3703799

(State or other jurisdiction

of incorporation)

(Commission File Number)

(I.R.S. Employer

Identification No.)

751 Broad Street

Newark, New Jersey 07102

(Address of principal executive offices and zip code)

(973) 802-6000

(Registrant�s telephone number, including area code)

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

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

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

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

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


Item�2.02 Results of Operations and Financial Condition.

Prudential Financial, Inc., a New Jersey corporation (the �Company�), furnishes herewith, as Exhibit 99.1, a news release announcing third quarter 2014 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 third quarter 2014 results.

B. Quarterly Financial Supplement. The Company furnishes herewith, as Exhibit 99.2, the Quarterly Financial Supplement for its Financial Services Businesses for the quarterly period ended September�30, 2014.

C. Conference Call and Related Materials. Members of the Company�s senior management will hold a conference call on Thursday, November�6, 2014 at 11:00 A.M. ET, to discuss the Company�s third quarter 2014 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 November�5, 2014, announcing third quarter 2014 results (furnished and not filed).

99.2 Quarterly Financial Supplement for the Financial Services Businesses of Prudential Financial, Inc. for the quarterly period ended September�30, 2014 (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: November�5, 2014

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 November 5, 2014, announcing third quarter 2014 results (furnished and not filed).
99.2 Quarterly Financial Supplement for the Financial Services Businesses of Prudential Financial, Inc. for the quarterly period ended September 30, 2014 (furnished and not filed).

Exhibit 99.1

LOGO

For Immediate Release �� Contact: �� Scot�Hoffman
November�5, 2014 �� �� (973)�802-2824

PRUDENTIAL FINANCIAL, INC.

ANNOUNCES THIRD QUARTER 2014 RESULTS

After-tax adjusted operating income for the Financial Services Businesses of $1.034 billion, or $2.20 per Common share, compared to $2.89 per Common share for the year-ago quarter.

Significant items included in current quarter adjusted operating income:

Pre-tax net charges totaling $186 million from reserve refinements and adjustments of amortization of deferred policy acquisition and related costs reflecting an annual review of actuarial assumptions.

Pre-tax charge of $50 million in Individual Annuities, including strengthening of reserves for guaranteed death and income benefits and adjustment of amortization of deferred policy acquisition and related costs reflecting market performance.

Pre-tax charge of $8 million in Individual Life for integration costs relating to the acquisition of The Hartford�s individual life insurance business.

The items above had a negative impact of approximately 34 cents per Common share on current quarter results.

In addition, a favorable update of the effective tax rate applicable to adjusted operating income based on year to date results contributed approximately 8 cents per Common share to current quarter results.

For the year-ago quarter, refinements and updates of reserves and deferred policy acquisition and related costs reflecting an annual actuarial review, benefits to Individual Annuities results from updated estimates of profitability reflecting favorable market performance, and integration costs for acquired businesses resulted in a net contribution of 55 cents per Common share to adjusted operating income.

Financial Services Businesses Third Quarter Highlights

Individual Annuities account values of $156.8 billion at September�30, up $9.4 billion from a year earlier; gross sales for the quarter of $2.6 billion, net sales $392 million.

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Retirement account values of $356.1 billion at September�30, up $43.6 billion from a year earlier; gross deposits and sales for the quarter of $36.2 billion including two longevity reinsurance cases totaling $29.0 billion; net sales $28.3 billion.

Asset Management institutional and retail assets under management of $543.7 billion at September�30, up $54.3 billion from a year earlier; institutional and retail net outflows for the current quarter, excluding money market, total approximately $200 million; total segment assets under management of $917.5 billion at September�30, up $69.4 billion from a year earlier.

Annualized new business premiums for the quarter of $97 million for U.S. Individual Life and $27 million for Group Insurance.

International Insurance constant dollar basis annualized new business premiums for the quarter of $743 million.

Net income of Financial Services Businesses attributable to Prudential Financial, Inc. for third quarter 2014 of $465 million, or 99 cents per Common share.

Other financial highlights:

Book value per Common share, excluding total accumulated other comprehensive income and net changes in value relating to foreign currency exchange rate remeasurement reflected in net income or loss, amounted to $64.89 at September�30, 2014, an increase of $4.90 from December�31, 2013 after payment of three quarterly Common Stock dividends totaling $1.59 per share.

GAAP book value for Financial Services Businesses, $40.2 billion or $86.76 per Common share at September�30, 2014, compared to $33.9 billion or $72.30 per Common share at December�31, 2013. Book value per Common share excluding total accumulated other comprehensive income, $58.00 at September�30, 2014 compared to $53.98 at December�31, 2013.

Net unrealized gains on general account fixed maturity investments of the Financial Services Businesses of $24.0 billion at September�30, 2014 compared to $15.8 billion at December�31, 2013; gross unrealized losses of $1.5 billion at September�30, 2014, compared to $4.0 billion at December�31, 2013.

During the third quarter, the Company acquired 2.8�million shares of its Common Stock at a total cost of $250 million, for an average price of $89.41 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 repurchases in July 2011, through September�30, 2014, the Company has acquired 50.0�million shares of its Common Stock at a total cost of $3.1 billion, for an average price of $63.02 per share.

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NEWARK, N.J. � Prudential Financial, Inc. (NYSE: PRU) today reported after-tax adjusted operating income for its Financial Services Businesses of $1.034 billion ($2.20 per Common share) for the third quarter of 2014, compared to $1.373 billion ($2.89 per Common share) for the year-ago quarter. Net income for the Financial Services Businesses attributable to Prudential Financial, Inc. was $465 million (99 cents per Common share) for the third quarter of 2014, compared to $966 million ($2.04 per Common share) for the year-ago quarter. Information regarding adjusted operating income, a non-GAAP measure, is provided below.

For the first nine months of 2014, after-tax adjusted operating income for the Financial Services Businesses amounted to $3.347 billion ($7.09 per Common share) compared to $3.538 billion ($7.47 per Common share) for the first nine months of 2013. Net income for the Financial Services Businesses attributable to Prudential Financial, Inc. for the first nine months of 2014 amounted to $2.739 billion ($5.80 per Common share) compared to a net loss of $286 million (61 cents per Common share) for the first nine months of 2013.

�We are pleased with the underlying performance of our businesses in the third quarter and continue to believe we are well positioned to capitalize on future opportunities in both our domestic and international operations. In the U.S., results are benefiting from good organic growth over the last several years, particularly in Retirement and Asset Management, solid performance in our insurance businesses, and the benefits of market performance over the past year in our fee-based businesses. We completed or announced several key pension risk transfer deals recently, including a landmark longevity reinsurance transaction. Our international businesses performed well in the quarter, showing increased sales levels overall and continued strong earnings and returns,� 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 Measures,� and a reconciliation of adjusted operating income to the most comparable GAAP measure is provided in the tables that accompany this release.

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Financial Services Businesses

Prudential Financial�s Common Stock (NYSE: PRU) reflects the performance of its Financial Services Businesses, which consist of its U.S. Retirement Solutions and Investment Management, U.S. Individual Life and Group Insurance, and International Insurance divisions and its Corporate and Other operations.

In the following business-level discussion, adjusted operating income refers to pre-tax results.

The U.S. Retirement Solutions and Investment Management division reported adjusted operating income of $823 million for the third quarter of 2014, compared to $1.231 billion in the year-ago quarter.

The Individual Annuities segment reported adjusted operating income of $367 million in the current quarter, compared to $821 million in the year-ago quarter. Current quarter results include a net charge of $36 million reflecting an updated estimate of profitability for this business, including updates of actuarial assumptions based on an annual review which resulted in a $14 million benefit and the impact of current quarter market performance in relation to our assumptions which resulted in a $50 million charge. Results for the year-ago quarter included a benefit of $451 million to reflect an updated estimate of profitability, including $301 million from updates of actuarial assumptions based on an annual review and $150 million from the favorable impact of market performance in relation to our assumptions. Excluding the effect of the foregoing items, adjusted operating income for the Individual Annuities segment increased $33 million from the year-ago quarter, primarily reflecting higher asset-based fees due to growth in variable annuity account values.

The Retirement segment reported adjusted operating income of $256 million for the current quarter, compared to $237 million in the year-ago quarter. Current quarter results include a net charge of $13 million to strengthen reserves and adjust amortization of deferred policy acquisition and other costs primarily reflecting an annual review of actuarial assumptions, while results for the year-ago quarter included a $4 million net charge primarily reflecting a similar annual review. Excluding these items, adjusted operating income for the Retirement segment increased $28 million from the year-ago quarter. This increase came primarily from a $21 million greater net contribution from investment results. We estimate that returns on non-coupon investments

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exceeded average expectations by about $35 million in the current quarter. Higher fees including the impact of recent longevity reinsurance transactions, partly offset by higher expenses, also contributed to the increase in adjusted operating income.

The Asset Management segment reported adjusted operating income of $200 million for the current quarter, compared to $173 million in the year-ago quarter. The $27 million increase was primarily driven by a $21 million greater contribution from the segment�s incentive, transaction, strategic investing and commercial mortgage activities.

The U.S. Individual Life and Group Insurance division reported adjusted operating income of $24 million for the third quarter of 2014, compared to $216 million in the year-ago quarter.

The Individual Life segment reported adjusted operating income of $97 million for the current quarter, compared to $148 million in the year-ago quarter. Current quarter results include a net charge of $63 million from updated profitability estimates reflecting updates of actuarial assumptions based on an annual review and reserve refinements. In addition, current quarter results reflect absorption of $8 million of integration costs related to the Company�s acquisition of The Hartford�s individual life insurance business on January�2, 2013. Results for the year-ago quarter included a benefit of $27 million from updates of actuarial assumptions based on an annual review, and a charge of $24 million for integration costs related to the acquisition. Excluding the effect of the foregoing items, adjusted operating income for the Individual Life segment increased $23 million from the year-ago quarter. This increase was driven by more favorable claims experience, with a net contribution to current quarter results approximately $40 million greater than our average expectations inclusive of reserve updates.

The Group Insurance segment reported a loss, on an adjusted operating income basis, of $73 million in the current quarter, compared to adjusted operating income of $68 million in the year-ago quarter. Current quarter results include a net charge of $107 million from refinements of reserves and related items reflecting updates of actuarial assumptions based on an annual review, primarily to strengthen reserves for long term disability business, while results for the year-ago quarter included a net benefit of $45 million from refinements reflecting a similar annual review.

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Excluding these items, adjusted operating income increased $11 million from the year-ago quarter. This increase was driven by more favorable group disability claims experience, partly offset by less favorable group life claims experience.

The International Insurance segment reported adjusted operating income of $845 million for the third quarter of 2014, compared to $778 million in the year-ago quarter.

Adjusted operating income of the segment�s Life Planner insurance operations was $414 million for the current quarter, compared to $424 million in the year-ago quarter. Current quarter results benefited $17 million from refinements of reserves and related items reflecting updates of actuarial assumptions based on an annual review, while results for the year-ago quarter included a net benefit of $19 million from similar updates. Excluding these items, adjusted operating income decreased $8 million from the year-ago quarter, as higher expenses in the current quarter more than offset contributions from continued business growth and more favorable claims experience. In addition, foreign currency exchange rates, including the impact of the Company�s currency hedging programs, had an unfavorable impact of $4 million in comparison to the year-ago quarter.

The segment�s Gibraltar Life and Other operations reported adjusted operating income of $431 million for the current quarter, compared to $354 million in the year-ago quarter. Current quarter results include a net charge of $15 million from refinements of reserves and related items reflecting updates of actuarial assumptions based on an annual review. Results for the year-ago quarter included a net charge of $108 million from such refinements and updates, primarily to strengthen reserves on an acquired block of business giving effect to updated benefit utilization and lapse assumptions. Year-ago quarter results also included a charge of $8 million for integration costs related to the Star and Edison businesses acquired on February�1, 2011. Excluding these items, adjusted operating income decreased $24 million from the year-ago quarter. This decrease reflected a less favorable level of policy benefits and higher expenses in the current quarter. In addition, foreign currency exchange rates, including the impact of the Company�s currency hedging programs, had an unfavorable impact of $10 million in comparison to the year-ago quarter.

Corporate and Other operations resulted in a loss, on an adjusted operating income basis, of $339 million in the third quarter of 2014, compared to a loss of $312 million in the year-ago quarter. Current quarter results include a charge of $19 million to strengthen reserves relating to

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certain pre-demutualization policyholders, reflecting the impact of an annual review of actuarial assumptions. Excluding this charge, the loss from Corporate and Other operations increased $8 million from the year-ago quarter, reflecting higher net expenses in the current quarter.

Assets under management amounted to $1.160 trillion at September�30, 2014, compared to $1.107 trillion at December�31, 2013 and $1.076 trillion at September�30, 2013.

Net income of the Financial Services Businesses attributable to Prudential Financial, Inc. amounted to $465 million for the third quarter of 2014, compared to $966 million in the year-ago quarter.

Current quarter net income includes $1.132 billion of pre-tax net realized investment losses and related charges and adjustments. The foregoing net loss includes pre-tax losses of $970 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. These losses were largely driven by our annual actuarial review, which reflected updated lapse assumptions for our variable annuity products. Current quarter pre-tax net realized investment losses and related charges and adjustments also include losses of $576 million representing net changes in value relating to foreign currency exchange rates primarily resulting from changes in value of the Japanese yen in relation to other currencies, and $37 million from impairments and sales of credit-impaired investments. The currency-driven value changes were largely offset by corresponding adjustments to accumulated other comprehensive income which are not reflected in net income or loss. The foregoing losses were partly offset by pre-tax gains of $328 million from net increases in the market value of derivatives used in other risk management activities including asset and liability duration management and $123 million from general investment portfolio activities.

At September�30, 2014, gross unrealized losses on general account fixed maturity investments of the Financial Services Businesses amounted to $1.510 billion, including $1.379 billion on high and highest quality securities based on NAIC or equivalent ratings. Gross unrealized losses on general account fixed maturity investments of the Financial Services Businesses amounted to $3.972 billion at December�31, 2013. Net unrealized gains on general account fixed maturity investments of the Financial Services Businesses amounted to $23.986 billion at September�30, 2014, compared to $15.776 billion at December�31, 2013.

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Net income for the current quarter reflects pre-tax decreases of $131 million in recorded asset values and $93 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 losses of $7 million from divested businesses.

Net income of the Financial Services Businesses for the year-ago quarter included $556 million of pre-tax net realized investment losses and related charges and adjustments, primarily reflecting pre-tax losses of $1.715 billion from products that contain embedded derivatives and associated derivative portfolios that are part of a hedging program related to the risks of these products, and pre-tax gains of $1.169 billion representing net changes in value relating to foreign currency exchange rates mainly resulting from changes in value of the Japanese yen in relation to other currencies.

Closed Block Business

Prudential�s Class B Stock, which is not traded on any exchange, reflects the performance of its Closed Block Business.

The Closed Block Business includes our in force participating life insurance and annuity policies, and assets that are being used for the payment of benefits and policyholder dividends on these policies, as well as other assets and equity that support these policies. We have ceased offering these participating policies.

The Closed Block Business reported income from continuing operations before income taxes of $100 million for the third quarter of 2014, compared to $85 million for the year-ago quarter.

The Closed Block Business reported net income attributable to Prudential Financial, Inc. of $47 million for the third quarter of 2014, compared to $61 million for the year-ago quarter.

For the first nine months of 2014, the Closed Block Business reported income from continuing operations before income taxes of $169 million, compared to $108 million for the first nine months of 2013. The Closed Block Business reported net income attributable to Prudential Financial, Inc. of $101 million for the first nine months of 2014, compared to $79 million for the first nine months of 2013.

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Consolidated Results

There is no legal separation of the Financial Services Businesses and the Closed Block Business, and holders of the Common Stock and the Class B Stock are both common stockholders of Prudential Financial, Inc.

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 $512 million for the third quarter of 2014 compared to $1.027 billion for the year-ago quarter, and reported net income attributable to Prudential Financial, Inc. of $2.840 billion for the first nine months of 2014 compared to a net loss of $207 million for the first nine months of 2013.

Forward-Looking Statements and Non-GAAP Measures

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, with regard to variable annuity or other product guarantees; (5)�any inability to access our credit facilities; (6)�reestimates of our reserves for future

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policy benefits and claims; (7)�differences between actual experience regarding mortality, longevity, morbidity, persistency, surrender experience, interest rates or market returns and the assumptions we use in pricing our products, establishing liabilities and reserves or for other purposes; (8)�changes in our assumptions related to deferred policy acquisition costs, value of business acquired or goodwill; (9)�changes in assumptions for retirement expense; (10)�changes in our financial strength or credit ratings; (11)�statutory reserve requirements associated with term and universal life insurance policies under Regulation XXX and Guideline AXXX; (12)�investment losses, defaults and counterparty non-performance; (13)�competition in our product lines and for personnel; (14)�difficulties in marketing and distributing products through current or future distribution channels; (15)�changes in tax law; (16)�economic, political, currency and other risks relating to our international operations; (17)�fluctuations in foreign currency exchange rates and foreign securities markets; (18)�regulatory or legislative changes, including the 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; (26)�Prudential Financial, Inc.�s primary reliance, as a holding company, on dividends or distributions from its subsidiaries to meet debt payment obligations and the ability of the subsidiaries to pay such dividends or distributions in light of our ratings objectives and/or applicable regulatory restrictions; and (27)�risks due to the lack of legal separation between our Financial Services Businesses and our Closed Block Business. Prudential Financial, Inc. does not intend, and is under no obligation, to update any particular forward-looking statement included in this document.

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

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

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

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We believe that the presentation of adjusted operating income as we measure it for management purposes enhances understanding of the results of operations of the Financial Services Businesses by highlighting the results from ongoing operations and the underlying profitability of our businesses. However, adjusted operating income is not a substitute for income determined in accordance with GAAP, and the adjustments made to derive adjusted operating income are important to an understanding of our overall results of operations. The schedules accompanying this release provide a reconciliation of adjusted operating income for the Financial Services Businesses 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, 2013 and subsequent Quarterly Reports on Form 10-Q, should be considered by readers when reviewing forward-looking statements contained in this release. Additional historical information relating to our financial performance is located on our Web site at www.investor.prudential.com.

Earnings Conference Call

Members of Prudential�s senior management will host a conference call on Thursday, November�6, 2014 at 11 a.m. ET, to discuss with the investment community the Company�s third 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 November�21. 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 November�6, through November�13, dial (800)�475-6701 (domestic callers) or (320)�365-3844 (international callers). The access code for the replay is 314092.

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Prudential Financial, Inc. (NYSE: PRU), a financial services leader with over $1 trillion of assets under management as of September�30, 2014, 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
September�30
Nine�Months�Ended
September�30
�� 2014 2013 2014 2013

Financial Services Businesses Income Statement Data:

��

Adjusted Operating Income (1):

��

Revenues:

��

Premiums

�� $ 5,923 �� $ 5,414 �� $ 16,314 �� $ 17,858 ��

Policy charges and fee income

�� 1,512 �� 1,284 �� 4,544 �� 4,169 ��

Net investment income

�� 3,040 �� 2,873 �� 9,025 �� 8,595 ��

Asset management fees, commissions and other income

�� 1,291 �� 1,212 �� 3,932 �� 3,681 ��
��

Total revenues

�� 11,766 �� 10,783 �� 33,815 �� 34,303 ��
��

Benefits and expenses:

��

Insurance and annuity benefits

�� 6,423 �� 5,420 �� 17,259 �� 17,923 ��

Interest credited to policyholders� account balances

�� 942 �� 886 �� 2,801 �� 2,781 ��

Interest expense

�� 340 �� 296 �� 980 �� 954 ��

Other expenses

�� 2,708 �� 2,268 �� 8,228 �� 7,737 ��
��

Total benefits and expenses

�� 10,413 �� 8,870 �� 29,268 �� 29,395 ��
��

Adjusted operating income before income taxes

�� 1,353 �� 1,913 �� 4,547 �� 4,908 ��

Income taxes, applicable to adjusted operating income

�� 319 �� 540 �� 1,200 �� 1,370 ��
��

Financial Services Businesses after-tax adjusted operating income (1)

�� 1,034 �� 1,373 �� 3,347 �� 3,538 ��
��

Reconciling Items:

��

Realized investment losses, net, and related charges and adjustments

�� (1,132 )� (556 )� (1,413 )� (5,789 )�

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

�� (131 )� 103 �� 195 �� (273 )�

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

�� 93 �� (73 )� (139 )� 255 ��

Divested businesses

�� (7 )� 43 �� 113 �� (12 )�

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

�� 8 �� 11 �� 37 �� 1 ��
��

Total reconciling items, before income taxes

�� (1,169 )� (472 )� (1,207 )� (5,818 )�

Income taxes, not applicable to adjusted operating income

�� (606 )� (67 )� (625 )� (2,004 )�
��

Total reconciling items, after income taxes

�� (563 )� (405 )� (582 )� (3,814 )�
��

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

�� 471 �� 968 �� 2,765 �� (276 )�

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

�� (6 )� (10 )� (34 )� (21 )�
��

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

�� 465 �� 958 �� 2,731 �� (297 )�

Earnings attributable to noncontrolling interests

�� 11 �� 13 �� 45 �� 75 ��
��

Income (loss) from continuing operations (after-tax) of Financial Services Businesses

�� 476 �� 971 �� 2,776 �� (222 )�

Income from discontinued operations, net of taxes

�� ��� �� 8 �� 8 �� 11 ��
��

Net income (loss) of Financial Services Businesses

�� 476 �� 979 �� 2,784 �� (211 )�

Less: Income attributable to noncontrolling interests

�� 11 �� 13 �� 45 �� 75 ��
��

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

�� $ 465 �� $ 966 �� $ 2,739 �� $ (286 )�
��

See footnotes on last page.

