N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-01612

The Prudential Variable Contract Account-2

Exact name of registrant as specified in charter:

Address of principal executive offices:

Gateway Center 3,

100 Mulberry Street,

Newark, New Jersey 07102

Name and address of agent for service:

Deborah A. Docs

Gateway Center 3,

100 Mulberry Street,

Newark, New Jersey 07102

Registrant’s telephone number, including area code: 973-367-7521

Date of fiscal year end: 12/31/2010

Date of reporting period: 6/30/2010

Item 1 – Reports to Stockholders

Prudential

Long-Term
Growth Account

Semiannual report
to participants

June 30, 2010

This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus for VCA-2. Investors should consider the contract and the Account’s investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectuses that can be obtained from your financial professional. You should read the prospectuses carefully before investing.

It is for the information of persons participating in The Prudential Variable Contract Account-2 (VCA-2, Long-Term Growth Account, or the Account). VCA-2 is a group annuity insurance product issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102-3777, and is distributed by Prudential Investment Management Services LLC (PIMS), member SIPC, Three Gateway Center, 14th Floor, Newark, NJ 07102-4077. Both are Prudential Financial companies.

All are Prudential Financial companies and each is solely responsible for its financial condition and contractual obligations.

Annuity contracts contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your plan sponsor or licensed financial professional can provide you with costs and complete details. Contract guarantees are based on the claims-paying ability of the issuing company.

A description of the Account’s proxy voting policies and procedures is available, without charge, upon request. Owners of variable annuity contracts should call 800-458-6333 to obtain descriptions of the Account’s proxy voting policies and procedures. The description is also available on the website of the Securities and Exchange Commission (the “Commission”) at www.sec.gov. Information regarding how the Account voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the website of the Commission, at www.sec.gov and at the Fund’s website.

The Account’s Statement of Additional Information contains additional information about the members of the Account’s Committee and is available without charge upon request by calling 800-458-6333.

The Account files with the Commission a complete listing of portfolio holdings as of its first and third quarter-end on Form N-Q. Form N-Q is available on the Commission’s website at www.sec.gov or by visiting the Commission’s Public Reference Room. For more information on the Commission’s Public Reference Room, please visit the Commission’s website or call 1-800-SEC-0330. Participants may obtain copies of Form N-Q filings by calling 800-458-6333.

The Prudential Long Term Growth Program Table of Contents Semiannual Report June 30, 2010

n LETTER TO PARTICIPANTS

n PRESENTATION OF PORTFOLIO HOLDINGS

n FINANCIAL REPORTS

A1 Statement of Net Assets and Financial Statements

B1 Financial Highlights

C1 Notes to Financial Statements

n APPROVAL OF ADVISORY AGREEMENTS

The Prudential Long-Term Growth Program Letter to Participants June 30, 2010

n DEAR PARTICIPANT,

Our primary objective at Prudential is to help investors achieve and maintain long-term financial success. This Variable Contract Account-2 semiannual report outlines our efforts to achieve this goal. We hope you find it informative and useful.

Prudential has been building on a heritage of success for more than 130 years. The quality of our businesses and risk diversification has enabled us to manage effectively through volatile markets over time. We believe the array of our products provides a highly attractive value proposition to clients like you who are focused on financial security.

Your financial professional is your best resource to make the most informed investment decisions to help meet your needs. Together, you can build a diversified investment portfolio that aligns with your long-term financial goals. Diversification does not assure a profit or protect against loss in declining markets.

Thank you for selecting Prudential as one of your financial partners. We value your trust and appreciate the opportunity to help you achieve financial security.

Sincerely,

Judy A. Rice

President,

Variable Contract Account-2 July 30, 2010

Prudential Variable Contract Account-2 (VCA-2)
Presentation of Portfolio Holdings — (unaudited) June 30, 2010

VCA-2
Five Largest Holdings	(% of Net Assets	)
Occidental Petroleum Corp.	2.8%
JP Morgan Chase & Co.	2.2%
Sempra Energy	2.0%
Haliburton Co.	2.0%
Lear Corp.	2.0%

For a complete listing of holdings, refer to the Statement of Net Assets section of this report. Holdings reflect only long-term investments. Holdings/Issues/Industries/Sectors are subject to change.

