8-K

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): June 9, 2011

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”), is furnishing a copy of slides being presented at its Investor Day conference on June 9, 2011, as Exhibit 99.1 hereto.

Item 7.01 Regulation FD Disclosure.

The response to Item 2.02 is hereby incorporated into this Item 7.01.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Slide presentation of Prudential Financial, Inc. at its Investor Day conference on June 9, 2011 (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: June 9, 2011

PRUDENTIAL FINANCIAL, INC.
By:	/S/    BRIAN J. MORRIS
Name:	Brian J. Morris
Title:	Vice President and Assistant Secretary

Exhibit Index

Exhibit No.	Description
99.1	Slide presentation of Prudential Financial, Inc. at its Investor Day conference on June 9, 2011 (furnished and not filed).

EX-99.1

Exhibit 99.1

Investor Day 6.9.2011

1

Forward-Looking Statements

Forward-Looking Statements

Certain of the statements included in this presentation constitute forward-looking statements within the meaning of the U. S. Private Securities Litigation Reform

Act of 1995.  It is possible that actual results may differ materially from any expectations or predictions expressed in this presentation.  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 policy benefits and claims; (7) differences between actual experience regarding mortality, 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, valuation 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 recently enacted 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 the projected results of acquisitions, including risks associated with the recent acquisition of certain insurance

operations in Japan; (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 presentation.

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

Investor Day 6.9.2011

2

Non–GAAP Measures

Non–GAAP Measures

This presentation includes references to “adjusted operating income.” Adjusted operating income is a non-GAAP measure of performance of our Financial Service

Businesses (“FSB”).  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. 

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.

Return on equity (“ROE”) based on adjusted operating income is determined by dividing adjusted operating income after-tax (giving effect to the direct equity

adjustment for earnings per share calculation) by average attributed equity for the Financial Services Businesses excluding accumulated other comprehensive

income related to unrealized gains and losses on investments and accumulated other comprehensive income related to pension and postretirement benefits.

Our expectations of ROE potential are based on after-tax adjusted operating income. Because we do not predict future realized investment gains / losses or

recorded changes in asset and liability values that are expected to ultimately accrue to contractholders, we cannot provide a measure of our ROE expectations

based on income from continuing operations of the Financial Services Businesses, which is the GAAP measure most comparable to adjusted operating income.

For additional information about adjusted operating income and the comparable GAAP measure, including reconciliation between the two, please refer to our

Annual Report on Form 10-K for the year ended December 31, 2010 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 located on the

Investor Relations Web site at www.investor.prudential.com.  Additional historical information relating to the Company’s financial performance, including its first

quarter 2011 Quarterly Financial Supplement, is also located on the Investor Relations website.

The information referred to above and on the prior page, as well as the risks of our businesses described in our Annual Report on Form 10-K for the year ended

December 31, 2010, should be considered when reviewing forward-looking statements contained in this presentation.

Investor Day 6.9.2011

3

Reconciliation for Individual Annuities pre-tax adjusted

Reconciliation for Individual Annuities pre-tax adjusted

operating income excluding disclosed items

operating income excluding disclosed items

2011

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

Individual Annuities pre-tax adjusted operating income (loss)

(244)

489

315

197

244

(131)

588

345

292

Reconciling items:

Amortization of deferred policy acquisition and other costs

(1)

112

(142)

(26)

(32)

(21)

88

(245)

(46)

(19)

Change in reserves for guaranteed minimum death and income benefits

(1)

215

(274)

(185)

(47)

(53)

196

(167)

(100)

(40)

Other

(2)

-

-

-

-

(25)

-

-

-

-

Individual Annuities pre-tax adjusted operating income

excluding disclosed items indicated above

83

73

104

118

145

153

176

199

233

2009

2010

1) Reflects impact of market performance, actual-to-expected result differences, and changes in assumptions used in projecting gross profits and claims.

2) Includes refinements based on review and settlement of reinsurance contracts related to acquired business. 

PRUDENTIAL FINANCIAL, INC.

JOHN STRANGFELD

CHAIRMAN AND CEO

Investor Day 6.9.2011

Prudential Today

Prudential Today

1

•

Attractive return opportunities in high quality businesses, supported by

strong balance sheet

•

Balanced portfolio of selected risks; improving risk profile

•

Expanding distribution: market leadership across multiple channels

•

Growth engines in International Insurance, Annuities and

Asset Management

•

Capital management: balanced approach to investing in businesses,

returning capital to investors

•

Proven acquisition and integration track record

•

Seasoned management team; focus on talent and leadership

Investor Day 6.9.2011

Leadership Positions in Chosen Markets

Leadership Positions in Chosen Markets

Rank

Rank

Business

Business

Metric

Metric

As of

As of

1

Variable Annuities

Sales (Advisor-sold)

1Q ’11

2

Stable Value

Assets

4Q ’10

7

Defined Contribution

Assets managed

2010

7

Defined Benefit

Assets managed

2010

3

Term Life

New annualized premiums

1Q ’11

2

Group Life

In-force premiums

4Q ’10

4

International Insurance

New business face amount in Japan

Dec. 2010

Sources:  LIMRA, VARDS, PlanSponsor, Pensions & Investments, Life Insurance Association of Japan (excluding Japan Post Insurance)

2

A set of businesses that are diverse, healthy and competitive in

A set of businesses that are diverse, healthy and competitive in

their markets

their markets

Equity Deployment to a Superior Mix of

Equity Deployment to a Superior Mix of

High Quality Businesses

High Quality Businesses

$18.4 Billion

(1)

12/31/10

12/31/02

$29.2 Billion

(1)

$30.1 Billion

(1)

International Insurance

Annuities, Retirement &

Asset Management

Individual Life &

Group Insurance

Corporate & Other

(2)

3/31/11

3

3%

49%

21%

15%

15%

15%

15%

30%

40%

43%

14%

40%

Investor Day 6.9.2011

1)

Attributed equity of Financial Services Businesses, including Corporate and Other; excludes accumulated other comprehensive income related to

unrealized gains and losses on investments for all periods presented and excludes accumulated other comprehensive income related to pension and

postretirement benefits for December 31, 2010 and March 31, 2011.

2)

Includes divested businesses.

High Quality Mix of Businesses

with Superior ROE Prospects

(1)

4

1)

Business unit ROE’s are unlevered and are based on FSB effective tax rate applicable to Adjusted Operating Income.

2)

Attributed equity of Financial Services Businesses as of March 31, 2011, excluding accumulated other comprehensive income related to unrealized gains and losses

on

investments

and

pension

and

postretirement

benefits;

includes

$1.0

billion

attributed

to

Corporate

and

Other.