Page 1


Financial Highlights

(in millions, except per share data, unaudited)

�� Three Months Ended
September�30
Nine Months Ended
September�30
�� 2014 2013 2014 2013

Earnings per share of Common Stock (diluted) (2)(3):

��

Financial Services Businesses after-tax adjusted operating income

�� $ 2.20 �� $ 2.89 �� $ 7.09 �� $ 7.47 ��

Reconciling Items:

��

Realized investment losses, net, and related charges and adjustments

�� (2.42 )� (1.18 )� (3.02 )� (12.26 )�

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

�� (0.28 )� 0.22 �� 0.42 �� (0.58 )�

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

�� 0.20 �� (0.15 )� (0.30 )� 0.54 ��

Divested businesses

�� (0.01 )� 0.09 �� 0.24 �� (0.03 )�

Difference in earnings allocated to participating unvested share-based payment awards

�� 0.01 �� 0.01 �� 0.01 �� 0.06 ��
��

Total reconciling items, before income taxes

�� (2.50 )� (1.01 )� (2.65 )� (12.27 )�

Income taxes, not applicable to adjusted operating income

�� (1.29 )� (0.14 )� (1.35 )� (4.16 )�
��

Total reconciling items, after income taxes

�� (1.21 )� (0.87 )� (1.30 )� (8.11 )�
��

Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.

�� 0.99 �� 2.02 �� 5.79 �� (0.64 )�

Income from discontinued operations, net of taxes

�� ��� �� 0.02 �� 0.01 �� 0.03 ��
��

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

�� $ 0.99 �� $ 2.04 �� $ 5.80 �� $ (0.61 )�
��

Weighted average number of outstanding Common shares (basic)

�� 458.0 �� 462.6 �� 459.4 �� 463.7 ��
��

Weighted average number of outstanding Common shares (diluted)

�� 467.2 �� 472.0 �� 468.6 �� 472.0 ��
��

Direct equity adjustment for earnings per share calculation (2)

�� $ (3 )� $ 2 �� $ (8 )� $ 7 ��

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

�� $ 4 �� $ 4 �� $ 13 �� $ 13 ��

Earnings allocated to participating unvested share-based payment awards for earnings per share calculation

��

Financial Services Businesses after-tax adjusted operating income

�� $ 9 �� $ 13 �� $ 31 �� $ 34 ��

Income from continuing operations (after-tax) of Financial Services Businesses

�� $ 4 �� $ 9 �� $ 25 �� $ 6 ��

Financial Services Businesses Attributed Equity (as of end of period):

��

Total attributed equity

�� $ 40,203 �� $ 32,818 ��

Per share of Common Stock - diluted

�� 86.76 �� 70.05 ��

Attributed equity excluding accumulated other comprehensive income

�� $ 26,875 �� $ 26,034 ��

Per share of Common Stock - diluted

�� 58.00 �� 55.57 ��

Number of diluted shares at end of period

�� 463.4 �� 468.5 ��
��

Adjusted operating income before income taxes, by Segment (1):

��

Individual Annuities

�� $ 367 �� $ 821 �� $ 1,145 �� $ 1,593 ��

Retirement

�� 256 �� 237 �� 906 �� 744 ��

Asset Management

�� 200 �� 173 �� 593 �� 514 ��
��

Total U.S. Retirement Solutions and Investment Management Division

�� 823 �� 1,231 �� 2,644 �� 2,851 ��
��

Individual Life

�� 97 �� 148 �� 380 �� 426 ��

Group Insurance

�� (73 )� 68 �� (21 )� 99 ��
��

Total U.S. Individual Life and Group Insurance Division

�� 24 �� 216 �� 359 �� 525 ��
��

International Insurance

�� 845 �� 778 �� 2,566 �� 2,505 ��
��

Total International Insurance Division

�� 845 �� 778 �� 2,566 �� 2,505 ��
��

Corporate and Other operations

�� (339 )� (312 )� (1,022 )� (973 )�
��

Financial Services Businesses adjusted operating income before income taxes

�� 1,353 �� 1,913 �� 4,547 �� 4,908 ��
��

Reconciling Items:

��

Realized investment losses, net, and related charges and adjustments

�� (1,132 )� (556 )� (1,413 )� (5,789 )�

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

�� (131 )� 103 �� 195 �� (273 )�

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

�� 93 �� (73 )� (139 )� 255 ��

Divested businesses

�� (7 )� 43 �� 113 �� (12 )�

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

�� 8 �� 11 �� 37 �� 1 ��
��

Total reconciling items, before income taxes

�� (1,169 )� (472 )� (1,207 )� (5,818 )�
��

Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures - Financial Services Businesses

�� $ 184 �� $ 1,441 �� $ 3,340 �� $ (910 )�
��

See footnotes on last page.

Page 2


Financial Highlights

(in millions, or as otherwise noted, unaudited)

�� Three Months Ended
September�30
Nine Months Ended
September�30
�� 2014 2013 2014 �� 2013

U.S. Retirement Solutions and Investment Management Division:

�� ��

Fixed and Variable Annuity Sales and Account Values:

�� ��

Gross sales

�� $ 2,574 �� $ 2,404 �� $ 7,559 �� �� $ 9,081 ��
��

��

Net sales

�� $ 392 �� $ 540 �� $ 963 �� �� $ 3,464 ��
��

��

Total account value at end of period

�� $ 156,783 �� $ 147,378 �� ��
��

��

Retirement Segment:

�� ��

Full Service:

�� ��

Deposits and sales

�� $ 5,190 �� $ 5,455 �� $ 18,305 �� �� $ 14,831 ��
��

��

Net additions

�� $ 969 �� $ 828 �� $ 2,015 �� �� $ 1,906 ��
��

��

Total account value at end of period

�� $ 180,535 �� $ 165,364 �� ��
��

��

Institutional Investment Products:

�� ��

Gross additions

�� $ 30,962 �� $ 5,034 �� $ 34,770 �� �� $ 13,239 ��
��

��

Net additions

�� $ 27,328 �� $ 2,547 �� $ 23,517 �� �� $ 5,971 ��
��

��

Total account value at end of period

�� $ 175,526 �� $ 147,100 �� ��
��

��

Asset Management Segment:

�� ��

Assets managed by Investment Management and Advisory Services (in billions, as of end of period):

�� ��

Institutional customers

�� $ 363.7 �� $ 330.3 �� ��

Retail customers

�� 180.0 �� 159.1 �� ��

General account

�� 373.8 �� 358.7 �� ��
��

��

Total Investment Management and Advisory Services

�� $ 917.5 �� $ 848.1 �� ��
��

��

Institutional Customers - Assets Under Management (in billions):

�� ��

Gross additions, other than money market

�� $ 10.0 �� $ 14.1 �� $ 31.4 �� �� $ 43.3 ��
��

��

Net additions (withdrawals), other than money market

�� $ (1.4 )� $ 4.1 �� $ 3.2 �� �� $ 14.1 ��
��

��

Retail Customers - Assets Under Management (in billions):

�� ��

Gross additions, other than money market

�� $ 8.5 �� $ 7.1 �� $ 24.9 �� �� $ 30.4 ��
��

��

Net additions (withdrawals), other than money market

�� $ 1.2 �� $ (1.4 )� $ 2.1 �� �� $ 2.9 ��
��

��

U.S. Individual Life and Group Insurance Division:

�� ��

Individual Life Insurance Annualized New Business Premiums (4):

�� ��

Variable life

�� $ 10 �� $ 9 �� $ 30 �� �� $ 25 ��

Universal life

�� 43 �� 107 �� 160 �� �� 388 ��

Term life

�� 44 �� 49 �� 132 �� �� 152 ��
��

��

Total

�� $ 97 �� $ 165 �� $ 322 �� �� $ 565 ��
��

��

Group Insurance Annualized New Business Premiums (4):

�� ��

Group life

�� $ 14 �� $ 33 �� $ 161 �� �� $ 196 ��

Group disability

�� 13 �� 13 �� 58 �� �� 65 ��
��

��

Total

�� $ 27 �� $ 46 �� $ 219 �� �� $ 261 ��
��

��

International Insurance Division:

�� ��

International Insurance Annualized New Business Premiums (4)�(5):

�� ��

Actual exchange rate basis

�� $ 683 �� $ 644 �� $ 2,084 �� �� $ 2,201 ��
��

��

Constant exchange rate basis

�� $ 743 �� $ 708 �� $ 2,284 �� �� $ 2,376 ��
��

��

See footnotes on last page.

Page 3


Financial Highlights

(in millions, except per share data or as otherwise noted, unaudited)

�� Three Months Ended
September�30
Nine Months Ended
September�30
�� 2014 2013 2014 �� 2013

Closed Block Business Data:

�� ��

Income Statement Data:

�� ��

Revenues

�� $ 1,764 �� $ 1,595 �� $ 5,165 �� �� $ 4,578 ��

Benefits and expenses

�� 1,664 �� 1,510 �� 4,996 �� �� 4,470 ��
��

��

Income from continuing operations before income taxes

�� 100 �� 85 �� 169 �� �� 108 ��
��

��

Income taxes

�� 53 �� 24 �� 68 �� �� 29 ��
��

��

Closed Block Business income from continuing operations

�� 47 �� 61 �� 101 �� �� 79 ��

Income from discontinued operations, net of taxes

�� ��� �� ��� �� ��� �� �� ��� ��
��

��

Closed Block Business net income

�� 47 �� 61 �� 101 �� �� 79 ��

Less: Income attributable to noncontrolling interests

�� ��� �� ��� �� ��� �� �� ��� ��
��

��

Closed Block Business net income attributable to Prudential Financial, Inc.

�� $ 47 �� $ 61 �� $ 101 �� �� $ 79 ��

Direct equity adjustment for earnings per share calculation (2)

�� 3 �� (2 )� 8 �� �� (7 )�
��

��

Earnings available to holders of Class B Stock after direct equity adjustment - based on net income

�� $ 50 �� $ 59 �� $ 109 �� �� $ 72 ��

Income from continuing operations per share of Class B Stock

�� $ 25.00 �� $ 29.50 �� $ 54.50 �� �� $ 36.00 ��

Income from discontinued operations, net of taxes per share of Class B Stock

�� ��� �� ��� �� ��� �� �� ��� ��
��

��

Net income per share of Class B Stock

�� $ 25.00 �� $ 29.50 �� $ 54.50 �� �� $ 36.00 ��

Weighted average diluted shares outstanding during period

�� 2.0 �� 2.0 �� 2.0 �� �� 2.0 ��
��

��

Closed Block Business Attributed Equity (as of end of period):

�� ��

Total attributed equity

�� $ 1,566 �� $ 1,446 �� ��

Per Share of Class B Stock

�� 783.00 �� 723.00 �� ��

Attributed equity excluding accumulated other comprehensive income

�� $ 1,393 �� $ 1,331 �� ��

Per Share of Class B Stock

�� 696.50 �� 665.50 �� ��

Number of Class B Shares at end of period

�� 2.0 �� 2.0 �� ��
��

��

Consolidated Data:

�� ��

Consolidated Income Statement Data:

�� ��

Revenues

�� $ 12,380 �� $ 11,310 �� $ 38,380 �� �� $ 31,522 ��

Benefits and expenses

�� 12,096 �� 9,784 �� 34,871 �� �� 32,324 ��
��

��

Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures

�� 284 �� 1,526 �� 3,509 �� �� (802 )�

Income tax expense (benefit)

�� (234 )� 497 �� 643 �� �� (605 )�
��

��

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

�� 518 �� 1,029 �� 2,866 �� �� (197 )�

Equity in earnings of operating joint ventures, net of taxes

�� 5 �� 3 �� 11 �� �� 54 ��
��

��

Income (loss) from continuing operations

�� 523 �� 1,032 �� 2,877 �� �� (143 )�

Income from discontinued operations, net of taxes

�� ��� �� 8 �� 8 �� �� 11 ��
��

��

Consolidated net income (loss)

�� 523 �� 1,040 �� 2,885 �� �� (132 )�

Less: Income attributable to noncontrolling interests

�� 11 �� 13 �� 45 �� �� 75 ��
��

��

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

�� $ 512 �� $ 1,027 �� $ 2,840 �� �� $ (207 )�
��

��

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

�� ��

Financial Services Businesses

�� $ 465 �� $ 966 �� $ 2,739 �� �� $ (286 )�

Closed Block Business

�� 47 �� 61 �� 101 �� �� 79 ��
��

��

Consolidated net income (loss) attributable to Prudential Financial, Inc.

�� $ 512 �� $ 1,027 �� $ 2,840 �� �� $ (207 )�
��

��

Assets and Asset Management Information (in billions, as of end of period)

�� ��

Total assets

�� $ 764.1 �� $ 723.0 �� ��

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

�� $ 917.5 �� $ 848.1 �� ��

Non-proprietary assets under management

�� 197.4 �� 186.9 �� ��
��

��

Total managed by U.S. Retirement Solutions and Investment Management Division

�� 1,114.9 �� 1,035.0 �� ��

Managed by U.S. Individual Life and Group Insurance Division

�� 22.3 �� 21.9 �� ��

Managed by International Insurance Division

�� 23.0 �� 19.3 �� ��
��

��

Total assets under management

�� 1,160.2 �� 1,076.2 �� ��

Client assets under administration

�� 152.6 �� 111.1 �� ��
��

��

Total assets under management and administration

�� $ 1,312.8 �� $ 1,187.3 �� ��
��

��

See footnotes on last page.

Page 4


(1) Adjusted operating income is a non-GAAP measure of performance of our Financial Services Businesses 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) Net income for the Financial Services Businesses and the Closed Block Business is determined in accordance with GAAP and includes general and administrative expenses charged to each of the businesses based on the Company�s methodology for allocation of such expenses. Cash flows between the Financial Services Businesses and the Closed Block Business related to administrative expenses are determined by a policy servicing fee arrangement that is based upon insurance and policies in force and statutory cash premiums. To the extent reported administrative expenses vary from these cash flow amounts, the differences are recorded, on an after-tax basis, as direct equity adjustments to the equity balances of each business. The direct equity adjustments modify earnings available to holders of Common Stock and Class B Stock for earnings per share purposes. Earnings per share of Common Stock based on adjusted operating income of the Financial Services Businesses reflects these adjustments as well.

(3) Diluted share count used in the diluted earnings per share calculation for GAAP measures is equal to weighted average basic common shares for the nine months ended September�30, 2013, as all potential common shares are antidilutive due to the loss from continuing operations available to holders of Common Stock after direct equity adjustment.

(4) 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. Group Disability amounts include dental products. 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.

(5) 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 82�per U.S. dollar and Korean won 1150�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

FINANCIAL SERVICES BUSINESSES

THIRD QUARTER 2014

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., including its Closed Block Business. All financial information in this document is unaudited.

November�5, 2014

i


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

CONTENTS

�� Page

HIGHLIGHTS

��

Financial Highlights

�� 1-3 ��

Operations Highlights

�� 4 ��

FINANCIAL SERVICES BUSINESSES

��

Combined Statements of Operations

�� 5 ��

Combined Balance Sheets

�� 6 ��

Combining Statements of Operations by Division (Quarter)

�� 7 ��

Combining Statements of Operations by Division

�� 8 ��

Combining Balance Sheets by Division

�� 9 ��

Short-Term and Long-Term Debt

�� 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 ��

Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations

�� 31 ��

Financial Services Businesses Investment Results

�� 32 ��

Financial Services Businesses Investment Results - Japanese Insurance Operations

�� 33 ��

Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations

�� 34 ��

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2013 AND 2014 ACTUARIAL UPDATES - ADJUSTED OPERATING INCOME

�� 35 ��

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2013 AND 2014 ACTUARIAL UPDATES - ADJUSTED OPERATING INCOME

�� 36 ��

KEY DEFINITIONS AND FORMULAS

�� 37-39 ��

RATINGS AND INVESTOR INFORMATION

�� 40 ��

ii


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date %
Change
�� 2013 2014
2014 2013 �� 3Q 4Q 1Q 2Q 3Q
��
��

Financial Services Businesses:

��

Pre-tax adjusted operating income (loss) by division:

2,644 �� 2,851 �� -7% �� ��

U.S. Retirement Solutions and Investment Management Division

1,231 �� 996 �� 945 �� 876 �� 823 ��
359 �� 525 �� -32% �� ��

U.S. Individual Life and Group Insurance Division

216 �� 215 �� 131 �� 204 �� 24 ��
2,566 �� 2,505 �� 2% �� ��

International Insurance Division

778 �� 647 �� 837 �� 884 �� 845 ��
(1,022 )� (973 )� -5% �� ��

Corporate and other operations

(312 )� (397 )� (342 )� (341 )���� (339 )�

��

4,547 �� 4,908 �� -7% �� ��

Total pre-tax adjusted operating income

1,913 �� 1,461 �� 1,571 �� 1,623 �� 1,353 ��
1,200 �� 1,370 �� -12% �� ��

Income taxes, applicable to adjusted operating income

540 �� 413 �� 434 �� 447 �� 319 ��

��

3,347 �� 3,538 �� -5% �� ��

Financial Services Businesses after-tax adjusted operating income

1,373 �� 1,048 �� 1,137 �� 1,176 �� 1,034 ��

��

��

Reconciling items:

(1,413 )� (5,789 )� 76% �� ��

Realized investment losses, net, and related charges and adjustments

(556 )��� (2,360 )� (8 )� (273 )� (1,132 )�
195 �� (273 )� 171% �� ��

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

103 �� 23 �� 101 �� 225 �� (131 )�
(139 )� 255 �� -155% �� ��

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

(73 )� (28 )� (43 )� (189 )� 93 ��
113 �� (12 )� 1042% �� ��

Divested businesses

43 �� 41 �� 73 �� 47 �� (7 )�
37 �� 1 �� 3600% �� ��

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

11 �� 27 �� 11 �� 18 �� 8 ��

��

(1,207 )� (5,818 )� 79% �� ��

Total reconciling items, before income taxes

(472 )� (2,297 )� 134 �� (172 )� (1,169 )�
(625 )� (2,004 )� 69% �� ��

Income taxes, not applicable to adjusted operating income

(67 )� (853 )� 39 �� (58 )� (606 )�

��

(582 )� (3,814 )� 85% �� ��

Total reconciling items, after income taxes

(405 )� (1,444 )� 95 �� (114 )� (563 )�

��

2,765 �� (276 )� 1102% �� ��

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

968 �� (396 )� 1,232 �� 1,062 �� 471 ��
(34 )� (21 )� -62% �� ��

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

(10 )� (27 )� (11 )� (17 )� (6 )�

��

2,731 �� (297 )� 1020% �� ��

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

958 �� (423 )� 1,221 �� 1,045 �� 465 ��
45 �� 75 �� -40% �� ��

Earnings attributable to noncontrolling interests

13 �� 32 �� 11 �� 23 �� 11 ��

��

2,776 �� (222 )� 1350% �� ��

Income (loss) from continuing operations (after-tax) of Financial Services Businesses

971 �� (391 )� 1,232 �� 1,068 �� 476 ��
8 �� 11 �� -27% �� ��

Income (loss) from discontinued operations, net of taxes

8 �� (4 )� 4 �� 4 �� ��� ��

��

2,784 �� (211 )� 1419% �� ��

Net income (loss) of Financial Services Businesses

979 �� (395 )� 1,236 �� 1,072 �� 476 ��
45 �� 75 �� -40% �� ��

Less: Income attributable to noncontrolling interests

13 �� 32 �� 11 �� 23 �� 11 ��

��

2,739 �� (286 )� 1058% �� ��

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

966 �� (427 )� 1,225 �� 1,049 �� 465 ��

��

16.9% �� 18.1% �� ��

Operating Return on Average Equity (based on adjusted operating income)

21.4% �� 16.3% �� 17.7% �� 17.7% �� 15.4% ��
��

Reconciliation to Consolidated Net Income (Loss) Attributable to Prudential Financial, Inc:

2,739 �� (286 )� ��

Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)

966 �� (427 )� 1,225 �� 1,049 �� 465 ��
101 �� 79 �� ��

Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.

