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): July 31, 2019

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:

☐ 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))

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, Par Value $.01	PRU	New York Stock Exchange
5.75% Junior Subordinated Notes	PJH	New York Stock Exchange
5.70% Junior Subordinated Notes	PRH	New York Stock Exchange
5.625% Junior Subordinated Notes	PRS	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02 Results of Operations and Financial Condition.

Prudential Financial, Inc. (the “Company”) furnishes herewith, as Exhibit 99.1, a news release announcing second quarter 2019 results.

Item 7.01 Regulation FD Disclosure.

A. Quarterly Financial Supplement. The Company furnishes herewith, as Exhibit 99.2, the Quarterly Financial Supplement for second quarter 2019.

B. Conference Call and Related Materials. Members of the Company’s senior management will hold a conference call on Thursday, August 1, 2019 at 11:00 A.M. ET, to discuss the Company’s second quarter 2019 results. Related materials are available on the Company’s Investor Relations website at www.investor.prudential.com.

Investors and others should note that the Company routinely uses its Investor Relations website to post presentations to investors and other important information, including information that may be deemed material to investors. Accordingly, the Company encourages investors and others interested in the Company to review the information that it shares at www.investor.prudential.com. Interested parties may register to receive automatic email alerts when presentations and other information are posted to the Investor Relations website by clicking on “Subscribe to Email Alerts” at www.investor.prudential.com and following the instructions provided.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
	99.1	News release of Prudential Financial, Inc., dated July 31, 2019, announcing second quarter 2019 results (furnished and not filed).
	99.2	Quarterly Financial Supplement for Prudential Financial, Inc. for second quarter 2019 (furnished and not filed).

2

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: July 31, 2019

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

3

EX-99.1

Exhibit 99.1

July 31, 2019

Prudential Financial, Inc. Announces

Second Quarter 2019 Results

● Net income attributable to Prudential Financial of $708 million or $1.71 per Common share versus $197 million or $0.46 per share for the year-ago quarter. The current quarter included a net after-tax charge from our annual reviews and update of assumptions and other refinements of $32 million or $0.08 per Common share versus $1.5 billion or $3.40 per share in the year-ago quarter.

● After-tax adjusted operating income of $1.307 billion or $3.14 per Common share versus $1.298 billion or $3.01 per share for the year-ago quarter. The current quarter included a net after-tax charge from our annual reviews and update of assumptions and other refinements of $39 million or $0.09 per Common share versus $126 million or $0.29 per share in the year-ago quarter.

● Book value per share of $150.04 versus $113.59 per share for the year-ago quarter; adjusted book value per share of $97.15 versus $92.60 for the year-ago quarter.

● Capital returned to shareholders of $911 million in the quarter versus $757 million for the year-ago quarter, including dividends of $1.00 per share, representing a 4% yield on adjusted book value.

● Parent company highly liquid assets of $4.9 billion versus $4.7 billion for the year-ago quarter.

● Assets under management of $1.497 trillion versus $1.388 trillion for the year-ago quarter.

  Charles Lowrey, Chairman and CEO, commented on results:

“During the second quarter, we generated an adjusted return on equity within our 12-14% target and continued to accelerate our strategy, while delivering on our purpose as a company to provide better financial outcomes to more people. Although the recent decline in interest rates and our revised mortality assumptions may trim near-term earnings momentum, we remain confident in our planned initiatives for growth as we execute on the priorities that we outlined during our Investor Day.”

NEWARK, N.J. – Prudential Financial, Inc. (NYSE: PRU) today reported second quarter results. Net income attributable to Prudential Financial, Inc. was $708 million ($1.71 per Common share) for the second quarter of 2019, compared to $197 million ($0.46 per Common share) for the second quarter of 2018. After-tax adjusted operating income was $1.307 billion ($3.14 per Common share) for the second quarter of 2019, compared to $1.298 billion ($3.01 per Common share) for the second quarter of 2018.

Consolidated adjusted operating income, adjusted book value, and adjusted operating return on equity are non-GAAP measures. These measures are discussed later in this press release under “Forward-Looking Statements and Non-GAAP Measures” and reconciliations to the most comparable GAAP measures are provided in the tables that accompany this release.

-more-

Prudential Financial, Inc. Second Quarter 2019 Earnings Release Page 2

RESULTS OF ONGOING OPERATIONS

The Company’s ongoing operations include PGIM, U.S. Financial Wellness including U.S. Workplace Solutions and U.S. Individual Solutions Divisions, International Insurance, and Corporate & Other Operations. In the following segment-level discussion, adjusted operating income refers to pre-tax results.

PGIM

PGIM, the Company’s global investment management business, reported adjusted operating income of $264 million in the current quarter, compared to $254 million in the year-ago quarter. The increase from the year-ago quarter reflects higher asset management fees, from an increase in average assets under management, and higher other related revenues, mostly offset by higher expenses.

PGIM assets under management of $1.260 trillion were up 9% from the year-ago quarter, reflecting market appreciation and fixed income inflows partially offset by equity outflows. Third-party net outflows in the current quarter of $4.9 billion included a single institutional fixed income client withdrawal of $5 billion.

U.S. Financial Wellness

U.S. Workplace Solutions, consisting of the Retirement and Group Insurance segments, reported adjusted operating income of $548 million for the second quarter of 2019, compared to $359 million in the year-ago quarter.

Retirement Segment:

● Reported adjusted operating income of $467 million in the current quarter, compared to $277 million in the year-ago quarter. This increase includes a net favorable comparative impact from our annual reviews and update of assumptions and other refinements of $222 million. Excluding this item, current quarter results primarily reflect less favorable underwriting experience, partially offset by higher net investment spread results.

● Account values of $478 billion, a record high, were up 11% from the year-ago quarter. Net flows in the current quarter totaled $14.7 billion with $10.9 billion from Institutional Investment products, primarily from pension risk transfer transactions, and $3.8 billion from Full Service.

Group Insurance Segment:

● Reported adjusted operating income of $81 million in the current quarter, compared to $82 million in the year-ago quarter. This decrease includes a less favorable comparative impact from our annual reviews and update of assumptions and other refinements of $22 million. Excluding this item, current quarter results primarily reflect higher net investment spread results and lower expenses.

● Reported earned premiums, policy charges, and fees of $1.3 billion in the current quarter, increased 2% from the year-ago quarter.

U.S. Individual Solutions, consisting of the Individual Annuities and Individual Life segments, reported adjusted operating income of $327 million in the second quarter of 2019, compared to $550 million in the year-ago quarter.

-more-

Prudential Financial, Inc. Second Quarter 2019 Earnings Release Page 3

Individual Annuities Segment:

● Reported adjusted operating income of $462 million in the current quarter, compared to $507 million in the year-ago quarter. This decrease includes a net unfavorable comparative impact from our annual reviews and update of assumptions and other refinements of $22 million. Excluding this item, current quarter results primarily reflect lower net asset-based fee income and higher expenses, partially offset by a higher contribution from net investment spread results.

● Account values of $165 billion were up 1% from the year-ago quarter, reflecting market appreciation over the year, partially offset by net outflows. Gross sales of $2.7 billion in the current quarter were up 29% from the year-ago quarter, reflecting our product diversification strategy including sales momentum of our fixed indexed annuity product.

Individual Life Segment:

● Reported an adjusted operating loss of $135 million in the current quarter, compared to operating income of $43 million in the year-ago quarter. This decrease includes a more unfavorable comparative impact from our annual reviews and update of assumptions and other refinements of $153 million. Excluding this item, current quarter results primarily reflect less favorable underwriting experience, and higher expenses, partially offset by a higher contribution from net investment spread results.

● Sales of $181 million in the current quarter were up 27% from the year-ago quarter, reflecting higher universal and variable life sales.

International Insurance

International Insurance, consisting of Life Planner Operations and Gibraltar Life & Other Operations, reported adjusted operating income of $849 million in the second quarter of 2019, compared to $784 million in the year-ago quarter.

Life Planner Operations:

● Reported adjusted operating income of $438 million in the current quarter, compared to $376 million in the year-ago quarter. This increase includes a net favorable comparative impact from our annual reviews and update of assumptions and other refinements of $50 million. Excluding this item, current quarter results primarily reflect favorable underwriting experience and business growth, mostly offset by higher expenses.

● Constant dollar basis sales of $309 million in the current quarter were up 5% from the year-ago quarter, driven by our Brazil operations.

Gibraltar Life & Other Operations:

● Reported adjusted operating income of $411 million in the current quarter, compared to $408 million in the year-ago quarter. This increase includes a net favorable comparative impact from our annual reviews and update of assumptions and other refinements of $39 million. Excluding this item, current quarter results primarily reflect higher expenses and less favorable underwriting experience, net of business growth.

● Constant dollar basis sales of $297 million in the current quarter were down 26% from the year-ago quarter, primarily reflecting lower U.S. dollar-denominated fixed annuity sales in the Life Consultant channel, competitive pressures in the Bank channel, and lower production in our Independent Agency channel.

-more-

Prudential Financial, Inc. Second Quarter 2019 Earnings Release Page 4

Corporate & Other Operations

Corporate & Other Operations reported a loss, on an adjusted operating income basis, of $335 million in the second quarter of 2019, compared to a loss of $286 million in the year-ago quarter. The $49 million higher loss from the year-ago quarter reflects higher costs for employee benefit and compensation plans tied to Company stock and equity market performance, higher expenses related to corporate initiatives, and lower income from the qualified pension plan, partially offset by higher net investment income, net of interest expense.

NET INCOME AND INVESTMENT PORTFOLIO

Net income attributable to Prudential Financial, Inc. amounted to $708 million for the second quarter of 2019, compared to $197 million for the year-ago quarter.

Current quarter net income included:

● $630 million of pre-tax net realized investment losses and related charges and adjustments, primarily driven by net pre-tax losses of $566 million from products that contain embedded derivatives or guarantees and associated hedging activities. This pre-tax loss also includes $14 million of credit loss impairments

● $208 million of pre-tax losses related to market experience updates

Net income for the year-ago quarter included:

● $277 million of pre-tax net realized investment gains and related charges and adjustments, including $30 million of credit loss impairments

● $1.6 billion of pre-tax losses from divested businesses

FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES⁽¹⁾    

Certain of the statements included in this release, including those regarding prospective earnings, earnings per share growth and return on equity, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. 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. Prudential Financial, Inc.’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Statements” sections included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Statements regarding prospective earnings, earnings per share growth and return on equity are subject to the risk that we will be unable to execute our strategy because of market or competitive conditions or other factors. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this document.

Consolidated adjusted operating income, adjusted book value and adjusted operating return on equity are non-GAAP measures. Reconciliations to the most directly comparable GAAP measures are included in this release.

We believe that our use of these non-GAAP measures helps investors understand and evaluate the Company’s performance and financial position. The presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above. Adjusted book value augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations separate from the portion that is affected by capital and currency market conditions, and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through accumulated other comprehensive income under GAAP. Adjusted return on equity is a useful measure of the operating return the Company achieves in relation to the capital available to our businesses. However, these non-GAAP measures are not substitutes for income, equity and return on equity determined in accordance with GAAP, and the

-more-

Prudential Financial, Inc. Second Quarter 2019 Earnings Release Page 5

adjustments made to derive these measures are important to an understanding of our overall results of operations and financial position. The schedules accompanying this release provide reconciliations of non-GAAP measures with the corresponding measures calculated using GAAP. Additional historic information relating to our financial performance is located on our website at www.investor.prudential.com.

EARNINGS CONFERENCE CALL

Members of Prudential’s senior management will host a conference call on Thursday, August 1, 2019, at 11:00 a.m. ET, to discuss with the investment community the Company’s second quarter results. The conference call will be broadcast live over the Company’s Investor Relations website at investor.prudential.com. Please log on 15 minutes early in the event necessary software needs to be downloaded. The call will remain on the Investor Relations website for replay through August 15. Institutional investors, analysts, and other members of the professional financial community are invited to listen to the call and participate in the Q&A by dialing one of the following numbers: (877) 777-1971 (domestic callers) or (612) 332-0226 (international callers). All others may join the conference call in listen-only mode by dialing one of the above numbers. To listen to a replay of the conference call starting at 2:00 p.m. ET on August 1 through August 8, dial (800) 475-6701 (domestic callers) or (320) 365-3844 (international callers). The access code for the replay is 458815.

(1) Description of Non-GAAP Measures:

Adjusted operating income is the measure used by the Company to evaluate segment performance and to allocate resources. 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 generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. However, the effectiveness of our hedging program will ultimately be reflected in adjusted operating income over time. 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 designated as trading. Additionally, adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income. Additionally, market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, are excluded from adjusted operating income beginning with the second quarter of 2019, which we believe enhances the understanding of underlying performance trends.

Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder 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. In addition, adjusted operating income excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations. Discontinued operations and earnings attributable to noncontrolling interests, each of which is presented as a separate

-more-

Prudential Financial, Inc. Second Quarter 2019 Earnings Release Page 6

component of net income under GAAP, are also excluded from adjusted operating income. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments.

Adjusted operating return on equity is equal to the annualized year-to-date after-tax adjusted operating income divided by the average adjusted book value. Return on equity based on GAAP balances is calculated using after-tax net income and equity.

Adjusted book value is calculated as total equity (GAAP book value) excluding accumulated other comprehensive income (loss) and the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses. These items are excluded in order to highlight the book value attributable to our core business operations separate from the portion attributable to external and potentially volatile capital and currency market conditions.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of June 30, 2019, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit news.prudential.com.