FINANCIAL STATEMENTS OF VCA-2

STATEMENT OF NET ASSETS (Unaudited)

June 30, 2010

LONG-TERM INVESTMENTS — 99.3%
COMMON STOCKS — 99.3%	Shares	Value (Note 2)
Aerospace & Defense — 1.2%
Precision Castparts Corp.	28,804	$	2,964,508
Auto Components — 1.9%
Lear Corp.(a)	74,158		4,909,260
Capital Markets — 5.7%
Bank of New York Mellon Corp. (The)	188,363		4,650,682
Goldman, Sachs Group, Inc. (The)	18,708		2,455,799
Morgan Stanley	172,427		4,002,031
TD Ameritrade Holding Corp.(a)	203,112		3,107,614
			14,216,126
Chemicals — 1.4%
Dow Chemical Co. (The)	149,562		3,547,611
Commercial Banks — 1.6%
Wells Fargo & Co.	154,293		3,949,901
Commercial Services & Supplies — 1.8%
Waste Management, Inc.	143,722		4,497,061
Communications Equipment — 1.3%
Juniper Networks, Inc.(a)	142,831		3,259,403
Computers & Peripherals — 3.1%
Apple, Inc.(a)	15,738		3,958,579
Dell, Inc.(a)	310,181		3,740,783
			7,699,362
Diversified Consumer Services — 1.8%
H & R Block, Inc.	293,581		4,606,286
Diversified Financial Services — 3.6%
Bank of America Corp.	247,329		3,554,118
JPMorgan Chase & Co.	151,344		5,540,704
			9,094,822
Electric Utilities — 1.9%
Entergy Corp.	66,813		4,785,147
Electronic Equipment & Instruments — 1.7%
Flextronics International, Ltd.(a)	777,728		4,355,277
Energy Equipment & Services — 2.0%
Halliburton Co.	203,026		4,984,288
Food & Staples Retailing — 1.8%
Kroger Co. (The)	67,978		1,338,487
Wal-Mart Stores, Inc.	66,318		3,187,906
			4,526,393
Food Products — 6.3%
Bunge, Ltd.	90,538		4,453,564
ConAgra Foods, Inc.	205,388		4,789,648
Kraft Foods, Inc.	144,962		4,058,936
Tyson Foods, Inc. Cl. A	154,489		2,532,075
			15,834,223
Health Care Equipment & Supplies — 1.6%
Alcon, Inc.	26,329		3,901,695

COMMON STOCKS (continued)	Shares	Value (Note 2)
Health Care Providers & Services — 3.1%
Medco Health Solutions, Inc.(a)	72,424	$	3,989,114
Omnicare, Inc.	164,311		3,894,171
			7,883,285
Hotels, Restaurants & Leisure — 1.8%
Yum Brands, Inc.	116,403		4,544,373
Independent Power Producers & Energy Traders — 1.4%
Calpine Corp.(a)	277,213		3,526,149
Insurance — 2.3%
Axis Capital Holdings, Ltd.	103,535		3,077,060
Travelers Cos., Inc. (The)	55,826		2,749,430
			5,826,490
Internet Software & Services — 3.6%
Google, Inc. Cl. A(a)	9,731		4,329,808
IAC/InterActiveCorp.(a)	212,490		4,668,405
			8,998,213
Machinery — 1.5%
Ingersoll-Rand PLC	108,980		3,758,720
Media — 6.5%
Comcast Corp.	279,625		4,857,086
Liberty Global, Inc. Ser. C(a)	183,032		4,757,002
Viacom, Inc.	118,779		3,726,097
Walt Disney Co. (The)	90,422		2,848,293
			16,188,478
Metals & Mining — 3.2%
Freeport-McMoRan Copper & Gold, Inc.	59,290		3,505,818
Kinross Gold Corp.	263,095		4,496,294
			8,002,112
Multi-Utilities — 2.0%
Sempra Energy	107,099		5,011,162
Oil, Gas & Consumable Fuels — 18.2%
Anadarko Petroleum Corp.	97,566		3,521,157
Apache Corp.	53,055		4,466,700
Canadian Natural Resources, Ltd.	128,281		4,262,778
EOG Resources, Inc.	48,760		4,796,521
Noble Energy, Inc.	66,440		4,008,325
Occidental Petroleum Corp.	91,262		7,040,863
Petroleo Brasileiro SA ADR (Brazil)	123,629		4,242,947
Southern Union Co.	73,737		1,611,891
Suncor Energy, Inc.	148,275		4,365,216
Trident Resources Corp., Private Placement (original cost $2,642,248)(b)(c)	6,553		2,642,170
Williams Cos, Inc. (The)	254,681		4,655,569
			45,614,137
Pharmaceuticals — 5.3%
Merck & Co., Inc.	90,863		3,177,479
Mylan, Inc.(a)	161,935		2,759,372
Pfizer, Inc.	226,274		3,226,667
Sanofi-Aventis SA ADR (France)	135,451		4,071,657
			13,235,175

SEE NOTES TO FINANCIAL STATEMENTS.