61 �� (33 )� 13 �� 41 �� 47 ��

��

2,840 �� (207 )� ��

Consolidated net income (loss) attributable to Prudential Financial, Inc.

1,027 �� (460 )� 1,238 �� 1,090 �� 512 ��

��

��

Page 1


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date 2013 2014
2014 2013 3Q 4Q 1Q 2Q 3Q

Earnings per share of Common Stock (diluted): (1)

7.09 �� 7.47 ��

Financial Services Businesses after-tax adjusted operating income

2.89 �� 2.20 �� 2.40 �� 2.49 �� 2.20 ��

Reconciling items:

(3.02 )� (12.26 )�

Realized investment losses, net, and related charges and adjustments

(1.18 )��� (5.01 )� (0.02 )� (0.58 )���� (2.42 )�
0.42 �� (0.58 )�

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

0.22 �� 0.05 �� 0.21 �� 0.48 �� (0.28 )�
(0.30 )� 0.54 ��

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

(0.15 )��� (0.06 )� (0.09 )� (0.40 )� 0.20 ��
0.24 �� (0.03 )�

Divested businesses

0.09 �� 0.09 �� 0.16 �� 0.10 �� (0.01 )�
0.01 �� 0.06 ��

Difference in earnings allocated to participating unvested share-based payment awards

0.01 �� 0.01 �� ��� �� ��� �� 0.01 ��

(2.65 )� (12.27 )�

Total reconciling items, before income taxes

(1.01 )� (4.92 )� 0.26 �� (0.40 )� (2.50 )�
(1.35 )� (4.16 )�

Income taxes, not applicable to adjusted operating income

(0.14 )� (1.79 )� 0.08 �� (0.12 )� (1.29 )�

(1.30 )� (8.11 )�

Total reconciling items, after income taxes

(0.87 )� (3.13 )� 0.18 �� (0.28 )� (1.21 )�

5.79 �� (0.64 )�

Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.

2.02 �� (0.93 )� 2.58 �� 2.21 �� 0.99 ��
0.01 �� 0.03 ��

Income (loss) from discontinued operations, net of taxes

0.02 �� (0.01 )� 0.01 �� 0.01 �� ��� ��

5.80 �� (0.61 )�

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

2.04 �� (0.94 )� 2.59 �� 2.22 �� 0.99 ��

459.4 �� 463.7 ��

Weighted average number of outstanding Common shares (basic)

462.6 �� 461.5 �� 460.9 �� 459.4 �� 458.0 ��
468.6 �� 472.0 ��

Weighted average number of outstanding Common shares (diluted)

472.0 �� 471.2 �� 470.3 �� 468.5 �� 467.2 ��
(8 )� 7 ��

Direct equity adjustments for earnings per share calculation

2 �� (5 )� (2 )� (3 )� (3 )�
13 �� 13 ��

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

4 �� 4 �� 4 �� 5 �� 4 ��

Earnings allocated to participating unvested share-based payment awards for earnings per share calculation

31 �� 34 ��

Financial Services Businesses after-tax adjusted operating income

13 �� 9 �� 10 �� 12 �� 9 ��
25 �� 6 ��

Income from continuing operations (after-tax) of Financial Services Businesses

9 �� 2 �� 11 �� 10 �� 4 ��

(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, 2013 and for the nine months ended September�30, 2013, as all potential common shares are antidilutive due to the loss from continuing operations available to holders of Common Stock after direct equity adjustment.

Page 2


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

Year-to-date �� 2013 2014
2014 �� 2013 �� 3Q 4Q 1Q 2Q 3Q
�� ��
�� ��

Financial Services Businesses Capitalization Data (1):

�� ��

Senior Debt:

�� ��

Short-term debt

3,043 ��� 2,594 �� 3,944 �� 3,729 �� 4,354 ��
�� ��

Long-term debt

17,083 �� 17,069 �� 16,081 �� 17,004 �� 16,113 ��
�� ��

Junior Subordinated Long-Term Debt

4,884 �� 4,884 �� 4,884 �� 4,884 �� 4,884 ��
�� ��

Attributed Equity:

�� ��

Including accumulated other comprehensive income

32,818 �� 33,885 �� 36,770 �� 39,663 �� 40,203 ��
�� ��

Excluding accumulated other comprehensive income (3)

26,034 �� 25,299 �� 26,117 �� 26,771 �� 26,875 ��
�� ��

Amount included above for foreign currency exchange rate remeasurement (4)

(2,036 )� (2,818 )� (2,668 )� (2,818 )� (3,193 )�
�� ��

�� ��

Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (4)

28,070 �� 28,117 �� 28,785 �� 29,589 �� 30,068 ��
�� ��

�� ��

Book value per share of Common Stock:

�� ��

Including accumulated other comprehensive income

70.05 �� 72.30 �� 78.87 �� 85.35 �� 86.76 ��
�� ��

Excluding accumulated other comprehensive income (3)

55.57 �� 53.98 �� 56.02 �� 57.61 �� 58.00 ��
�� ��

Amount included above for foreign currency exchange rate remeasurement (4)

(4.35 )� (6.01 )� (5.72 )� (6.06 )� (6.89 )�
�� ��

�� ��

Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (4)

59.92 �� 59.99 �� 61.74 �� 63.67 �� 64.89 ��
�� ��

�� ��

Number of diluted shares at end of period (2)

468.5 �� 468.7 �� 466.2 �� 464.7 �� 463.4 ��
�� ��

Common Stock Price Range (based on closing price):

93.16 �� �� 82.62 �� ��

High

82.62 �� 92.43 �� 91.23 �� 91.10 �� 93.16 ��
77.61 �� �� 54.64 �� ��

Low

73.30 �� 75.99 �� 80.45 �� 77.61 �� 85.75 ��
87.94 �� �� 77.98 �� ��

Close

77.98 �� 92.22 �� 84.65 �� 88.77 �� 87.94 ��
�� ��
�� ��

Common Stock market capitalization (1)

36,019 �� 42,523 �� 38,973 �� 40,692 �� 40,197 ��
�� ��

(1) As of end of period.
(2) The number of diluted shares at end of period excludes the impact of exchangeable surplus notes due to the antidilutive impact of conversion.
(3) 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.
(4) Represents cumulative impact of gains and losses resulting from foreign currency exchange rate remeasurement included in net income (loss).

Page 3


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

OPERATIONS HIGHLIGHTS

Year-to-date �� 2013 �� 2014
2014 �� 2013 �� 3Q 4Q �� 1Q �� 2Q 3Q
�� �� �� ��
�� ��

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

330.3 ��� 341.7 �� �� 352.2 �� �� 367.0 ���� 363.7 ��
�� ��

Retail customers

159.1 �� 170.7 �� �� 172.9 �� �� 180.1 �� 180.0 ��
�� ��

General account

358.7 �� 357.5 �� �� 365.8 �� �� 374.4 �� 373.8 ��
�� ��

��

��

�� ��

Total Investment Management and Advisory Services

848.1 �� 869.9 �� �� 890.9 �� �� 921.5 �� 917.5 ��
�� ��

Non-proprietary assets under management

186.9 �� 195.9 �� �� 197.8 �� �� 200.6 �� 197.4 ��
�� ��

��

��

�� ��

Total managed by U.S. Retirement Solutions and Investment Management Division

1,035.0 �� 1,065.8 �� �� 1,088.7 �� �� 1,122.1 �� 1,114.9 ��
�� ��

Managed by U.S. Individual Life and Group Insurance Division

21.9 �� 22.3 �� �� 23.1 �� �� 23.4 �� 22.3 ��
�� ��

Managed by International Insurance Division

19.3 �� 19.0 �� �� 19.1 �� �� 20.1 �� 23.0 ��
�� ��

��

��

�� ��

Total assets under management

1,076.2 �� 1,107.1 �� �� 1,130.9 �� �� 1,165.6 �� 1,160.2 ��
�� ��

Client assets under administration

111.1 �� 116.6 �� �� 120.5 �� �� 125.4 �� 152.6 ��
�� ��

��

��

�� ��

Total assets under management and administration

1,187.3 �� 1,223.7 �� �� 1,251.4 �� �� 1,291.0 �� 1,312.8 ��
�� ��

��

��

�� ��

Assets managed or administered for customers outside of the United States at end of period

244.2 �� 242.9 �� �� 251.7 �� �� 262.2 �� 261.0 ��
�� ��

Distribution Representatives (1):

�� ��
�� ��

Prudential Agents

2,780 �� 2,722 �� �� 2,759 �� �� 2,795 �� 2,822 ��
�� ��

International Life Planners

7,208 �� 7,248 �� �� 7,194 �� �� 7,074 �� 7,213 ��
�� ��

Gibraltar Life Consultants

9,298 �� 9,327 �� �� 8,806 �� �� 8,670 �� 8,601 ��
50 �� �� 49 �� ��

Prudential Agent productivity ($ thousands)

50 �� 67 �� �� 44 �� �� 51 �� 53 ��
�� �� �� ��

(1) As of end of period.
(2) At fair market value.

Page 4


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)

Year-to-date %
Change
�� �� 2013 2014
2014 2013 �� �� 3Q 4Q 1Q 2Q 3Q
�� ��
��

Revenues (1):

��
16,314 �� 17,858 �� -9% �� ��

Premiums

�� 5,414 �� 5,257 �� 5,130 �� 5,261 �� 5,923 ��
4,544 �� 4,169 �� 9% �� ��

Policy charges and fee income

�� 1,284 �� 1,445 �� 1,509 �� 1,523 �� 1,512 ��
9,025 �� 8,595 �� 5% �� ��

Net investment income

�� 2,873 �� 2,935 �� 3,017 �� 2,968 �� 3,040 ��
3,932 �� 3,681 �� 7% �� ��

Asset management fees, commissions and other income

�� 1,212 �� 1,341 �� 1,280 �� 1,361 �� 1,291 ��

�� ��

33,815 �� 34,303 �� -1% �� ��

Total revenues

�� 10,783 �� 10,978 �� 10,936 �� 11,113 �� 11,766 ��

�� ��

�� ��
��

Benefits and Expenses (1):

��
17,259 �� 17,923 �� -4% �� ��

Insurance and annuity benefits

�� 5,420 �� 5,387 �� 5,417 �� 5,419 �� 6,423 ��
2,801 �� 2,781 �� 1% �� ��

Interest credited to policyholders� account balances

�� 886 �� 921 �� 925 �� 934 �� 942 ��
980 �� 954 �� 3% �� ��

Interest expense

�� 296 �� 306 �� 321 �� 319 �� 340 ��
(2,022 )� (2,216 )� 9% �� ��

Deferral of acquisition costs

�� (646 )� (686 )� (668 )� (679 )� (675 )�
1,327 �� 1,008 �� 32% �� ��

Amortization of acquisition costs

�� 31 �� 386 �� 469 �� 482 �� 376 ��
8,923 �� 8,945 �� 0% �� ��

General and administrative expenses

�� 2,883 �� 3,203 �� 2,901 �� 3,015 �� 3,007 ��

�� ��

29,268 �� 29,395 �� 0% �� ��

Total benefits and expenses

�� 8,870 �� 9,517 �� 9,365 �� 9,490 �� 10,413 ��

�� ��

4,547 �� 4,908 �� -7% �� ��

Adjusted operating income before income taxes

�� 1,913 �� 1,461 �� 1,571 �� 1,623 �� 1,353 ��

�� ��

�� ��
��

Reconciling items:

��
(1,314 )� (7,322 )� 82% �� ��

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

�� (1,319 )� (2,634 )� 49 �� (202 )� (1,161 )�
(99 )� 1,533 �� -106% �� ��

Related charges

�� 763 �� 274 �� (57 )� (71 )��� 29 ��

�� ��

(1,413 )� (5,789 )� 76% �� ��

Total realized investment losses, net, and related charges and adjustments

�� (556 )� (2,360 )� (8 )� (273 )� (1,132 )�

�� ��

195 �� (273 )� 171% �� ��

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

�� 103 �� 23 �� 101 �� 225 �� (131 )�
(139 )� 255 �� -155% �� ��

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

�� (73 )� (28 )� (43 )� (189 )� 93 ��
113 �� (12 )� 1042% �� ��

Divested businesses

�� 43 �� 41 �� 73 �� 47 �� (7 )�
37 �� 1 �� 3600% �� ��

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

�� 11 �� 27 �� 11 �� 18 �� 8 ��

�� ��

(1,207 )� (5,818 )� 79% �� ��

Total reconciling items, before income taxes

�� (472 )��� (2,297 )� 134 �� (172 )� (1,169 )�

�� ��

3,340 �� (910 )� 467% �� ��

Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures

�� 1,441 �� (836 )� 1,705 �� 1,451 �� 184 ��
575 �� (634 )� 191% �� ��

Income tax expense (benefit)

�� 473 �� (440 )� 473 �� 389 �� (287 )�

�� ��

2,765 �� (276 )� 1102% �� ��

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

�� 968 �� (396 )� 1,232 �� 1,062 �� 471 ��

�� ��

�� ��

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

Page 5


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)

�� 09/30/2013 12/31/2013 �� 03/31/2014 �� 06/30/2014 09/30/2014
�� �� ��

Assets:

�� �� ��

Investments:

�� �� ��

Fixed maturities, available for sale, at fair value (amortized cost $231,616; $228,099; $232,097; $236,069; $232,413)

�� 245,032 �� 243,654 �� �� 251,059 �� �� 258,673 ���� 256,119 ��

Fixed maturities, held to maturity, at amortized cost (fair value $3,872; $3,553; $3,537; $3,464; $3,183)

�� 3,629 �� 3,312 �� �� 3,275 �� �� 3,171 �� 2,880 ��

Trading account assets supporting insurance liabilities, at fair value

�� 21,131 �� 20,827 �� �� 20,935 �� �� 21,273 �� 20,507 ��

Other trading account assets, at fair value

�� 6,121 �� 6,111 �� �� 7,692 �� �� 8,351 �� 9,003 ��

Equity securities, available for sale, at fair value (cost $4,279; $4,561; $4,785; $4,867; $4,815)

�� 5,488 ���� 6,026 �� �� 6,249 �� �� 6,433 �� 6,377 ��

Commercial mortgage and other loans

�� 29,709 �� 31,335 �� �� 32,471 �� �� 33,000 �� 34,549 ��

Policy loans

�� 6,827 �� 6,753 �� �� 6,862 �� �� 7,021 �� 6,928 ��

Other long-term investments

�� 7,904 �� 8,304 �� �� 8,393 �� �� 8,309 �� 8,315 ��

Short-term investments

�� 6,404 �� 5,837 �� �� 4,625 �� �� 4,278 �� 4,789 ��
��

��

��

Total investments

�� 332,245 �� 332,159 �� �� 341,561 �� �� 350,509 �� 349,467 ��

Cash and cash equivalents

�� 11,950 �� 10,797 �� �� 11,294 �� �� 11,335 �� 15,447 ��

Accrued investment income

�� 2,533 �� 2,505 �� �� 2,532 �� �� 2,583 �� 2,605 ��

Deferred policy acquisition costs

�� 15,812 �� 16,101 �� �� 16,229 �� �� 16,300 �� 16,219 ��

Value of business acquired

�� 3,837 �� 3,675 �� �� 3,610 �� �� 3,499 �� 3,394 ��

Other assets

�� 12,677 �� 13,082 �� �� 13,412 �� �� 13,224 �� 13,788 ��

Separate account assets

�� 275,091 �� 285,060 �� �� 288,161 �� �� 296,801 �� 292,616 ��
��

��

��

Total assets

�� 654,145 �� 663,379 �� �� 676,799 �� �� 694,251 �� 693,536 ��
��

��

��

Liabilities:

�� �� ��

Future policy benefits

�� 158,857 �� 156,601 �� �� 161,466 �� �� 165,179 �� 165,985 ��

Policyholders� account balances

�� 132,202 �� 131,298 �� �� 131,899 �� �� 133,217 �� 133,814 ��

Securities sold under agreements to repurchase

�� 3,530 �� 4,128 �� �� 4,864 �� �� 4,895 �� 4,979 ��

Cash collateral for loaned securities

�� 4,988 �� 4,230 �� �� 4,035 �� �� 3,596 �� 3,270 ��

Income taxes

�� 5,367 �� 6,010 �� �� 7,328 �� �� 8,929 �� 9,078 ��

Senior short-term debt

�� 3,043 �� 2,594 �� �� 3,944 �� �� 3,729 �� 4,354 ��

Senior long-term debt

�� 17,083 �� 17,069 �� �� 16,081 �� �� 17,004 �� 16,113 ��

Junior subordinated long-term debt

�� 4,884 �� 4,884 �� �� 4,884 �� �� 4,884 �� 4,884 ��

Notes issued by consolidated variable interest entities

�� 2,423 �� 3,302 �� �� 4,101 �� �� 4,573 �� 5,397 ��

Other liabilities

�� 13,229 �� 13,715 �� �� 12,625 �� �� 11,169 �� 12,260 ��

Separate account liabilities

�� 275,091 �� 285,060 �� �� 288,161 �� �� 296,801 �� 292,616 ��
��

��

��

Total liabilities

�� 620,697 �� 628,891 �� �� 639,388 �� �� 653,976 �� 652,750 ��
��

��

��

Attributed Equity:

�� �� ��

Accumulated other comprehensive income

�� 6,784 �� 8,586 �� �� 10,653 �� �� 12,892 �� 13,328 ��

Other attributed equity

�� 26,034 �� 25,299 �� �� 26,117 �� �� 26,771 �� 26,875 ��
��

��

��

Total attributed equity

�� 32,818 �� 33,885 �� �� 36,770 �� �� 39,663 �� 40,203 ��
��

��

��

Noncontrolling Interest

�� 630 �� 603 �� �� 641 �� �� 612 �� 583 ��
��

��

��

Total Equity

�� 33,448 �� 34,488 �� �� 37,411 �� �� 40,275 �� 40,786 ��
��

��

��

Total liabilities and equity

�� 654,145 �� 663,379 �� �� 676,799 �� �� 694,251 �� 693,536 ��
��

��

��

�� �� ��

Page 6


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)

�� Quarter Ended September�30, 2014
�� Total
Financial
Services
Businesses
U.S.�Retirement
Solutions &
Investment
Management
Division
U.S.�Individual
Life & Group
Insurance
Division
International
Insurance
Division
Corporate
and Other
Operations

Revenues (1):

��

Premiums

�� 5,923 �� 1,130 �� 1,243 �� 3,568 �� (18 )�

Policy charges and fee income

�� 1,512 �� 729 �� 637 �� 156 �� (10 )�

Net investment income

�� 3,040 �� 1,229 �� 570 �� 1,138 �� 103 ��

Asset management fees, commissions and other income

�� 1,291 �� 1,221 �� 180 �� 140 �� (250 )�
��

Total revenues

�� 11,766 �� 4,309 �� 2,630 �� 5,002 �� (175 )�
��

Benefits and Expenses (1):