3)

Includes Corporate & Other results, including costs of Capital Debt.

Annuities,

Retirement & Asset

Mgmt

2010 Baseline ROE

11% -

12%

Individual Life &

Individual Life &

Group Ins

Group Ins

2010 Baseline ROE

2010 Baseline ROE

11%

11%

-

-

12%

12%

International

International

Insurance

Insurance

2010 Baseline ROE

2010 Baseline ROE

19%

19%

-

-

20%

20%

Annuities,

Retirement & Asset

Mgmt

2013 ROE Potential

14% -

15%

Individual Life &

Individual Life &

Group Ins

Group Ins

2013 ROE Potential

2013 ROE Potential

12%

12%

-

-

13%

13%

International

International

Insurance

Insurance

2013 ROE Potential

2013 ROE Potential

17%

17%

-

-

18%

18%

Group

Insurance 

$2.1B

Individual

Life  $2.2B

Retirement

$4.2B

Asset

Management

$1.9B

Individual

Annuities

$5.9B

International

Insurance 

$12.8B

Investor Day 6.9.2011

Investor Day 6.9.2011

Capital Deployment

“Then”

and “Now”

1

•

Defense

•

Offense

•

Offense

•

Defense

Circa 2008 -

Circa 2008 -

2009

2009

2011

2011

Investor Day 6.9.2011

Strong Capital Position

2

1)

Pro-forma for Star/Edison acquisition which closed February 1, 2011 and Global Commodities business divestiture expected to close in second

quarter 2011; in billions.

2)

As reported on statutory basis.

3)

Reflects targeted statutory ratios in domestic and international regulated entities consistent with “AA” ratings objectives.

Investor Day 6.9.2011

Capital Management and Business Approach

3

Capital Management

Capital Management

Begins with

Begins with

Selection of

Selection of

Businesses

Businesses

and Risks

and Risks

•

High value-added

business models

•

Credible diversification

in mix of businesses

and risks

•

Consistent with

established strategies

•

Fit with proven execution

and risk management

capabilities

•

Contribution to

ROE prospects

and growth potential

Investor Day 6.9.2011

Superior Business Mix Drives

Growth and Return Prospects

(1)

4

International

Insurance

Asset

Management

Individual

Annuities

Retirement

Group

Insurance

Individual

Life

ROE Prospects

Low

Medium

High

Expected AOI Volatility

1)

For illustrative purposes only; not intended to express actual growth or return expectations for any particular periods. Amounts shown (in billions)

represent attributed equity as of March 31, 2011.

Investor Day 6.9.2011

Prudential’s Business Mix

5

Individual Life

•

Focus on returns through capital management,

cost effective distribution

•

Coordinated approach to product and distribution

channel management

•

Quality business; avoid inappropriate financing

•

Results largely uncorrelated to U.S. equity markets

Group Insurance

•

Focus on returns: case selection, appropriate pricing

•

Cultivate optional life sales through employer clients

•

Deliver stable earnings and strong cash flows

Retirement

•

Emphasis on Full Service business

•

Market

opportunity

in

investment-only

products

for pension plan sponsors

•

Positioned for developing pension risk transfer market

Investor Day 6.9.2011

6

Prudential’s Business Mix

Asset

Asset

Management

Management

•

Leading third party asset manager

Leading third party asset manager

•

•

Seasoned skills in multiple asset classes provide

Seasoned skills in multiple asset classes provide

competitive advantage for Prudential businesses

competitive advantage for Prudential businesses

•

•

Strong net flows drive increasing AUM, growing

Strong net flows drive increasing AUM, growing

asset management fees

asset management fees

•

•

Improving earnings quality; reduced exposure

Improving earnings quality; reduced exposure

to volatility

to volatility

Investor Day 6.9.2011

7

Prudential’s Business Mix

Annuities

•

Market leading positions across multiple

distribution channels

•

Proven, superior value proposition based on

“highest daily”

living benefits

•

Popularity of auto-rebalancing products drives

improving overall risk profile

•

Growing returns on an increasing base

Investor Day 6.9.2011

8

Prudential’s Business Mix

International

Insurance

•

Sustained success in Japan built on foundation

of

needs-based

selling,

emphasis

on

protection

products adapted to successful retirement products

•

Expanding distribution including Life Planners,

Life Advisors, banks and independent distributors

fuels growth prospects

•

Lifetime client relationships, innovative products

and

broad-based

distribution

support

opportunities in attractive retirement market

PRUDENTIAL INTERNATIONAL INSURANCE

PRUDENTIAL INTERNATIONAL INSURANCE

BUILDING ON SUCCESS IN JAPAN

BUILDING ON SUCCESS IN JAPAN

EDWARD BAIRD

EDWARD BAIRD

EXECUTIVE VICE PRESIDENT

EXECUTIVE VICE PRESIDENT

CHIEF OPERATING OFFICER, INTERNATIONAL

CHIEF OPERATING OFFICER, INTERNATIONAL

PRUDENTIAL FINANCIAL, INC.

PRUDENTIAL FINANCIAL, INC.

Investor Day 6.9.2011

•

Big business

•

A market leader in Japan

•

High margins, low volatility

•

Strong growth

International Insurance

International Insurance

1

Investor Day 6.9.2011

International Insurance

International Insurance

2

Star/Edison

POJ

(4)

/Gibraltar

All Other Operations

Annualized New

Business

Premiums

(2)

Total

Premium

Revenue

(2)(3)

Number of

Policies

Inforce

(1)

(thousands)

(millions)

(millions)

1)

Direct business only; includes annuities.

2)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar; Korean won 1190 per U.S. dollar.

3)

Represents net premiums, policy charges and fee income.

4)

Prudential of Japan (“POJ”).

7,956

11,569

12/31/10

3/31/11

$9,200

$12,700

2010

2010

Proforma

$1,787

$2,467

2010

2010

Proforma

Investor Day 6.9.2011

3

Number of

Captive

Agents

Number of

Bank

Relationships

Number of

Independent

Agencies

International Insurance

International Insurance

Star/Edison

POJ/Gibraltar

All Other Operations

238

5,148

12/31/10

3/31/11

31

100

12/31/10

3/31/11

12,846

19,808

12/31/10

3/31/11

Investor Day 6.9.2011

Investor Day 6.9.2011

6 Years Ago

6 Years Ago

FY 2004

FY 2004

Share

Share

Nine Months ended

Nine Months ended

December 31,  2010

December 31,  2010

Share

Share

1.  Nippon

18.4%

1.  Dai-ichi

12.2%

2.  Dai-ichi

14.3%

2.  Nippon

12.1%

3.  Meiji-Yasuda

11.1%

3.  T&D Financial

10.9%

4.  Sumitomo

10.8%

4.  Prudential

9.7%

5.  T&D Financial

7.7%

5.  Sumitomo

7.5%

6.  AIG Group

5.6%

6.  Meiji-Yasuda

7.3%

7.  Prudential

4.9%

7.  Sony

6.7%

8.  Sony

3.8%

8.  MetLife Alico

4.8%

9.  Fukoku

3.4%

9.  Millea

4.5%

10.  Mitsui

2.9%

10.  Sompo Japan

3.6%

Overall Position –

New

Business

(Face

Amount)

(1)

4

Market share improvement of 4.8%

1)

Industry data from Life Insurance Association of Japan. Data shown are based on companies’ Japanese statutory results for nine months ended

December 31, 2010 and fiscal year ended March 31, 2005. New business amounts are individual life and annuity contracts including net increase by

conversion.  Excludes Japan Post Insurance. Prudential’s share for the nine months ended December 31, 2010 is pro forma for the acquisition of

Star/Edison, which contributed 1.7% of share.