A1

FINANCIAL STATEMENTS OF VCA-2

STATEMENT OF NET ASSETS  (Unaudited)

June 30, 2010

COMMON STOCKS (continued)	Shares	Value (Note 2)
Real Estate Investment Trusts — 1.4%
Annaly Capital Management, Inc.	200,785	$	3,443,463
Semiconductors & Semiconductor Equipment — 0.9%
Advanced Micro Devices, Inc.(a)	297,301		2,176,243
Software — 5.9%
Adobe Systems, Inc.(a)	114,127		3,016,377
CA, Inc.	251,514		4,627,858
Nuance Communications, Inc.(a)	187,571		2,804,186
Symantec Corp.(a)	308,627		4,283,743
			14,732,164
Specialty Retail — 1.3%
Staples, Inc.	177,737		3,385,890
Thrifts & Mortgage Finance — 0.9%
People’s United Financial, Inc.	174,565		2,356,628
Wireless Telecommunication Services — 1.3%
NII Holdings, Inc.(a)	103,111		3,353,170
TOTAL COMMON STOCKS (Cost: $235,743,840)		$	249,167,215
	Units
RIGHT
Oil, Gas & Consumable Fuels
Trident Resources Corp., Private Placement, expiring 6/30/15(a)(b)(c) (Cost: $0)	2,436		—
TOTAL LONG-TERM INVESTMENTS (Cost: $235,743,840)		$	249,167,215

SHORT-TERM INVESTMENTS — 0.9%
	Shares	Value (Note 2)
Affiliated Money Market Mutual Fund
Prudential Investment Portfolios 2- Prudential Core Taxable Money Market Fund(e) (Cost: $2,320,436)	2,320,436	$	2,320,436
TOTAL INVESTMENTS(d) — 100.2% (Cost: $238,064,276)		$	251,487,651
LIABILITIES, LESS OTHER ASSETS
Receivable for Securities Sold		$	1,538,888
Dividends Receivable			417,017
Payable for Pending Capital Transactions			(78,022	)
Payable for Securities Purchased			(2,468,701	)
OTHER LIABILITIES IN EXCESS OF ASSETS — (0.2)%			(590,818	)
NET ASSETS — 100%		$	250,896,833
NET ASSETS, representing:
Equity of Participants — 7,735,471 Accumulation Units at an Accumulation Unit Value of $31.4683		$	243,422,142
Equity of Annuitants			6,878,431
Equity of The Prudential Insurance Company of America			596,260
		$	250,896,833

(a) Non-income producing security.

(b) Indicates an illiquid security.

(c) Indicates a security restricted to resale. The aggregate cost of such securities is $2,642,248. The aggregate value of $2,642,170 is approximately 1.1% of net assets.

(d) As of June 30, 2010, two securities valued at $2,642,170 and representing 1.1% of the total market value of the portfolio were fair valued in accordance with the policies adopted by the Committee Members.

(e) Prudential Investments LLC, the Manager of the Account, also serves as Manager of the Prudential Investment Portfolios 2—Prudential Core Taxable Money Market Fund.

ADR American Depository Receipt

SEE NOTES TO FINANCIAL STATEMENTS.

A2

FINANCIAL STATEMENTS OF VCA-2

STATEMENT OF NET ASSETS (Unaudited)

June 30, 2010

Various inputs are used in determining the value of the Account’s investments. These inputs are summarized in the three broad levels listed below.

Level 1—quoted prices in active markets for identical securities

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The following is a summary of the inputs used as of June 30, 2010 in valuing the Account’s assets carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3
Common Stocks	$	246,525,045	$	—	$	2,642,170
Right		—		—		—
Affiliated Mutual Funds		2,320,436		—		—
Total	$	248,845,481	$	—	$	2,642,170

It is the Account’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period.

The Account did not have any transfers in and transfers out of Level 2 fair value hierarchy during the reporting period.