��

Insurance and annuity benefits

�� 6,423 �� 1,637 �� 1,692 �� 3,051 �� 43 ��

Interest credited to policyholders� account balances

�� 942 �� 472 �� 214 �� 256 �� ��� ��

Interest expense

�� 340 �� 36 �� 149 �� 1 �� 154 ��

Deferral of acquisition costs

�� (675 )� (147 )� (125 )� (415 )� 12 ��

Amortization of acquisition costs

�� 376 �� 153 �� 29 �� 209 �� (15 )�

General and administrative expenses

�� 3,007 �� 1,335 �� 647 �� 1,055 �� (30 )�
��

Total benefits and expenses

�� 10,413 �� 3,486 �� 2,606 �� 4,157 �� 164 ��
��

Adjusted operating income (loss) before income taxes

�� 1,353 �� 823 �� 24 �� 845 �� (339 )�
��

�� Quarter Ended September�30, 2013
�� Total
Financial
Services
Businesses
U.S.�Retirement
Solutions &
Investment
Management
Division
U.S.�Individual
Life & Group
Insurance
Division
International
Insurance
Division
Corporate
and Other
Operations

Revenues (1):

��

Premiums

�� 5,414 �� 276 �� 1,256 �� 3,889 �� (7 )�

Policy charges and fee income

�� 1,284 �� 665 �� 487 �� 142 �� (10 )�

Net investment income

�� 2,873 �� 1,196 �� 497 �� 1,086 �� 94 ��

Asset management fees, commissions and other income

�� 1,212 �� 1,157 �� 143 �� 142 �� (230 )�
��

Total revenues

�� 10,783 �� 3,294 �� 2,383 �� 5,259 �� (153 )�
��

Benefits and Expenses (1):

��

Insurance and annuity benefits

�� 5,420 �� 598 �� 1,496 �� 3,349 �� (23 )�

Interest credited to policyholders� account balances

�� 886 �� 433 �� 208 �� 245 �� ��� ��

Interest expense

�� 296 �� 31 �� 108 �� ��� �� 157 ��

Deferral of acquisition costs

�� (646 )� (136 )� (177 )� (347 )� 14 ��

Amortization of acquisition costs

�� 31 �� (92 )� (111 )� 234 �� ��� ��

General and administrative expenses

�� 2,883 �� 1,229 �� 643 �� 1,000 �� 11 ��
��

Total benefits and expenses

�� 8,870 �� 2,063 �� 2,167 �� 4,481 �� 159 ��
��

Adjusted operating income (loss) before income taxes

�� 1,913 �� 1,231 �� 216 �� 778 �� (312 )�
��

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

Page 7


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)

�� Nine Months Ended September�30, 2014
�� Total
Financial
Services
Businesses
U.S.�Retirement
Solutions &
Investment
Management
Division
U.S.�Individual
Life & Group
Insurance
Division
International
Insurance
Division
Corporate
and Other
Operations

Revenues (1):

��

Premiums

�� 16,314 �� 1,528 �� 3,724 �� 11,086 �� (24 )�

Policy charges and fee income

�� 4,544 �� 2,139 �� 2,006 �� 432 �� (33 )�

Net investment income

�� 9,025 �� 3,698 �� 1,668 �� 3,350 �� 309 ��

Asset management fees, commissions and other income

�� 3,932 �� 3,652 �� 550 �� 461 �� (731 )�
��

Total revenues

�� 33,815 �� 11,017 �� 7,948 �� 15,329 �� (479 )�
��

Benefits and Expenses (1):

��

Insurance and annuity benefits

�� 17,259 �� 2,948 �� 4,863 �� 9,381 �� 67 ��

Interest credited to policyholders� account balances

�� 2,801 �� 1,429 �� 635 �� 737 �� ��� ��

Interest expense

�� 980 �� 107 �� 402 �� 3 �� 468 ��

Deferral of acquisition costs

�� (2,022 )� (422 )� (398 )� (1,247 )� 45 ��

Amortization of acquisition costs

�� 1,327 �� 424 �� 228 �� 715 �� (40 )�

General and administrative expenses

�� 8,923 �� 3,887 �� 1,859 �� 3,174 �� 3 ��
��

Total benefits and expenses

�� 29,268 �� 8,373 �� 7,589 �� 12,763 �� 543 ��
��

Adjusted operating income (loss) before income taxes

�� 4,547 �� 2,644 �� 359 �� 2,566 �� (1,022 )�
��

�� Nine Months Ended September�30, 2013
�� Total
Financial
Services
Businesses
U.S.�Retirement
Solutions &
Investment
Management
Division
U.S.�Individual
Life & Group
Insurance
Division
International
Insurance
Division
Corporate
and Other
Operations

Revenues (1):

��

Premiums

�� 17,858 �� 677 �� 3,829 �� 13,373 �� (21 )�

Policy charges and fee income

�� 4,169 �� 1,938 �� 1,798 �� 463 �� (30 )�

Net investment income

�� 8,595 �� 3,592 �� 1,474 �� 3,246 �� 283 ��

Asset management fees, commissions and other income

�� 3,681 �� 3,435 �� 450 �� 467 �� (671 )�
��

Total revenues

�� 34,303 �� 9,642 �� 7,551 �� 17,549 �� (439 )�
��

Benefits and Expenses (1):

��

Insurance and annuity benefits

�� 17,923 �� 1,805 �� 4,679 �� 11,456 �� (17 )�

Interest credited to policyholders� account balances

�� 2,781 �� 1,434 �� 602 �� 745 �� ��� ��

Interest expense

�� 954 �� 95 �� 302 �� 1 �� 556 ��

Deferral of acquisition costs

�� (2,216 )� (512 )� (583 )� (1,171 )� 50 ��

Amortization of acquisition costs

�� 1,008 �� 190 �� 64 �� 779 �� (25 )�

General and administrative expenses

�� 8,945 �� 3,779 �� 1,962 �� 3,234 �� (30 )�
��

Total benefits and expenses

�� 29,395 �� 6,791 �� 7,026 �� 15,044 �� 534 ��
��

Adjusted operating income (loss) before income taxes

�� 4,908 �� 2,851 �� 525 �� 2,505 �� (973 )�
��

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

Page 8


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)

�� As of September�30, 2014
�� Total
Financial
Services
Businesses
�� U.S.�Retirement
Solutions &
Investment
Management
Division
�� U.S.�Individual
Life & Group
Insurance
Division
�� International
Insurance
Division
�� Corporate
and Other
Operations

Assets:

�� �� �� �� ��

Total investments

�� 349,467 �� �� 124,405 �� �� 49,164 �� �� 162,458 �� �� 13,440 ��

Deferred policy acquisition costs

�� 16,219 �� �� 5,673 �� �� 4,361 �� �� 6,509 �� �� (324 )�

Other assets

�� 35,234 �� �� 13,762 �� �� 11,629 �� �� 10,330 �� �� (487 )�

Separate account assets

�� 292,616 �� �� 247,269 �� �� 45,811 �� �� 2,372 �� �� (2,836 )�
��

��

��

��

��

Total assets

�� 693,536 �� �� 391,109 �� �� 110,965 �� �� 181,669 �� �� 9,793 ��
��

��

��

��

��

Liabilities:

�� �� �� �� ��

Future policy benefits

�� 165,985 �� �� 53,964 �� �� 13,382 �� �� 94,909 �� �� 3,730 ��

Policyholders� account balances

�� 133,814 �� �� 55,988 �� �� 29,670 �� �� 48,144 �� �� 12 ��

Debt

�� 25,351 �� �� 5,824 �� �� 9,732 �� �� 37 �� �� 9,758 ��

Other liabilities

�� 34,984 �� �� 12,235 �� �� 6,863 �� �� 15,108 �� �� 778 ��

Separate account liabilities

�� 292,616 �� �� 247,269 �� �� 45,811 �� �� 2,372 �� �� (2,836 )�
��

��

��

��

��

Total liabilities

�� 652,750 �� �� 375,280 �� �� 105,458 �� �� 160,570 �� �� 11,442 ��
��

��

��

��

��

Attributed Equity:

�� �� �� �� ��

Accumulated other comprehensive income (loss)

�� 13,328 �� �� 1,957 �� �� 1,101 �� �� 10,880 �� �� (610 )�

Other attributed equity

�� 26,875 �� �� 13,311 �� �� 4,406 �� �� 10,160 �� �� (1,002 )�
��

��

��

��

��

Total attributed equity

�� 40,203 �� �� 15,268 �� �� 5,507 �� �� 21,040 �� �� (1,612 )�
��

��

��

��

��

Noncontrolling Interest

�� 583 �� �� 561 �� �� ��� �� �� 59 �� �� (37 )�
��

��

��

��

��

Total Equity

�� 40,786 �� �� 15,829 �� �� 5,507 �� �� 21,099 �� �� (1,649 )�
��

��

��

��

��

Total liabilities and equity

�� 693,536 �� �� 391,109 �� �� 110,965 �� �� 181,669 �� �� 9,793 ��
��

��

��

��

��

�� As of December�31, 2013
�� Total
Financial
Services
Businesses
�� U.S.�Retirement
Solutions &
Investment
Management
Division
�� U.S.�Individual
Life & Group
Insurance
Division
�� International
Insurance
Division
�� Corporate
and Other
Operations

Assets:

�� �� �� �� ��

Total investments

�� 332,159 �� �� 117,314 �� �� 46,351 �� �� 152,219 �� �� 16,275 ��

Deferred policy acquisition costs

�� 16,101 �� �� 5,715 �� �� 4,295 �� �� 6,407 �� �� (316 )�

Other assets

�� 30,059 �� �� 11,207 �� �� 10,088 �� �� 8,102 �� �� 662 ��

Separate account assets

�� 285,060 �� �� 242,344 �� �� 43,441 �� �� 1,949 �� �� (2,674 )�
��

��

��

��

��

Total assets

�� 663,379 �� �� 376,580 �� �� 104,175 �� �� 168,677 �� �� 13,947 ��
��

��

��

��

��

Liabilities:

�� �� �� �� ��

Future policy benefits

�� 156,601 �� �� 49,521 �� �� 12,520 �� �� 91,145 �� �� 3,415 ��

Policyholders� account balances

�� 131,298 �� �� 55,510 �� �� 28,918 �� �� 46,858 �� �� 12 ��

Debt

�� 24,547 �� �� 5,523 �� �� 9,245 �� �� 55 �� �� 9,724 ��

Other liabilities

�� 31,385 �� �� 9,800 �� �� 5,629 �� �� 11,821 �� �� 4,135 ��

Separate account liabilities

�� 285,060 �� �� 242,344 �� �� 43,441 �� �� 1,949 �� �� (2,674 )�
��

��

��

��

��

Total liabilities

�� 628,891 �� �� 362,698 �� �� 99,753 �� �� 151,828 �� �� 14,612 ��
��

��

��

��

��

Attributed Equity:

�� �� �� �� ��

Accumulated other comprehensive income (loss)

�� 8,586 �� �� 689 �� �� 413 �� �� 8,251 �� �� (767 )�

Other attributed equity

�� 25,299 �� �� 12,590 �� �� 4,009 �� �� 8,588 �� �� 112 ��
��

��

��

��

��

Total attributed equity

�� 33,885 �� �� 13,279 �� �� 4,422 �� �� 16,839 �� �� (655 )�
��

��

��

��

��

Noncontrolling Interest

�� 603 �� �� 603 �� �� ��� �� �� 10 �� �� (10 )�
��

��

��

��

��

Total Equity

�� 34,488 �� �� 13,882 �� �� 4,422 �� �� 16,849 �� �� (665 )�
��

��

��

��

��

Total liabilities and equity

�� 663,379 �� �� 376,580 �� �� 104,175 �� �� 168,677 �� �� 13,947 ��
��

��

��

��

��

Page 9


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)

�� As of September�30, 2014 �� As of December�31, 2013
��

Senior debt

�� Junior
Subordinated
Long-term
Debt
�� Total
Debt
��

Senior debt

�� Junior
Subordinated
Long-term
Debt
�� Total
Debt
�� Short-term
Debt
�� Long-term
Debt
�� �� �� Short-term
Debt
�� Long-term
Debt
�� ��

Financial Services Businesses

�� �� �� �� �� �� �� ��

Borrowings by use of proceeds:

�� �� �� �� �� �� �� ��

Capital Debt

�� 642 �� �� 6,465 �� �� 4,884 �� �� 11,991 �� �� 309 �� �� 5,036 �� �� 4,884 �� �� 10,229 ��

Operating Debt - Investment related

�� 1,992 �� �� 6,914 �� �� ��� �� �� 8,906 �� �� 1,867 �� �� 8,035 �� �� ��� �� �� 9,902 ��

Operating Debt - Specified businesses

�� 1,720 �� �� 2,247 �� �� ��� �� �� 3,967 �� �� 418 �� �� 3,802 �� �� ��� �� �� 4,220 ��

Limited recourse and non-recourse borrowing

�� ��� �� �� 487 �� �� ��� �� �� 487 �� �� ��� �� �� 196 �� �� ��� �� �� 196 ��
��

��

��

��

��

��

��

��

Total debt - Financial Services Businesses

�� 4,354 �� �� 16,113 �� �� 4,884 �� �� 25,351 �� �� 2,594 �� �� 17,069 �� �� 4,884 �� �� 24,547 ��
��

��

��

��

��

��

��

��

Closed Block Business

�� �� �� �� �� �� �� ��

Investment related

�� ��� �� �� ��� �� �� ��� �� �� ��� �� �� ��� �� �� ��� �� �� ��� �� �� ��� ��

Limited recourse and non-recourse borrowing

�� 75 �� �� 1,600 �� �� ��� �� �� 1,675 �� �� 75 �� �� 1,600 �� �� ��� �� �� 1,675 ��
��

��

��

��

��

��

��

��

Total debt

�� 75 �� �� 1,600 �� �� ��� �� �� 1,675 �� �� 75 �� �� 1,600 �� �� ��� �� �� 1,675 ��
��

��

��

��

��

��

��

��

�� As of September�30, 2014 �� As of December�31, 2013
�� 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

Financial Services Businesses

�� �� �� �� �� �� �� ��

Borrowings by sources:

�� �� �� �� �� �� �� ��

Capital Debt

�� 10,593 �� �� 1,042 �� �� 356 �� �� 11,991 �� �� 8,817 �� �� 1,042 �� �� 370 �� �� 10,229 ��

Operating Debt - Investment related

�� 5,104 �� �� 596 �� �� 3,206 �� �� 8,906 �� �� 6,281 �� �� 411 �� �� 3,210 �� �� 9,902 ��

Operating Debt - Specified businesses

�� 2,708 �� �� 1,259 �� �� ��� �� �� 3,967 �� �� 2,969 �� �� 1,251 �� �� ��� �� �� 4,220 ��

Limited recourse and non-recourse borrowing

�� ��� �� �� 487 �� �� ��� �� �� 487 �� �� ��� �� �� 196 �� �� ��� �� �� 196 ��
��

��

��

��

��

��

��

��

Total debt - Financial Services Businesses

�� 18,405 �� �� 3,384 �� �� 3,562 �� �� 25,351 �� �� 18,067 �� �� 2,900 �� �� 3,580 �� �� 24,547 ��
��

��

��

��

��

��

��

��

(1) Includes Prudential Funding, LLC.
(2) Capital debt at Prudential Insurance Co. of America includes $941 million of surplus notes at both September�30, 2014 and December�31, 2013.

Page 10


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

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

(in millions)

Year-to-date %
Change
�� 2013 2014
2014 2013 �� 3Q 4Q 1Q 2Q 3Q
��
��

Revenues (1):

1,528 �� 677 �� 126% �� ��

Premiums

276 331 �� 197 �� 201 ���� 1,130
2,139 �� 1,938 �� 10% �� ��

Policy charges and fee income

665 690 �� 695 �� 715 �� 729
3,698 �� 3,592 �� 3% �� ��

Net investment income

1,196 1,255 �� 1,276 �� 1,193 �� 1,229
3,652 �� 3,435 �� 6% �� ��

Asset management fees, commissions and other income

1,157 1,253 �� 1,187 �� 1,244 �� 1,221

��

11,017 �� 9,642 �� 14% �� ��

Total revenues

3,294 3,529 �� 3,355 �� 3,353 �� 4,309

��

��

Benefits and Expenses (1):

2,948 �� 1,805 �� 63% �� ��

Insurance and annuity benefits

598 733 �� 660 �� 651 �� 1,637
1,429 �� 1,434 �� 0% �� ��

Interest credited to policyholders� account balances

433 476 �� 476 �� 481 �� 472
107 �� 95 �� 13% �� ��

Interest expense

31 33 �� 36 �� 35 �� 36
(422 )� (512 )� 18% �� ��

Deferral of acquisition costs

(136 )�� (137 )� (128 )� (147 )� (147 )
424 �� 190 �� 123% �� ��

Amortization of acquisition costs

(92 ) 107 �� 132 �� 139 �� 153
3,887 �� 3,779 �� 3% �� ��

General and administrative expenses

1,229 1,321 �� 1,234 �� 1,318 �� 1,335

��

8,373 �� 6,791 �� 23% �� ��

Total benefits and expenses

2,063 2,533 �� 2,410 �� 2,477 �� 3,486

��

2,644 �� 2,851 �� -7% �� ��

Adjusted operating income before income taxes

1,231 996 �� 945 �� 876 �� 823

��

��

(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

Third Quarter 2014

LOGO

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

(in millions)

�� Nine Months Ended September�30, 2014 Quarter Ended September�30, 2014
�� Total
U.S.�Retirement
Solutions &
Investment
Management
Division
Individual
Annuities
Retirement Asset
Management
Total
U.S.�Retirement
Solutions &
Investment
Management
Division
Individual
Annuities
Retirement Asset
Management

Revenues (1):

��

Premiums

�� 1,528 �� 77 �� 1,451 �� ��� �� 1,130 �� 20 �� 1,110 �� ��� ��

Policy charges and fee income

�� 2,139 �� 1,978 �� 161 �� ��� �� 729 �� 676 �� 53 �� ��� ��

Net investment income

�� 3,698 �� 472 �� 3,138 �� 88 �� 1,229 �� 154 �� 1,032 �� 43 ��

Asset management fees, commissions and other income

�� 3,652 �� 992 �� 647 �� 2,013 �� 1,221 �� 341 �� 202 �� 678 ��
��

Total revenues

�� 11,017 �� 3,519 �� 5,397 �� 2,101 �� 4,309 �� 1,191 �� 2,397 �� 721 ��
��

Benefits and Expenses (1):

��

Insurance and annuity benefits

�� 2,948 �� 337 �� 2,611 �� ��� �� 1,637 �� 123 �� 1,514 �� ��� ��

Interest credited to policyholders� account balances

�� 1,429 �� 319 �� 1,110 �� ��� �� 472 �� 107 �� 365 �� ��� ��

Interest expense

�� 107 �� 80 �� 19 �� 8 �� 36 �� 27 �� 7 �� 2 ��

Deferral of acquisition costs

�� (422 )� (375 )� (34 )� (13 )� (147 )� (127 )� (17 )� (3 )�

Amortization of acquisition costs

�� 424 �� 392 �� 17 �� 15 �� 153 �� 141 �� 7 �� 5 ��

General and administrative expenses

�� 3,887 �� 1,621 �� 768 �� 1,498 �� 1,335 �� 553 �� 265 �� 517 ��
��

Total benefits and expenses

�� 8,373 �� 2,374 �� 4,491 �� 1,508 �� 3,486 �� 824 �� 2,141 �� 521 ��
��

Adjusted operating income before income taxes

�� 2,644 �� 1,145 �� 906 �� 593 �� 823 �� 367 �� 256 �� 200 ��
��

�� Nine Months Ended September�30, 2013 Quarter Ended September�30, 2013
�� Total
U.S.�Retirement
Solutions &
Investment
Management
Division
Individual
Annuities
Retirement Asset
Management
Total
U.S.�Retirement
Solutions &
Investment
Management
Division
Individual
Annuities
Retirement Asset
Management