MEDIA CONTACT: Bill Launder, (973) 802-8760, bill.launder@prudential.com

Financial Highlights

(in millions, unaudited)

	Three Months Ended June 30						Six Months Ended June 30
	2019			2018			2019			2018
Adjusted operating income (loss) before income taxes (1):
PGIM Division	$	264		$	254		$	478		$	486
U.S. Workplace Solutions Division		548			359			852			731
U.S. Individual Solutions Division		327			550			904			1,105
International Insurance Division		849			784			1,771			1,640
Corporate and Other Operations		(335	)		(286	)		(747	)		(580	)
Total adjusted operating income before income taxes	$	1,653		$	1,661		$	3,258		$	3,382
Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments	$	(630)		$	277		$	(1,268)		$	341
Market experience updates		(208	)		—			(208	)		—
Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net		287			(193	)		741			(596	)
Change in experience-rated contractholder liabilities due to asset value changes		(313	)		85			(716	)		503
Divested and Run-off Businesses:
Closed Block Division		(21	)		(31	)		(40	)		(40	)
Other Divested and Run-off Businesses		112			(1,526	)		286			(1,598	)
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(4	)		(23	)		(37	)		(49	)
Total reconciling items, before income taxes		(777	)		(1,411	)		(1,242	)		(1,439	)
Income before income taxes and equity in earnings of operating joint ventures	$	876		$	250		$	2,016		$	1,943
Income Statement Data:
Net income attributable to Prudential Financial, Inc.	$	708		$	197		$	1,640		$	1,560
Income attributable to noncontrolling interests		30			3			35			4
Net income		738			200			1,675			1,564
Less: Earnings attributable to noncontrolling interests		30			3			35			4
Income attributable to Prudential Financial, Inc.		708			197			1,640			1,560
Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(6	)		15			18			37
Income (after-tax) before equity in earnings of operating joint ventures		714			182			1,622			1,523
Less: Total reconciling items, before income taxes		(777	)		(1,411	)		(1,242	)		(1,439	)
Less: Income taxes, not applicable to adjusted operating income		(184	)		(295	)		(298	)		(324	)
Total reconciling items, after income taxes		(593	)		(1,116	)		(944	)		(1,115	)
After-tax adjusted operating income (1)		1,307			1,298			2,566			2,638
Income taxes, applicable to adjusted operating income		346			363			692			744
Adjusted operating income before income taxes (1)	$	1,653		$	1,661		$	3,258		$	3,382

See footnotes on last page.

Page 1

Financial Highlights

(in millions, except per share data, unaudited)

	Three Months Ended June 30						Six Months Ended June 30
	2019			2018			2019			2018
Earnings per share of common stock (diluted):
Net income attributable to Prudential Financial, Inc.	$	1.71		$	0.46		$	3.93		$	3.62
Less: Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments		(1.52	)		0.65			(3.05	)		0.79
Market experience updates		(0.50	)		—			(0.50	)		—
Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net		0.69			(0.45	)		1.78			(1.39	)
Change in experience-rated contractholder liabilities due to asset value changes		(0.76	)		0.20			(1.72	)		1.17
Divested and Run-off Businesses:
Closed Block Division		(0.05	)		(0.07	)		(0.10	)		(0.09	)
Other Divested and Run-off Businesses		0.27			(3.57	)		0.69			(3.72	)
Difference in earnings allocated to participating unvested share-based payment awards		0.02			0.02			0.02			0.03
Total reconciling items, before income taxes		(1.85	)		(3.22	)		(2.88	)		(3.21	)
Less: Income taxes, not applicable to adjusted operating income		(0.42	)		(0.67	)		(0.68	)		(0.73	)
Total reconciling items, after income taxes		(1.43	)		(2.55	)		(2.20	)		(2.48	)
After-tax adjusted operating income	$	3.14		$	3.01		$	6.13		$	6.10
Weighted average number of outstanding common shares (basic)		405.3			419.5			407.3			420.8
Weighted average number of outstanding common shares (diluted)		413.9			428.0			415.8			429.5
For earnings per share of common stock calculation:
Net income attributable to Prudential Financial, Inc.	$	708		$	197		$	1,640		$	1,560
Earnings related to interest, net of tax, on exchangeable surplus notes		6			6			11			11
Less: Earnings allocated to participating unvested share-based payment awards		8			4			18			18
Net income attributable to Prudential Financial, Inc. for earnings per share of common stock calculation	$	706		$	199		$	1,633		$	1,553
After-tax adjusted operating income (1)	$	1,307		$	1,298		$	2,566		$	2,638
Earnings related to interest, net of tax, on exchangeable surplus notes		6			6			11			11
Less: Earnings allocated to participating unvested share-based payment awards		15			14			28			30
After-tax adjusted operating income for earnings per share of common stock calculation (1)	$	1,298		$	1,290		$	2,549		$	2,619
Prudential Financial, Inc. Equity (as of end of period):
GAAP book value (total PFI equity) at end of period (6)	$	61,660		$	48,232
Less: Accumulated other comprehensive income (AOCI)		23,982			11,655
GAAP book value excluding AOCI (6)		37,678			36,577
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains/losses		(2,070	)		(2,650	)
Adjusted book value (6)		39,748			39,227
End of period number of common shares (diluted) (2)		414.3			429.0
GAAP book value per common share - diluted (3)(6)		150.04			113.59
GAAP book value excluding AOCI per share - diluted (3)(6)		92.15			86.43
Adjusted book value per common share - diluted (3)(6)		97.15			92.60

See footnotes on last page.

Page 2

Financial Highlights

(in millions, or as otherwise noted, unaudited)

	Three Months Ended June 30					Six Months Ended June 30
	2019			2018		2019			2018
PGIM Division:
PGIM Segment:
Assets Managed by PGIM (in billions, as of end of period):
Institutional customers	$	534.9		$	490.8
Retail customers		264.9			252.0
General account		459.8			413.3
Total PGIM	$	1,259.6		$	1,156.1
Institutional Customers - Assets Under Management (in billions):
Gross additions, other than money market	$	14.5		$	17.8	$	29.6		$	37.2
Net additions (withdrawals), other than money market	$	(6.0	)	$	5.5	$	(5.0	)	$	5.3
Retail Customers - Assets Under Management (in billions):
Gross additions, other than money market	$	13.0		$	13.4	$	27.1		$	28.0
Net additions, other than money market	$	1.1		$	1.8	$	1.5		$	2.8
U.S. Workplace Solutions Division:
Retirement Segment:
Full Service:
Deposits and sales	$	11,047		$	7,712	$	20,614		$	17,634
Net additions	$	3,788		$	1,242	$	4,250		$	3,010
Total account value at end of period	$	262,133		$	240,922
Institutional Investment Products:
Gross additions	$	15,044		$	5,461	$	17,291		$	6,149
Net additions (withdrawals)	$	10,883		$	1,610	$	9,481		$	(2,591)
Total account value at end of period	$	215,978		$	191,722
Group Insurance Segment:
Group Insurance Annualized New Business Premiums (4):
Group life	$	17		$	46	$	191		$	289
Group disability		16			14		135			154
Total	$	33		$	60	$	326		$	443
U.S. Individual Solutions Division:
Individual Annuities Segment:
Fixed and Variable Annuity Sales and Account Values:
Gross sales	$	2,675		$	2,067	$	4,982		$	3,791
Sales, net of full surrenders and death benefits	$	278		$	(301)	$	645		$	(814)
Total account value at end of period	$	165,313		$	163,645
Individual Life Segment:
Individual Life Insurance Annualized New Business Premiums (4):
Term life	$	53		$	54	$	104		$	103
Guaranteed universal life		24			24		45			45
Other universal life		48			29		78			55
Variable life		56			35		117			64
Total	$	181		$	142	$	344		$	267
International Insurance Division:
International Insurance Segment:
International Insurance Annualized New Business Premiums (4)(5):
Actual exchange rate basis	$	495		$	695	$	1,222		$	1,453
Constant exchange rate basis	$	606		$	696	$	1,340		$	1,448

See footnotes on last page.

Page 3

Financial Highlights

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

	Three Months Ended June 30
	2019		2018
Assets and Asset Under Management Information:
Total assets (6)	$	873.8	$	819.9
Assets under management (at fair market value):
PGIM Division		1,259.6		1,156.1
U.S. Workplace Solutions Division		90.9		87.6
U.S. Individual Solutions Division		115.4		115.7
International Insurance Division		31.5		28.8
Total assets under management		1,497.4		1,388.2
Client assets under administration		273.0		228.7
Total assets under management and administration	$	1,770.4	$	1,616.9

See footnotes on last page.

Page 4

(1) Adjusted operating income is a non-GAAP measure of performance. See FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES within the earnings release for additional information. Adjusted operating income, when presented at the segment level, is also a segment performance measure. This segment performance measure, while not a traditional U.S. GAAP measure, is required to be disclosed by U.S. GAAP in accordance with FASB Accounting Standard Codification (ASC) 280 – Segment Reporting. When presented by segment, we have prepared the reconciliation of adjusted operating income to the corresponding consolidated U.S. GAAP total in accordance with the disclosure requirements as articulated in ASC 280.

(2) Diluted shares as of June 30, 2019 and 2018 include 6.2 million shares and 5.9 million shares, respectively, due to the dilutive impact of conversion of exchangeable surplus notes (“ESNs”) when book value per common share (i.e., book value per common share, book value excluding AOCI per common share, and adjusted book value per common share) is greater than $80.73 and $85.00, respectively.

(3) The exchangeable surplus notes are subject to customary antidilution adjustments and the exchange rate is accordingly revalued. In order to calculate book value per common share as of June 30, 2019 and 2018, equity is increased by $500 million and diluted shares include 6.2 million shares and 5.9 million shares, respectively, reflecting the dilutive impact of ESNs when book value per common share is greater than $80.73 and $85.00, respectively.

(4) Premiums from new sales are expected to be collected over a one-year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the company’s domestic individual life and international insurance operations are included in annualized new business premiums based on a 10% credit.

(5) Actual amounts reflect the impact of currency fluctuations. Constant amounts reflect foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 105 per U.S. dollar and Korean won 1,110 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

(6) In the first quarter of 2018, the Company eliminated the one-month reporting lag for balance sheet and results of operations of Gibraltar Life Insurance Company, Ltd. (“Gibraltar Life”) consolidated operations.

Page 5

EX-99.2

Exhibit 99.2

Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

Second Quarter 2019

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

July 31, 2019

i

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

TABLE OF CONTENTS

	Page
HIGHLIGHTS
Financial Metrics Summary	1
Financial Highlights	2
Other Financial Highlights	3
Operations Highlights	4
Combined Statements of Operations	5
Consolidated Balance Sheets	6
Combining Balance Sheets by Division	7
Short-Term and Long-Term Debt - Unaffiliated	8
PGIM DIVISION
Statements of Operations	9
Supplementary Revenue and Assets Under Management Information	10
Supplementary Assets Under Management Information	11
U.S. WORKPLACE SOLUTIONS DIVISION
Combined Statements of Operations	12
Statements of Operations - Retirement	13
Retirement Sales Results and Account Values	14
Statements of Operations - Group Insurance	15
Group Insurance Supplementary Information	16
U.S. INDIVIDUAL SOLUTIONS DIVISION
Combined Statements of Operations	17
Statements of Operations - Individual Annuities	18
Individual Annuities Sales Results and Account Values	19
Individual Annuities Account Value Activity	20
Individual Annuities Living Benefit Features	21
Individual Annuities Death Benefit Features	22
Statements of Operations - Individual Life	23
Individual Life Supplementary Information	24
INTERNATIONAL INSURANCE DIVISION
Combined Statements of Operations	25
Statements of Operations - Life Planner Operations	26
Statements of Operations - Gibraltar Life and Other Operations	27
Sales Results and Supplementary Information	28
CORPORATE AND OTHER OPERATIONS
Statements of Operations	30
INVESTMENT PORTFOLIO
Investment Portfolio Composition	31
Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations	32
Investment Results	33
Investment Results - Japanese Insurance Operations	34
Investment Results - Excluding Japanese Insurance Operations	35
INCOME STATEMENT IMPACT FROM ANNUAL ACTUARIAL ASSUMPTION UPDATES AND REFINEMENTS	36
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES	37
KEY DEFINITIONS AND FORMULAS	39
RATINGS AND INVESTOR INFORMATION	42

ii

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

FINANCIAL METRICS SUMMARY

(in millions, except per share data)

	2018									2019						Year-to-date						%
	2Q			3Q			4Q			1Q			2Q			2018			2019			Change
Earnings
Adjusted operating income (loss) before income taxes:
PGIM Division		254			230			243			214			264			486			478			-2	%
U.S. Workplace Solutions Division		359			298			249			304			548			731			852			17	%
U.S. Individual Solutions Division		550			624			419			577			327			1,105			904			-18	%
International Insurance Division		784			890			736			922			849			1,640			1,771			8	%
Corporate and Other Operations		(286	)		(374	)		(329	)		(412	)		(335	)		(580	)		(747	)		-29	%
Total adjusted operating income before income taxes		1,661			1,668			1,318			1,605			1,653			3,382			3,258			-4	%
Income taxes, applicable to adjusted operating income		363			322			283			346			346			744			692			-7	%
After-tax adjusted operating income		1,298			1,346			1,035			1,259			1,307			2,638			2,566			-3	%
Income attributable to Prudential Financial, Inc.		197			1,672			842			932			708			1,560			1,640			5	%
Return on Equity
Operating Return on Average Equity (based on adjusted operating income)(1)		13.1	%		13.6	%		10.3	%		12.6	%		13.1	%		13.5	%		12.9	%
Return on Average Equity (based on net income)		1.6	%		14.1	%		7.1	%		7.2	%		4.9	%		6.1	%		6.0	%
Distributions to Shareholders
Dividends Paid		382			380			377			415			411			769			826			7	%
Share Repurchases		375			375			375			500			500			750			1,000			33	%
Total Capital Returned		757			755			752			915			911			1,519			1,826			20	%
Per Share Data
Net Income (diluted)		0.46			3.90			1.99			2.22			1.71			3.62			3.93			9	%
Adjusted Operating Income (diluted)		3.01			3.15			2.44			3.00			3.14			6.10			6.13			—	%
Shareholder Dividends		0.90			0.90			0.90			1.00			1.00			1.80			2.00			11	%
Book Value		113.59			110.78			116.34			132.83			150.04
Book Value excluding AOCI and FX(2)		92.60			95.20			96.06			96.76			97.15
Shares Outstanding
Weighted average number of common shares (basic)		419.5			416.2			412.7			409.2			405.3			420.8			407.3			-3	%
Weighted average number of common shares (diluted)		428.0			424.7			421.2			417.6			413.9			429.5			415.8			-3	%
End of period common shares (basic)		417.7			414.4			410.7			407.3			403.0
End of period common shares (diluted)		429.0			426.3			422.2			417.9			414.3

(1) Operating Return on Average Equity (based on adjusted operating income) is a non-GAAP measure and represents adjusted operating income after-tax, annualized for interim periods, divided by average Prudential Financial, Inc. equity excluding accumulated other comprehensive income and adjusted to remove amounts included for foreign currency exchange rate remeasurement as described on page 3.