The industry classification of portfolio holdings and other liabilities in excess of assets shown as a percentage of net assets as of June 30, 2010 were as follows:

Oil, Gas & Consumable Fuels	18.2	%
Media	6.5
Food Products	6.3
Software	5.9
Capital Markets	5.7
Pharmaceuticals	5.3
Diversified Financial Services	3.6
Internet Software & Services	3.6
Metals & Mining	3.2
Computers and Peripherals	3.1
Health Care Providers & Services	3.1
Insurance	2.3
Energy Equipment & Services	2.0
Multi-Utilities	2.0
Auto Components	1.9
Electric Utilities	1.9
Commercial Services & Supplies	1.8
Diversified Consumer Services	1.8
Food & Staples Retailing	1.8
Hotels, Restaurants & Leisure	1.8
Energy Equipment & Instruments	1.7
Commercial Banks	1.6
Health Care Equipment & Supplies	1.6
Machinery	1.5
Chemicals	1.4
Independent Power Producers & Energy Traders	1.4
Real Estate Investment Trusts	1.4
Communications Equipment	1.3
Specialty Retail	1.3
Wireless Telecommunication Services	1.3
Aerospace & Defense	1.2
Affiliated Money Market Mutual Fund	0.9
Semiconductors & Semiconductor Equipment	0.9
Thrifts & Mortgage Finance	0.9
	100.2
Other Liabilities in Excess of Assets	(0.2	)
	100.0	%

SEE NOTES TO FINANCIAL STATEMENTS.

A3

FINANCIAL STATEMENTS OF VCA-2

STATEMENT OF OPERATIONS  (Unaudited)

Six Months Ended June 30, 2010

INVESTMENT INCOME
Unaffiliated Dividend Income (net of $61,358 foreign withholding tax)	$	2,641,247
Affiliated Dividend Income		5,466
Total Income		2,646,713
EXPENSES
Fees Charged to Participants and Annuitants for Investment Management Services		(173,036	)
Fees Charged to Participants (other than Annuitants) for Assuming Mortality and Expense Risks		(506,586	)
Total Expenses		(679,622	)
NET INVESTMENT INCOME		1,967,091
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain on Investment Transactions		6,966,532
Net Change in Unrealized Appreciation (Depreciation) on Investments		(38,231,141	)
NET LOSS ON INVESTMENTS		(31,264,609	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(29,297,518	)

STATEMENT OF CHANGES IN NET ASSETS (Unaudited)

	Six Months Ended June 30,			Year Ended December 31,
	2010			2009
OPERATIONS
Net Investment Income	$	1,967,091		$	2,754,539
Net Realized Gain (Loss) on Investment Transactions		6,966,532			(29,976,356	)
Net Change In Unrealized Appreciation (Depreciation) on Investments		(38,231,141	)		124,768,959
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		(29,297,518	)		97,547,142
CAPITAL TRANSACTIONS
Purchase Payments and Transfers In		3,782,054			8,742,398
Withdrawals and Transfers Out		(15,874,342	)		(28,158,196	)
Annual Administration Charges Deducted from Participants’ Accumulation Accounts		(180	)		(7,183	)
Mortality and Expense Risk Charges Deducted from Annuitants’ Accounts		(12,522	)		(23,432	)
Variable Annuity Payments		(617,920	)		(1,053,759	)
NET DECREASE IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS		(12,722,910	)		(20,500,172	)
NET DECREASE IN NET ASSETS RESULTING FROM SURPLUS TRANSFERS		(24,711	)		(99,155	)
TOTAL INCREASE (DECREASE) IN NET ASSETS		(42,045,139	)		76,947,815
NET ASSETS
Beginning of period		292,941,972			215,994,157
End of period	$	250,896,833		$	292,941,972

SEE NOTES TO FINANCIAL STATEMENTS.

A4

FINANCIAL HIGHLIGHTS FOR VCA-2

INCOME AND CAPITAL CHANGES PER ACCUMULATION UNIT*  (Unaudited)

(For an Accumulation Unit outstanding throughout the period)

	Six Months Ended June 30,			Year Ended December 31,
	2010			2009			2008			2007			2006			2005
Investment Income	$	.3253		$	.4604		$	.6104		$	.6673		$	.5815		$	.4098
Expenses
Investment management fee		(.0219	)		(.0360	)		(.0435	)		(.0526	)		(.0453	)		(.0380	)
Assuming mortality and expense risks		(.0655	)		(.1080	)		(.1305	)		(.1576	)		(.1357	)		(.1140	)
Net Investment Income		.2379			.3164			.4364			.4571			.4005			.2578
Capital Changes
Net realized gain (loss) on investment transactions		.8406			(3.3879	)		(5.9689	)		6.6673			5.8433			3.1463
Net change in unrealized appreciation (depreciation) of investments		(4.7799	)		14.5145			(12.6906	)		(4.6697	)		(1.0553	)		2.3659
Net Increase (Decrease) in Accumulation Unit Value		(3.7014	)		11.4430			(18.2231	)		2.4547			5.1885			5.7700
Accumulation Unit Value
Beginning of period		35.1697			23.7267			41.9498			39.4951			34.3066			28.5366
End of period	$	31.4683		$	35.1697		$	23.7267		$	41.9498		$	39.4951		$	34.3066
Total Return**		(10.52	)%		48.23	%		(43.44	)%		6.22	%		15.12	%		20.22	%
Ratio of Expenses To Average Net Assets***		.50	%†		.50	%		.50	%		.50	%		.50	%		.50	%
Ratio of Net Investment Income To Average Net Assets***		.69	%†		1.10	%		1.24	%		1.09	%		1.10	%		.84	%
Portfolio Turnover Rate		32	%††		63	%		81	%		63	%		55	%		51	%
Number of Accumulation Units Outstanding For Participants at end of period (000’s omitted)		7,735			8,074			8,807			10,240			11,081			12,012