Investor Day 6.9.2011

Investor Day 6.9.2011

Stable Sources of Earnings

5

Includes margin on multi-currency annuity products.

Earnings are primarily the result of stable drivers.

(2)

$ in millions

$1,598

$1,747

$1,843

$2,057

2007

2008

2009

2010

Mortality Margin and Expense & Other Margin

Investment Margin

Pre-Tax

AOI

International

Insurance

Operation

(1)

Pre-tax adjusted operating income for our International Insurance operations as presented above excludes the results of the International Investments businesses

previously included in the International Investments segment and currently included within “Gibraltar Life and Other Operations” within the International Insurance

segment for financial reporting purposes.

1)

2)

Investor Day 6.9.2011

Japan: Substantial Growth Opportunities

Japan: Substantial Growth Opportunities

in an Attractive Market

in an Attractive Market

•

World’s second largest life insurance market:

Life premiums $399 billion

(1)

•

Household sector wealth $18.3 trillion, similar to

U.S. on per-capita basis

(2)

•

Expanding retirement market driven by aging population,

increased emphasis on individual responsibility for

financial security

•

Growing distribution opportunities include banks,

independent distributors

6

1)

For the year 2009, based on Swiss Re survey

2)

Based

on

December

31,

2010

data;

Sources:

Federal

Reserve,

Bank

of

Japan,

U.S.

Census

Bureau,

Oanda

Investor Day 6.9.2011

World’s Largest Life Insurance Markets

World’s Largest Life Insurance Markets

7

Country

Country

Rank

Rank

Life Premiums ($ billions)

Life Premiums ($ billions)

2009

2009

United States

United States

1

1

492

492

Japan

Japan

2

2

399

399

United Kingdom

United Kingdom

3

3

218

218

France

France

4

4

194

194

Italy

Italy

5

5

115

115

Germany

Germany

6

6

112

112

China

China

7

7

109

109

South Korea

South Korea

8

8

57

57

India

India

9

9

57

57

Taiwan

Taiwan

10

10

52

52

Source:  Swiss Re survey

Investor Day 6.9.2011

Growing Retirement Market Complements

Growing Retirement Market Complements

Substantial Premature Death Protection Market

Substantial Premature Death Protection Market

Source: National Institute of Population and Social Security Research, Japanese Journal of Population

Population

(in millions)

8

Japan Demographics

Japan Demographics

15-64 years old

65 and over

0-14 years old

Investor Day 6.9.2011

Financial Assets in the Household Sector

Financial Assets in the Household Sector

of Select Major Economies

of Select Major Economies

Household Sector Financial Assets

Household Sector Financial Assets

Note:  Data for Japan, USA, and UK is as of December 31, 2010; China is as of September 30, 2009; other markets are as of December 31, 2009

Source:  Federal Reserve, Bank of Japan, Eurostat, Central Bureau of Statistics of China, OECD, US Census Bureau, Oanda.

9

Financial assets

Population

Investor Day 6.9.2011

Portfolio

Portfolio

of

of

Financial

Financial

Assets

Assets

–

–

Japan

Japan

Source:  Bank of Japan, Federal Reserve, Oanda

$10.1T

10

Financial Assets in the Household Sector

Financial Assets in the Household Sector

December 31, 2010

December 31, 2010

Currency and

Deposits

55.1%

Bonds 2.7%

Investment

Trusts 3.5%

Shares and

Equities 6.3%

Life

Insurance

and Pension

Reserves

28.2%

Other 4.2%

100% = $18.3 Trillion

Investor Day 6.9.2011

Household Sector

Household Sector

Pool of Currency and Deposits

Pool of Currency and Deposits

Japan has the largest pool of household assets in currency and deposits

•~50% higher than that of the U.S. despite a population that is ~60% smaller

•Greater than the currency and deposits of Germany, the United Kingdom and France combined

11

Household Sector Financial Assets in Currency and Deposits

Note:  Data for Japan, USA, and UK is as of December 31, 2010; China is as of September 30, 2009; other markets are as of December 31, 2009

Source:  Federal Reserve, Bank of Japan, Eurostat, Central Bureau of Statistics of China, OECD, US Census Bureau, Oanda.

10.1

6.8

4.4

2.6

1.9

1.6

0.8

2

4

6

8

10

12

Investor Day 6.9.2011

Investor Day 6.9.2011

Needs-Based Selling Over a Lifetime

12

1)

Accident and Health (A&H) primarily includes daily hospitalization indemnity, cancer insurance, and accident and sickness riders.

Client Age

20                 30                40               50        

60+

Client Focus

Death                                         Retirement                        

Protection                             

Income

Needs                            

Needs

Prudential

Solutions

Term Insurance

Term Insurance

Whole Life

Whole Life

U.S. Dollar Retirement Income

Accident & Health

(1)

Fixed Annuity Products

•

Lifetime client relationships

•

Needs-based selling through client life cycles

•

Innovative products serve evolving needs

Investor Day 6.9.2011

Investor Day 6.9.2011

Protecting Financial Security For a Lifetime

1)

Based on annual premium for new Prudential of Japan insureds in 2009 (male, married insured, individual policies); foreign-denominated activity translated

to U.S. dollars at uniform exchange rates, Japanese yen 99 per U.S. dollar.

13

Aging population leads to demand for larger policy size.

Investor Day 6.9.2011

Investor Day 6.9.2011

Japan Average Premium

(1)

14

1)

Based on annualized new business premiums for the year ended December 31, 2010 sold by Life Planners and Life Advisors. Foreign denominated activity

translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar.