(2) AOCI represents accumulated other comprehensive income and FX represents the remeasurement of foreign currency. See Page 3 for further details.

Page 1

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

FINANCIAL HIGHLIGHTS

(in millions, except per share data)

	2018									2019						Year-to-date
	2Q			3Q			4Q			1Q			2Q			2018			2019
Earnings per share of common stock (diluted):
After-tax adjusted operating income		3.01			3.15			2.44			3.00			3.14			6.10			6.13
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments		0.65			0.42			(0.51	)		(1.53	)		(1.52	)		0.79			(3.05	)
Market experience updates		—			—			—			—			(0.50	)		—			(0.50	)
Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net		(0.45	)		0.02			(0.66	)		1.09			0.69			(1.39	)		1.78
Change in experience-rated contractholder liabilities due to asset value changes		0.20			(0.05	)		0.54			(0.97	)		(0.76	)		1.17			(1.72	)
Divested and Run-off Businesses:
Closed Block Division		(0.07	)		0.04			(0.09	)		(0.05	)		(0.05	)		(0.09	)		(0.10	)
Other Divested and Run-off Businesses		(3.57	)		0.03			0.12			0.42			0.27			(3.72	)		0.69
Difference in earnings allocated to participating unvested share-based payment awards		0.02			(0.01	)		0.01			0.01			0.02			0.03			0.02
Total reconciling items, before income taxes		(3.22	)		0.45			(0.59	)		(1.03	)		(1.85	)		(3.21	)		(2.88	)
Income taxes, not applicable to adjusted operating income		(0.67	)		(0.30	)		(0.14	)		(0.25	)		(0.42	)		(0.73	)		(0.68	)
Total reconciling items, after income taxes		(2.55	)		0.75			(0.45	)		(0.78	)		(1.43	)		(2.48	)		(2.20	)
Net income attributable to Prudential Financial, Inc.		0.46			3.90			1.99			2.22			1.71			3.62			3.93
Weighted average number of outstanding common shares (basic)		419.5			416.2			412.7			409.2			405.3			420.8			407.3
Weighted average number of outstanding common shares (diluted)		428.0			424.7			421.2			417.6			413.9			429.5			415.8
For earnings per share of common stock calculation:
Net income attributable to Prudential Financial, Inc.		197			1,672			842			932			708			1,560			1,640
Earnings related to interest, net of tax, on exchangeable surplus notes		6			5			5			5			6			11			11
Less: Earnings allocated to participating unvested share-based payment awards		4			19			10			10			8			18			18
Net income attributable to Prudential Financial, Inc. for earnings per share of common stock calculation		199			1,658			837			927			706			1,553			1,633
After-tax adjusted operating income		1,298			1,346			1,035			1,259			1,307			2,638			2,566
Earnings related to interest, net of tax, on exchangeable surplus notes		6			5			5			5			6			11			11
Less: Earnings allocated to participating unvested share-based payment awards		14			15			13			13			15			30			28
After-tax adjusted operating income for earnings per share of common stock calculation		1,290			1,336			1,027			1,251			1,298			2,619			2,549

Page 2

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

OTHER FINANCIAL HIGHLIGHTS

(in millions, except per share data)

	2018									2019						Year-to-date
	2Q			3Q			4Q			1Q			2Q			2018		2019
Capitalization Data (1):
Senior Debt:
Short-term debt		2,056			2,393			2,451			2,549			2,659
Long-term debt		10,706			9,857			9,810			10,741			10,269
Junior Subordinated Long-Term Debt		6,026			7,564			7,568			7,568			7,572
Prudential Financial Inc. Equity:
Including accumulated other comprehensive income		48,232			46,725			48,617			55,010			61,660
Excluding accumulated other comprehensive income (2)		36,577			37,575			37,711			37,792			37,678
Amount included above for remeasurement of foreign currency (3)		(2,650	)		(2,509	)		(2,344	)		(2,142	)		(2,070	)
Excluding accumulated other comprehensive income and adjusted to remove amount included for remeasurement of foreign currency (3)		39,227			40,084			40,055			39,934			39,748
Book Value per Share of Common Stock:
Including accumulated other comprehensive income (4)		113.59			110.78			116.34			132.83			150.04
Excluding accumulated other comprehensive income (2)(4)		86.43			89.32			90.50			91.63			92.15
Amount included above for remeasurement of foreign currency (3)		(6.17	)		(5.88	)		(5.56	)		(5.13	)		(5.00	)
Excluding accumulated other comprehensive income and adjusted to remove amount included for remeasurement of foreign currency (3)(4)		92.60			95.20			96.06			96.76			97.15
End of period number of common shares (diluted)(5)		429.0			426.3			422.2			417.9			414.3
Common Stock Price Range (based on closing price):
High		107.62			104.68			105.99			97.25			105.71			126.02		105.71
Low		93.22			93.99			76.83			81.27			92.38			93.22		81.27
Close		93.51			101.32			81.55			91.88			101.00			93.51		101.00
Common Stock market capitalization (1)		39,059			41,987			33,493			37,423			40,703

(1) As of end of period.

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

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

(4) Book value per share of Common Stock (including AOCI, excluding AOCI, and excluding AOCI and remeasurement of foreign currency) as of the second quarter of 2019 includes a $500 million increase in equity and a 6.2 million increase in diluted shares reflecting the dilutive impact of exchangeable surplus notes when book value per share of Common Stock is greater than $80.73. As of first quarter of 2019 and the fourth quarter of 2018, book value per share of Common Stock includes a $500 million increase in equity and 6.1 million increase in diluted shares, reflecting the dilutive impact of exchangeable surplus notes when book value per share of Common Stock is greater than $82.16. As of the third and second quarter of 2018, book value per share of Common Stock includes a $500 million increase in equity and a 5.9 million increase in diluted shares, reflecting the dilutive impact of exchangeable surplus notes when book value per Common Stock is greater than $85.00.

(5) The number of diluted shares at end of period includes the impact of exchangeable surplus notes due to the dilutive impact of conversion.

Page 3

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

OPERATIONS HIGHLIGHTS

	2018						2019				Year-to-date
	2Q		3Q		4Q		1Q		2Q		2018		2019
Assets Under Management and Administration ($ billions) (1)(2):
Assets Under Management:
PGIM Division:
Institutional customers		490.8		505.7		493.5		524.0		534.9
Retail customers		252.0		258.3		240.1		256.4		264.9
General account		413.3		410.6		427.8		441.0		459.8
Total PGIM Division		1,156.1		1,174.6		1,161.4		1,221.4		1,259.6
U.S. Workplace Solutions Division		87.6		88.7		86.1		89.4		90.9
U.S. Individual Solutions Division		115.7		117.4		100.4		113.3		115.4
International Insurance Division		28.8		29.3		29.4		31.4		31.5
Total assets under management		1,388.2		1,410.0		1,377.3		1,455.5		1,497.4
Client assets under administration		228.7		238.2		233.3		250.8		273.0
Total assets under management and administration		1,616.9		1,648.2		1,610.6		1,706.3		1,770.4
Assets managed or administered for customers outside of the United States at end of period		365.7		370.6		373.8		389.4		403.4
Distribution Representatives (1):
Prudential Advisors		3,052		3,071		3,005		3,075		3,132
International Life Planners		7,638		7,798		7,969		8,094		8,170
Gibraltar Life Consultants		7,938		8,030		7,964		7,997		7,767
Prudential Advisor productivity ($ thousands)		60		63		78		53		62		56		58

(1) As of end of period.

(2) At fair market value.

Page 4

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

COMBINED STATEMENTS OF OPERATIONS

(in millions)

	2018									2019						Year-to-date						%
	2Q			3Q			4Q			1Q			2Q			2018			2019			Change
Revenues (1):
Premiums		6,710			8,143			11,487			7,256			7,439			13,348			14,695			10	%
Policy charges and fee income		1,570			1,557			1,570			1,542			1,518			3,145			3,060			-3	%
Net investment income		3,404			3,367			3,382			3,546			3,698			6,741			7,244			7	%
Asset management fees, commissions and other income		1,359			1,365			1,341			1,304			1,451			2,684			2,755			3	%
Total revenues		13,043			14,432			17,780			13,648			14,106			25,918			27,754			7	%
Benefits and Expenses (1):
Insurance and annuity benefits		7,160			8,464			11,934			7,520			7,823			14,013			15,343			9	%
Interest credited to policyholders’ account balances		932			940			937			948			955			1,843			1,903			3	%
Interest expense		347			355			372			386			392			687			778			13	%
Deferral of acquisition costs		(684	)		(708	)		(754	)		(759	)		(712	)		(1,402	)		(1,471	)		-5	%
Amortization of acquisition costs		555			496			533			540			736			1,085			1,276			18	%
General and administrative expenses		3,072			3,217			3,440			3,408			3,259			6,310			6,667			6	%
Total benefits and expenses		11,382			12,764			16,462			12,043			12,453			22,536			24,496			9	%
Adjusted operating income before income taxes		1,661			1,668			1,318			1,605			1,653			3,382			3,258			-4	%
Income taxes, applicable to adjusted operating income		363			322			283			346			346			744			692			-7	%
After-tax adjusted operating income		1,298			1,346			1,035			1,259			1,307			2,638			2,566			-3	%
Reconciling items:
Realized investment gains (losses), net, and related adjustments		393			271			(132	)		(663	)		(548	)		480			(1,211	)		-352	%
Related charges		(116	)		(94	)		(83	)		25			(82	)		(139	)		(57	)		59	%
Total realized investment gains (losses), net, and related charges and adjustments		277			177			(215	)		(638	)		(630	)		341			(1,268	)		-472	%
Market experience updates		—			—			—			—			(208	)		—			(208	)		—	%
Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net		(193	)		10			(277	)		454			287			(596	)		741			224	%
Change in experience-rated contractholder liabilities due to asset value changes		85			(21	)		228			(403	)		(313	)		503			(716	)		-242	%
Divested and Run-off Businesses:
Closed Block Division		(31	)		18			(40	)		(19	)		(21	)		(40	)		(40	)		—	%
Other Divested and Run-off Businesses		(1,526	)		12			51			174			112			(1,598	)		286			118	%
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(23	)		(26	)		(12	)		(33	)		(4	)		(49	)		(37	)		24	%
Total reconciling items, before income taxes		(1,411	)		170			(265	)		(465	)		(777	)		(1,439	)		(1,242	)		14	%
Income taxes, not applicable to adjusted operating income		(295	)		(138	)		(65	)		(114	)		(184	)		(324	)		(298	)		8	%
Total reconciling items, after income taxes		(1,116	)		308			(200	)		(351	)		(593	)		(1,115	)		(944	)		15	%
Income before income taxes and equity in earnings of operating joint ventures		250			1,838			1,053			1,140			876			1,943			2,016			4	%
Income tax expense		68			184			218			232			162			420			394			-6	%
Income before equity in earnings of operating joint ventures		182			1,654			835			908			714			1,523			1,622			7	%
Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		15			18			7			24			(6	)		37			18			-51	%
Income attributable to Prudential Financial, Inc.		197			1,672			842			932			708			1,560			1,640			5	%
Earnings attributable to noncontrolling interests		3			3			7			5			30			4			35			775	%
Net income		200			1,675			849			937			738			1,564			1,675			7	%
Less: Income attributable to noncontrolling interests		3			3			7			5			30			4			35			775	%
Net income attributable to Prudential Financial, Inc.		197			1,672			842			932			708			1,560			1,640			5	%

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities; and revenues of Divested and Run-off Businesses, and include revenues representing equity in earnings of operating joint ventures other than those classified as Divested and Run-off Businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes; and benefits and expenses of Divested and Run-off Businesses and include charges for income attributable to noncontrolling interests. Second quarter 2019 revenues and expenses exclude market experience updates. See pages 37 and 38 for reconciliation.