* Calculated by accumulating the actual per unit amounts daily.

** Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized.

*** These calculations exclude PICA’s equity in VCA-2.

† Annualized

†† Not Annualized

The above table does not reflect the annual administration charge, which does not affect the Accumulation Unit Value. This charge is made by reducing Participants’ Accumulation Accounts by a number of Accumulation Units equal in value to the charge.

SEE NOTES TO FINANCIAL STATEMENTS.

B1

NOTES TO THE FINANCIAL STATEMENTS OF

VCA-2 (Unaudited)

Note 1: General

The Prudential Variable Contract Account-2 (VCA-2 or the Account) was established on January 9, 1968 by The Prudential Insurance Company of America (“PICA”) under the laws of the State of New Jersey and is registered as an open-end, diversified management investment company under the Investment Company Act of 1940, as amended. VCA-2 has been designed for use by public school systems and certain tax-exempt organizations to provide for the purchase and payment of tax-deferred variable annuities. The investment objective of the Account is long-term growth of capital. Its investments are composed primarily of common stocks. Although variable annuity payments differ according to the investment performance of the Account, they are not affected by mortality or expense experience because PICA assumes the expense risk and the mortality risk under the contracts.

Note 2: Summary of Significant Accounting Policies

Securities Valuation:    Securities listed on a securities exchange are valued at the last sale price on such exchange on the day of valuation or, if there was no sale on such day, at the mean between the last reported bid and asked prices, or at the last bid price on such day in the absence of an asked price. Securities traded via NASDAQ are valued at the NASDAQ official closing price (“NOCP”) on the day of valuation, or if there was no NOCP, at the last sale price. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”), in consultation with the subadviser; to be over-the-counter, are valued at market value using prices provided by an independent pricing agent or principal market maker. Securities for which reliable market quotations are not readily available, or whose values have been effected by events occurring after the close of the security’s foreign market and before the Fund’s normal pricing time, are valued at fair value in accordance with the Accounts’ Committee Members approved fair valuation procedures. When determining the fair valuation of securities some of the factors influencing the valuation include, the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment adviser regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.

Investments in mutual funds are valued at their net asset value as of the close of the New York Stock Exchange on the date of valuation.

Short-term investments which mature in more than 60 days are valued based on current market quotations. Short-term investments having maturities of 60 days or less are valued at amortized cost which approximates market value. Amortized cost is computed using the cost on the date of purchase, adjusted for constant accretion of discount or amortization of premium to maturity.

Rights:    The Account may hold rights acquired either through a direct purchase, including as part of private placement, or pursuant to corporate actions. Rights entitle the holder to buy a proportionate amount of common stock at a specific price and time through the expiration dates. Such rights are held as long positions by the Account until exercised, sold or expired. Rights are valued at fair value in accordance with the Committee Members’ approved fair valuation procedures.

Securities Transactions and Net Investment Income:    Securities transactions are recorded on the trade date. Realized and unrealized gains or losses on sales of securities are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date and interest income, including amortization of premiums and accretion of discount on debt securities, as required is recorded on the accrual basis. Income and realized and unrealized gains and losses are allocated to the Participants and PICA on a daily basis in proportion to their respective ownership in VCA-2.

C1

Estimates:    The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those amounts.

Federal Income Taxes:    The operations of VCA-2 are part of, and are taxed with, the operations of PICA. Under the current provisions of the Internal Revenue Code, PICA does not expect to incur federal income taxes on earnings of VCA-2 to the extent the earnings are credited under the Contracts. As a result, the Unit Value of VCA-2 has not been reduced by federal income taxes.

Annuity Reserves:    Reserves are computed for purchased annuities using the Prudential 1950 Group Annuity Valuation (GAV) Table, adjusted, and a valuation interest rate related to the Assumed Investment Result (AIR). The valuation interest rate is equal to the AIR less .5% in contract charges defined in Note 3. The AIRs are selected by each Contract-holder and are described in the prospectus.