4,500

2,000

1,500

1,000

500

3,000

3,500

4,000

2,500

-

Protection

Accident & Health

Annuity

Retirement

Investor Day 6.9.2011

Investor Day 6.9.2011

International Insurance

Meeting customer needs through…

–

Strong and diverse product portfolio

–

Complementary distribution capabilities

–

Strong relationships

15

Investor Day 6.9.2011

Investor Day 6.9.2011

684

669

656

645

642

637

626

622

618

613

607

602

602

600

597

590

589

576

567

500

600

700

The Prudential Life Insurance

Sony Life Insurance

Tokio Marine & Nichido Life Insurance

The Gibraltar Life Insurance

Sompo Japan Himawari Life Insurance

American Life Insurance Company (ALICO)

JAPAN POST INSURANCE

Fukoku Mutual Life Insurance

American Family Life Assurance Company of Columbus (Aflac)

Life Support Insurance Segment Average

Aioi Life Insurance

Nippon Life Insurance

Sompo Japan DIY Life Insurance

AXA Life Insurance

The Dai-ichi Life Insurance

Sumitomo Life Insurance

Mitsui Life Insurance

Meiji Yasuda Life Insurance

Asahi Mutual Life Insurance

No. 1 in Customer Satisfaction

16

Source: J.D. Power Asia Pacific 2011 Japan Life Insurance Contract Customer Satisfaction Study

Rankings are based on numerical scores, and not necessarily on statistical significance.

SM

Included in the study but not ranked due to small sample size are: AIG Edison Life Insurance; AIG Star Life Insurance; Allianz Life Insurance Japan; Daido Life

Insurance; Fukokushinrai Life Insurance; ING Life Insurance; Lifenet Insurance; Manulife Life Insurance; Mitsui Sumitomo Kirameki Life Insurance; NEXTIA Life

Insurance (former SBI AXA Life Insurance); NIPPONKOA Life Insurance; ORIX Life Insurance; Taiyo Life Insurance; The FujiLife Insurance; The Prudential

Gibraltar Financial Life Insurance (former Yamato Life Insurance); and Zurich Life Insurance.

J.D. Power Asia Pacific

2011 Japan Life Insurance Contract Customer Satisfaction Study

SM

Customer Satisfaction Index Ranking

(Based on a 1,000-point scale)

Life Support Insurance Segment

Product Portfolio

Serving Financial Security Needs Over a Lifetime

Annualized

Annualized

New

New

Business

Business

Premiums

Premiums

(1)

(1)

Year ended December 31, 2010

Year ended December 31, 2010

1)

For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar.

2)

Pro-forma including approximation of Star and Edison businesses.

Annualized

Annualized

New

New

Business

Business

Premiums

Premiums

(1)

(1)

(2)

(2)

Death

Protection

46%

Retirement

24%

Annuity

12%

A&H 18%

Death

Protection

44%

Retirement

18%

Annuity

16%

A&H

22%

$1,521 million

$2,202 million

Investor Day 6.9.2011

17

Pro Forma Year ended December 31, 2010

Pro Forma Year ended December 31, 2010

Diverse Annualized New Business Premiums in Japan

18

1)

For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented;

Japanese yen 92 per U.S. dollar.

Annualized

Annualized

New

New

Business

Business

Premiums

Premiums

(1)

(1)

($ in millions)

$289

$281

$296

$298

$344

$359

$398

$420

$555

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

Death Protection

Accident & Health

Retirement

Annuity

Investor Day 6.9.2011

Investor Day 6.9.2011

Investor Day 6.9.2011

Distribution Channels in Japan

19

1)

For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92

per U.S. dollar.

2)

Pro-forma including approximation of Star and Edison businesses.

Annualized

Annualized

New

New

Business

Business

Premiums

Premiums

(1)

(1)

Year ended December 31, 2010

Year ended December 31, 2010

Annualized

Annualized

New

New

Business

Business

Premiums

Premiums

(1)(2)

(1)(2)

Pro Forma Year ended December 31, 2010

Pro Forma Year ended December 31, 2010

$1,521 million

$2,202 million

Complementary Distribution Channels

Drive Sales Growth in Japan

1)

For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented.

Japanese yen 92 per U.S. dollar.

Annualized New Business Premiums

Annualized New Business Premiums

(1)

(1)

20

($ in millions)

$979

$1,521

-

200

400

600

800

1,000

1,200

1,400

1,600

2007

2008

2009

2010

Life Planners

Life Advisors

Bank Channel

Independent Agency

Investor Day 6.9.2011

Investor Day 6.9.2011

Investor Day 6.9.2011

Complementary Distribution Channels

Drive Sales Growth in Japan

21

($ in millions)

1)

For Prudential’s Japanese businesses; foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented.

Japanese yen 92 per U.S. dollar.

Annualized New Business Premiums

Annualized New Business Premiums

(1)

(1)

$289

$281

$296

$298

$344

$359

$398

$420

$555

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

Life Planner

Life Advisor

Bank

Independent  Agency

Investor Day 6.9.2011

Investor Day 6.9.2011

Bank Channel Sales Growth

Driven by Protection Products

Annualized New Business Premiums

(1)

1)

Foreign

denominated

activity

translated

to

U.S.

dollars

at

uniform

exchange

rates

for

all

periods

presented;

Japanese

yen

92

per

U.S.

dollar.

22

($ in millions)

$21

$25

$40

$48

$56

$78

$90

$104

$128

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

Death Protection

Accident & Health

Retirement

Annuity

Investor Day 6.9.2011

Investor Day 6.9.2011

Prudential’s Key International Strategies:

Suited to Japanese Market Opportunities

•

Target the affluent and mass affluent consumer

•

Needs-based selling: historical focus on life insurance;

increasing emphasis on meeting retirement needs

•

Proprietary distribution model built on recruiting, selection

and training

•

Growth through complementary distribution channels and

opportunistic acquisitions

23

Investor Day 6.9.2011

Investor Day 6.9.2011

Life Planner Distribution

•

Life Planner –

a selective, high quality sales force

–

Hire about 3 out of 100 candidates

–

Well trained and professional

–

Customer focused

–

Disciplined, and demonstrate “missionary zeal”

•

Emphasize protection products requiring analysis of client needs

•

Significant sales to small business/executive/professional market

•

Exceptional sales productivity and persistency

24

Investor Day 6.9.2011

Investor Day 6.9.2011

Teachers Association:

Perennial Sales Opportunities

1)

Numbers approximate as of March 31, 2011.