Page 5

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

CONSOLIDATED BALANCE SHEETS

(in millions)

	06/30/2018		09/30/2018		12/31/2018		03/31/2019		06/30/2019
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost $317,548; $321,168; $331,745; $333,648; $340,564)		341,151		340,970		353,656		365,928		383,390
Fixed maturities, held-to-maturity, at amortized cost (fair value $2,388; $2,287; $2,372; $2,365; $2,410)		2,020		1,957		2,013		1,982		2,009
Fixed maturities, trading, at fair value (amortized cost $2,980; $3,162; $3,392; $3,512; $3,807)		2,916		3,083		3,243		3,435		3,755
Assets supporting experience-rated contractholder liabilities, at fair value		21,497		21,083		21,254		21,668		21,843
Equity securities, at fair value (cost $5,374; $5,149; $5,219; $5,230; $5,205)		7,191		7,058		6,238		6,778		6,804
Commercial mortgage and other loans		58,622		59,336		59,830		60,875		61,228
Policy loans		11,935		11,928		12,016		11,986		12,030
Other invested assets		13,459		13,790		14,526		14,840		15,081
Short-term investments		5,728		5,767		6,469		6,911		5,872
Total investments		464,519		464,972		479,245		494,403		512,012
Cash and cash equivalents		14,918		12,466		15,353		14,699		15,421
Accrued investment income		3,235		3,180		3,318		3,233		3,355
Deferred policy acquisition costs		19,643		19,789		20,058		19,978		19,540
Value of business acquired		2,027		1,962		1,850		1,575		1,227
Other assets		16,860		16,938		16,118		18,192		18,690
Separate account assets		298,658		303,441		279,136		297,244		303,580
Total assets		819,860		822,748		815,078		849,324		873,825
Liabilities:
Future policy benefits		260,435		260,797		273,846		277,085		285,527
Policyholders’ account balances		149,359		149,130		150,338		151,224		151,428
Securities sold under agreements to repurchase		9,540		9,176		9,950		9,873		9,741
Cash collateral for loaned securities		4,307		4,656		3,929		4,093		4,235
Income taxes		7,888		7,014		7,936		10,031		11,485
Senior short-term debt		2,056		2,393		2,451		2,549		2,659
Senior long-term debt		10,706		9,857		9,810		10,741		10,269
Junior subordinated long-term debt		6,026		7,564		7,568		7,568		7,572
Other liabilities		21,356		20,708		20,128		22,241		23,930
Notes issued by consolidated variable interest entities		937		930		955		1,225		1,246
Separate account liabilities		298,658		303,441		279,136		297,244		303,580
Total liabilities		771,268		775,666		766,047		793,874		811,672
Equity:
Accumulated other comprehensive income		11,655		9,150		10,906		17,218		23,982
Other equity		36,577		37,575		37,711		37,792		37,678
Total Prudential Financial, Inc. equity		48,232		46,725		48,617		55,010		61,660
Noncontrolling interests		360		357		414		440		493
Total equity		48,592		47,082		49,031		55,450		62,153
Total liabilities and equity		819,860		822,748		815,078		849,324		873,825

Page 6

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

COMBINING BALANCE SHEETS BY DIVISION

(in millions)

	As of June 30, 2019
	Consolidated PFI		Closed Block Division			PFI Excluding   Closed Block Division		PGIM Division			U.S. Workplace Solutions Division		U.S. Individual Solutions Division			International Insurance Division		Corporate and Other Operations
Assets:
Total investments		512,012		59,849			452,163		4,746			136,527		69,283			215,445		26,162
Deferred policy acquisition costs		19,540		248			19,292		—			304		10,624			8,730		(366	)
Other assets		38,693		1,315			37,378		3,212			7,896		17,243			10,455		(1,428	)
Separate account assets		303,580		—			303,580		39,723			86,879		178,315			3,978		(5,315	)
Total assets		873,825		61,412			812,413		47,681			231,606		275,465			238,608		19,053
Liabilities:
Future policy benefits		285,527		47,940			237,587		—			69,897		31,097			128,439		8,154
Policyholders’ account balances		151,428		5,011			146,417		—			57,200		36,620			51,710		887
Debt		20,500		—			20,500		1,937			809		7,131			141		10,482
Other liabilities		50,637		10,186			40,451		3,130			6,090		8,222			18,968		4,041
Separate account liabilities		303,580		—			303,580		39,723			86,879		178,315			3,978		(5,315	)
Total liabilities		811,672		63,137			748,535		44,790			220,875		261,385			203,236		18,249
Equity:
Accumulated other comprehensive income (loss)		23,982		(10	)		23,992		(71	)		4,544		1,958			19,107		(1,546	)
Other equity		37,678		(1,725	)		39,403		2,129			6,135		12,107			16,201		2,831
Total Prudential Financial, Inc. equity		61,660		(1,735	)		63,395		2,058			10,679		14,065			35,308		1,285
Noncontrolling interests		493		10			483		833			52		15			64		(481	)
Total equity		62,153		(1,725	)		63,878		2,891			10,731		14,080			35,372		804
Total liabilities and equity		873,825		61,412			812,413		47,681			231,606		275,465			238,608		19,053
	As of December 31, 2018
	Consolidated PFI		Closed Block Division			PFI Excluding   Closed Block Division		PGIM Division			U.S. Workplace Solutions Division		U.S. Individual Solutions Division			International Insurance Division		Corporate and Other Operations
Assets:
Total investments		479,245		57,710			421,535		4,542			131,746		61,626			200,313		23,308
Deferred policy acquisition costs		20,058		264			19,794		—			311		11,087			8,715		(319	)
Other assets		36,639		1,065			35,574		2,908			6,979		17,280			9,850		(1,443	)
Separate account assets		279,136		—			279,136		40,240			78,216		161,645			3,755		(4,720	)
Total assets		815,078		59,039			756,039		47,690			217,252		251,638			222,633		16,826
Liabilities:
Future policy benefits		273,846		48,282			225,564		—			69,677		25,377			122,894		7,616
Policyholders’ account balances		150,338		5,061			145,277		—			56,855		36,671			50,895		856
Debt		19,829		—			19,829		1,810			810		7,335			141		9,733
Other liabilities		42,898		7,414			35,484		3,030			5,272		7,046			17,328		2,808
Separate account liabilities		279,136		—			279,136		40,240			78,216		161,645			3,755		(4,720	)
Total liabilities		766,047		60,757			705,290		45,080			210,830		238,074			195,013		16,293
Equity:
Accumulated other comprehensive income (loss)		10,906		(23	)		10,929		(83	)		628		(418	)		13,040		(2,238	)
Other equity		37,711		(1,705	)		39,416		2,067			5,744		13,967			14,518		3,120
Total Prudential Financial, Inc. equity		48,617		(1,728	)		50,345		1,984			6,372		13,549			27,558		882
Noncontrolling interests		414		10			404		626			50		15			62		(349	)
Total equity		49,031		(1,718	)		50,749		2,610			6,422		13,564			27,620		533
Total liabilities and equity		815,078		59,039			756,039		47,690			217,252		251,638			222,633		16,826

Page 7

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED

(in millions)

	As of June 30, 2019								As of December 31, 2018
	Senior debt				Junior Subordinated Long-term Debt				Senior debt				Junior Subordinated Long-term Debt
	Short-term Debt		Long-term Debt				Total Debt		Short-term Debt		Long-term Debt				Total Debt
Borrowings by use of proceeds:
Capital Debt		500		5,524		7,572		13,596		1,250		4,543		7,568		13,361
Operating Debt		1,847		3,952		—		5,799		1,091		4,601		—		5,692
Limited recourse and non-recourse borrowing		312		793		—		1,105		110		666		—		776
Total debt		2,659		10,269		7,572		20,500		2,451		9,810		7,568		19,829
	As of June 30, 2019								As of December 31, 2018
			The Prudential								The Prudential
	Prudential Financial, Inc.		Insurance Co. of America (1)(2)		Other Affiliates		Total		Prudential Financial, Inc.		Insurance Co. of America (1)(2)		Other Affiliates		Total
Borrowings by sources:
Capital Debt		12,597		942		57		13,596		12,363		941		57		13,361
Operating Debt		4,906		893		—		5,799		4,893		799		—		5,692
Limited recourse and non-recourse borrowing		—		799		306		1,105		—		776		—		776
Total debt		17,503		2,634		363		20,500		17,256		2,516		57		19,829

(1) Includes Prudential Funding, LLC.

(2) Capital debt at Prudential Insurance Co. of America includes $842 million of surplus notes as of June 30, 2019 and $841 million of surplus notes as of December 31, 2018.

Page 8

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

STATEMENTS OF OPERATIONS - PGIM DIVISION

(in millions)

	2018									2019						Year-to-date						%
	2Q			3Q			4Q			1Q			2Q			2018			2019			Change
Revenues (1):
Premiums		—			—			—			—			—			—			—			—
Policy charges and fee income		—			—			—			—			—			—			—			—
Net investment income		31			28			(3	)		63			33			48			96			100	%
Asset management fees, commissions and other income		785			789			838			807			893			1,594			1,700			7	%
Total revenues		816			817			835			870			926			1,642			1,796			9	%
Benefits and Expenses (1):
Insurance and annuity benefits		—			—			—			—			—			—			—			—
Interest credited to policyholders’ account balances		—			—			—			—			—			—			—			—
Interest expense		11			9			11			12			12			20			24			20	%
Deferral of acquisition costs		(1	)		(2	)		(1	)		(1	)		(2	)		(3	)		(3	)		—	%
Amortization of acquisition costs		2			2			2			2			1			4			3			-25	%
General and administrative expenses		550			578			580			643			651			1,135			1,294			14	%
Total benefits and expenses		562			587			592			656			662			1,156			1,318			14	%
Adjusted operating income before income taxes		254			230			243			214			264			486			478			-2	%
Total revenues		816			817			835			870			926			1,642			1,796			9	%
Less: Passthrough distribution revenue		31			30			28			27			28			63			55			-13	%
Less: Revenue associated with consolidations		8			15			4			34			50			18			84			367	%
Total adjusted revenues (2)		777			772			803			809			848			1,561			1,657			6	%
Adjusted operating margin (2)(3)		32.7	%		29.8	%		30.3	%		26.5	%		31.1	%		31.1	%		28.8	%

(1) Revenues exclude realized investment gains, net of losses. Benefits and expenses include charges for income attributable to noncontrolling interests.

(2) Not calculated in accordance with GAAP. Adjusted revenue excludes passthrough distribution revenue and revenue associated with consolidations. Adjusted operating income before income taxes as a percentage of total adjusted revenues.

(3) Reported Operating Margin based on total revenues is 28.5%, 24.6%, 29.1%, 28.1%, and 31.1% for the three months ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, and June 30, 2018, respectively and 26.6% and 29.6% for the six months ended June 30, 2019, and June 30, 2018, respectively.

Page 9

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

PGIM DIVISION - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION

Supplementary Revenue Information (in millions):
	2018						2019				Year-to-date				%
	2Q		3Q		4Q		1Q		2Q		2018		2019		Change
Analysis of revenues by type:
Asset management fees		629		641		639		644		671		1,262		1,315		4	%
Other related revenues (1)		65		48		84		100		115		138		215		56	%
Service, distribution and other revenues		122		128		112		126		140		242		266		10	%
Total PGIM revenues		816		817		835		870		926		1,642		1,796		9	%
Analysis of asset management fees by source:
Institutional customers		295		302		311		312		319		591		631		7	%
Retail customers		219		221		210		209		220		436		429		-2	%
General account		115		118		118		123		132		235		255		9	%
Total asset management fees		629		641		639		644		671		1,262		1,315		4	%

Supplementary Assets Under Management Information (at fair market value) (in billions):
	June 30, 2019
	Equity		Fixed Income		Real Estate		Total
Institutional customers		60.4		431.4		43.1		534.9
Retail customers		130.3		132.7		1.9		264.9
General account		5.5		452.3		2.0		459.8
Total		196.2		1,016.4		47.0		1,259.6
	June 30, 2018
	Equity		Fixed Income		Real Estate		Total
Institutional customers		62.2		386.1		42.5		490.8
Retail customers		133.4		117.1		1.5		252.0
General account		5.5		405.9		1.9		413.3
Total		201.1		909.1		45.9		1,156.1

(1) Other related revenues, net of related expenses and charges associated with a joint venture in first quarter 2019 are $65 million, $63 million, $57 million, $31 million, and $52 million for the three months ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively and $128 million and $116 million for the six months ended June 30, 2019, and June 30, 2018, respectively.

Page 10

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

PGIM DIVISION - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION

(in billions)

	2018									2019						Year-to-date
	2Q			3Q			4Q			1Q			2Q			2018			2019
Institutional Customers - Assets Under Management (at fair market value):
Assets gathered by Investment Management & Advisory Services sales force:
Beginning assets under management		438.6			439.5			453.3			443.6			471.0			437.9			443.6
Additions		17.8			19.0			18.9			15.1			14.5			37.2			29.6
Withdrawals		(12.3	)		(9.7	)		(19.4	)		(14.1	)		(20.5	)		(31.9	)		(34.6	)
Change in market value		(4.3	)		3.9			(8.1	)		21.0			14.5			(5.1	)		35.5
Net money market flows		0.3			0.8			(1.4	)		4.3			(0.6	)		2.1			3.7
Other		(0.6	)		(0.2	)		0.3			1.1			0.2			(0.7	)		1.3
Ending assets under management		439.5			453.3			443.6			471.0			479.1			439.5			479.1
Affiliated institutional assets under management		51.3			52.4			49.9			53.0			55.8			51.3			55.8
Total assets managed for institutional customers at end of period		490.8			505.7			493.5			524.0			534.9			490.8			534.9
Net institutional additions (withdrawals), excluding money market activity		5.5			9.3			(0.5	)		1.0			(6.0	)		5.3			(5.0	)
Retail Customers - Assets Under Management (at fair market value):
Assets gathered by Investment Management & Advisory Services sales force (1):
Beginning assets under management		159.4			164.7			169.2			154.2			169.0			157.3			154.2
Additions		13.4			10.9			14.1			14.1			13.0			28.0			27.1
Withdrawals		(11.6	)		(11.5	)		(16.7	)		(13.7	)		(11.9	)		(25.2	)		(25.6	)
Change in market value		3.7			5.1			(13.4	)		14.4			5.4			4.6			19.8
Net money market flows		—			0.1			—			—			0.1			—			0.1
Other		(0.2	)		(0.1	)		1.0			—			—			—			—
Ending assets under management		164.7			169.2			154.2			169.0			175.6			164.7			175.6
Affiliated retail assets under management (1)		87.3			89.1			85.9			87.4			89.3			87.3			89.3
Total assets managed for retail customers at end of period		252.0			258.3			240.1			256.4			264.9			252.0			264.9
Net retail additions (withdrawals), excluding money market activity		1.8			(0.6	)		(2.6	)		0.4			1.1			2.8			1.5

(1) The amounts for second and third quarters of 2018 have been revised to correct the previously reported amounts for a reclass between Assets gathered by Investment Management & Advisory Services sales force and Affiliated retail assets under management.