Note 3: Investment Management Agreement and Charges

The Account has a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. PI has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison”). The subadvisory agreement provides that Jennison will furnish investment advisory services in connection with management of the Account. PI pays for the services of Jennison.

A daily charge, at an effective annual rate of 0.125% of the current value of the Participant’s (other than Annuitants’ and PICA’s) equity in VCA-2, is charged to the Account and paid to PI for investment management services. An equivalent charge is deducted monthly in determining the amount of Annuitants’ payments.

A daily charge, paid to PI for assuming mortality and expense risks, is calculated at an effective annual rate of 0.375% of the current value of the Participant’s (other than Annuitants’ and PICA’s) equity in VCA-2. A one-time equivalent charge is deducted when the Annuity Units for Annuitants are determined.

PICA, PI and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).

An annual administration charge of not more than $30 annually is deducted from the accumulation account of certain Participants either at the time of withdrawal of the value of the entire Participant’s account or at the end of the fiscal year by canceling Accumulation Units. This deduction may be made from a fixed-dollar annuity contract if the Participant is enrolled under such a contract.

A charge of 2.5% for sales and other marketing expenses is deducted from certain Participant’s purchase payments. For the six months ended June 30, 2010, PICA has advised the Account it has not received any sales charges.

Note 4: Purchases and Sales of Portfolio Securities

For the six months ended June 30, 2010, the aggregate cost of purchases and the proceeds from sales of securities, excluding short-term investments, were $94,440,835 and $89,034,681, respectively.

Investment in the Core Fund:    The Account invests in the Prudential Core Taxable Money Market Fund (the “Core Fund”), a portfolio of the Prudential Investment Portfolios 2 registered under the Investment Company Act of 1940, as amended, and managed by PI. During the six months ended June 30, 2010, the Account earned $5,466 by investing its excess cash in the Core Fund.

Note 5: Unit Transactions

The number of Accumulation Units issued and redeemed for the six months ended June 30, 2010, and year ended December 31, 2009, respectively, are as follows:

	Six Months Ended June 30,		Year Ended December 31,
	2010		2009
Units issued	108,928		303,841
Units redeemed	(447,290	)	(1,036,636	)
Net decrease	(338,362	)	(732,795	)

C2

Note 6: Net Increase (Decrease) in Net Assets Resulting from Surplus Transfers

The increase (decrease) in net assets resulting from surplus transfers represents the net increases to/(reductions from) PICA’s investment Account. The increase (decrease) includes reserve adjustments for mortality and expense risks assumed by PICA.

Note 7: Participant Loans

Participant loan initiations are not permitted in VCA-2. However, participants who initiated loans in other accounts are permitted to direct loan repayments into VCA-2.

For the six months ended June 30, 2010 and year ended December 31, 2009, $2,822 and $5,245 of participant loan principal and interest has been paid to VCA-2, respectively. The participant loan principal and interest repayments are included in purchase payments and transfers in within the Statement of Changes in Net Assets.

Note 8: New Accounting Pronouncement

In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about Fair Value Measurements”. ASU 2010-06 will require reporting entities to make new disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2010. At this time, management is evaluating the implications of ASU No. 2010-06 and its impact on the financial statements has not been determined.

Note 9: Subsequent Events

Management has evaluated the impact of all subsequent events on the Account through August 25, 2010, the date the financial statements were issued, and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

C3

The Prudential Variable Contract Account - 2

The VCA-2 Committee

The Committee of the Prudential Variable Contract Account-2 (“VCA-2”)(the “Committee”) consists of ten individuals, eight of whom are not “interested persons” of VCA-2, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”)(the “Independent Committee Members”). The Committee is responsible for the oversight of VCA-2 and its operations, and performs the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Committee Members have retained independent legal counsel to assist them in connection with their duties. The Chair of the Committee is an Independent Committee Member. The Committee has established three standing committees: the Audit Committee, the Nominating and Governance Committee, and the Investment Committee. Each committee is chaired by, and composed of, Independent Committee Members.

Annual Approval of VCA-2’s Advisory Agreements

As required under the 1940 Act, the Committee determines annually whether to renew VCA-2’s management agreement with Prudential Investments LLC (“PI”) and VCA-2’s subadvisory agreement with Jennison Associates LLC (“Jennison”). In considering the renewal of the agreements, the Committee, including all of the Independent Committee Members, met on June 21-23 2010 and approved the renewal of the agreements through July 31, 2011, after concluding that the renewal of the agreements was in the best interests of VCA-2 and its investors.