Active

Active

Market

Market

Retirement

Retirement

Market

Market

25

48% Gibraltar

Policyholders

87% Gibraltar

Policyholders

120,000

120,000

Retired

Retired

Teachers

Teachers

Association

Association

members

members

(1)

(1)

20,000

20,000

–

–

30,000 new

30,000 new

teachers

teachers

hired

hired

each year

each year

20,000

20,000

–

–

30,000

30,000

teachers

teachers

retire

retire

each year

each year

950,000

950,000

Active

Active

Teachers

Teachers

(1)

(1)

Investor Day 6.9.2011

Investor Day 6.9.2011

Teachers Association

Core Relationship Contributes to Life Advisor Distribution

•

Relationship since 1952

•

Approximately 600,000 members

(1)

•

Access to approximately 950,000 teachers and school personnel

through

47

prefectural

(local)

associations

and

37,000

schools

(1)

•

Annualized

new

business

premiums

in

2010,

$181

million

(2)

Japanese Educational Mutual Aid

Japanese Educational Mutual Aid

Association of Welfare Foundation

Association of Welfare Foundation

(Teachers Association)

(Teachers Association)

1)

As of March 31, 2011.

2)

Foreign denominated activity translated to U.S. dollars at uniform exchange rates; Japanese yen 92 per U.S. dollar.

26

Investor Day 6.9.2011

Investor Day 6.9.2011

Bancassurance Powered by Prudential

Prudential Support

Prudential Support

•

•

Insurance education and training

Insurance education and training

backed by proven distribution model

backed by proven distribution model

•

•

Competitive products focused

Competitive products focused

on protection

on protection

•

•

Highly regarded brand, promises

Highly regarded brand, promises

backed by a strong company

backed by a strong company

•

•

Access

Access

to

to

expertise

expertise

of

of

“seconded”

“seconded”

former Prudential of Japan

former Prudential of Japan

Life Planners

Life Planners

(1)

(1)

1)

At certain banks.

Bank Employee

Bank Employee

Life Insurance Sales

Life Insurance Sales

27

Investor Day 6.9.2011

Investor Day 6.9.2011

International Insurance

Sustained Growth Reflects Success in Japanese Market

28

$917

$1,321

$1,428

$1,598

$1,747

$1,843

$2,057

Japan

All Other Operations

$ in millions

Pre-Tax Adjusted Operating Income

Pre-Tax Adjusted Operating Income

(1)

(1)

$0

$500

$1,000

$1,500

$2,000

$2,500

2004

2005

2006

2007

2008

2009

2010

1)

Pre-tax adjusted operating income for our International Insurance operations as presented above excludes the results of the International

Investments businesses previously included in the International Investments segment and currently included within “Gibraltar Life and Other

Operations” within the International Insurance segment for financial reporting purposes.  The pre-tax adjusted operating income (loss) of our

International Investments businesses was $28 million, $25 million, $(412) million, $63 million, $20 million, $(5) million and $(9) million in 2010, 2009,

2008, 2007, 2006, 2005 and 2004, respectively.

Investor Day 6.9.2011

Investor Day 6.9.2011

Key Takeaways

29

•

Prudential’s largest business

•

A market leader in Japan

•

High margins, low volatility

•

Strong growth

Investor Day 6.9.2011

Asset Management

•

Robust institutional and retail businesses attract and retain talented

investment professionals

•

Substantial fee-based earnings that benefit from operating leverage

•

Limited capital requirements; sustainable high ROE

•

Seasoned skills in multiple asset classes support attractive

general account investments

•

Investment management strength supports retirement, annuities, and

insurance businesses

1

Leading

Leading

Third

Third

Party

Party

Asset

Asset

Manager

Manager

Competitive

Competitive

Advantage

Advantage

for

for

Prudential

Prudential

Businesses

Businesses

Investor Day 6.9.2011

•

Utilize significant talent base

across multiple asset classes;

established track records, and

broad and deep client relationships

to increase AUM

(1)

base

•

Grow high-quality earnings driven

primarily by asset management fees

•

Manage business risks and

strategically employ

proprietary investing

•

Apply skill sets to support general

account asset selection and

management

Prudential Investment Management

Key Strategies

2

•

Fee-driven growth potential

•

Favorable ROE

•

Competitive advantage

for Prudential’s retirement,

annuities and

insurance businesses

1)

Assets under management (AUM).

Investor Day 6.9.2011

Asset Management’s Competitive Strengths

Appeal to Clients as well as Investment Professionals

1)

As of March 31, 2011; AUM excludes affiliated institutional and retail assets under management.

3

Experience and

Experience and

Track Record

Track Record

Breadth and Depth

Breadth and Depth

of Capabilities

of Capabilities

Access to Capital

Access to Capital

and Co-investing

and Co-investing

Brand and

Brand and

Reputation

Reputation

Scale

Scale

Third

Third

Party

Party

Clients

Clients

$275 billion

$275 billion

third party AUM

third party AUM

(1)

(1)

13% AUM CAGR

13% AUM CAGR

Manager

Manager

Continuity

Continuity

(1)

(1)

220 portfolio

220 portfolio

managers

managers

Average tenure

Average tenure

13 years

13 years

(2005

(2005

–

–

2010)

2010)

Investor Day 6.9.2011

Asset Management has Three Major Client Types

4

Total

Total

AUM:

AUM:

$569

$569

billion

billion

(1)

(1)

1)

As of March 31, 2011.

•

Public Pension Plans

(DB/DC)

•

Corporate Pension Plans

(DB/DC)

•

Union Pension Plans

•

Endowments

•

Foundations

•

Sovereign Wealth Funds

•

Non-affiliated Insurance

Companies

•

Affiliated

–

Annuities

–

Retirement

–

Individual life

•

Proprietary Mutual Funds

•

Subadvisory relationships

•

U.S. individual life and

group insurance

•

Retirement

•

Annuities

•

International Insurance

(U.S. dollar assets)

General Account

General Account

$214 billion

$214 billion

Institutional

Institutional

$246 billion

$246 billion

Retail

Retail

$109 billion

$109 billion

Investor Day 6.9.2011

AUM and Revenues are Well Diversified by Client Type

5

1)

As of March 31, 2011.

2)

For the year ended December 31, 2010.

$246 B

$214 B

$109 B

$353 M

$626 M

$294 M

Retail

19%

General

Account

38%

Institutional

43%

General

Account

23%

Retail

28%

Institutional

49%

Assets

Assets

Under

Under

Management

Management

$569

$569

billion

billion

(1)

(1)

Asset

Asset

Management

Management

Fees

Fees

$1.3

$1.3

billion

billion

(2)

(2)

Investor Day 6.9.2011

AUM and Revenues are also Diversified by Asset Class

6

1)

As of March 31, 2011.

2)

For the year ended December 31, 2010.