Revenues (1):

��

Premiums

�� 677 �� 79 �� 598 �� ��� �� 276 �� 26 �� 250 �� ��� ��

Policy charges and fee income

�� 1,938 �� 1,784 �� 154 �� ��� �� 665 �� 613 �� 52 �� ��� ��

Net investment income

�� 3,592 �� 526 �� 3,006 �� 60 �� 1,196 �� 169 �� 1,005 �� 22 ��

Asset management fees, commissions and other income

�� 3,435 �� 918 �� 624 �� 1,893 �� 1,157 �� 312 �� 218 �� 627 ��
��

Total revenues

�� 9,642 �� 3,307 �� 4,382 �� 1,953 �� 3,294 �� 1,120 �� 1,525 �� 649 ��
��

Benefits and Expenses (1):

��

Insurance and annuity benefits

�� 1,805 �� 47 �� 1,758 �� ��� �� 598 �� (68 )� 666 �� ��� ��

Interest credited to policyholders� account balances

�� 1,434 �� 285 �� 1,149 �� ��� �� 433 �� 54 �� 379 �� ��� ��

Interest expense

�� 95 �� 67 �� 20 �� 8 �� 31 �� 22 �� 7 �� 2 ��

Deferral of acquisition costs

�� (512 )� (474 )� (20 )� (18 )� (136 )� (124 )� (7 )� (5 )�

Amortization of acquisition costs

�� 190 �� 159 �� 12 �� 19 �� (92 )� (99 )� 1 �� 6 ��

General and administrative expenses

�� 3,779 �� 1,630 �� 719 �� 1,430 �� 1,229 �� 514 �� 242 �� 473 ��
��

Total benefits and expenses

�� 6,791 �� 1,714 �� 3,638 �� 1,439 �� 2,063 �� 299 �� 1,288 �� 476 ��
��

Adjusted operating income before income taxes

�� 2,851 �� 1,593 �� 744 �� 514 �� 1,231 �� 821 �� 237 �� 173 ��
��

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

Page 12


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

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

(in millions)

Year-to-date 2013 2014
2014 2013 3Q 4Q 1Q 2Q 3Q

SALES AND ACCOUNT VALUES:

Variable Annuities:

150,467 �� 131,608 ��

Beginning total account value

137,775 �� 143,697 �� 150,467 �� 151,620 �� 155,890 ��
5,299 �� 7,909 ��

Sales: Highest Daily Suite (1)

1,913 �� 1,714 �� 1,606 �� 1,865 �� 1,828 ��
2,217 �� 1,126 ��

Other variable annuities (2)

475 �� 698 �� 698 �� 786 �� 733 ��

7,516 �� 9,035 ��

Total sales

2,388 �� 2,412 �� 2,304 �� 2,651 �� 2,561 ��
(6,497 )� (5,498 )�

Surrenders and withdrawals

(1,824 )��� (2,069 )� (2,158 )� (2,187 )���� (2,152 )�

1,019 �� 3,537 ��

Net sales

564 �� 343 �� 146 �� 464 �� 409 ��
(1,091 )� (946 )�

Benefit payments

(310 )� (336 )� (340 )� (406 )� (345 )�

(72 )� 2,591 ��

Net flows

254 �� 7 �� (194 )� 58 �� 64 ��
5,384 �� 11,852 ��

Change in market value, interest credited, and other

6,479 �� 7,603 �� 2,194 �� 5,081 �� (1,891 )�
(2,607 )� (2,354 )�

Policy charges

(811 )� (840 )� (847 )� (869 )� (891 )�

153,172 �� 143,697 ��

Ending total account value

143,697 �� 150,467 �� 151,620 �� 155,890 �� 153,172 ��

Variable Annuities Account Value by Product:

115,853 �� 106,772 ��

Highest Daily suite (1)

106,772 �� 112,454 �� 113,804 �� 117,596 �� 115,853 ��
37,319 �� 36,925 ��

Other variable annuities (2)

36,925 �� 38,013 �� 37,816 �� 38,294 �� 37,319 ��

153,172 �� 143,697 ��

Ending total account value

143,697 �� 150,467 �� 151,620 �� 155,890 �� 153,172 ��

Fixed Annuities and other products (3):

3,673 �� 3,734 ��

Beginning total account value

3,699 �� 3,681 �� 3,673 �� 3,656 �� 3,638 ��
43 �� 46 ��

Sales

16 �� 20 �� 17 �� 13 �� 13 ��
(99 )� (119 )�

Surrenders and withdrawals

(40 )� (41 )� (35 )� (34 )� (30 )�

(56 )� (73 )�

Net redemptions

(24 )� (21 )� (18 )� (21 )� (17 )�
(255 )� (250 )�

Benefit payments

(83 )� (85 )� (71 )� (75 )� (109 )�

(311 )� (323 )�

Net flows

(107 )� (106 )� (89 )� (96 )� (126 )�
251 �� 273 ��

Interest credited and other

91 �� 98 �� 73 �� 78 �� 100 ��
(2 )� (3 )�

Policy charges

(2 )� ��� �� (1 )� ��� �� (1 )�

3,611 �� 3,681 ��

Ending total account value

3,681 �� 3,673 �� 3,656 �� 3,638 �� 3,611 ��

SALES BY DISTRIBUTION CHANNEL:

Variable and Fixed Annuities (4):

1,876 �� 1,825 ��

Insurance Agents

575 �� 600 �� 604 �� 648 �� 624 ��
1,526 �� 1,820 ��

Wirehouses

433 �� 426 �� 440 �� 525 �� 561 ��
3,074 �� 3,945 ��

Independent Financial Planners

1,001 �� 1,033 �� 940 �� 1,098 �� 1,036 ��
1,083 �� 1,491 ��

Bank Distribution

395 �� 373 �� 337 �� 393 �� 353 ��

7,559 �� 9,081 ��

Total

2,404 �� 2,432 �� 2,321 �� 2,664 �� 2,574 ��

(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

Third Quarter 2014

��

LOGO

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

(in millions)

Year-to-date �� 2013 2014
2014 2013 �� 3Q 4Q 1Q 2Q 3Q
��

INDIVIDUAL ANNUITIES:

��

Account Values in General Account (1):

��
10,054 �� 11,564 ��

Beginning balance

�� 10,903 �� 10,409 �� 10,054 �� 9,881 �� 9,811 ��
995 �� 976 ��

Premiums and deposits

�� 230 �� 222 �� 251 �� 370 �� 374 ��
(657 )� (730 )�

Surrenders and withdrawals

�� (217 )��� (233 )� (220 )� (222 )���� (215 )�

��

338 �� 246 ��

Net sales (redemptions)

�� 13 �� (11 )� 31 �� 148 �� 159 ��
(312 )� (307 )�

Benefit payments

�� (102 )� (101 )� (91 )� (94 )� (127 )�

��

26 �� (61 )�

Net flows

�� (89 )� (112 )� (60 )� 54 �� 32 ��
269 �� 259 ��

Interest credited and other

�� 81 �� 78 �� 98 �� 103 �� 68 ��
(531 )� (1,350 )�

Net transfers to separate account

�� (484 )� (321 )� (210 )� (227 )� (94 )�
(2 )� (3 )�

Policy charges

�� (2 )� ��� �� (1 )� ��� �� (1 )�

��

9,816 �� 10,409 ��

Ending balance

�� 10,409 �� 10,054 �� 9,881 �� 9,811 �� 9,816 ��

��

Account Values in Separate Account (1):

��
144,086 �� 123,778 ��

Beginning balance

�� 130,571 �� 136,969 �� 144,086 �� 145,395 �� 149,717 ��
6,564 �� 8,105 ��

Premiums and deposits

�� 2,174 �� 2,210 �� 2,070 �� 2,294 �� 2,200 ��
(5,939 )� (4,887 )�

Surrenders and withdrawals

�� (1,647 )� (1,877 )� (1,973 )� (1,999 )� (1,967 )�

��

625 �� 3,218 ��

Net sales

�� 527 �� 333 �� 97 �� 295 �� 233 ��
(1,034 )� (889 )�

Benefit payments

�� (291 )� (320 )� (320 )� (387 )� (327 )�

��

(409 )� 2,329 ��

Net flows

�� 236 �� 13 �� (223 )� (92 )� (94 )�
5,366 �� 11,866 ��

Change in market value, interest credited and other

�� 6,489 �� 7,623 �� 2,169 �� 5,056 �� (1,859 )�
531 �� 1,350 ��

Net transfers from general account

�� 484 �� 321 �� 210 �� 227 �� 94 ��
(2,607 )� (2,354 )�

Policy charges

�� (811 )� (840 )� (847 )� (869 )� (891 )�

��

146,967 �� 136,969 ��

Ending balance

�� 136,969 �� 144,086 �� 145,395 �� 149,717 �� 146,967 ��

��

��

(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

Third Quarter 2014

��

LOGO

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

(in millions)

�� 2013 �� 2014
�� 3Q 4Q �� 1Q �� 2Q �� 3Q
�� �� �� ��

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

�� �� �� ��

Variable Annuity Account Values with Living Benefit Features

�� �� �� ��

Guaranteed minimum accumulation benefits

�� 7,037 �� 6,799 �� �� 6,514 �� �� 6,322 �� �� 5,947 ��

Guaranteed minimum withdrawal benefits

�� 889 �� 886 �� �� 851 �� �� 829 �� �� 767 ��

Guaranteed minimum income benefits

�� 3,583 �� 3,667 �� �� 3,578 �� �� 3,545 �� �� 3,382 ��

Guaranteed minimum withdrawal�& income benefits

�� 107,109 ��� 113,246 �� �� 115,079 �� �� 119,442 �� �� 118,124 ���
��

��

��

��

Total

�� 118,618 �� 124,598 �� �� 126,022 �� �� 130,138 �� �� 128,220 ��
��

��

��

��

Living Benefit Features Account Values by Product Design Type

�� �� �� ��

Account Values with Auto-Rebalancing Feature

�� 102,783 �� 107,910 �� �� 109,139 �� �� 112,695 �� �� 111,033 ��

Account Values without Auto-Rebalancing Feature

�� 15,835 �� 16,688 �� �� 16,883 �� �� 17,443 �� �� 17,187 ��
��

��

��

��

Total

�� 118,618 �� 124,598 �� �� 126,022 �� �� 130,138 �� �� 128,220 ��
��

��

��

��

Living Benefit Features Net Amount at Risk by Product Design Type

�� �� �� ��

Net Amount at Risk with Auto-Rebalancing Feature

�� 2,378 �� 1,735 �� �� 1,761 �� �� 1,504 �� �� 2,017 ��

Net Amount at Risk without Auto-Rebalancing Feature

�� 1,176 �� 910 �� �� 895 �� �� 781 �� �� 911 ��
��

��

��

��

Total

�� 3,554 �� 2,645 �� �� 2,656 �� �� 2,285 �� �� 2,928 ��
��

��

��

��

�� �� �� ��

(1) At end of period.

Page 15


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

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

(in millions)

�� 2013 �� 2014
�� 3Q 4Q �� 1Q �� 2Q �� 3Q
�� �� �� ��

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

�� 107,025 �� 112,445 �� �� 113,733 �� �� 117,486 �� �� 115,725 ��

Net amount at risk

�� 532 �� 465 �� �� 440 �� �� 402 �� �� 437 ��

Minimum return, anniversary contract value, or maximum contract value:

�� �� �� ��

Account value

�� 33,592 ��� 34,846 �� �� 34,750 �� �� 35,230 �� �� 34,299 ���

Net amount at risk

�� 3,330 �� 2,817 �� �� 2,806 �� �� 2,572 �� �� 2,987 ��

Death Benefit Features Account Values by Product Design Type

�� �� �� ��

Account Values with Auto-Rebalancing Feature

�� 102,783 �� 107,910 �� �� 109,139 �� �� 112,695 �� �� 111,033 ��

Account Values without Auto-Rebalancing Feature

�� 37,834 �� 39,381 �� �� 39,344 �� �� 40,021 �� �� 38,991 ��
��

��

��

��

Total

�� 140,617 �� 147,291 �� �� 148,483 �� �� 152,716 �� �� 150,024 ��
��

��

��

��

Death Benefit Features Net Amount at Risk by Product Design Type

�� �� �� ��

Net Amount at Risk with Auto-Rebalancing Feature

�� 774 �� 613 �� �� 624 �� �� 546 �� �� 823 ��

Net Amount at Risk without Auto-Rebalancing Feature

�� 3,088 �� 2,669 �� �� 2,622 �� �� 2,428 �� �� 2,601 ��
��

��

��

��

Total

�� 3,862 �� 3,282 �� �� 3,246 �� �� 2,974 �� �� 3,424 ��
��

��

��

��

�� �� �� ��

(1) At end of period.

Page 16


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

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

(in millions)

Year-to-date 2013 2014
2014 2013 3Q 4Q 1Q 2Q 3Q

RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

Full Service:

173,502 �� 148,405 ��

Beginning total account value

157,738 �� 165,364 �� 173,502 �� 178,150 �� 181,577 ��
18,305 �� 14,831 ��

Deposits and sales

5,455 �� 5,846 �� 8,587 �� 4,528 �� 5,190 ��
(16,290 )� (12,925 )�

Withdrawals and benefits

(4,627 )��� (5,786 )� (6,003 )� (6,066 )���� (4,221 )�
5,018 �� 15,053 ��

Change in market value, interest credited, interest income and other activity

6,798 �� 8,078 �� 2,064 �� 4,965 �� (2,011 )�

180,535 �� 165,364 ��

Ending total account value

165,364 �� 173,502 �� 178,150 �� 181,577 �� 180,535 ��

2,015 �� 1,906 ��

Net additions (withdrawals)

828 �� 60 �� 2,584 �� (1,538 )� 969 ��

Stable value account values included above

44,186 �� 44,013 �� 44,461 �� 44,174 �� 44,464 ��

Institutional Investment Products:

149,402 �� 141,435 ��

Beginning total account value

144,101 �� 147,100 �� 149,402 �� 149,661 �� 148,971 ��
34,770 �� 13,239 ��

Additions

5,034 �� 4,055 �� 1,733 �� 2,075 �� 30,962 ��
(11,253 )� (7,268 )�

Withdrawals and benefits

(2,487 )� (2,683 )� (3,017 )� (4,602 )� (3,634 )�
4,134 �� 113 ��

Change in market value, interest credited and interest income

412 �� 968 �� 1,441 �� 1,753 �� 940 ��
(1,527 )� (419 )�

Other (1)

40 �� (38 )� 102 �� 84 �� (1,713 )�

175,526 �� 147,100 ��

Ending total account value

147,100 �� 149,402 �� 149,661 �� 148,971 �� 175,526 ��

23,517 �� 5,971 ��

Net additions (withdrawals)

2,547 �� 1,372 �� (1,284 )� (2,527 )� 27,328 ��

Amounts included in ending total account value above:

71,323 �� 69,993 ��

Investment-only stable value wraps

69,993 �� 72,507 �� 72,845 �� 72,407 �� 71,323 ��
29,509 �� 2,360 ��

Longevity reinsurance (2)

2,360 �� 2,358 �� 2,357 �� 2,399 �� 29,509 ��
74,694 �� 74,747 ��

Group annuities and other products

74,747 �� 74,537 �� 74,459 �� 74,165 �� 74,694 ��

175,526 �� 147,100 ��

Ending total account value

147,100 �� 149,402 �� 149,661 �� 148,971 �� 175,526 ��

(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

Third Quarter 2014

��

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
�� 2013 �� 2014
��2014�� �� ��2013�� �� �� 3Q 4Q �� 1Q �� 2Q 3Q
�� �� �� �� ��
�� �� ��

Analysis of revenues by type:

�� ��
1,506 �� �� 1,390 �� �� 8% �� ��

Asset management fees

472 ���� 491 �� �� 489 �� �� 507 �� 510 ��
195 �� �� 160 �� �� 22% �� ��

Other related revenues

52 �� 94 �� �� 66 �� �� 67 �� 62 ��
400 �� �� 403 �� �� -1% �� ��

Service, distribution and other revenues

125 �� 140 �� �� 112 �� �� 139 ���� 149 ��

��

�� ��

��

��

2,101 �� �� 1,953 �� �� 8% �� ��

Total Asset Management segment revenues

649 �� 725 �� �� 667 �� �� 713 �� 721 ��

��

�� ��

��

��

�� �� �� �� ��
�� �� ��

Analysis of asset management fees by source:

�� ��
655 �� �� 620 �� �� 6% �� ��

Institutional customers

210 �� 218 �� �� 214 �� �� 225 �� 216 ��
536 �� �� 460 �� �� 17% �� ��

Retail customers

161 �� 171 �� �� 173 �� �� 177 �� 186 ��
315 �� �� 310 �� �� 2% �� ��

General account

101 �� 102 �� �� 102 �� �� 105 �� 108 ��

��

�� ��

��

��

1,506 �� �� 1,390 �� �� 8% �� ��

Total asset management fees

472 �� 491 �� �� 489 �� �� 507 �� 510 ��

��

�� ��

��

��

�� �� �� �� ��

Supplementary Assets Under Management Information (in billions):

�� �� �� ��
�� September 30, 2014
�� Equity �� Fixed
Income
�� Real
Estate
�� Total

Institutional customers

�� 64.0 �� �� 263.9 �� �� 35.8 �� �� 363.7 ��

Retail customers

�� 121.3 �� �� 56.3 �� �� 2.4 �� �� 180.0 ��

General account

�� 7.8 �� �� 364.4 �� �� 1.6 �� �� 373.8 ��
��

��

��

��

Total

�� 193.1 �� �� 684.6 �� �� 39.8 �� �� 917.5 ��
��

��

��

��

�� September�30, 2013
�� Equity �� Fixed
Income
�� Real
Estate
�� Total

Institutional customers

�� 60.3 �� �� 236.0 �� �� 34.0 �� �� 330.3 ��

Retail customers

�� 107.6 �� �� 49.3 �� �� 2.2 �� �� 159.1 ��

General account

�� 8.3 �� �� 349.2 �� �� 1.2 �� �� 358.7 ��
��

��

��

��

Total

�� 176.2 �� �� 634.5 �� �� 37.4 �� �� 848.1 ��
��

��

��

��

Page 18


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

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

(in billions)

Year-to-date 2013 2014
�2014� 2013 3Q 4Q 1Q 2Q 3Q

Institutional Customers - Assets Under Management:

Assets gathered by Investment Management & Advisory Services sales force:

300.5 �� 274.6 ��

Beginning assets under management

279.6 �� 290.0 �� 300.5 �� 310.4 �� 323.5 ��
31.4 �� 43.3 ��

Additions

14.1 �� 13.8 �� 10.9 �� 10.5 �� 10.0 ��
(28.2 )� (29.2 )�

Withdrawals

(10.0 )��� (8.5 )� (9.0 )� (7.8 )���� (11.4 )�
17.3 �� 1.8 ��

Change in market value

6.0 �� 6.0 �� 8.0 �� 10.3 �� (1.0 )�
��� �� ��� ��

Net money market flows

0.2 �� (0.5 )� (0.1 )� 0.1 �� ��� ��
(0.3 )� (0.5 )�

Other (1)

0.1 �� (0.3 )� 0.1 �� ��� �� (0.4 )�

320.7 �� 290.0 ��

Ending assets under management

290.0 �� 300.5 �� 310.4 �� 323.5 �� 320.7 ��
43.0 �� 40.3 ��

Affiliated institutional assets under management

40.3 �� 41.2 �� 41.8 �� 43.5 �� 43.0 ��

363.7 �� 330.3 ��

Total assets managed for institutional customers at end of period

330.3 �� 341.7 �� 352.2 �� 367.0 �� 363.7 ��

3.2 �� 14.1 ��

Net institutional additions (withdrawals), excluding money market activity

4.1 �� 5.3 �� 1.9 �� 2.7 �� (1.4 )�

Retail Customers - Assets Under Management:

Assets gathered by Investment Management & Advisory Services sales force:

115.0 �� 91.1 ��

Beginning assets under management

100.4 �� 106.5 �� 115.0 �� 117.0 �� 122.5 ��
24.9 �� 30.4 ��

Additions

7.1 �� 9.8 �� 8.0 �� 8.4 �� 8.5 ��
(22.8 )� (27.5 )�

Withdrawals

(8.5 )� (8.3 )� (7.8 )� (7.7 )� (7.3 )�
5.6 �� 12.5 ��

Change in market value

7.5 �� 7.0 �� 1.8 �� 4.8 �� (1.0 )�
��� �� ��� ��

Net money market flows

��� �� ��� �� ��� �� ��� �� ��� ��
��� �� ��� ��

Other

��� �� ��� �� ��� �� ��� �� ��� ��

122.7 �� 106.5 ��

Ending assets under management

106.5 �� 115.0 �� 117.0 �� 122.5 �� 122.7 ��
57.3 �� 52.6 ��

Affiliated retail assets under management

52.6 �� 55.7 �� 55.9 �� 57.6 �� 57.3 ��

180.0 �� 159.1 ��

Total assets managed for retail customers at end of period

159.1 �� 170.7 �� 172.9 �� 180.1 �� 180.0 ��

2.1 �� 2.9 ��

Net retail additions (withdrawals), excluding money market activity

(1.4 )� 1.5 �� 0.2 �� 0.7 �� 1.2 ��

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

Page 19


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

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

(in millions)

Year-to-date %
Change
�� �� 2013 2014
2014 2013 �� �� 3Q 4Q 1Q 2Q 3Q
�� ��
��

Revenues (1):

��
3,724 �� 3,829 �� -3% �� ��

Premiums

�� 1,256 �� 1,269 �� 1,240 �� 1,241 �� 1,243 ��
2,006 �� 1,798 �� 12% �� ��

Policy charges and fee income

�� 487 �� 634 �� 688 �� 681 �� 637 ��
1,668 �� 1,474 �� 13% �� ��

Net investment income

�� 497 �� 517 �� 558 �� 540 �� 570 ��
550 �� 450 �� 22% �� ��

Asset management fees, commissions and other income

�� 143 �� 167 �� 172 �� 198 �� 180 ��

�� ��

7,948 �� 7,551 �� 5% �� ��

Total revenues

�� 2,383 �� 2,587 �� 2,658 �� 2,660 �� 2,630 ��

�� ��

�� ��
��

Benefits and Expenses (1):

��
4,863 �� 4,679 �� 4% �� ��

Insurance and annuity benefits

�� 1,496 �� 1,522 �� 1,621 �� 1,550 �� 1,692 ��
635 �� 602 �� 5% �� ��

Interest credited to policyholders� account balances

�� 208 �� 206 �� 210 �� 211 �� 214 ��
402 �� 302 �� 33% �� ��

Interest expense

�� 108 �� 112 �� 124 �� 129 �� 149 ��
(398 )� (583 )� 32% �� ��

Deferral of acquisition costs

�� (177 )��� (190 )� (143 )� (130 )���� (125 )���
228 �� 64 �� 256% �� ��

Amortization of acquisition costs

�� (111 )��� 57 �� 99 �� 100 �� 29 ��
1,859 �� 1,962 �� -5% �� ��

General and administrative expenses

�� 643 �� 665 �� 616 �� 596 �� 647 ��

�� ��

7,589 �� 7,026 �� 8% �� ��

Total benefits and expenses

�� 2,167 �� 2,372 �� 2,527 �� 2,456 �� 2,606 ��

�� ��

�� ��
359 �� 525 �� -32% �� ��

Adjusted operating income before income taxes

�� 216 �� 215 �� 131 �� 204 �� 24 ��

�� ��

�� ��

(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

Third Quarter 2014

��

LOGO

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

(in millions)

�� Nine Months Ended September�30, 2014 Quarter Ended September�30, 2014
�� Total
U.S.�Individual
Life & Group
Insurance
Division
Individual
Life
Group
Insurance
Total
U.S.�Individual
Life & Group
Insurance
Division
Individual
Life
Group
Insurance

Revenues (1):

��

Premiums

�� 3,724 �� 643 �� 3,081 �� 1,243 �� 210 �� 1,033 ��

Policy charges and fee income

�� 2,006 �� 1,581 �� 425 �� 637 �� 502 �� 135 ��

Net investment income

�� 1,668 �� 1,209 �� 459 �� 570 �� 415 �� 155 ��

Asset management fees, commissions and other income

�� 550 �� 462 �� 88 �� 180 �� 154 �� 26 ��
��

Total revenues

�� 7,948 �� 3,895 �� 4,053 �� 2,630 �� 1,281 �� 1,349 ��
��

Benefits and Expenses (1):

��

Insurance and annuity benefits

�� 4,863 �� 1,616 �� 3,247 �� 1,692 �� 548 �� 1,144 ��

Interest credited to policyholders� account balances

�� 635 �� 452 �� 183 �� 214 �� 152 �� 62 ��

Interest expense

�� 402 �� 395 �� 7 �� 149 �� 146 �� 3 ��

Deferral of acquisition costs

�� (398 )� (398 )� ��� �� (125 )� (125 )� ��� ��

Amortization of acquisition costs

�� 228 �� 221 �� 7 �� 29 �� 27 �� 2 ��

General and administrative expenses

�� 1,859 �� 1,229 �� 630 �� 647 �� 436 �� 211 ��
��

Total benefits and expenses

�� 7,589 �� 3,515 �� 4,074 �� 2,606 �� 1,184 �� 1,422 ��
��

Adjusted operating income (loss) before income taxes

�� 359 �� 380 �� (21 )� 24 �� 97 �� (73 )�
��

�� Nine Months Ended September�30, 2013 Quarter Ended September�30, 2013
�� Total
U.S.�Individual
Life & Group
Insurance
Division
Individual
Life
Group
Insurance
Total
U.S.�Individual
Life & Group
Insurance
Division
Individual
Life
Group
Insurance

Revenues (1):

��

Premiums

�� 3,829 �� 595 �� 3,234 �� 1,256 �� 198 �� 1,058 ��

Policy charges and fee income

�� 1,798 �� 1,412 �� 386 �� 487 �� 374 �� 113 ��

Net investment income

�� 1,474 �� 1,037 �� 437 �� 497 �� 353 �� 144 ��

Asset management fees, commissions and other income

�� 450 �� 364 �� 86 �� 143 �� 116 �� 27 ��
��

Total revenues

�� 7,551 �� 3,408 �� 4,143 �� 2,383 �� 1,041 �� 1,342 ��
��

Benefits and Expenses (1):

��

Insurance and annuity benefits

�� 4,679 �� 1,421 �� 3,258 �� 1,496 �� 487 �� 1,009 ��

Interest credited to policyholders� account balances

�� 602 �� 430 �� 172 �� 208 �� 149 �� 59 ��

Interest expense

�� 302 �� 297 �� 5 �� 108 �� 108 �� ��� ��

Deferral of acquisition costs

�� (583 )� (581 )� (2 )� (177 )� (173 )� (4 )�

Amortization of acquisition costs

�� 64 �� 57 �� 7 �� (111 )� (113 )� 2 ��

General and administrative expenses

�� 1,962 �� 1,358 �� 604 �� 643 �� 435 �� 208 ��
��

Total benefits and expenses

�� 7,026 �� 2,982 �� 4,044 �� 2,167 �� 893 �� 1,274 ��
��

Adjusted operating income before income taxes

�� 525 �� 426 �� 99 �� 216 �� 148 �� 68 ��
��

(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

Third Quarter 2014

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 2013 2014
2014 2013 3Q 4Q 1Q 2Q 3Q

ANNUALIZED NEW BUSINESS PREMIUMS (1):

30 �� 25 ��

Variable life

9 �� 13 �� 9 �� 11 �� 10 ��
160 �� 388 ��

Universal life

107 �� 109 �� 71 �� 46 �� 43 ��
132 �� 152 ��

Term life

49 �� 44 �� 42 �� 46 �� 44 ��

322 �� 565 ��

Total

165 �� 166 �� 122 �� 103 �� 97 ��

ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

71 �� 72 ��

Prudential Agents

22 �� 23 �� 22 �� 25 �� 24 ��
251 �� 493 ��

Third party distribution

143 �� 143 �� 100 �� 78 �� 73 ��

322 �� 565 ��

Total

165 �� 166 �� 122 �� 103 �� 97 ��

ACCOUNT VALUE ACTIVITY:

Policyholders� Account Balances (2)(3):

21,842 �� 10,583 ��

Beginning balance

20,710 �� 21,367 �� 21,842 �� 22,119 �� 22,239 ��
2,146 �� 2,965 ��

Premiums and deposits

892 �� 834 �� 769 �� 681 �� 696 ��
(822 )� (811 )�

Surrenders and withdrawals

(266 )��� (252 )� (237 )� (311 )���� (274 )�

1,324 �� 2,154 ��

Net sales

626 �� 582 �� 532 �� 370 �� 422 ��
(326 )� (310 )�

Benefit payments

(91 )� (109 )� (105 )� (110 )� (111 )�

998 �� 1,844 ��

Net flows

535 �� 473 �� 427 �� 260 �� 311 ��
362 �� 935 ��

Interest credited and other

360 �� 235 �� 65 �� 66 �� 231 ��
325 �� 270 ��

Net transfers from separate account

84 �� 98 �� 105 �� 110 �� 110 ��
(957 )� (949 )�

Policy charges

(322 )� (331 )� (320 )� (316 )� (321 )�
��� �� 8,684 ��

Acquisition

��� �� ��� �� ��� �� ��� �� ��� ��

22,570 �� 21,367 ��

Ending balance

21,367 �� 21,842 �� 22,119 �� 22,239 �� 22,570 ��

Separate Account Liabilities (3):

26,916 �� 17,817 ��

Beginning balance

24,555 �� 25,380 �� 26,916 �� 27,153 �� 27,968 ��
930 �� 885 ��

Premiums and deposits

196 �� 392 �� 369 �� 283 �� 278 ��
(661 )� (670 )�

Surrenders and withdrawals

(122 )� (232 )� (239 )� (203 )� (219 )�

269 �� 215 ��

Net sales

74 �� 160 �� 130 �� 80 �� 59 ��
(80 )� (92 )�

Benefit payments

1 �� (29 )� (32 )� (28 )� (20 )�

189 �� 123 ��

Net flows

75 �� 131 �� 98 �� 52 �� 39 ��
1,393 �� 2,831 ��

Change in market value, interest credited and other

991 �� 1,744 �� 484 �� 1,110 �� (201 )�
(325 )� (270 )�

Net transfers to general account

(84 )� (98 )� (105 )� (110 )� (110 )�
(718 )� (728 )�

Policy charges

(157 )� (241 )� (240 )� (237 )� (241 )�
��� �� 5,607 ��

Acquisition

��� �� ��� �� ��� �� ��� �� ��� ��

27,455 �� 25,380 ��

Ending balance

25,380 �� 26,916 �� 27,153 �� 27,968 �� 27,455 ��

FACE AMOUNT IN FORCE (4):

Variable life

173,142 �� 172,870 �� 173,382 �� 171,043 �� 169,493 ��

Universal life

139,808 �� 144,533 �� 147,519 �� 149,274 �� 150,697 ��

Term life

614,032 �� 621,289 �� 627,425 �� 634,132 �� 640,758 ��

Total

926,982 �� 938,692 �� 948,326 �� 954,449 �� 960,948 ��

(1) Excludes corporate-owned life insurance.
(2) Includes fixed rate funds, alliance deposits, supplementary contracts and deferred revenues on variable products.
(3) Includes reclassifications during the second quarter of 2013 to conform presentation of certain acquired liabilities.
(4) At end of period; before reinsurance ceded.

Page 22


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

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

(dollar amounts in millions)

Year-to-date �� 2013 �� 2014
2014 �� 2013 �� 3Q 4Q �� 1Q �� 2Q 3Q
�� �� �� ��
�� ��

Individual Life Insurance:

�� ��
�� ��

Policy Surrender Experience:

�� ��
853 �� �� 882 �� ��

Cash value of surrenders

284 �� 291 �� �� 286 �� �� 278 �� 289 ��
2.5% �� �� 2.9% �� ��

Cash value of surrenders as a percentage of mean future policy benefits, policyholders� account balances, and separate account balances

2.7% ��� 2.7% �� �� 2.6% �� �� 2.5% ���� 2.5% ��
�� �� �� ��
�� ��

Death benefits per $1,000 of in force (1):

�� ��
4.78 �� �� 4.60 �� ��

Variable and universal life

5.31 �� 4.41 �� �� 5.06 �� �� 4.61 �� 4.62 ��
1.23 �� �� 1.21 �� ��

Term life

1.01 �� 1.55 �� �� 1.31 �� �� 1.20 �� 1.19 ��
3.29 �� �� 3.22 �� ��

Total, Individual Life Insurance

3.53 �� 3.25 �� �� 3.51 �� �� 3.13 �� 3.16 ��
�� �� �� ��

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

Page 23


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

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

(dollar amounts in millions)

Year-to-date �� �� 2013 2014
2014 �� 2013 �� �� 3Q 4Q 1Q 2Q 3Q
�� �� ��
�� ��

GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:

��
161 �� �� 196 �� ��

Group life

�� 33 �� 44 �� 137 �� 10 �� 14 ��
58 �� �� 65 �� ��

Group disability

�� 13 �� 8 �� 33 �� 12 �� 13 ��

��

�� ��

219 �� �� 261 �� ��

Total

�� 46 �� 52 �� 170 �� 22 �� 27 ��

��

�� ��

�� �� Future Policy Benefits (1)(2): ��
�� ��

Group life

�� 2,123 �� 2,281 �� 2,198 �� 2,132 �� 2,074 ��
�� ��

Group disability

�� 13 �� 3 �� 30 �� 21 �� 11 ��
�� �� ��

�� ��

Total

�� 2,136 �� 2,284 �� 2,228 �� 2,153 �� 2,085 ��
�� �� ��

�� �� Policyholders� Account Balances (1): ��
�� ��

Group life

�� 7,822 �� 7,928 �� 7,853 �� 7,923 �� 7,953 ��
�� ��

Group disability

�� 233 �� 251 �� 254 �� 217 �� 223 ��
�� �� ��

�� ��

Total

�� 8,055 �� 8,179 �� 8,107 �� 8,140 �� 8,176 ��
�� �� ��

�� �� Separate Account Liabilities (1): ��
�� ��

Group life

�� 22,017 �� 22,706 �� 22,938 �� 24,525 �� 24,515 ��
�� ��

Group disability

�� ��� �� ��� �� ��� �� ��� �� ��� ��
�� �� ��

�� ��

Total

�� 22,017 �� 22,706 �� 22,938 �� 24,525 �� 24,515 ��
�� �� ��

�� �� Group Life Insurance: ��
2,959 �� �� 3,086 �� ��

Gross premiums, policy charges and fee income (3)

�� 960 �� 1,013 �� 1,004 �� 1,002 �� 953 ��
2,894 �� �� 2,946 �� ��

Earned premiums, policy charges and fee income

�� 948 �� 969 �� 973 �� 966 �� 955 ��
89.6% �� �� 89.3% �� ��

Benefits ratio

�� 84.8 %��� 86.2 %� 89.6 %� 89.3 %���� 89.9 %�
10.8% �� �� 9.9% �� ��

Administrative operating expense ratio

�� 11.1 %� 10.8 %� 11.2 %� 9.9 %� 11.5 %�
�� ��

Persistency ratio

�� 93.8 %� 93.7 %� 94.9 %� 94.2 %� 93.5 %�
�� �� Group Disability Insurance: ��
662 �� �� 725 �� ��

Gross premiums, policy charges and fee income (3)

�� 243 �� 242 �� 221 �� 221 �� 220 ��
612 �� �� 674 �� ��

Earned premiums, policy charges and fee income

�� 223 �� 225 �� 200 �� 199 �� 213 ��
106.7% �� �� 93.2% �� ��

Benefits ratio

�� 91.9 %� 91.6 %� 100.5 %� 83.9 %� 133.8 %�
29.9% �� �� 26.1% �� ��

Administrative operating expense ratio

�� 25.9 %� 28.1 %� 29.0 %� 29.4 %� 31.4 %�
�� ��

Persistency ratio

�� 88.1 %� 87.0 %� 87.0 %� 85.6 %� 84.6 %�
�� �� ��

(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

Third Quarter 2014

��

LOGO

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

(in millions)

Year-to-date 2013 2014
2014 2013 3Q 4Q 1Q 2Q 3Q

DEFERRED POLICY ACQUISITION COSTS

INDIVIDUAL ANNUITIES:

5,490 �� 3,829 ��

Beginning balance

4,577 �� 5,314 �� 5,490 �� 5,513 �� 5,521 ��
375 �� 474 ��

Capitalization

124 �� 124 �� 116 �� 132 �� 127 ��
(392 )� (159 )�

Amortization - operating results

99 �� (98 )� (122 )� (129 )���� (141 )�
84 �� 1,072 ��

Amortization - realized investment gains and losses

510 �� 142 �� 41 �� 9 �� 34 ��
(3 )� 98 ��

Impact of unrealized (gains) or losses on AFS securities

4 �� 8 �� (12 )� (4 )� 13 ��
��� �� ��� ��

Other

��� �� ��� �� ��� �� ��� �� ��� ��

5,554 �� 5,314 ��

Ending balance

5,314 �� 5,490 �� 5,513 �� 5,521 �� 5,554 ��

INDIVIDUAL LIFE INSURANCE:

4,112 �� 3,116 ��

Beginning balance

3,646 �� 3,952 �� 4,112 �� 4,089 �� 4,057 ��
398 �� 581 ��

Capitalization

173 �� 181 �� 143 �� 130 �� 125 ��
(221 )� (57 )�

Amortization - operating results

113 �� (54 )� (96 )� (98 )� (27 )�
8 �� 11 ��

Amortization - realized investment gains and losses

4 �� 4 �� 2 �� 1 �� 5 ��
(112 )� 301 ��

Impact of unrealized (gains) or losses on AFS securities

16 �� 29 �� (72 )� (65 )� 25 ��

4,185 �� 3,952 ��

Ending balance

3,952 �� 4,112 �� 4,089 �� 4,057 �� 4,185 ��

GROUP INSURANCE:

183 �� 182 ��

Beginning balance

175 �� 177 �� 183 �� 180 �� 178 ��
��� �� 2 ��

Capitalization

4 �� 9 �� ��� �� ��� �� ��� ��
(7 )� (7 )�

Amortization - operating results

(2 )��� (3 )� (3 )� (2 )� (2 )�
��� �� ��� ��

Amortization - realized investment gains and losses

��� �� ��� �� ��� �� ��� �� ��� ��
��� �� ��� ��

Impact of unrealized losses on AFS securities

��� �� ��� �� ��� �� ��� �� ��� ��

176 �� 177 ��

Ending balance

177 �� 183 �� 180 �� 178 �� 176 ��

DEFERRED SALES INDUCEMENTS

INDIVIDUAL ANNUITIES:

1,813 �� 1,357 ��

Beginning balance

1,506 �� 1,764 �� 1,813 �� 1,756 �� 1,687 ��
18 �� 44 ��

Capitalization

13 �� 9 �� 7 �� 7 �� 4 ��
(158 )� (98 )�

Amortization - operating results

8 �� (39 )� (50 )� (52 )� (56 )�
(29 )� 428 ��

Amortization - realized investment gains and losses

235 �� 76 �� (11 )� (21 )� 3 ��
1 �� 33 ��

Impact of unrealized (gains) or losses on AFS securities

2 �� 3 �� (3 )� (3 )� 7 ��
��� �� ��� ��

Other

��� �� ��� �� ��� �� ��� �� ��� ��

1,645 �� 1,764 ��

Ending balance

1,764 �� 1,813 �� 1,756 �� 1,687 �� 1,645 ��

Page 25


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)

Year-to-date %
Change
�� 2013 2014
2014 2013 �� 3Q 4Q 1Q 2Q 3Q
��
��

Revenues (1):