In advance of the meeting, the Committee requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Committee considered comparative fee information from PI and Jennison. Also, the Committee considered comparisons with other mutual funds in relevant Peer Universes and Peer Groups. The mutual funds included in each Peer Universe or Peer Group were objectively determined by Lipper Inc. (“Lipper”), an independent provider of mutual fund data. To the extent that PI deems appropriate, and for reasons addressed in detail with the Committee, PI may provide supplemental data compiled by Lipper for the Committee’s consideration The comparisons placed VCA-2 in various quartiles over the one-, three-, five- and ten-year periods ending December 31, 2009 with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).

In approving the agreements, the Committee, including the Independent Committee Members advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services provided by PI and the subadvisers, the performance of VCA-2, the profitability of PI and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with the VCA-2 and its investors as VCA-2’s assets grow. In its deliberations, the Committee did not identify any single factor which alone was responsible for the Committee’s decision to approve the agreements with respect to VCA-2. In connection with its deliberations, the Committee considered information provided by PI throughout the year at regular Committee meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the meetings on June 21-23, 2010.

The Committee determined that the overall arrangements between VCA-2 and PI, which serves as VCA-2’s investment manager pursuant to a management agreement, and between PI and Jennison, which serves as VCA-2’s subadviser pursuant to the terms of a subadvisory agreement with PI, are in the interest of VCA-2 and its investors in light of the services performed, fees charged and such other matters as the Committee Members considered relevant in the exercise of their business judgment.

The material factors and conclusions that formed the basis for the Committee’s reaching its determinations to approve the continuance of the agreements are separately discussed below.

Nature, quality and extent of services

The Committee received and considered information regarding the nature, quality and extent of services provided to VCA-2 by PI and Jennison. The Committee considered the services provided by PI, including but not limited to the oversight of the subadviser for VCA-2, as well as the provision of recordkeeping, compliance, and other services to VCA-2. With respect to PI’s oversight of the subadviser, the Committee noted that PI’s Strategic Investment Research Group (“SIRG”), which is a business unit of PI, is responsible for monitoring and reporting to PI’s senior management on the performance and operations of the subadviser. The Committee also considered that PI pays the salaries of all of the officers and Committee Members. The Committee also considered the investment subadvisory services provided by Jennison, as well as adherence to VCA-2’s investment restrictions and compliance with applicable VCA-2 policies and procedures. The Committee considered PI’s evaluation of the subadviser, as well as PI’s recommendation, based on its review of the subadviser, to renew the subadvisory agreement.

The Committee reviewed the qualifications, backgrounds and responsibilities of PI’s senior management responsible for the oversight of VCA-2 and Jennison, and also reviewed the qualifications, backgrounds and responsibilities of Jennison’s portfolio managers who are responsible for the day-to-day management of VCA-2’s portfolio. The Committee was provided with information pertaining to PI’s and Jennison’s organizational structure, senior management, investment operations, and other relevant information pertaining to both PI and Jennison. The Committee also noted that it received favorable compliance reports from VCA-2’s Chief Compliance Officer (“CCO”) as to both PI and Jennison. The Committee noted that Jennison is affiliated with PI.

The Committee concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PI and the subadvisory services provided to VCA-2 by Jennison, and that there was a reasonable basis on which to conclude that VCA-2 benefits from the services provided by PI and Jennison under the management and subadvisory agreements.

Performance of VCA-2

The Committee received and considered information about VCA-2’s historical performance. The Committee considered that VCA-2’s gross performance in relation to its Peer Universe (the Lipper VA Large-Cap Core Funds Performance Universe)¹ was in the first quartile over the one-, three-, five-, and ten-year periods. The Committee also noted that VCA-2 outperformed its benchmark index over all periods. The Committee concluded that, in light of VCA-2’s competitive performance, it would be in the best interest of VCA-2 and its investors to renew the agreements.

Fees and Expenses

The Committee considered that VCA-2’s actual management fee (which reflects any subsidies, expense caps or waivers) and total expenses both ranked in the Expense Group’s first quartile.

The Committee concluded that the management fees and total expenses were reasonable in light of the services provided.

Costs of Services and Profits Realized by PI

The Committee was provided with information on the profitability of PI and its affiliates in serving as VCA-2’s investment manager. The Committee discussed with PI the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Committee recognized that it is difficult to make

¹ Although Lipper classifies VCA-2 in its VA Multi-Cap Core Funds Performance Universe, the VA Large-Cap Core Funds Performance Universe was utilized because PI believes that the funds included in this Universe are more consistent with VCA-2’s investment approach, and therefore, provide a more appropriate basis for VCA-2 performance comparisons.

comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the adviser’s capital structure and cost of capital. Taking these factors into account, the Committee concluded that the profitability of PI and its affiliates in relation to the services rendered was not unreasonable. The Committee did not separately consider the profitability of the subadviser, an affiliate of PI, as its profitability was reflected in the profitability report for PI.