Public Fixed

Income

56%

Public Equity

24%

Real Estate

5%

Commercial

Mortgages

6%

Private Fixed

Income

9%

Public Fixed

Income

32%

Public Equity

30%

Real Estate

22%

Commercial

Mortgages

5%

Private Fixed

Income

11%

Public

Private

48% of  Fees from Fixed Income

71% of AUM from Fixed Income

Assets

Assets

Under

Under

Management

Management

$569

$569

billion

billion

(1)

(1)

Asset

Asset

Management

Management

Fees

Fees

$1.3

$1.3

billion

billion

(2)

(2)

Investor Day 6.9.2011

AUM Spans Six Distinct Investment Disciplines

7

Investment Manager

Investment Manager

Investment

Investment

Discipline

Discipline

Public/Private

Public/Private

3/31/11

3/31/11

AUM

AUM

(1)

(1)

Jennison Associates

Fundamental Equity

Public

$  86

Quantitative Management Associates (QMA)

Quantitative Equity

Public

47

Prudential Fixed Income (PFIM)

Public Fixed Income

Public

273

Jennison Associates

Public Fixed Income

Public

47

Prudential Capital Group (PCG)

Private Fixed Income

Private

54

Prudential Mortgage Capital Company (PMCC)

Real Estate Debt

Private

34

Prudential Real Estate Investors (PREI)

Real Estate Equity

Private

28

1)

In billions.

Total

AUM:

$569

Investor Day 6.9.2011

Public Fixed Income

8

Prudential Fixed Income

Prudential Fixed Income

Jennison Fixed Income

Jennison Fixed Income

•

$273 billion AUM

(1)

•

$47 billion in fixed income AUM

(1)

•

Operations in U.S., Europe, and Asia

•

Operations in U.S.

•

Comprehensive product line

•

Focused product line

–

Broad market strategies

–

Core, Core Plus

–

Intermediate Gov/Credit

–

Long Duration/LDI

–

Corporates

–

High Yield

–

Emerging Markets

–

US Bank Loans

–

Alternatives/CDOs

–

U.S. strategies

–

Intermediate and long duration

–

Core

•

276 Institutional clients

(1)

•

94 Institutional clients

(1)

•

180 Investment professionals

(1)

•

12 Investment professionals

(1)

1)

As of March 31, 2011.

Investor Day 6.9.2011

Public Equity

Jennison Associates

Quantitative Management Associates

•

$86 billion in equity AUM

(1)

•

$47 billion in equity AUM

(1)

•

Fundamental

•

Quantitative

•

Growth

•

Blend

•

Value

•

Multi-Cap

•

Equity income

•

Midcap growth

•

Small Cap

•

Sector strategies

•

Global

•

Core

•

Value

•

All Cap

•

Mid Cap

•

Small Cap

•

Global

•

International

•

Emerging Markets

•

Index

•

Asset Allocation

•

Domestic and Global

•

Domestic and Global

•

162 Institutional equity clients

(1)

•

140 Institutional clients

(1)

•

48 Investment professionals

(2)

•

35 Investment professionals

(1)

1)

As of March 31, 2011.

2)

As of May 24, 2011.

9

Investor Day 6.9.2011

Private Fixed Income

10

1)

As of March 31, 2011.

Prudential Capital Group

Prudential Capital Group

Prudential Mortgage Capital Company

Prudential Mortgage Capital Company

•

$54 billion AUM

(1)

in private debt

•

$34 billion AUM

(1)

in commercial mortgages

•

Operations in U.S. and Europe

•

Operations in U.S. and Japan

•

Direct origination network

•

Direct origination network

•

$10 billion originations in 2010

•

$9 billion originations in 2010

•

Over 900 Borrowers

•

Over 2,000 Borrowers

•

140 Investment professionals

(1)

•

105 Investment professionals

(1)

Investor Day 6.9.2011

Prudential Real Estate Investors

11

1)

As of March 31, 2011.

Prudential Real Estate Investors

Prudential Real Estate Investors

•

$28 billion AUM

(1)

•

Operations in U.S., Europe, Asia, and Latin America

•

One of few global real estate investment managers

•

21 offices worldwide

(1)

•

490 Institutional clients

(1)

•

56 Funds managed

(1)

•

Asia (5), Europe (18), Mexico (7), U.S. (17), REITS (9)

•

216 investment professionals

(1)

Investor Day 6.9.2011

66%

84%

84%

68%

85%

74%

1 Year

3 Year

5 Year

As of 3/31/10

As of 3/31/11

Our Investment Performance Track Record is Strong

12

% of Total Third Party Assets Under Management

% of Total Third Party Assets Under Management

Exceeding Benchmark

Exceeding Benchmark

1)

70% ($247 billion) of Retail and Institutional assets under management as of March 31, 2011 is actively managed against a benchmark.

•

Percentage

of

AUM

exceeding

their

respective

benchmarks

has

been

strong

in

the

1,

3,

and

5

year

periods

(1)

Investor Day 6.9.2011

Net flows exclude money market flows, one-time transfers, and acquisition/disposition events

Third Party Net Institutional Flows

Reached Record Levels in 2010

13

$ billions

Percent of

beginning

of year

AUM

$(5)

$

$5

$10

$15

$20

$25

$30

$35

Equity

Real Estate

Fixed Income

Total

2007

2008

2009

2010

6

7

10

19

Investor Day 6.9.2011

$(2)

$-

$2

$4

$6

$8

Third Party Retail Client Flows

Also Reached Record Levels in 2010

14

$ billions

Net flows exclude money market flows, one-time transfers, and acquisition/disposition events

1

-

18

13

Percent of

beginning

of year

AUM

Equity

Real Estate

Fixed Income

Total

2008

2007

2009

2010

Investor Day 6.9.2011

$414

$420

$430

$438

$434

$439

$422

$395

$386

$409

$444

$457

$472

$484

$518

$537

$569

$0

$100

$200

$300

$400

$500

$600

Assets Under Management by Asset Class

Growth in AUM has Driven

Growth in Asset Management Fees

15

1)

At end of period.

$ billions

$ millions

(1)

Fixed Income

Real Estate

Equity

$262

$271

$265

$283

$281

$288

$289

$257

$239

$254

$269

$287

$304

$311

$320

$338

$356

$0

$50

$100

$150

$200

$250

$300

$350

$400

Asset Management Fees by Asset Class

Investor Day 6.9.2011

Quality of Revenues Increasing

16

1)

Asset management fees and incentive, transaction, principal investing and commercial mortgage (ITPICM) revenues.

2)

As originally reported.