Page 11

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

COMBINED STATEMENTS OF OPERATIONS - U.S. FINANCIAL WELLNESS BUSINESSES - U.S. WORKPLACE SOLUTIONS DIVISION

(in millions)

	2018									2019						Year-to-date						%
	2Q			3Q			4Q			1Q			2Q			2018			2019			Change
Revenues (1):
Premiums		2,689			3,928			7,273			2,345			3,208			4,527			5,553			23	%
Policy charges and fee income		217			211			219			229			226			417			455			9	%
Net investment income		1,271			1,241			1,243			1,292			1,362			2,509			2,654			6	%
Asset management fees, commissions and other income		235			253			225			214			251			464			465			—	%
Total revenues		4,412			5,633			8,960			4,080			5,047			7,917			9,127			15	%
Benefits and Expenses (1):
Insurance and annuity benefits		3,125			4,388			7,731			2,791			3,526			5,337			6,317			18	%
Interest credited to policyholders’ account balances		435			435			434			447			443			843			890			6	%
Interest expense		9			8			12			14			10			17			24			41	%
Deferral of acquisition costs		(12	)		(9	)		(18	)		(13	)		(9	)		(17	)		(22	)		-29	%
Amortization of acquisition costs		9			9			15			9			10			14			19			36	%
General and administrative expenses		487			504			537			528			519			992			1,047			6	%
Total benefits and expenses		4,053			5,335			8,711			3,776			4,499			7,186			8,275			15	%
Adjusted operating income before income taxes		359			298			249			304			548			731			852			17	%

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

Page 12

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

STATEMENTS OF OPERATIONS - U.S. FINANCIAL WELLNESS BUSINESSES - U.S. WORKPLACE SOLUTIONS DIVISION - RETIREMENT

(in millions)

	2018									2019						Year-to-date						%
	2Q			3Q			4Q			1Q			2Q			2018			2019			Change
Revenues (1):
Premiums		1,597			2,825			6,174			1,243			2,098			2,332			3,341			43	%
Policy charges and fee income		63			60			67			66			63			123			129			5	%
Net investment income		1,112			1,087			1,095			1,141			1,200			2,195			2,341			7	%
Asset management fees, commissions and other income		216			231			209			189			225			427			414			-3	%
Total revenues		2,988			4,203			7,545			2,639			3,586			5,077			6,225			23	%
Benefits and Expenses (1):
Insurance and annuity benefits		2,093			3,313			6,660			1,704			2,448			3,242			4,152			28	%
Interest credited to policyholders’ account balances		362			366			363			377			370			701			747			7	%
Interest expense		8			8			11			13			10			16			23			44	%
Deferral of acquisition costs		(11	)		(9	)		(18	)		(9	)		(9	)		(16	)		(18	)		-13	%
Amortization of acquisition costs		7			8			14			8			8			11			16			45	%
General and administrative expenses		252			278			299			295			292			529			587			11	%
Total benefits and expenses		2,711			3,964			7,329			2,388			3,119			4,483			5,507			23	%
Adjusted operating income before income taxes		277			239			216			251			467			594			718			21	%

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.

Page 13

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

U.S. FINANCIAL WELLNESS BUSINESSES - U.S. WORKPLACE SOLUTIONS DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)

	2018									2019						Year-to-date
	2Q			3Q			4Q			1Q			2Q			2018			2019
SALES AND ACCOUNT VALUES
Full Service:
Beginning total account value		236,120			240,922			251,272			231,669			251,071			234,616			231,669
Deposits and sales		7,712			8,843			6,639			9,567			11,047			17,634			20,614
Withdrawals and benefits		(6,470	)		(5,864	)		(5,941	)		(9,105)			(7,259	)		(14,624	)		(16,364	)
Change in market value, interest credited, interest income and other activity		3,560			7,371			(20,301	)		18,940			7,274			3,296			26,214
Ending total account value		240,922			251,272			231,669			251,071			262,133			240,922			262,133
Net additions		1,242			2,979			697			462			3,788			3,010			4,250
Stable value account values included above		48,882			49,132			49,544			50,202			50,601
Institutional Investment Products:
Beginning total account value		191,518			191,722			195,237			200,759			203,101			194,492			200,759
Additions		5,461			6,318			8,843			2,247			15,044			6,149			17,291
Withdrawals and benefits		(3,851	)		(3,345	)		(3,324	)		(3,649	)		(4,161	)		(8,740	)		(7,810	)
Change in market value, interest credited and interest income		1,198			1,146			1,173			2,644			2,826			984			5,470
Other (1)		(2,604	)		(604	)		(1,170	)		1,100			(832	)		(1,163	)		268
Ending total account value		191,722			195,237			200,759			203,101			215,978			191,722			215,978
Net additions (withdrawals)		1,610			2,973			5,519			(1,402	)		10,883			(2,591	)		9,481
Amounts included in ending total account value above:
Investment-only stable value wraps		67,406			67,598			67,934			68,922			69,674			67,406			69,674
Longevity reinsurance (2)		41,325			43,455			44,249			45,500			57,169			41,325			57,169
Group annuities and other products		82,991			84,184			88,576			88,679			89,135			82,991			89,135
Ending total account value		191,722			195,237			200,759			203,101			215,978			191,722			215,978

(1) “Other” activity includes the effect of foreign exchange rate changes associated with our United Kingdom longevity reinsurance business; net presentation of receipts and payments related to funding agreements backed commercial paper which typically have maturities of less than 90 days, and changes in asset balances for externally-managed accounts.

(2) Represents notional amounts based on present value of future benefits under longevity reinsurance contracts which have not been significantly pre-funded.

Page 14

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

STATEMENTS OF OPERATIONS - U.S. FINANCIAL WELLNESS BUSINESSES - U.S. WORKPLACE SOLUTIONS DIVISION - GROUP INSURANCE

(in millions)

	2018							2019					Year-to-date						%
	2Q			3Q		4Q		1Q			2Q		2018			2019			Change
Revenues (1):
Premiums		1,092			1,103		1,099		1,102			1,110		2,195			2,212			1	%
Policy charges and fee income		154			151		152		163			163		294			326			11	%
Net investment income		159			154		148		151			162		314			313			—	%
Asset management fees, commissions and other income		19			22		16		25			26		37			51			38	%
Total revenues		1,424			1,430		1,415		1,441			1,461		2,840			2,902			2	%
Benefits and Expenses (1):
Insurance and annuity benefits		1,032			1,075		1,071		1,087			1,078		2,095			2,165			3	%
Interest credited to policyholders’ account balances		73			69		71		70			73		142			143			1	%
Interest expense		1			—		1		1			—		1			1			—	%
Deferral of acquisition costs		(1	)		—		—		(4	)		—		(1	)		(4	)		-300	%
Amortization of acquisition costs		2			1		1		1			2		3			3			—	%
General and administrative expenses		235			226		238		233			227		463			460			-1	%
Total benefits and expenses		1,342			1,371		1,382		1,388			1,380		2,703			2,768			2	%
Adjusted operating income before income taxes		82			59		33		53			81		137			134			-2	%

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

Page 15

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

U.S. FINANCIAL WELLNESS BUSINESSES -U.S. WORKPLACE SOLUTIONS DIVISION - GROUP INSURANCE SUPPLEMENTARY INFORMATION

(dollar amounts in millions)

	2018									2019						Year-to-date
	2Q			3Q			4Q			1Q			2Q			2018			2019
GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
Group life		46			63			24			174			17			289			191
Group disability		14			16			13			119			16			154			135
Total		60			79			37			293			33			443			326
Future Policy Benefits (1)(2):
Group life		2,180			2,111			2,293			2,212			2,227
Group disability		19			9			2			29			19
Total		2,199			2,120			2,295			2,241			2,246
Policyholders’ Account Balances (1):
Group life		8,769			8,840			8,889			8,798			8,887
Group disability		181			187			200			198			183
Total		8,950			9,027			9,089			8,996			9,070
Separate Account Liabilities (1):
Group life		23,758			23,881			24,044			24,809			26,048
Group disability		—			—			—			—			—
Total		23,758			23,881			24,044			24,809			26,048
Group Life Insurance:
Gross premiums, policy charges and fee income (3)(4)		1,092			1,101			1,094			1,068			1,075			2,164			2,143
Earned premiums		854			870			866			847			842			1,726			1,689
Earned policy charges and fee income		142			139			140			149			150			270			299
Benefits ratio (5)		88.6	%		87.3	%		86.7	%		89.0	%		88.5	%		87.9	%		88.7	%
Administrative operating expense ratio		12.6	%		11.5	%		13.0	%		11.7	%		12.2	%		12.1	%		11.9	%
Persistency ratio		95.3	%		94.6	%		94.5	%		93.5	%		92.7	%
Group Disability Insurance:
Gross premiums, policy charges and fee income (3)		261			259			259			285			290			512			575
Earned premiums		238			233			233			255			268			469			523
Earned policy charges and fee income		12			12			12			14			13			24			27
Benefits ratio (5)		71.6	%		78.9	%		81.5	%		74.6	%		74.5	%		75.3	%		74.6	%
Administrative operating expense ratio		26.4	%		26.8	%		28.0	%		26.9	%		24.2	%		26.7	%		25.5	%
Persistency ratio		94.7	%		94.2	%		93.9	%		94.5	%		94.4	%
Total Group Insurance:
Benefits ratio (5)		85.3	%		85.7	%		85.7	%		85.9	%		85.5	%		85.4	%		85.7	%
Administrative operating expense ratio		15.3	%		14.5	%		15.9	%		14.9	%		14.8	%		14.9	%		14.8	%

(1) As of end of period.

(2) The amounts shown exclude liabilities for unpaid claims and claim adjustment expenses.

(3) Before returns of premiums to participating policyholders for favorable claims experience.

(4) The amounts for second, third and fourth quarters of 2018 have been reclassified to conform to current period presentation.

(5) Benefit ratios excluding the impact of the annual assumption updates and other refinements in the second quarter. Benefit ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 90.2%, 65.3% and 84.7% for the three months ended June 30, 2019, respectively, and 87.5%, 64.0%, and 82.8% for the three months ended June 30, 2018, respectively.

Page 16

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

COMBINED STATEMENTS OF OPERATIONS - U.S. FINANCIAL WELLNESS BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION

(in millions)

	2018									2019						Year-to-date						%
	2Q			3Q			4Q			1Q			2Q			2018			2019			Change
Revenues (1):
Premiums		262			271			306			332			328			529			660			25	%
Policy charges and fee income		1,236			1,230			1,231			1,200			1,190			2,481			2,390			-4	%
Net investment income		686			684			700			726			779			1,343			1,505			12	%
Asset management fees, commissions and other income		533			493			488			459			499			1,041			958			-8	%
Total revenues		2,717			2,678			2,725			2,717			2,796			5,394			5,513			2	%
Benefits and Expenses (1):
Insurance and annuity benefits		737			635			789			767			892			1,472			1,659			13	%
Interest credited to policyholders’ account balances		275			278			283			265			288			540			553			2	%
Interest expense		195			199			201			212			220			381			432			13	%
Deferral of acquisition costs		(270	)		(294	)		(333	)		(296	)		(321	)		(519	)		(617	)		-19	%
Amortization of acquisition costs		251			210			216			206			459			453			665			47	%
General and administrative expenses		979			1,026			1,150			986			931			1,962			1,917			-2	%
Total benefits and expenses		2,167			2,054			2,306			2,140			2,469			4,289			4,609			7	%
Adjusted operating income before income taxes		550			624			419			577			327			1,105			904			-18	%

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. Second quarter 2019 revenues and expenses exclude market experience updates.

Page 17

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

STATEMENTS OF OPERATIONS - U.S. FINANCIAL WELLNESS BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES

(in millions)

	2018									2019						Year-to-date						%
	2Q			3Q			4Q			1Q			2Q			2018			2019			Change
Revenues (1):
Premiums		30			37			71			99			88			71			187			163	%
Policy charges and fee income		721			719			679			669			687			1,448			1,356			-6	%
Net investment income		174			174			177			191			211			343			402			17	%
Asset management fees, commissions and other income		341			294			297			276			302			656			578			-12	%
Total revenues		1,266			1,224			1,224			1,235			1,288			2,518			2,523			—	%
Benefits and Expenses (1):
Insurance and annuity benefits		73			85			128			119			134			157			253			61	%
Interest credited to policyholders’ account balances		88			85			84			78			87			166			165			-1	%
Interest expense		16			17			16			18			28			34			46			35	%
Deferral of acquisition costs		(107	)		(110	)		(113	)		(110	)		(127	)		(197	)		(237	)		-20	%
Amortization of acquisition costs		146			139			115			116			140			257			256			—	%
General and administrative expenses		543			554			549			542			564			1,075			1,106			3	%
Total benefits and expenses		759			770			779			763			826			1,492			1,589			7	%
Adjusted operating income before income taxes		507			454			445			472			462			1,026			934			-9	%

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. Second quarter 2019 revenues and expenses exclude market experience updates.