Economies of Scale

The Committee noted that the advisory fee schedule for VCA-2 does not contain breakpoints that would reduce the fee rate on assets above specified levels. The Committee received and discussed information concerning whether PI realizes economies of scale as VCA-2 assets grow beyond current levels. In light of VCA-2’s current size and expense structure, the Committee concluded that the absence of breakpoints in VCA-2’s fee schedule is acceptable at this time.

Other Benefits to PI and Jennison

The Committee considered potential ancillary benefits that might be received by PI and Jennison and their affiliates as a result of their relationship with VCA-2. The Committee concluded that potential benefits to be derived by PI included brokerage commissions received by affiliates of PI, as well as benefits to the reputation or other intangible benefits resulting from PI’s association with VCA-2. The Committee concluded that the potential benefits to be derived by Jennison included the ability to use soft dollar credits, brokerage commissions received by affiliates of Jennison, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and benefits to the reputation. The Committee concluded that the benefits derived by PI and Jennison were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.

After full consideration of these factors, the Committee concluded that the approval of the agreements was in the best interest of VCA-2 and its investors.

The toll-free number shown below can be used to make transfers and reallocations, review how your premiums are being allocated, and receive current investment option values in your contract. Unit values for each investment option are available to all participants from the toll-free number. The phone lines are open each business day during the hours shown below. Please be sure to have your contract number available when you call.

800-458-6333

The Prudential Insurance Company of America

751 Broad Street

Newark NJ 07102-3777

Presorted

Standard

U.S. Postage

PAID

Prudential

In the past, participants who held several variable contracts at the same address received multiple copies of annual and semiannual reports. In an effort to lessen waste and reduce expenses of postage and printing, we will attempt to mail only one copy of this report based on our current records for participants with the same last name and same address. No action on your part is necessary. Upon request, we will furnish you with additional reports. The toll-free number listed on the inside back cover should be used to request additional copies. Proxy material and tax information will continue to be sent for each account of record.

Prudential Retirement, Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

0158082-00002-00        LT.RS.001        

Item 2 – Code of Ethics – Not required, as this is not an annual filing.

Item 3 – Audit Committee Financial Expert – Not required, as this is not an annual filing.

Item 4 – Principal Accountant Fees and Services – Not required, as this is not an annual filing.

Item 5 – Audit Committee of Listed Registrants – Not applicable.

Item 6 – Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable.

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not applicable.

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable.

Item 10 – Submission of Matters to a Vote of Security Holders – Not applicable.

Item 11 – Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits

(a) (1) Code of Ethics – Not required, as this is not an annual filing.

(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT.

(3) Any written solicitation to purchase securities under Rule 23c-1. – Not applicable.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant:  The Prudential Variable Contract Account-2

By:	/S/    DEBORAH A. DOCS
	Deborah A. Docs
	Secretary

Date: August 24, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/S/    JUDY A. RICE
	Judy A. Rice
	President and Principal Executive Officer

Date: August 24, 2010

By:	/S/    GRACE C. TORRES
	Grace C. Torres
	Treasurer and Principal Financial Officer

Date: August 24, 2010

EX-99.CERT

Item 12

The Prudential Variable Contract Account-2

Semi-Annual period ending 6/30/10

File No. 811-01612

CERTIFICATIONS

I, Judy A. Rice, certify that:

1. I have reviewed this report on Form N-CSR of the above named Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report.

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and;

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 24, 2010

/s/ Judy A. Rice

Judy A. Rice

President and Principal Executive Officer

Item 12

The Prudential Variable Contract Account-2

Semi-Annual period ending 6/30/10

File No. 811-01612

CERTIFICATIONS

I, Grace C. Torres, certify that:

1. I have reviewed this report on Form N-CSR of the above named Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report.

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and;

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 24, 2010

/s/ Grace C. Torres

Grace C. Torres

Treasurer and Principal Financial Officer

EX-99.906CERT

Certification Pursuant to 18 U.S.C. Section 1350

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Name of Issuer:  The Prudential Variable Contract Account-2

In connection with the Report on Form N-CSR of the above-named issuer that is accompanied by this certification, the undersigned hereby certifies, to his or her knowledge, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer.

August 24, 2010	/s/ Judy A. Rice
	Judy A. Rice
	President and Principal Executive Officer

August 24, 2010	/s/ Grace C. Torres
	Grace C. Torres
	Treasurer and Principal Financial Officer