Asset Management Fees

ITPICM

Growing

AUM Base

Reduced proprietary

investing exposure

Exited commercial

mortgage

securitization

conduit

$1.1 billion

$1.1 billion

$1.3 billion

$1.3 billion

2007 Asset Management Fees

2007 Asset Management Fees

+

+

“ITPICM”

“ITPICM”

=

=

$1.6

$1.6

billion

billion

(1)(2)

(1)(2)

2010 Asset Management Fees

2010 Asset Management Fees

+

+

“ITPICM”

“ITPICM”

=

=

$1.5

$1.5

billion

billion

(1)

(1)

Investor Day 6.9.2011

$550

$701

$232

$55

$487

2006

2007

2008

2009

2010

Asset Management segment pre-tax adjusted operating income

Asset Management segment pre-tax adjusted operating income,

excluding contribution of Incentive, Transaction, Principal Investing and

Commercial Mortgage Activities ("ITPICM")

Building Sustainable Earnings Power

17

Pre-Tax Adjusted Operating Income

Pre-Tax Adjusted Operating Income

1)

Based on after-tax adjusted operating income for the year ended December 31, 2010 and overall effective tax rate for the Financial Services Businesses.

2)

ITPICM contribution represents revenues net of directly associated costs before allocated compensation including Incentive Awards; excludes agency

origination activities.

(2)

$ millions

20% ROE

(1)

Investor Day 6.9.2011

•

Robust institutional and retail businesses attract and retain talented

investment professionals

•

Strong investment performance has contributed to significant third party flows

and growth in AUM

•

Asset management fees have been a stable percentage of AUM historically

and are expected to grow about in line with AUM

•

Asset management business has operating leverage; therefore, AOI

attributable to asset management fees grows faster than revenue from fees

•

ITPICM activities are sources of additional revenue and AOI, but

are

managed to be smaller and more stable than in the past

•

Our business model positions us well for continued growth and high ROE

Key Takeaways

18

PRUDENTIAL ANNUITIES

PRUDENTIAL ANNUITIES

MARKET-LEADING VALUE PROPOSITION

MARKET-LEADING VALUE PROPOSITION

DRIVES GROWING RETURNS AND IMPROVING RISK PROFILE

DRIVES GROWING RETURNS AND IMPROVING RISK PROFILE

STEVE PELLETIER

STEVE PELLETIER

PRESIDENT

PRESIDENT

PRUDENTIAL ANNUITIES

PRUDENTIAL ANNUITIES

•

Highly differentiated and sustainable strategy

•

#1 in advisor-sold variable

annuity sales

(1)

•

Leading positions in independent financial

planner, wirehouse, bank and insurance

agent channels

•

“Highest Daily”

living benefits serve

retirement income security needs of

attractive, growing market

•

Contract-level product based risk

management protects account values;

proven through financial market meltdown

Prudential Annuities

Superior Value Proposition and Business Prospects

1

•

Business growth driven by

strong net flows

•

Growing returns on

increasing base

•

Popularity of auto-

rebalancing products drives

improving overall risk profile

•

Demographic “push”

and individual

retirement responsibility

provide sustained

growth opportunity

1)

Source: VARDS 1Q’11 Report, Advisor-sold, excludes group/retirement plan contracts.

Proven Value Proposition

Proven Value Proposition

Market Leadership

Market Leadership

Strong Business Prospects

Strong Business Prospects

Investor Day 6.9.2011

Investor Day 6.9.2011

Drivers of Market Leadership

2

•

Innovative retirement

income guarantee features

•

Proven product-based risk

management protecting

account values

•

Sophisticated

hedging capabilities

•

Broad multi-channel

distribution

•

Scale supporting efficient

cost structure

•

Brand, reputation and

demonstrated commitment

to market

Investor Day 6.9.2011

($ millions)

Variable Annuity

Variable Annuity

Assets Under Management

Assets Under Management

(1)

(1)

Advisor-Sold

Variable

Variable

Annuity

Annuity

Sales

Sales

(1)

(1)

Prudential Annuities

1Q11 Asset and Sales Rankings

1)

Source: VARDS 1Q’11 report.  Advisor-sold, excludes group/retirement plan contracts.

($ millions)

3

Investor Day 6.9.2011

Building Multi-Channel Distribution Strength

4

Prudential

Prudential

Individual

Individual

Annuity

Annuity

Gross

Gross

Sales

Sales

(1)

(1)

1)

In millions; includes variable and fixed annuities.

2008

2008

$10,329

$10,329

2010

2010

$21,754

$21,754

Insurance

Agents

24%

Bank

7%

Independent

57%

Insurance

Agents

13%

Bank

17%

Wirehouse

21%

Independent

49%

Wirehouse

12%

Investor Day 6.9.2011

Product Design:

The Highest Daily Lock-In

Hypothetical for illustrative purposes only.

5

Prudential’s unique Highest Daily Product 

Prudential’s unique Highest Daily Product 

is a powerful feature that continues to drive strong sales

is a powerful feature that continues to drive strong sales.

5

Account Value

This is a hypothetical example for illustrative purposes only. It does not reflect a specific annuity or the performance of any investment.

Source for percentages:  Standard & Poor's, Barclay's Capital; based on analysis of 2,245 rolling ten-year periods assuming 80%

allocation to equities and 20% allocation to bonds.

What are the chances

of a daily lock-in

capturing the

best day?

100%

What are the chances

of a quarterly lock-in

capturing the

best day?

6%

What are the chances

of an annual lock-in

capturing the

best day?

2%

Investor Day 6.9.2011

Product Embedded Risk Management

Protects Account Values at Contract Level

6

Note: For illustrative purposes, not representative of actual results.

Powerful algorithmic risk mitigation tool protects client account

Powerful algorithmic risk mitigation tool protects client account

values in market downturns and improves our risk profile.

values in market downturns and improves our risk profile.

6

Account Value without auto-rebalancing

Account Value with auto-rebalancing

Time

Account

Value

Investor Day 6.9.2011

$0

$50,000

$100,000

$150,000

$200,000

$250,000

0

60

120

Protected Withdrawal Value

Total Account Value

Bond Fund Value

Account Value and

“Protected Withdrawal Value”

“PWV”: notional amount

for calculation of

lifetime annual withdrawals

Year

0

6

12

7

Account

value

available to

customer

Market Downturn Scenario

Market Downturn Scenario

(1)

(1)

(“PWV”) 

1)

Highest Daily Lifetime Income (HDI) – sub-accounts suffer 30% decline in year 1, followed by 0% sub-account return thereafter; bond fund assumed annual return of 3%. No

withdrawals through end of year 12. All quoted returns are net of fund management and base policy fees. The fee for HDI was explicitly deducted from the account value on

a quarterly basis.