Page 18

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

U.S. FINANCIAL WELLNESS BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES SALES RESULTS AND ACCOUNT VALUES

(in millions)

	2018									2019						Year-to-date
	2Q			3Q			4Q			1Q			2Q			2018			2019
SALES AND ACCOUNT VALUES:
Variable Annuities:
Beginning total account value		161,171			160,143			162,369			147,339			157,896			165,153			147,339
Sales: Highest Daily Suite (1)		1,126			1,116			1,048			950			1,034			2,137			1,984
Other variable annuities (2)		881			997			1,001			1,059			1,301			1,564			2,360
Total sales		2,007			2,113			2,049			2,009			2,335			3,701			4,344
Full surrenders and death benefits (3)		(2,338	)		(2,271	)		(2,034	)		(1,914	)		(2,370	)		(4,546	)		(4,284	)
Sales, net of full surrenders and death benefits		(331	)		(158	)		15			95			(35	)		(845	)		60
Partial withdrawals and other benefit payments (3)		(1,060	)		(1,037	)		(1,264	)		(1,142	)		(1,139	)		(2,172	)		(2,281	)
Net flows		(1,391	)		(1,195	)		(1,249	)		(1,047	)		(1,174	)		(3,017	)		(2,221	)
Change in market value, interest credited, and other		1,292			4,360			(12,884	)		12,498			5,210			(126	)		17,708
Policy charges		(929	)		(939	)		(897	)		(894	)		(915	)		(1,867	)		(1,809	)
Ending total account value		160,143			162,369			147,339			157,896			161,017			160,143			161,017
Variable Annuities Account Value by Product: (4)
Highest Daily Suite - risk retained by Prudential (1)		117,348			118,618			106,878			114,164			115,584			117,348			115,584
Highest Daily Suite - externally reinsured living benefits		3,146			3,184			2,873			3,059			3,095			3,146			3,095
Other variable annuities (2)		39,649			40,567			37,588			40,673			42,338			39,649			42,338
Ending total account value		160,143			162,369			147,339			157,896			161,017			160,143			161,017
Fixed Annuities and other products:
Beginning total account value		3,480			3,502			3,593			3,741			3,994			3,473			3,741
Sales		60			128			189			298			340			90			638
Full surrenders and death benefits (3)		(30	)		(25	)		(23	)		(26	)		(27	)		(59	)		(53	)
Sales, net of full surrenders and death benefits		30			103			166			272			313			31			585
Partial withdrawals and other benefit payments (3)		(85	)		(83	)		(90	)		(94	)		(90	)		(168	)		(184	)
Net flows		(55	)		20			76			178			223			(137	)		401
Interest credited and other		77			71			72			75			79			166			154
Policy charges		—			—			—			—			—			—			—
Ending total account value		3,502			3,593			3,741			3,994			4,296			3,502			4,296
SALES BY DISTRIBUTION CHANNEL:
Variable and Fixed Annuities (5):
Insurance Agents		619			640			684			680			735			1,144			1,415
Wirehouses		355			433			430			452			533			678			985
Independent Financial Planners		951			999			974			1,001			1,212			1,709			2,213
Bank Distribution		142			169			150			174			195			260			369
Total		2,067			2,241			2,238			2,307			2,675			3,791			4,982

(1) Includes variable annuities with “Highest Daily” optional living benefits retained by Prudential and predecessor “Lifetime Five” feature.

(2) Includes Prudential Defined Income (PDI), Legacy Protection Plus (LPP) death benefit and products without guaranteed minimum income and withdrawal benefits.

(3) Prior period amounts have been reclassified to conform to current period presentation.

(4) The amounts for fourth quarter of 2018 have been revised to correct the previously reported amounts for a reclass between Highest Daily Suite - risk retained by Prudential and Other variable annuities products.

Page 19

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

U.S. FINANCIAL WELLNESS BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)

	2018									2019						Year-to-date
	2Q			3Q			4Q			1Q			2Q			2018			2019
INDIVIDUAL ANNUITIES:
Account Values in General Account (1):
Beginning balance		9,932			9,932			10,006			10,298			10,429			9,892			10,298
Premiums and deposits		256			318			373			466			522			467			988
Full surrenders and death benefits (2)		(113	)		(95	)		(99	)		(96	)		(108	)		(222	)		(204	)
Premiums and deposits net of full surrenders and death benefits		143			223			274			370			414			245			784
Partial withdrawals and other benefit payments (2)		(148	)		(141	)		(168	)		(163	)		(153	)		(302	)		(316	)
Net flows		(5	)		82			106			207			261			(57	)		468
Interest credited and other		69			69			69			57			41			130			98
Net transfers (to) from separate account		(64	)		(76	)		117			(133	)		(35	)		(33	)		(168	)
Policy charges		—			(1	)		—			—			—			—			—
Ending balance		9,932			10,006			10,298			10,429			10,696			9,932			10,696
Account Values in Separate Account (1):
Beginning balance		154,719			153,713			155,956			140,782			151,461			158,734			140,782
Premiums and deposits		1,811			1,923			1,865			1,841			2,153			3,324			3,994
Full surrenders and death benefits (2)		(2,255	)		(2,201	)		(1,958	)		(1,844	)		(2,289	)		(4,383	)		(4,133	)
Premiums and deposits net of full surrenders and death benefits		(444	)		(278	)		(93	)		(3	)		(136	)		(1,059	)		(139	)
Partial withdrawals and other benefit payments (2)		(997	)		(979	)		(1,186	)		(1,073	)		(1,076	)		(2,038	)		(2,149	)
Net flows		(1,441	)		(1,257	)		(1,279	)		(1,076	)		(1,212	)		(3,097	)		(2,288	)
Change in market value, interest credited and other		1,300			4,362			(12,881	)		12,516			5,248			(90	)		17,764
Net transfers (to) from general account		64			76			(117	)		133			35			33			168
Policy charges		(929	)		(938	)		(897	)		(894	)		(915	)		(1,867	)		(1,809	)
Ending balance		153,713			155,956			140,782			151,461			154,617			153,713			154,617

(1) Premiums and deposits, and surrenders and withdrawals, are classified within the general account and separate account for purposes of this presentation based on the allocation of customer funds. For example, premiums allocated by customers to separate account investments at the time of sale, while remitted through the company’s general account, are shown as separate account premium in this display, rather than as general account premium and transfers to the separate account.

(2) Prior period amounts have been reclassified to conform to current period presentation.

Page 20

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

U.S. FINANCIAL WELLNESS BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES LIVING BENEFIT FEATURES

(in millions)

	2018						2019
	2Q		3Q		4Q		1Q		2Q
LIVING BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		2,950		2,818		2,578		2,582		2,498
Guaranteed minimum withdrawal benefits		433		428		364		381		370
Guaranteed minimum income benefits		2,651		2,661		2,306		2,474		2,475
Guaranteed minimum withdrawal & income benefits - risk retained by Prudential		127,490		129,431		118,115		126,813		129,832
Guaranteed minimum withdrawal & income benefits - externally reinsured		3,146		3,184		2,873		3,059		3,096
Total		136,670		138,522		126,236		135,309		138,271
Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature - risk retained by Prudential		112,055		113,257		102,300		109,191		110,597
Account Values with Auto-Rebalancing Feature - externally reinsured		3,146		3,184		2,873		3,059		3,096
Account Values without Auto-Rebalancing Feature		21,469		22,081		21,063		23,059		24,578
Total		136,670		138,522		126,236		135,309		138,271
Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature - risk retained by Prudential		3,775		3,634		6,714		4,551		4,188
Net Amount at Risk with Auto-Rebalancing Feature - externally reinsured		—		—		—		—		—
Net Amount at Risk without Auto-Rebalancing Feature		797		757		1,226		799		702
Total		4,572		4,391		7,940		5,350		4,890

(1) At end of period.

Page 21

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

U.S. FINANCIAL WELLNESS BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES DEATH BENEFIT FEATURES

(in millions)

	2018						2019
	2Q		3Q		4Q		1Q		2Q
DEATH BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		124,777		126,693		115,489		124,019		126,897
Net amount at risk		456		404		917		316		254
Minimum return, anniversary contract value, or maximum contract value:
Account value		30,925		31,057		27,673		29,334		29,453
Net amount at risk		3,179		2,916		5,071		3,374		3,022
Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		115,201		116,441		105,172		112,250		113,693
Account Values without Auto-Rebalancing Feature		40,501		41,309		37,990		41,103		42,657
Total		155,702		157,750		143,162		153,353		156,350
Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,545		1,379		3,115		1,755		1,482
Net Amount at Risk without Auto-Rebalancing Feature		2,090		1,941		2,873		1,935		1,794
Total		3,635		3,320		5,988		3,690		3,276

(1) At end of period.

Page 22

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

U.S. FINANCIAL WELLNESS BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE

(in millions)

	2018									2019						Year-to-date						%
	2Q			3Q			4Q			1Q			2Q			2018			2019			Change
Revenues (1):
Premiums		232			234			235			233			240			458			473			3	%
Policy charges and fee income		515			511			552			531			503			1,033			1,034			—	%
Net investment income		512			510			523			535			568			1,000			1,103			10	%
Asset management fees, commissions and other income		192			199			191			183			197			385			380			-1	%
Total revenues		1,451			1,454			1,501			1,482			1,508			2,876			2,990			4	%
Benefits and Expenses (1):
Insurance and annuity benefits		664			550			661			648			758			1,315			1,406			7	%
Interest credited to policyholders’ account balances		187			193			199			187			201			374			388			4	%
Interest expense		179			182			185			194			192			347			386			11	%
Deferral of acquisition costs		(163	)		(184	)		(220	)		(186	)		(194	)		(322	)		(380	)		-18	%
Amortization of acquisition costs		105			71			101			90			319			196			409			109	%
General and administrative expenses		436			472			601			444			367			887			811			-9	%
Total benefits and expenses		1,408			1,284			1,527			1,377			1,643			2,797			3,020			8	%
Adjusted operating income (loss) before income taxes		43			170			(26	)		105			(135	)		79			(30	)		-138	%

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. Second quarter 2019 revenues and expenses exclude market experience updates.

Page 23

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

U.S. FINANCIAL WELLNESS BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL LIFE SUPPLEMENTARY

(in millions)

	2018									2019						Year-to-date
	2Q			3Q			4Q			1Q			2Q			2018			2019
ANNUALIZED NEW BUSINESS PREMIUMS (1):
Term life		54			55			55			51			53			103			104
Guaranteed Universal life		24			23			29			21			24			45			45
Other Universal life		29			44			51			30			48			55			78
Variable life		35			41			58			61			56			64			117
Total		142			163			193			163			181			267			344
ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
Prudential Advisors		33			35			37			34			39			63			73
Third party distribution		109			128			156			129			142			204			271
Total		142			163			193			163			181			267			344
ACCOUNT VALUE ACTIVITY:
Policyholders’ Account Balances (2):
Beginning balance		27,420			27,942			28,347			28,728			28,737			26,861			28,728
Premiums and deposits		738			790			1,072			783			866			1,472			1,649
Surrenders and withdrawals		(293	)		(280	)		(459	)		(291	)		(345	)		(542	)		(636	)
Net sales		445			510			613			492			521			930			1,013
Benefit payments		(155	)		(132	)		61			(103	)		(114	)		(300	)		(217	)
Net flows		290			378			674			389			407			630			796
Interest credited and other		527			304			229			(24	)		(455	)		1,051			(479	)
Net transfers (to) from separate account		119			136			(80	)		76			67			238			143
Policy charges		(414	)		(413	)		(442	)		(432	)		(435	)		(838	)		(867	)
Ending balance		27,942			28,347			28,728			28,737			28,321			27,942			28,321
Separate Account Liabilities:
Beginning balance		31,897			32,430			33,562			29,796			32,851			32,085			29,796
Premiums and deposits		379			365			438			494			411			798			905
Surrenders and withdrawals		(312	)		(272	)		(262	)		(260	)		(258	)		(565	)		(518	)
Net sales		67			93			176			234			153			233			387
Benefit payments		(46	)		(41	)		(246	)		(95	)		(188	)		(101	)		(283	)
Net flows		21			52			(70	)		139			(35	)		132			104
Change in market value, interest credited and other		861			1,450			(3,535	)		3,232			1,139			912			4,371
Net transfers (to) from general account		(119	)		(136	)		80			(76	)		(67	)		(238	)		(143	)
Policy charges		(230	)		(234	)		(241	)		(239	)		(242	)		(461	)		(481	)
Ending balance		32,430			33,562			29,796			32,852			33,646			32,430			33,647
FACE AMOUNT IN FORCE (3):
Term life		770,208			779,181			788,013			795,539			803,327
Guaranteed Universal life		144,110			144,831			145,861			146,751			147,885
Other Universal life		48,598			49,552			50,650			51,100			52,140
Variable life		162,762			162,881			160,747			164,118			165,215
Total		1,125,678			1,136,445			1,145,272			1,157,509			1,168,567

(1) Excludes corporate-owned life insurance.

(2) Includes fixed rate funds, alliance deposits, supplementary contracts and deferred revenues on variable products.

(3) At end of period; before reinsurance ceded.