11,086 �� 13,373 �� -17% �� ��

Premiums

3,889 �� 3,664 �� 3,696 �� 3,822 �� 3,568 ��
432 �� 463 �� -7% �� ��

Policy charges and fee income

142 �� 136 �� 138 �� 138 �� 156 ��
3,350 �� 3,246 �� 3% �� ��

Net investment income

1,086 �� 1,060 �� 1,084 �� 1,128 �� 1,138 ��
461 �� 467 �� -1% �� ��

Asset management fees, commissions and other income

142 �� 131 �� 157 �� 164 �� 140 ��

��

15,329 �� 17,549 �� -13% �� ��

Total revenues

��5,259 �� 4,991 �� 5,075 �� 5,252 �� 5,002 ��

��

��

Benefits and Expenses (1):

9,381 �� 11,456 �� -18% �� ��

Insurance and annuity benefits

3,349 �� 3,150 �� 3,113 �� 3,217 �� 3,051 ��
737 �� 745 �� -1% �� ��

Interest credited to policyholders� account balances

245 �� 239 �� 239 �� 242 �� 256 ��
3 �� 1 �� 200% �� ��

Interest expense

��� �� 2 �� ��� �� 2 �� 1 ��
(1,247 )� (1,171 )� -6% �� ��

Deferral of acquisition costs

(347 )��� (372 )� (412 )� (420 )���� (415 )�
715 �� 779 �� -8% �� ��

Amortization of acquisition costs

234 �� 232 �� 250 �� 256 �� 209 ��
3,174 �� 3,234 �� -2% �� ��

General and administrative expenses

1,000 �� 1,093 �� 1,048 �� 1,071 �� 1,055 ��

��

12,763 �� 15,044 �� -15% �� ��

Total benefits and expenses

4,481 �� 4,344 �� 4,238 �� 4,368 �� 4,157 ��

��

2,566 �� 2,505 �� 2% �� ��

Adjusted operating income before income taxes

778 �� 647 �� 837 �� 884 �� 845 ��

��

��

(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

Third Quarter 2014

��

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)

�� Nine Months Ended September�30, 2014 Quarter Ended September�30, 2014
�� Total
International
Insurance
Division
International
Insurance -
Life Planner
Operations
International
Insurance -
Gibraltar�Life�&
Other�Operations
Total
International
Insurance
Division
International
Insurance -
Life Planner
Operations
International
Insurance -
Gibraltar Life�&
Other�Operations

Revenues (1):

��

Premiums

�� 11,086 �� 5,263 �� 5,823 �� 3,568 �� 1,693 �� 1,875 ��

Policy charges and fee income

�� 432 �� 267 �� 165 �� 156 �� 87 �� 69 ��

Net investment income

�� 3,350 �� 1,298 �� 2,052 �� 1,138 �� 436 �� 702 ��

Asset management fees, commissions and other income

�� 461 �� 196 �� 265 �� 140 �� 68 �� 72 ��
��

Total revenues

�� 15,329 �� 7,024 �� 8,305 �� 5,002 �� 2,284 �� 2,718 ��
��

Benefits and Expenses (1):

��

Insurance and annuity benefits

�� 9,381 �� 4,580 �� 4,801 �� 3,051 �� 1,486 �� 1,565 ��

Interest credited to policyholders� account balances

�� 737 �� 172 �� 565 �� 256 �� 59 �� 197 ��

Interest expense

�� 3 �� 2 �� 1 �� 1 �� 1 �� ��� ��

Deferral of acquisition costs

�� (1,247 )� (585 )� (662 )� (415 )� (185 )� (230 )�

Amortization of acquisition costs

�� 715 �� 337 �� 378 �� 209 �� 84 �� 125 ��

General and administrative expenses

�� 3,174 �� 1,303 �� 1,871 �� 1,055 �� 425 �� 630 ��
��

Total benefits and expenses

�� 12,763 �� 5,809 �� 6,954 �� 4,157 �� 1,870 �� 2,287 ��
��

Adjusted operating income before income taxes

�� 2,566 �� 1,215 �� 1,351 �� 845 �� 414 �� 431 ��
��

�� Nine Months Ended September�30, 2013 Quarter Ended September�30, 2013
�� Total
International
Insurance
Division
International
Insurance -
Life Planner
Operations
International
Insurance -
Gibraltar Life &
Other Operations
Total
International
Insurance
Division
International
Insurance -
Life Planner
Operations
International
Insurance -
Gibraltar Life &
Other Operations

Revenues (1):

��

Premiums

�� 13,373 �� 5,119 �� 8,254 �� 3,889 �� 1,606 �� 2,283 ��

Policy charges and fee income

�� 463 �� 263 �� 200 �� 142 �� 88 �� 54 ��

Net investment income

�� 3,246 �� 1,198 �� 2,048 �� 1,086 �� 405 �� 681 ��

Asset management fees, commissions and other income

�� 467 �� 194 �� 273 �� 142 �� 74 �� 68 ��
��

Total revenues

�� 17,549 �� 6,774 �� 10,775 �� 5,259 �� 2,173 �� 3,086 ��
��

Benefits and Expenses (1):

��

Insurance and annuity benefits

�� 11,456 �� 4,336 �� 7,120 �� 3,349 �� 1,364 �� 1,985 ��

Interest credited to policyholders� account balances

�� 745 �� 187 �� 558 �� 245 �� 63 �� 182 ��

Interest expense

�� 1 �� 1 �� ��� �� ��� �� ��� �� ��� ��

Deferral of acquisition costs

�� (1,171 )� (529 )� (642 )� (347 )� (153 )� (194 )�

Amortization of acquisition costs

�� 779 �� 333 �� 446 �� 234 �� 96 �� 138 ��

General and administrative expenses

�� 3,234 �� 1,232 �� 2,002 �� 1,000 �� 379 �� 621 ��
��

Total benefits and expenses

�� 15,044 �� 5,560 �� 9,484 �� 4,481 �� 1,749 �� 2,732 ��
��

Adjusted operating income before income taxes

�� 2,505 �� 1,214 �� 1,291 �� 778 �� 424 �� 354 ��
��

(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

Third Quarter 2014

��

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)

Year-to-date �� �� 2013 �� 2014
2014 �� 2013 �� �� 3Q 4Q �� 1Q �� 2Q 3Q
�� �� �� �� ��
�� ��

INTERNATIONAL INSURANCE OPERATING DATA:

�� �� ��
�� �� �� �� ��
�� ��

Actual exchange rate basis (1):

�� �� ��
�� ��

Net premiums, policy charges and fee income:

�� �� ��
4,143 �� �� 4,122 �� ��

Japan, excluding Gibraltar Life

�� 1,271 �� 1,273 �� �� 1,538 �� �� 1,303 ���� 1,302 ��
5,988 �� �� 8,454 �� ��

Gibraltar Life

�� 2,337 �� 2,063 �� �� 1,859 �� �� 2,185 �� 1,944 ��
1,387 �� �� 1,260 �� ��

All other countries

�� 423 �� 464 �� �� 437 �� �� 472 �� 478 ��

��

�� ��

��

��

11,518 �� �� 13,836 �� ��

Total

�� 4,031 ��� 3,800 �� �� 3,834 �� �� 3,960 �� 3,724 ��

��

�� ��

��

��

�� ��

Annualized new business premiums:

�� �� ��
545 �� �� 580 �� ��

Japan, excluding Gibraltar Life

�� 152 �� 183 �� �� 227 �� �� 157 �� 161 ��
1,207 �� �� 1,364 �� ��

Gibraltar Life

�� 407 �� 392 �� �� 361 �� �� 437 �� 409 ��
332 �� �� 257 �� ��

All other countries

�� 85 �� 108 �� �� 104 �� �� 115 �� 113 ��

��

�� ��

��

��

2,084 �� �� 2,201 �� ��

Total

�� 644 �� 683 �� �� 692 �� �� 709 �� 683 ��

��

�� ��

��

��

�� ��

Annualized new business premiums by distribution channel:

�� �� ��
877 �� �� 837 �� ��

Life Planner Operations

�� 237 �� 291 �� �� 331 �� �� 272 �� 274 ��
542 �� �� 612 �� ��

Gibraltar Life Consultants

�� 176 �� 167 �� �� 158 �� �� 210 �� 174 ��
470 �� �� 588 �� ��

Banks

�� 182 �� 169 �� �� 144 �� �� 156 �� 170 ��
195 �� �� 164 �� ��

Independent Agency

�� 49 �� 56 �� �� 59 �� �� 71 �� 65 ��

��

�� ��

��

��

2,084 �� �� 2,201 �� ��

Total

�� 644 �� 683 �� �� 692 �� �� 709 �� 683 ��

��

�� ��

��

��

�� �� �� �� ��
�� ��

Constant exchange rate basis (2):

�� �� ��
�� ��

Net premiums, policy charges and fee income:

�� �� ��
4,893 �� �� 4,632 �� ��

Japan, excluding Gibraltar Life

�� 1,460 �� 1,479 �� �� 1,815 �� �� 1,523 �� 1,555 ��
7,063 �� �� 9,505 �� ��

Gibraltar Life

�� 2,695 �� 2,378 �� �� 2,200 �� �� 2,584 �� 2,279 ��
1,303 �� �� 1,203 �� ��

All other countries

�� 408 �� 436 �� �� 416 �� �� 438 �� 449 ��

��

�� ��

��

��

13,259 �� �� 15,340 �� ��

Total

�� 4,563 �� 4,293 �� �� 4,431 �� �� 4,545 �� 4,283 ��

��

�� ��

��

��

�� ��

Annualized new business premiums:

�� �� ��
647 �� �� 657 �� ��

Japan, excluding Gibraltar Life

�� 177 �� 212 �� �� 270 �� �� 185 �� 192 ��
1,327 �� �� 1,476 �� ��

Gibraltar Life

�� 450 �� 428 �� �� 403 �� �� 479 �� 445 ��
310 �� �� 243 �� ��

All other countries

�� 81 �� 102 �� �� 99 �� �� 105 �� 106 ��

��

�� ��

��

��

2,284 �� �� 2,376 �� ��

Total

�� 708 �� 742 �� �� 772 �� �� 769 �� 743 ��

��

�� ��

��

��

�� ��

Annualized new business premiums by distribution channel:

�� �� ��
957 �� �� 900 �� ��

Life Planner Operations

�� 258 �� 314 �� �� 369 �� �� 290 �� 298 ��
610 �� �� 663 �� ��

Gibraltar Life Consultants

�� 195 �� 186 �� �� 182 �� �� 232 �� 196 ��
498 �� �� 635 �� ��

Banks

�� 200 �� 182 �� �� 154 �� �� 167 �� 177 ��
219 �� �� 178 �� ��

Independent Agency

�� 55 �� 60 �� �� 67 �� �� 80 �� 72 ��

��

�� ��

��

��

2,284 �� �� 2,376 �� ��

Total

�� 708 �� 742 �� �� 772 �� �� 769 �� 743 ��

��

�� ��

��

��

�� �� �� �� ��

(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 82�per U.S. dollar and Korean won 1150�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

Third Quarter 2014

��

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

�� 2013 2014
�� 3Q 4Q 1Q 2Q 3Q
��

Face amount of individual policies in force at end of period (in billions) (1)(2):

��

(Constant exchange rate basis)

��

Japan, excluding Gibraltar Life

�� 361 �� 364 �� 368 �� 371 �� 374 ��

Gibraltar Life

�� 406 �� 406 �� 406 �� 406 �� 407 ��

All other countries

�� 108 �� 110 �� 111 �� 113 �� 115 ��
��

Total

�� 875 �� 880 �� 885 �� 890 �� 896 ��
��

Number of individual policies in force at end of period (in thousands) (2):

��

Japan, excluding Gibraltar Life

�� 2,936 �� 2,969 �� 3,015 �� 3,043 �� 3,077 ��

Gibraltar Life

�� 7,307 �� 7,274 �� 7,217 �� 7,161 �� 7,137 ��

All other countries

�� 1,715 �� 1,742 �� 1,766 �� 1,794 �� 1,821 ��
��

Total

�� 11,958 �� 11,985 �� 11,998 �� 11,998 �� 12,035 ��
��

International life insurance policy persistency:

��

Life Planner Operations:

��

13 months

�� 93.1 %��� 93.0 %� 93.0 %� 92.9 %���� 92.5 %�

25 months

�� 85.9 %� 85.6 %� 85.9 %� 86.0 %� 86.2 %�

Gibraltar Life (3):

��

13 months

�� 90.8 %� 90.9 %� 91.0 %� 91.0 %� 91.2 %�

25 months

�� 83.0 %� 82.4 %� 81.8 %� 81.9 %� 82.2 %�

Number of Life Planners at end of period:

��

Japan

�� 3,274 �� 3,258 �� 3,298 �� 3,212 �� 3,275 ��

All other countries

�� 3,934 �� 3,990 �� 3,896 �� 3,862 �� 3,938 ��
��

Total Life Planners

�� 7,208 �� 7,248 �� 7,194 �� 7,074 �� 7,213 ��
��

Gibraltar Life Consultants

�� 9,298 �� 9,327 �� 8,806 �� 8,670 �� 8,601 ��
��

(1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 82�per U.S. dollar and Korean won 1150�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

Third Quarter 2014

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)

�� September�30, 2014 December�31, 2013
�� Consolidated
Portfolio
�� Closed
Block
Business
�� Financial� Services
Businesses
Consolidated
Portfolio
�� Closed
Block
Business
�� Financial�Services
Businesses
�� �� �� Amount �� %�of�Total �� �� Amount �� %�of�Total

Fixed maturities:

�� �� �� �� �� �� ��

Public, available-for-sale, at fair value

�� 251,969 �� �� 29,275 �� �� 222,694 �� �� 65.5 %� 240,090 �� �� 27,401 �� �� 212,689 �� �� 65.4 %�

Public, held-to-maturity, at amortized cost

�� 2,211 �� �� ��� �� �� 2,211 �� �� 0.7 %� 2,500 �� �� ��� �� �� 2,500 �� �� 0.8 %�

Private, available-for-sale, at fair value

�� 48,822 �� �� 15,673 �� �� 33,149 �� �� 9.7 %� 46,461 �� �� 15,811 �� �� 30,650 �� �� 9.4 %�

Private, held-to-maturity, at amortized cost

�� 669 �� �� ��� �� �� 669 �� �� 0.2 %� 812 �� �� ��� �� �� 812 �� �� 0.2 %�

Trading account assets supporting insurance liabilities, at fair value

�� 20,507 �� �� ��� �� �� 20,507 �� �� 6.0 %� 20,827 �� �� ��� �� �� 20,827 �� �� 6.4 %�

Other trading account assets, at fair value

�� 1,779 �� �� 318 �� �� 1,461 �� �� 0.4 %� 1,683 �� �� 342 �� �� 1,341 �� �� 0.4 %�

Equity securities, available-for-sale, at fair value

�� 9,871 �� �� 3,501 �� �� 6,370 �� �� 1.9 %� 9,903 �� �� 3,884 �� �� 6,019 �� �� 1.8 %�

Commercial mortgage and other loans, at book value

�� 44,489 �� �� 10,287 �� �� 34,202 �� �� 10.1 %� 40,806 �� �� 9,673 �� �� 31,133 �� �� 9.6 %�

Policy loans, at outstanding balance

�� 11,857 �� �� 4,929 �� �� 6,928 �� �� 2.0 %� 11,766 �� �� 5,013 �� �� 6,753 �� �� 2.1 %�

Other long-term investments (1)

�� 9,826 �� �� 2,545 �� �� 7,281 �� �� 2.2 %� 9,196 �� �� 2,024 �� �� 7,172 �� �� 2.2 %�

Short-term investments

�� 5,280 �� �� 746 �� �� 4,534 �� �� 1.3 %� 7,311 �� �� 1,866 �� �� 5,445 �� �� 1.7 %�
��

��

��

��

��

��

��

Subtotal (2)

�� 407,280 �� �� 67,274 �� �� 340,006 �� �� 100.0 %� 391,355 �� �� 66,014 �� �� 325,341 �� �� 100.0 %�
�� �� �� ��

�� �� ��

Invested assets of other entities and operations (3)

�� 9,461 �� �� ��� �� �� 9,461 �� �� 6,818 �� �� ��� �� �� 6,818 �� ��
��

��

��

��

��

��

��

Total investments

�� 416,741 �� �� 67,274 �� �� 349,467 �� �� 398,173 �� �� 66,014 �� �� 332,159 �� ��
��

��

��

��

��

��

��

Fixed Maturities by Credit Quality (2):

�� September�30, 2014 December�31, 2013
�� Financial Services Businesses Financial Services Businesses
�� 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

�� 174,029 �� �� 19,952 �� �� 976 �� �� 193,005 �� �� 85.7 %� 171,777 �� �� 14,808 �� �� 2,719 �� �� 183,866 �� �� 85.4 %�

2

�� 23,644 �� �� 2,456 �� �� 285 �� �� 25,815 �� �� 11.5 %� 24,281 �� �� 2,029 �� �� 781 �� �� 25,529 �� �� 11.8 %�
��

��

��

��

��

��

��

��

��

Subtotal - High or Highest Quality Securities

�� 197,673 �� �� 22,408 �� �� 1,261 �� �� 218,820 �� �� 97.2 %� 196,058 �� �� 16,837 �� �� 3,500 �� �� 209,395 �� �� 97.2 %�
��

��

��

��

��

��

��

��

��

3

�� 3,966 �� �� 248 �� �� 46 �� �� 4,168 �� �� 1.9 %� 4,078 �� �� 256 �� �� 136 �� �� 4,198 �� �� 1.9 %�

4

�� 1,589 �� �� 117 �� �� 28 �� �� 1,678 �� �� 0.7 %� 1,391 �� �� 162 �� �� 33 �� �� 1,520 �� �� 0.7 %�

5

�� 167 �� �� 106 �� �� 4 �� �� 269 �� �� 0.1 %� 125 �� �� 22 �� �� 9 �� �� 138 �� �� 0.1 %�

6

�� 210 �� �� 17 �� �� 2 �� �� 225 �� �� 0.1 %� 116 �� �� 20 �� �� 3 �� �� 133 �� �� 0.1 %�
��

��

��

��

��

��

��

��

��

Subtotal - Other Securities

�� 5,932 �� �� 488 �� �� 80 �� �� 6,340 �� �� 2.8 %� 5,710 �� �� 460 �� �� 181 �� �� 5,989 �� �� 2.8 %�
��

��

��

��

��

��

��

��

��

Total

�� 203,605 �� �� 22,896 �� �� 1,341 �� �� 225,160 �� �� 100.0 %� 201,768 �� �� 17,297 �� �� 3,681 �� �� 215,384 �� �� 100.0 %�
��

��

��

��

��

��

��

��

��

Private Fixed Maturities:

�� �� �� �� �� �� �� �� ��

NAIC�Rating�(4)

�� �� �� �� �� �� �� �� ��

1

�� 8,565 �� �� 838 �� �� 30 �� �� 9,373 �� �� 27.7 %� 7,766 �� �� 712 �� �� 92 �� �� 8,386 �� �� 26.6 %�

2

�� 19,292 �� �� 1,563 �� �� 88 �� �� 20,767 �� �� 61.3 %� 18,378 �� �� 1,534 �� �� 157 �� �� 19,755 �� �� 62.7 %�
��

��

��

��

��

��

��

��

��

Subtotal - High or Highest Quality Securities

�� 27,857 �� �� 2,401 �� �� 118 �� �� 30,140 �� �� 89.0 %� 26,144 �� �� 2,246 �� �� 249 �� �� 28,141 �� �� 89.3 %�
��

��

��

��

��

��

��

��

��

3

�� 2,685 �� �� 159 �� �� 21 �� �� 2,823 �� �� 8.4 %� 2,243 �� �� 156 �� �� 16 �� �� 2,383 �� �� 7.6 %�

4

�� 503 �� �� 18 �� �� 13 �� �� 508 �� �� 1.5 %� 667 �� �� 29 �� �� 18 �� �� 678 �� �� 2.2 %�

5

�� 327 �� �� 9 �� �� 17 �� �� 319 �� �� 0.9 %� 197 �� �� 9 �� �� 7 �� �� 199 �� �� 0.6 %�

6

�� 63 �� �� 13 �� �� ��� �� �� 76 �� �� 0.2 %� 97 �� �� 11 �� �� 1 �� �� 107 �� �� 0.3 %�
��

��

��

��

��

��

��

��

��

Subtotal - Other Securities

�� 3,578 �� �� 199 �� �� 51 �� �� 3,726 �� �� 11.0 %� 3,204 �� �� 205 �� �� 42 �� �� 3,367 �� �� 10.7 %�
��

��

��

��

��

��

��

��

��

Total

�� 31,435 �� �� 2,600 �� �� 169 �� �� 33,866 �� �� 100.0 %� 29,348 �� �� 2,451 �� �� 291 �� �� 31,508 �� �� 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 September�30, 2014 and December�31, 2013, respectively, 438 securities with amortized cost of $1,576 million (fair value $1,614 million) and 306 securities with amortized cost of $806 million (fair value, $831 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 30


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)

�� September�30,�2014 December�31, 2013
�� Amount �� %�of�Total Amount �� %�of�Total

Japanese Insurance Operations (1):

�� �� ��

Fixed maturities:

�� �� ��

Public, available-for-sale, at fair value

�� 119,295 �� �� 81.1 %� 112,501 �� �� 81.0 %�

Public, held-to-maturity, at amortized cost

�� 2,211 �� �� 1.5 %� 2,500 �� �� 1.8 %�

Private, available-for-sale, at fair value

�� 7,844 �� �� 5.3 %� 6,762 �� �� 4.9 %�

Private, held-to-maturity, at amortized cost

�� 669 �� �� 0.5 %� 812 �� �� 0.6 %�

Trading account assets supporting insurance liabilities, at fair value

�� 1,956 �� �� 1.3 %� 1,925 �� �� 1.4 %�

Other trading account assets, at fair value

�� 746 �� �� 0.5 %� 884 �� �� 0.6 %�

Equity securities, available-for-sale, at fair value

�� 2,643 �� �� 1.8 %� 2,557 �� �� 1.9 %�

Commercial mortgage and other loans, at book value

�� 7,208 �� �� 4.9 %� 6,581 �� �� 4.7 %�

Policy loans, at outstanding balance

�� 2,308 �� �� 1.6 %� 2,280 �� �� 1.6 %�

Other long-term investments (2)

�� 1,847 �� �� 1.3 %� 1,576 �� �� 1.1 %�

Short-term investments

�� 294 �� �� 0.2 %� 541 �� �� 0.4 %�
��

��

��

Total

�� 147,021 �� �� 100.0 %� 138,919 �� �� 100.0 %�
��

��

��

�� September�30, 2014 December�31, 2013
�� Amount �� %�of�Total Amount �� %�of�Total

Financial Services Businesses excluding Japanese Insurance Operations (1):

�� �� ��

Fixed maturities:

�� �� ��

Public, available-for-sale, at fair value

�� 103,399 �� �� 53.6 %� 100,188 �� �� 53.8 %�

Public, held-to-maturity, at amortized cost

�� ��� �� �� 0.0 %� ��� �� �� 0.0 %�

Private, available-for-sale, at fair value

�� 25,305 �� �� 13.1 %� 23,888 �� �� 12.8 %�

Private, held-to-maturity, at amortized cost

�� ��� �� �� 0.0 %� ��� �� �� 0.0 %�

Trading account assets supporting insurance liabilities, at fair value

�� 18,551 �� �� 9.6 %� 18,902 �� �� 10.1 %�

Other trading account assets, at fair value

�� 715 �� �� 0.4 %� 457 �� �� 0.2 %�

Equity securities, available-for-sale, at fair value

�� 3,727 �� �� 1.9 %� 3,462 �� �� 1.9 %�

Commercial mortgage and other loans, at book value

�� 26,994 �� �� 14.0 %� 24,552 �� �� 13.2 %�

Policy loans, at outstanding balance

�� 4,620 �� �� 2.4 %� 4,473 �� �� 2.4 %�

Other long-term investments (2)

�� 5,434 �� �� 2.8 %� 5,596 �� �� 3.0 %�

Short-term investments

�� 4,240 �� �� 2.2 %� 4,904 �� �� 2.6 %�
��

��

��

Total

�� 192,985 �� �� 100.0 %� 186,422 �� �� 100.0 %�
��

��

��

(1) Excludes assets classified as �Separate account assets� on our balance sheet.
(2) 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

Third Quarter 2014

�� LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)

�� Quarter Ended September�30
�� 2014 2013
��

Investment�Income

Realized
Gains /
(Losses)

Investment�Income

Realized
Gains /
(Losses)
�� Yield�(3) Amount Yield�(3) Amount

Financial Services Businesses (1):

��

Fixed maturities

�� 3.83 %� 2,211 �� 72 �� 3.76 %� 2,133 �� 296 ��

Equity securities

�� 6.24 %� 75 �� 7 �� 6.92 %� 72 �� 18 ��

Commercial mortgage and other loans

�� 4.55 %� 326 �� 54 �� 4.91 %� 295 �� 1 ��

Policy loans

�� 5.11 %� 89 �� ��� �� 4.82 %� 81 �� ��� ��

Short-term investments and cash equivalents

�� 0.22 %� 7 �� ��� �� 0.24 %� 7 �� ��� ��

Other investments

�� 8.71 %� 185 �� (496 )� 6.34 %� 126 �� (2,684 )�
��

Gross investment income before investment expenses

�� 3.97 %� 2,893 �� (363 )� 3.86 %� 2,714 �� (2,369 )�

Investment expenses

�� -0.15 %� (82 )� ��� �� -0.13 %� (65 )� ��� ��
��

Subtotal

�� 3.82 %� 2,811 �� (363 )� 3.73 %� 2,649 �� (2,369 )�
��

Investment results of other entities and operations (2)

�� 282 �� 38 �� 268 �� 50 ��

Less, investment income related to adjusted operating income reconciling items

�� (53 )� (44 )�
��

Total

�� 3,040 �� (325 )� 2,873 �� (2,319 )�
��

�� Nine Months Ended September�30
�� 2014 2013
��

Investment�Income

Realized
Gains /

(Losses)

Investment�Income

Realized
Gains /

(Losses)
�� Yield�(3) Amount Yield�(3) Amount

Financial Services Businesses (1):

��

Fixed maturities

�� 3.86 %� 6,578 �� 445 �� 3.75 %� 6,416 �� 615 ��

Equity securities

�� 6.25 %� 218 �� 72 �� 6.53 %� 200 �� 82 ��

Commercial mortgage and other loans

�� 4.70 %� 964 �� 47 �� 5.02 %� 868 �� (4 )�

Policy loans

�� 5.04 %� 256 �� ��� �� 4.76 %� 235 �� ��� ��

Short-term investments and cash equivalents

�� 0.22 %� 19 �� ��� �� 0.21 %� 23 �� 1 ��

Other investments

�� 9.00 %� 564 �� (656 )� 6.45 %� 379 �� (4,947 )�
��

Gross investment income before investment expenses

�� 4.02 %� 8,599 �� (92 )� 3.82 %� 8,121 �� (4,253 )�

Investment expenses

�� -0.14 %� (255 )� ��� �� -0.13 %� (222 )� ��� ��
��

Subtotal

�� 3.88 %� 8,344 �� (92 )� 3.69 %� 7,899 �� (4,253 )�
��

Investment results of other entities and operations (2)

�� 831 �� 79 �� 834 �� 112 ��

Less, investment income related to adjusted operating income reconciling items

�� (150 )� (138 )�
��

Total

�� 9,025 �� (13 )� 8,595 �� (4,141 )�
��

(1) 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.
(2) 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.
(3) 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

Third Quarter 2014

�� LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)

�� Quarter Ended September�30
�� 2014 �� 2013
��

Investment�Income

Realized
Gains /

(Losses)
��

Investment�Income

Realized
Gains /

(Losses)
�� Yield�(1) Amount �� Yield�(1) Amount

Japanese Insurance Operations:

�� ��

Fixed maturities

�� 3.00 %� 847 �� 95 �� �� 2.95 %� 806 �� 335 ��

Equity securities

�� 5.36 %� 23 �� 5 �� �� 5.62 %� 25 �� 16 ��

Commercial mortgage and other loans

�� 4.03 %� 71 �� 7 �� �� 4.12 %� 63 �� 2 ��

Policy loans

�� 3.87 %� 23 �� ��� �� �� 3.80 %� 23 �� ��� ��

Short-term investments and cash equivalents

�� 0.21 %� 1 �� ��� �� �� 0.21 %� 1 �� ��� ��

Other investments (2)

�� 7.84 %� 46 �� 66 �� �� 9.15 %� 59 �� 11 ��
��

��

Gross investment income before investment expenses

�� 3.16 %� 1,011 �� 173 �� �� 3.14 %� 977 �� 364 ��

Investment expenses

�� -0.13 %� (42 )� ��� �� �� -0.13 %� (40 )� ��� ��
��

��

Total

�� 3.03 %� 969 �� 173 �� �� 3.01 %� 937 �� 364 ��
��

��

�� Nine Months Ended September�30
�� 2014 �� 2013
��

Investment�Income

Realized
Gains /

(Losses)
��

Investment�Income

Realized
Gains /

(Losses)
�� Yield�(1) Amount �� Yield�(1) Amount

Japanese Insurance Operations:

�� ��

Fixed maturities

�� 3.00 %� 2,481 �� 500 �� �� 2.88 %� 2,459 �� 710 ��

Equity securities

�� 5.39 %� 69 �� 41 �� �� 5.01 %� 67 �� 66 ��

Commercial mortgage and other loans

�� 4.29 %� 218 �� 9 �� �� 4.21 %� 192 �� 6 ��

Policy loans

�� 3.87 %� 67 �� ��� �� �� 3.61 %� 66 �� ��� ��

Short-term investments and cash equivalents

�� 0.24 %� 3 �� ��� �� �� 0.18 %� 3 �� ��� ��

Other investments (2)

�� 7.08 %� 125 �� 294 �� �� 6.51 %� 141 �� (767 )�
��

��

Gross investment income before investment expenses

�� 3.16 %� 2,963 �� 844 �� �� 3.02 %� 2,928 �� 15 ��

Investment expenses

�� -0.13 %� (122 )� ��� �� �� -0.12 %� (118 )� ��� ��
��

��

Total

�� 3.03 %� 2,841 �� 844 �� �� 2.90 %� 2,810 �� 15 ��
��

��

(1) 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.
(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

Third Quarter 2014

�� LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)

�� Quarter Ended September�30
�� 2014 2013
��

Investment Income

Realized
Gains /

(Losses)

Investment Income

Realized
Gains /

(Losses)
�� Yield�(2) Amount Yield�(2) Amount

Financial Services Businesses excluding Japanese Insurance Operations (1):

��

Fixed maturities

�� 4.62 %� 1,364 �� (23 )� 4.52 %� 1,327 �� (39 )�

Equity securities

�� 6.74 %� 52 �� 2 �� 7.88 %� 47 �� 2 ��

Commercial mortgage and other loans

�� 4.73 %� 255 �� 47 �� 5.18 %� 232 �� (1 )�

Policy loans

�� 5.75 %� 66 �� ��� �� 5.37 %� 58 �� ��� ��

Short-term investments and cash equivalents

�� 0.22 %� 6 �� ��� �� 0.24 %� 6 �� ��� ��

Other investments

�� 9.03 %� 139 �� (562 )� 5.01 %� 67 �� (2,695 )�
��

Gross investment income before investment expenses

�� 4.61 %� 1,882 �� (536 )� 4.42 %� 1,737 �� (2,733 )�

Investment expenses

�� -0.15 %� (40 )� ��� �� 0.13 %� (25 )� ��� ��
��

Total

�� 4.46 %� 1,842 �� (536 )� 4.29 %� 1,712 �� (2,733 )�
��

�� Nine Months Ended September�30
�� 2014 2013
��

Investment�Income

Realized
Gains /

(Losses)

Investment�Income

Realized
Gains /

(Losses)
�� Yield�(2) Amount Yield�(2) Amount

Financial Services Businesses excluding Japanese Insurance Operations (1):

��

Fixed maturities

�� 4.69 %� 4,097 �� (55 )� 4.61 %� 3,957 �� (95 )�

Equity securities

�� 6.76 %� 149 �� 31 �� 7.70 %� 133 �� 16 ��

Commercial mortgage and other loans

�� 4.83 %� 746 �� 38 �� 5.31 %� 676 �� (10 )�

Policy loans

�� 5.65 %� 189 �� ��� �� 5.43 %� 169 �� ��� ��

Short-term investments and cash equivalents

�� 0.22 %� 16 �� ��� �� 0.22 %� 20 �� 1 ��

Other investments

�� 9.73 %� 439 �� (950 )� 6.41 %� 238 �� (4,180 )�
��

Gross investment income before investment expenses

�� 4.70 %� 5,636 �� (936 )� 4.49 %� 5,193 �� (4,268 )�

Investment expenses

�� -0.16 %� (133 )� ��� �� -0.13 %� (104 )� ��� ��
��

Total

�� 4.54 %� 5,503 �� (936 )� 4.36 %� 5,089 �� (4,268 )�
��

(1) 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.
(2) 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 34


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2013 AND 2014 ACTUARIAL UPDATES - ADJUSTED OPERATING INCOME

(in millions)

�� Insurance and
Annuity Benefits
Interest�Credited�to
Policyholders��Account�Balances
Amortization�of�Deferred
Policy Acquisition Costs
General and
Administrative�Expenses
Pre-Tax Adjusted
Operating Income
�� Third
Quarter
2013
Third
Quarter
2014
Third
Quarter
2013
Third
Quarter
2014
Third
Quarter
2013
Third
Quarter
2014
Third
Quarter
2013
Third
Quarter
2014
Third
Quarter
2013
�� Third
Quarter
2014

Actuarial Item:

�� ��

Annual review of assumptions including:
persistency, investment margins, costs associated with guaranteed benefits, and other elements of gross profits

�� (69 )� (3 )� (46 )� (1 )� (187 )� (7 )� 1 �� (3 )� 301 �� �� 14 ��

Quarterly adjustments for market performance and current quarter experience

�� (94 )� 32 �� (13 )� 7 �� (42 )� 12 �� (1 )� (1 )� 150 �� �� (50 )�
��

��

Total of above items

�� (163 )� 29 �� (59 )� 6 �� (229 )� 5 �� 0 �� (4 )� 451 �� �� (36 )�
��

��

Reported amount

�� (68 )� 123 �� 54 �� 107 �� (99 )� 141 �� 514 �� 553 �� ��
��

��

Amount excluding impact of items indicated above

�� 95 �� 94 �� 113 �� 101 �� 130 �� 136 �� 514 �� 557 �� ��
��

��

Page 35


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2013 AND 2014 ACTUARIAL UPDATES - ADJUSTED OPERATING INCOME

(in millions)

�� Policy�Charges�and
Fee Income (1)
Insurance and
Annuity�Benefits�(2)
�� Interest Credited
to Policyholders�
Account Balances
�� Amortization�of�Deferred
Policy Acquisition Costs
General and
Administrative�Expenses
�� Pre-Tax Adjusted
Operating Income
�� Third
Quarter
2013
Third
Quarter
2014
Third
Quarter
2013
Third
Quarter
2014
�� Third
Quarter
2013
�� Third
Quarter
2014
�� Third
Quarter
2013
Third
Quarter
2014
Third
Quarter
2013
�� Third
Quarter
2014
�� Third
Quarter
2013
�� Third
Quarter
2014

Actuarial Item:

�� �� �� �� �� �� ��

Annual review of assumptions for mortality, persistency, premium payment pattern, and other elements of expected gross profits, and guaranteed minimum death benefits

�� (145 )� (62 )� (11 )� 39 �� �� 0 �� �� 1 �� �� (176 )� (75 )� 15 �� �� 36 �� �� 27 �� �� (63 )�
�� �� �� �� �� ��

��

Reported amount

�� 374 �� 502 �� 487 �� 548 �� �� 149 �� �� 152 �� �� (113 )� 27 �� 435 �� �� 436 �� �� ��
��

��

��

��

��

�� ��

Amount excluding impact of items indicated above

�� 519 �� 564 �� 498 �� 509 �� �� 149 �� �� 151 �� �� 63 �� 102 �� 420 �� �� 400 �� �� ��
��

��

��

��

��

�� ��

(1) Includes unearned revenue reserve, subject to amortization based on gross profits.
(2) Includes terminal dividend reserve, accumulated over estimated contract period.

Page 36


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

�� LOGO

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure of performance of our Financial Services Businesses 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. After-tax adjusted operating income:

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

3. Annualized New Business Premiums:

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

4. Assets Under Management:

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

5. Attributed Equity:

Amount of capital assigned to each of the Company�s segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment�s risks. 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.

6. Book value per share of Common Stock:

Equity attributed to Financial Services Businesses divided by the number of Common shares outstanding at end of period, on a diluted basis.

7. Borrowings - Capital Debt:

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

8. Borrowings - Operating Debt - Investment Related:

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

9. Borrowings - Operating Debt - Specified Businesses:

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

Page 37


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

�� 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. 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.

12. Earnings Per Share of Common Stock:

Net income (loss) for the Financial Services Businesses and the Closed Block Business is determined in accordance with GAAP and includes general and administrative expenses charged to each of the businesses based on the Company�s methodology for the allocation of such expenses. Cash flows between the Financial Services Businesses and the Closed Block Business related to administrative expenses are determined by a policy servicing fee arrangement that is based upon insurance and policies in force and statutory cash premiums. To the extent reported administrative expenses vary from these cash flow amounts, the differences are recorded, on an after-tax basis, as direct equity adjustments to the equity balances of each business. The direct equity adjustments modify earnings available to holders of Common Stock and Class B Stock for earnings per share purposes. Earnings per share of Common Stock based on adjusted operating income (loss) of the Financial Services Businesses reflects these adjustments as well.

13. Full Service:

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

14. Full Service Stable Value:

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

15. General Account:

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

16. Gibraltar Life:

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

17. Gibraltar Life Consultants:

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

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

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

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

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

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

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

21. Individual Annuities - Net Amounts at Risk:

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

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

Page 38


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

�� LOGO

KEY DEFINITIONS AND FORMULAS

22. Insurance and Annuity Benefits:

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

23. International Life Planners:

Captive insurance agents in our Life Planner Operations.

24. Non-recourse and Limited-recourse Debt:

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

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

Adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average attributed equity for the Financial Services Businesses excluding accumulated other comprehensive income.

An alternative measure to operating return on average equity (based on adjusted operating income) is return on average equity (based on income from continuing operations). Return on average equity (based on income from continuing operations) represents income from continuing operations after-tax, for the Financial Services Businesses, attributable to Prudential Financial, Inc. as determined in accordance with GAAP (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 4.6% for the three months ended September�30, 2014, 10.9% for the three months ended June�30, 2014, 13.8% for the three months ended March�31, 2014, (5.1)% for the three months ended December�31, 2013, and 11.6% for the three months ended September�30, 2013.

26. Policy Persistency - Group Insurance:

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

27. Policy Persistency - International Insurance:

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

28. Prudential Agents:

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

29. Prudential Agent productivity:

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

30. Separate Accounts:

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

31. Wrap-Fee Products:

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

Page 39


Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

��

LOGO

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of November�5, 2014

�� 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 November�5, 2014

�� �� ��

Prudential Financial, Inc.:

�� �� ��

Short-Term Borrowings

�� AMB-1 �� A-1 �� P-2 F2

Long-Term Senior Debt

�� a- �� A �� Baa1 BBB+

Junior Subordinated Long-Term Debt

�� bbb �� BBB+ �� Baa2 BBB-

The Prudential Insurance Company of America:

�� �� ��

Capital and surplus notes

�� a �� A �� A3 A-

Prudential Funding, LLC:

�� �� ��

Short-Term Debt

�� AMB-1 �� A-1+ �� P-1 F1

Long-Term Senior Debt

�� a+ �� AA- �� A2 A

PRICOA Global Funding I

�� �� ��

Long-Term Senior Debt

�� aa- �� AA- �� A1 A+

* NR indicates not rated.
(1) Prudential Life Insurance Co. of Taiwan was assigned a financial strength rating by Taiwan Ratings Corporation, a partner of Standard and Poor�s.

INVESTOR INFORMATION:

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

Common Stock:

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

Page 40



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