Investor Day 6.9.2011

Guaranteed Lifetime Withdrawals

Client’s Account Value Pays First

Account Value

Client Age

60

72

85

Year

0

12

25

Annual Payments = $10,000,

5% x Protected Value

Accumulation Period

Accumulation Period

Retirement Period

Retirement Period

= Customer account value withdrawals

= Prudential funds

Market Downturn Scenario

Market Downturn Scenario

(1)

(1)

81

8

$0

1)

Highest Daily Lifetime Income (HDI) – sub-accounts suffer 30% decline in year 1, followed by 0% sub-account return thereafter; bond fund assumed

annual return of 3%. Withdrawals commence at end of year 12. All quoted returns are net of fund management and base policy fees. The fee for HDI was

explicitly deducted from the account value on a quarterly basis.

Investor Day 6.9.2011

Auto-Rebalancing

Proven Through Financial Market Crisis…

and Beyond

9

This illustration analysis for HD Lifetime Seven assumes a $500,000 initial investment into the AST Capital Growth Portfolio & AST Investment Grade

Bond Portfolio and election on February 23, 2009 of the 90% limit on bond fund allocation. 

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Protected Withdrawal

Value +28%

HD7 Account Value

+26%

Account Value w/o

Auto-rebalancing

Formula (3%)

S&P 500 (2%)

Account Value

% of HD Account

Value Invested in

Customer-Selected

Funds

(1)

1)

Assumes investment of funds in S&P 500 index on launch date of HD Lifetime Seven, January 28, 2008.

Investor Day 6.9.2011

7.2%

0.1%

18.0%

6.0%

-1%

1%

3%

5%

7%

9%

11%

13%

15%

17%

19%

20% loss of account value

33% loss of account value

Comparison of a VA with Auto-Rebalancing

to a VA without Auto-Rebalancing

10

Probability that a client’s account value suffers a

20%

or

33%

loss

over

a

hypothetical

ten-year

period

(1)

Variable Annuity (“VA”) with

Auto-Rebalancing

Variable Annuity without

Auto-Rebalancing

Based on

Ernst & Young

Monte Carlo

simulation

Limited “opportunity cost”

~40 bps mean return reduction

1)

Key assumptions used in analysis: Fees (same for both VAs): Mortality and Expense charge of 1.35%, Asset Management fees of .95%, and lifetime

withdrawal benefit fee of 1%.  Asset allocation: 55-year-old client’s original asset allocation assumed to be 70% equities and 30% fixed-income.  Asset transfer

algorithm: The algorithm used in this analysis is the same algorithm employed in Prudential’s Highest Daily Income Benefit and Premier variable annuities.

This analysis is not intended to be indicative of actual results for Prudential’s or any other provider’s variable annuity. While the algorithm is intended to reduce

account value volatility, it is not a tool to optimize investment results. The projections generated by the Ernst & Young Monte Carlo simulation regarding the

likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. The

analysis presents a range of possible outcomes; the calculated results will vary with each use and over time.

Investor Day 6.9.2011

Improving Risk Profile

14

11

Variable

Annuity

Account

Values

with

Living

Benefits

with

auto-rebalancing

feature

Variable Annuity Account Values without any Living Benefit options

Variable

Annuity

Account

Values

with

Living

Benefits

with

auto-rebalancing

feature

The accelerated growth in our overall block has also increased the percentage of algorithmic

mechanism

based

account

values,

which

will

continue

to

improve

the

level

and

volatility

of

returns.

Investor Day 6.9.2011

2008

2009

2010

Strong Net Sales Contribute to

Growing Account Value Base

(1)

12

1)

Account values as of end of period; includes variable and fixed annuities. In billions.

$63.3

$63.3

$10.3

$10.4

$84.0

$84.0

$14.6

$7.6

$106.2

$106.2

Account values

Net sales

Market appreciation and other activity

Investor Day 6.9.2011

Well Positioned to Retain

Auto-Rebalancing Business In-Force

13

Less Than 1%

Less Than 1%

1% to 3%

1% to 3%

Over 3%

Over 3%

6%

2%

92%

54%

10%

36%

25%

5%

70%

Surrender

Surrender

Charges

Charges

Applicable

Applicable

to

to

Account

Account

Values

Values

(1)

(1)

1)

Surrender charges as percentage of variable annuity account values; as of March 31, 2011.

Auto-Rebalancing

$65 B

Non-Auto-Rebalancing

$45 B

Total

$110 B

Investor Day 6.9.2011

Growing Returns on an Increasing Base

14

1)

Excludes market

driven

and

other

discrete

items

disclosed

by

the

company

including

unlockings

of

deferred

policy

acquisition

and

other

costs

and

reserves

for guaranteed minimum death and income benefits. See “Reconciliation for Individual Annuities pre-tax adjusted operating income excluding disclosed

items”

within this presentation for further information.

2)

Pretax adjusted operating income excluding disclosed items as percentage of average account values for variable and fixed annuities.

($ millions)

Adjusted Operating Income –

Excluding Disclosed Items

Investor Day 6.9.2011

Improving Product Mix and Market Performance

Drive Growing Returns

15

Net

revenues

(1)

as

percentage

of

average

account

values

(2)

Operating

expenses

(1)

as

percentage

of

average

account

values

(2)

“ROA”: Pretax adjusted operating income excluding disclosed items

as

percentage

of

average

account

values

(2)

2007

2008

2009

2010

1Q11

Investor Day 6.9.2011

2.31%

2.32%

2.48%

2.53%

2.55%

1.55%

1.60%

1.95%

1.80%

1.69%

0.76%

0.72%

0.53%

0.73%

0.86%

1)

“Net revenues” and “operating expenses” based on adjusted operating income excluding market driven and other discrete items disclosed by the

company including unlockings of deferred policy acquisition and other costs and reserves. “Net revenues” and “operating expenses” reflect

reclassification of certain amounts included in reported revenue and expense line items (e.g., asset management fees netted against revenues for

purposes of this display).

2)

Annualized for interim period.

Investor Day 6.9.2011

•

Market leadership driven by superior value proposition

•

Expanding distribution strength across multiple channels

•

Popularity of auto-rebalancing products driving improving

risk profile

•

Product structure, strong net sales and market performance

producing increasing returns on a growing base of business

•

Sustainable, profitable growth in an attractive market

Key Takeaways

16

PRUDENTIAL FINANCIAL, INC.

JOHN STRANGFELD

CHAIRMAN AND CEO

Investor Day 6.9.2011

Key Takeaways

Key Takeaways

1

•

Attractive return opportunities in high quality businesses, supported by

strong balance sheet

•

Balanced portfolio of selected risks; improving risk profile

•

Expanding distribution: market leadership across multiple channels

•

Growth engines in International Insurance, Annuities and

Asset Management

•

Capital management: balanced approach to investing in businesses,

returning capital to investors

•

Proven acquisition and integration track record

•

Seasoned management team; focus on talent and leadership