Page 24

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)

	2018									2019						Year-to-date						%
	2Q			3Q			4Q			1Q			2Q			2018			2019			Change
Revenues (1):
Premiums		3,767			3,950			3,913			4,585			3,906			8,308			8,491			2	%
Policy charges and fee income		129			129			133			127			114			272			241			-11	%
Net investment income		1,320			1,313			1,311			1,333			1,377			2,621			2,710			3	%
Asset management fees, commissions and other income		72			98			59			107			104			127			211			66	%
Total revenues		5,288			5,490			5,416			6,152			5,501			11,328			11,653			3	%
Benefits and Expenses (1):
Insurance and annuity benefits		3,300			3,435			3,421			3,950			3,400			7,215			7,350			2	%
Interest credited to policyholders’ account balances		222			227			220			236			224			460			460			—	%
Interest expense		5			6			6			6			8			9			14			56	%
Deferral of acquisition costs		(413	)		(415	)		(414	)		(463	)		(394	)		(888	)		(857	)		3	%
Amortization of acquisition costs		306			286			310			334			278			637			612			-4	%
General and administrative expenses		1,084			1,061			1,137			1,167			1,136			2,255			2,303			2	%
Total benefits and expenses		4,504			4,600			4,680			5,230			4,652			9,688			9,882			2	%
Adjusted operating income before income taxes		784			890			736			922			849			1,640			1,771			8	%

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Second quarter 2019 revenues and expenses exclude market experience updates.

Page 25

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION - LIFE PLANNER OPERATIONS

(in millions)

	2018									2019						Year-to-date						%
	2Q			3Q			4Q			1Q			2Q			2018			2019			Change
Revenues (1):
Premiums		1,982			1,975			2,035			2,446			2,123			4,354			4,569			5	%
Policy charges and fee income		94			95			99			94			75			200			169			-16	%
Net investment income		562			571			548			581			596			1,124			1,177			5	%
Asset management fees, commissions and other income		49			55			33			54			58			87			112			29	%
Total revenues		2,687			2,696			2,715			3,175			2,852			5,765			6,027			5	%
Benefits and Expenses (1):
Insurance and annuity benefits		1,793			1,770			1,831			2,146			1,896			3,898			4,042			4	%
Interest credited to policyholders’ account balances		55			62			55			68			56			126			124			-2	%
Interest expense		3			3			3			3			4			5			7			40	%
Deferral of acquisition costs		(206	)		(209	)		(220	)		(260	)		(220	)		(457	)		(480	)		-5	%
Amortization of acquisition costs		164			135			161			171			136			337			307			-9	%
General and administrative expenses		502			486			536			566			542			1,064			1,108			4	%
Total benefits and expenses		2,311			2,247			2,366			2,694			2,414			4,973			5,108			3	%
Adjusted operating income before income taxes		376			449			349			481			438			792			919			16	%

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Second quarter 2019 revenues and expenses exclude market experience updates.

Page 26

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION - GIBRALTAR LIFE & OTHER OPERATIONS

(in millions)

	2018									2019						Year-to-date						%
	2Q			3Q			4Q			1Q			2Q			2018			2019			Change
Revenues (1):
Premiums		1,785			1,975			1,878			2,139			1,783			3,954			3,922			-1%
Policy charges and fee income		35			34			34			33			39			72			72			—  %
Net investment income		758			742			763			752			781			1,497			1,533			2%
Asset management fees, commissions and other income		23			43			26			53			46			40			99			148%
Total revenues		2,601			2,794			2,701			2,977			2,649			5,563			5,626			1%
Benefits and Expenses (1):
Insurance and annuity benefits		1,507			1,665			1,590			1,804			1,504			3,317			3,308			—  %
Interest credited to policyholders’ account balances		167			165			165			168			168			334			336			1%
Interest expense		2			3			3			3			4			4			7			75%
Deferral of acquisition costs		(207	)		(206	)		(194	)		(203	)		(174	)		(431	)		(377	)		13%
Amortization of acquisition costs		142			151			149			163			142			300			305			2%
General and administrative expenses		582			575			601			601			594			1,191			1,195			—  %
Total benefits and expenses		2,193			2,353			2,314			2,536			2,238			4,715			4,774			1%
Adjusted operating income before income taxes		408			441			387			441			411			848			852			—  %

(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Second quarter 2019 revenues and expenses exclude market experience updates.

Page 27

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)

	2018						2019				Year-to-date
	2Q		3Q		4Q		1Q		2Q		2018		2019
INTERNATIONAL INSURANCE OPERATING DATA:
Actual exchange rate basis (1):
Net premiums, policy charges and fee income:
Japan, excluding Gibraltar Life		1,537		1,537		1,542		1,966		1,599		3,417		3,565
Gibraltar Life		1,820		2,009		1,912		2,172		1,822		4,026		3,994
All other countries		539		533		592		574		599		1,137		1,173
Total		3,896		4,079		4,046		4,712		4,020		8,580		8,732
Annualized new business premiums:
Japan, excluding Gibraltar Life		190		189		206		292		165		424		457
Gibraltar Life		399		351		326		323		271		806		594
All other countries		106		105		110		112		59		223		171
Total		695		645		642		727		495		1,453		1,222
Annualized new business premiums by distribution channel:
Life Planner Operations		296		294		316		404		224		647		628
Gibraltar Life Consultants		234		178		175		164		147		430		311
Banks		104		123		95		108		83		262		191
Independent Agency		61		50		56		51		41		114		92
Total		695		645		642		727		495		1,453		1,222
Constant exchange rate basis (2):
Net premiums, policy charges and fee income:
Japan, excluding Gibraltar Life		1,576		1,598		1,611		2,029		1,643		3,489		3,672
Gibraltar Life		1,861		2,076		1,989		2,235		1,866		4,105		4,101
All other countries		527		565		609		587		625		1,086		1,212
Total		3,964		4,239		4,209		4,851		4,134		8,680		8,985
Annualized new business premiums:
Japan, excluding Gibraltar Life		192		193		210		296		189		428		485
Gibraltar Life		401		353		328		325		297		809		622
All other countries		103		107		113		113		120		211		233
Total		696		653		651		734		606		1,448		1,340
Annualized new business premiums by distribution channel:
Life Planner Operations		295		300		323		409		309		639		718
Gibraltar Life Consultants		235		180		177		166		168		432		334
Banks		104		123		95		108		85		262		193
Independent Agency		62		50		56		51		44		115		95
Total		696		653		651		734		606		1,448		1,340

(1) Translated based on applicable average exchange rates for the period shown.

(2) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 105 per U.S. dollar and Korean won 1,110 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 28

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

	2018									2019
	2Q			3Q			4Q			1Q			2Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		363			367			371			378			380
Gibraltar Life		357			360			361			362			364
All other countries		127			128			131			133			135
Total		847			855			863			873			879
Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		3,814			3,860			3,907			3,975			4,015
Gibraltar Life		7,217			7,224			7,218			7,214			7,198
All other countries		2,096			2,116			2,134			2,152			2,194
Total		13,127			13,200			13,259			13,341			13,407
International life insurance policy persistency:
Life Planner Operations:
13 months		93.3	%		93.1	%		92.7	%		92.5	%		91.6	%
25 months		86.9	%		86.9	%		86.6	%		86.4	%		86.8	%
Gibraltar Life (3):
13 months		93.6	%		93.7	%		93.9	%		94.1	%		94.2	%
25 months		87.1	%		87.1	%		87.1	%		87.1	%		87.3	%
Number of Life Planners at end of period:
Japan		3,964			4,130			4,183			4,337			4,287
All other countries		3,674			3,668			3,786			3,757			3,883
Total Life Planners		7,638			7,798			7,969			8,094			8,170
Gibraltar Life Consultants		7,938			8,030			7,964			7,997			7,767

(1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 105 per U.S. dollar and Korean won 1,110 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

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

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

Page 29

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)

	2018									2019						Year-to-date						%
	2Q			3Q			4Q			1Q			2Q			2018			2019			Change
Revenues (1):
Premiums		(8	)		(6	)		(5	)		(6	)		(3	)		(16	)		(9	)		44	%
Policy charges and fee income		(12	)		(13	)		(13	)		(14	)		(12	)		(25	)		(26	)		-4	%
Net investment income		96			101			131			132			147			220			279			27	%
Asset management fees, commissions and other income		(266	)		(268	)		(269	)		(283	)		(296	)		(542	)		(579	)		-7	%
Total revenues		(190	)		(186	)		(156	)		(171	)		(164	)		(363	)		(335	)		8	%
Benefits and Expenses (1):
Insurance and annuity benefits		(2	)		6			(7	)		12			5			(11	)		17			255	%
Interest credited to policyholders’ account balances		—			—			—			—			—			—			—			—
Interest expense		127			133			142			142			142			260			284			9	%
Deferral of acquisition costs		12			12			12			14			14			25			28			12	%
Amortization of acquisition costs		(13	)		(11	)		(10	)		(11	)		(12	)		(23	)		(23	)		—	%
General and administrative expenses		(28	)		48			36			84			22			(34	)		106			412	%
Total benefits and expenses		96			188			173			241			171			217			412			90	%
Adjusted operating loss before income taxes		(286	)		(374	)		(329	)		(412	)		(335	)		(580	)		(747	)		-29	%
Adjusted operating loss before income taxes comprised as follows:
Interest income		9			7			43			44			42			36			86			139	%
Interest expense		(172	)		(178	)		(194	)		(199	)		(200	)		(353	)		(399	)		(13	)%
Financial Wellness initiative - implementation costs		—			—			—			—			(19	)		—			(19	)		—	%
Long-term and deferred compensation expense		(6	)		(37	)		53			(107	)		(30	)		(25	)		(137	)		(448	)%
Other (2)		(117	)		(166	)		(231	)		(150	)		(128	)		(238	)		(278	)		(17	)%
Adjusted operating loss before income taxes:		(286	)		(374	)		(329	)		(412	)		(335	)		(580	)		(747	)		(29	)%

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

(2) Includes pension and employee benefits and other corporate activities, including consolidating adjustments.

Page 30

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

INVESTMENT PORTFOLIO COMPOSITION

(in millions)

	June 30, 2019									December 31, 2018
	Total Portfolio		Closed Block Division		PFI Excluding Closed Block Division					Total Portfolio		Closed Block Division		PFI Excluding Closed Block Division
					Amount		% of Total							Amount		% of Total
Fixed maturities:
Public, available-for-sale, at fair value		320,812		28,176		292,636		65.5	%		295,312		26,203		269,109		64.8	%
Public, held-to-maturity, at amortized cost		1,754		—		1,754		0.4	%		1,745		—		1,745		0.4	%
Private, available-for-sale, at fair value		62,073		12,652		49,421		11.1	%		57,870		12,542		45,328		10.9	%
Private, held-to-maturity, at amortized cost		255		—		255		0.1	%		268		—		268		0.1	%
Fixed maturities, trading, at fair value		2,552		236		2,316		0.5	%		2,088		195		1,893		0.5	%
Assets supporting experience-rated contractholder liabilities, at fair value		21,843		—		21,843		4.9	%		21,254		—		21,254		5.1	%
Equity securities, at fair value		6,180		2,055		4,125		0.9	%		5,633		1,784		3,849		0.9	%
Commercial mortgage and other loans, at book value		60,551		8,451		52,100		11.7	%		59,033		8,782		50,251		12.1	%
Policy loans, at outstanding balance		12,030		4,328		7,702		1.7	%		12,016		4,410		7,606		1.8	%
Other invested assets (1)		12,116		3,291		8,825		2.0	%		11,723		3,316		8,407		2.0	%
Short-term investments		5,858		660		5,198		1.2	%		6,426		478		5,948		1.4	%
Subtotal (2)		506,024		59,849		446,175		100.0	%		473,368		57,710		415,658		100.0	%
Invested assets of other entities and operations (3)		5,988		—		5,988					5,877		—		5,877
Total investments		512,012		59,849		452,163					479,245		57,710		421,535

Fixed Maturities by Credit Quality (2)(4):	June 30, 2019											December 31, 2018
	PFI Excluding Closed Block Division											PFI Excluding Closed Block Division
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total
Public Fixed Maturities:
NAIC Rating (5)
1		218,700		35,337		210		253,827		86.1	%		210,578		23,776		2,307		232,047		85.5	%
2		27,594		2,784		202		30,176		10.2	%		28,246		1,453		1,195		28,504		10.5	%
Subtotal - High or Highest Quality Securities		246,294		38,121		412		284,003		96.3	%		238,824		25,229		3,502		260,551		96.0	%
3		5,668		553		77		6,144		2.1	%		5,973		280		240		6,013		2.2	%
4		3,586		294		166		3,714		1.3	%		3,709		275		287		3,697		1.4	%
5		671		65		30		706		0.2	%		725		85		57		753		0.3	%
6		193		20		6		207		0.1	%		181		8		7		182		0.1	%
Subtotal - Other Securities		10,118		932		279		10,771		3.7	%		10,588		648		591		10,645		4.0	%
Total		256,412		39,053		691		294,774		100.0	%		249,412		25,877		4,093		271,196		100.0	%
Private Fixed Maturities:
NAIC Rating (5)
1		12,053		744		75		12,722		25.6	%		11,712		362		261		11,813		25.9	%
2		28,754		1,630		342		30,042		60.5	%		27,522		814		804		27,532		60.4	%
Subtotal - High or Highest Quality Securities		40,807		2,374		417		42,764		86.1	%		39,234		1,176		1,065		39,345		86.3	%
3		4,359		134		60		4,433		8.9	%		4,176		50		168		4,058		8.9	%
4		1,852		32		78		1,806		3.6	%		1,545		16		81		1,480		3.2	%
5		609		20		15		614		1.2	%		670		14		20		664		1.5	%
6		71		10		5		76		0.2	%		72		5		11		66		0.1	%
Subtotal - Other Securities		6,891		196		158		6,929		13.9	%		6,463		85		280		6,268		13.7	%
Total		47,698		2,570		575		49,693		100.0	%		45,697		1,261		1,345		45,613		100.0	%

(1) Other invested assets consist of investments in limited partnerships and limited liability companies (“LPs/LLCs”), investment real estate held through direct ownership, derivative instruments and other miscellaneous investments.

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

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

(4) Excludes fixed maturity securities classified as trading.

(5) Reflects equivalent ratings for investments of the international insurance operations. Includes, as of June 30, 2019 and December 31, 2018, 1,013 securities with amortized cost of $4,541 million (fair value $4,768 million) and 1,744 securities with amortized cost of $9,079 million (fair value $9,135 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 31

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

INVESTMENT PORTFOLIO COMPOSITION - JAPANESE INSURANCE OPERATIONS AND EXCLUDING JAPANESE INSURANCE OPERATIONS (1)

(in millions)

	June 30, 2019					December 31, 2018
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value		143,741		74.7	%		133,084		74.6	%
Public, held-to-maturity, at amortized cost		1,754		0.9	%		1,745		1.0	%
Private, available-for-sale, at fair value		17,765		9.2	%		16,222		9.1	%
Private, held-to-maturity, at amortized cost		255		0.1	%		268		0.1	%
Fixed maturities, trading, at fair value		452		0.2	%		328		0.2	%
Assets supporting experience-rated contractholder liabilities, at fair value		2,632		1.4	%		2,441		1.4	%
Equity securities, at fair value		2,011		1.1	%		1,972		1.1	%
Commercial mortgage and other loans, at book value		18,312		9.5	%		17,228		9.6	%
Policy loans, at outstanding balance		2,825		1.5	%		2,715		1.5	%
Other invested assets (3)		2,296		1.2	%		1,957		1.1	%
Short-term investments		303		0.2	%		451		0.3	%
Total		192,346		100.0	%		178,411		100.0	%
	June 30, 2019					December 31, 2018
	Amount		% of Total			Amount		% of Total
Excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value		148,895		58.7	%		136,025		57.3	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		31,656		12.5	%		29,106		12.3	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Fixed maturities, trading, at fair value		1,864		0.7	%		1,565		0.7	%
Assets supporting experience-rated contractholder liabilities, at fair value		19,211		7.6	%		18,813		7.9	%
Equity securities, at fair value		2,114		0.8	%		1,877		0.8	%
Commercial mortgage and other loans, at book value		33,788		13.3	%		33,023		13.9	%
Policy loans, at outstanding balance		4,877		1.9	%		4,891		2.1	%
Other invested assets (3)		6,529		2.6	%		6,450		2.7	%
Short-term investments		4,895		1.9	%		5,497		2.3	%
Total		253,829		100.0	%		237,247		100.0	%

(1) Excludes Closed Block Division.

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

(3) Other invested assets consist of investments in LPs/LLCs, investment real estate held through direct ownership, derivative instruments and other miscellaneous investments.

Page 32

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

INVESTMENT RESULTS (1)

(in millions)

	Quarter Ended June 30
	2019									2018
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (5)			Amount						Yield (5)			Amount
General Account (2)
Fixed maturities (3)		3.82	%		2,842			75			3.84	%		2,669			197
Equity securities		3.60	%		37			—			3.50	%		39			—
Commercial mortgage and other loans		4.10	%		472			(8	)		4.00	%		431			(3	)
Policy loans		4.73	%		90			—			4.81	%		90			—
Short-term investments and cash equivalents		2.85	%		100			—			2.01	%		71			3
Gross investment income before investment expenses		3.83	%		3,541			67			3.82	%		3,300			197
Investment expenses		-0.14	%		(174	)		—			-0.15	%		(159	)		—
Subtotal		3.69	%		3,367			67			3.67	%		3,141			197
Other investments (3)					184			(458	)					99			341
Investment results of other entities and operations (4)					265			6						265			37
Less, investment income related to adjusted operating income reconciling items					(118	)								(101	)
Total					3,698			(385	)					3,404			575
	Six Months Ended June 30
	2019									2018
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (5)			Amount						Yield (5)			Amount
General Account (2)
Fixed maturities (3)		3.82	%		5,627			313			3.86	%		5,294			247
Equity securities		2.79	%		56			—			2.61	%		57			—
Commercial mortgage and other loans		4.05	%		919			(12	)		4.01	%		843			(3	)
Policy loans		4.72	%		178			—			4.82	%		178			—
Short-term investments and cash equivalents		2.82	%		203			1			1.82	%		132			2
Gross investment income before investment expenses		3.82	%		6,983			302			3.81	%		6,504			246
Investment expenses		-0.14	%		(348	)		—			-0.15	%		(298	)		—
Subtotal		3.68	%		6,635			302			3.66	%		6,206			246
Other investments (3)					273			(1,464	)					180			699
Investment results of other entities and operations (4)					561			(45	)					524			57
Less, investment income related to adjusted operating income reconciling items					(225	)								(169	)
Total					7,244			(1,207	)					6,741			1,002

(1) Excludes Closed Block Division.

(2) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and assets of our investment management operations, including assets that are managed for third parties, and those assets classified as “Separate account assets” on our balance sheet.

(3) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in “Other investments.” Realized gains / (losses) for “Other investments” includes changes in fair value of product-related and other derivatives and embedded derivatives.

(4) Includes invested income of commercial loans, assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and our investment management operations.

(5) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities and securities lending activity. Yields for fixed maturities are based on quarterly average amortized cost. Yields for fixed maturities, short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments. Prior period yields have been revised to conform with current period presentation.

Page 33

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)

	Quarter Ended June 30
	2019								2018
	Investment Income						Realized Gains /		Investment Income						Realized Gains /
	Yield (1)			Amount			(Losses)		Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities (2)		2.83	%		955			108		2.87	%		922			259
Equity securities		5.48	%		27			—		5.48	%		30			—
Commercial mortgage and other loans		3.87	%		174			1		3.93	%		156			(2	)
Policy loans		3.81	%		26			—		3.83	%		25			—
Short-term investments and cash equivalents		2.91	%		6			—		1.92	%		10			—
Gross investment income before investment expenses		3.00	%		1,188			109		3.03	%		1,143			257
Investment expenses		-0.14	%		(71	)		—		-0.13	%		(60	)		—
Subtotal		2.86	%		1,117			109		2.90	%		1,083			257
Other investments (2)					52			193					33			(87	)
Total					1,169			302					1,116			170
	Six Months Ended June 30
	2019								2018
	Investment Income						Realized Gains /		Investment Income						Realized Gains /
	Yield (1)			Amount			(Losses)		Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities (2)		2.83	%		1,892			326		2.92	%		1,845			348
Equity securities		3.48	%		34			—		3.54	%		38			—
Commercial mortgage and other loans		3.85	%		339			2		3.92	%		299			(2	)
Policy loans		3.84	%		52			—		3.86	%		50			—
Short-term investments and cash equivalents		3.43	%		14			—		1.91	%		17			—
Gross investment income before investment expenses		2.98	%		2,331			328		3.05	%		2,249			346
Investment expenses		-0.14	%		(139	)		—		-0.13	%		(113	)		—
Subtotal		2.84	%		2,192			328		2.92	%		2,136			346
Other investments (2)					103			369					60			6
Total					2,295			697					2,196			352

(1) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities and securities lending activity. Yields for fixed maturities are based on quarterly average amortized cost. Yields for fixed maturities, short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments. Prior period yields have been revised to conform with current period presentation.

(2) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in “Other investments”. Realized gains / (losses) for “Other investments” includes changes in fair value of product-related and other derivatives and embedded derivatives.

Page 34

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)

(in millions)

	Quarter Ended June 30
	2019									2018
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (4)			Amount						Yield (4)			Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3)		4.63	%		1,887			(33	)		4.68	%		1,747			(62	)
Equity securities		1.82	%		10			—			1.56	%		9			—
Commercial mortgage and other loans		4.24	%		298			(9	)		4.04	%		275			(1	)
Policy loans		5.25	%		64			—			5.35	%		65			—
Short-term investments and cash equivalents		2.85	%		94			—			2.02	%		61			3
Gross investment income before investment expenses		4.46	%		2,353			(42	)		4.43	%		2,157			(60	)
Investment expenses		-0.14	%		(103	)		—			-0.17	%		(99	)		—
Subtotal		4.32	%		2,250			(42	)		4.26	%		2,058			(60	)
Other investments (3)					132			(651	)					66			428
Total					2,382			(693	)					2,124			368
	Six Months Ended June 30
	2019									2018
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (4)			Amount						Yield (4)			Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3)		4.64	%		3,735			(13	)		4.65	%		3,449			(101	)
Equity securities		2.12	%		22			—			1.68	%		19			—
Commercial mortgage and other loans		4.17	%		580			(14	)		4.05	%		544			(1	)
Policy loans		5.21	%		126			—			5.34	%		128			—
Short-term investments and cash equivalents		2.80	%		189			1			1.81	%		115			2
Gross investment income before investment expenses		4.45	%		4,652			(26	)		4.40	%		4,255			(100	)
Investment expenses		-0.14	%		(209	)		—			-0.16	%		(185	)		—
Subtotal		4.31	%		4,443			(26	)		4.24	%		4,070			(100	)
Other investments (3)					170			(1,833	)					120			693
Total					4,613			(1,859	)					4,190			593

(1) Excludes Closed Block Division.

(2) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and assets of our investment management operations, including assets that are managed for third parties, and those assets classified as “Separate account assets” on our balance sheet.

(3) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading, which are included in “Other investments.” Realized gains / (losses) for “Other investments” includes changes in fair value of product-related and other derivatives and embedded derivatives.

(4) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities and securities lending activity. Yields for fixed maturities are based on quarterly average amortized cost. Yields for fixed maturities, short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments. Prior period yields have been revised to conform with current period presentation.

Page 35

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

INCOME STATEMENT IMPACT FROM ANNUAL ACTUARIAL ASSUMPTION UPDATES AND REFINEMENTS

(in millions)

	Second Quarter 2019
	Premiums			Policy Charges and Fee Income			Asset Management Fees, Commissions and Other Income		Insurance and Annuity Benefits			Interest Credited to Policyholders’ Account Balances		Amortization of Acquisition Costs			General and Administrative Expenses			Adjusted Operating Income Before Income Taxes
Individual Annuities		—			—			6		—			3		15			—			(12	)
Individual Life		—			(23	)		—		66			—		234			(115	)		(208	)
Retirement		(6	)		—			—		(165	)		—		1			4			154
Group Insurance		8			(13	)		—		(14	)		—		—			—			9
International Insurance - Life Planner operations		—			(20	)		—		4			—		(25	)		—			1
International Insurance - Gibraltar Life & Other operations		—			—			—		(5	)		—		(2	)		—			7
Corporate & Other		—			—			—		—			—		—			—			—
Total		2			(56	)		6		(114	)		3		223			(111	)		(49	)
	Second Quarter 2018
	Premiums			Policy Charges and Fee Income			Asset Management Fees, Commissions and Other Income		Insurance and Annuity Benefits			Interest Credited to Policyholders’ Account Balances		Amortization of Acquisition Costs			General and Administrative Expenses			Adjusted Operating Income Before Income Taxes
Individual Annuities		—			—			24		(4	)		4		14			—			10
Individual Life		—			15			—		66			—		29			(15	)		(65	)
Retirement		—			—			—		93			1		(2	)		(24	)		(68	)
Group Insurance		3			2			—		(26	)		—		—			—			31
International Insurance - Life Planner operations		—			(4	)		—		38			—		11			(4	)		(49	)
International Insurance - Gibraltar Life & Other operations		—			—			—		33			—		(1	)		—			(32	)
Corporate & Other		—			—			—		(3	)		—		—			—			3
Total		3			13			24		197			5		51			(43	)		(170	)

Page 36

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES

(in millions)

	Three Months Ended June 30, 2019																								Three Months Ended June 30, 2018
				Reconciling Items																								Reconciling Items
	Adjusted Operating Income basis (1)			Total realized investment gains (losses), net, and related charges and adjustments			Market experience updates			Investment gains (losses)  on assets supporting experience-rated contractholder liabilities, net		Change in experience-rated contractholder liabilities due to asset value changes		Closed Block Division		Other Divested and Run-off Businesses			Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests			U.S. GAAP (2)			Adjusted Operating Income basis (1)			Total realized investment gains (losses), net, and related charges and adjustments			Investment gains (losses)  on assets supporting experience-rated contractholder liabilities, net			Change in experience- rated contractholder liabilities due to asset value changes			Closed Block Division		Other Divested and Run-off Businesses			Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests			U.S. GAAP (2)
Revenues:
Premiums		7,439			—			—			—		—		582		114			—			8,135			6,710			—			—			—			600		128			—			7,438
Policy charges and fee income		1,518			(54	)		8			—		—		—		1			—			1,473			1,570			(92	)		—			—			—		2			—			1,480
Net investment income		3,698			(9	)		—			—		—		574		127			—			4,390			3,404			(10	)		—			—			591		111			—			4,096
Realized investment gains (losses), net		101			(564	)		(15	)		—		—		49		93			—			(336	)		151			434			—			—			110		(10	)		—			685
Asset management fees, commissions and other income		1,350			25			—			287		—		96		1			(33	)		1,726			1,208			(31	)		(193	)		—			87		(88	)		(27	)		956
Total revenues		14,106			(602	)		(7	)		287		—		1,301		336			(33	)		15,388			13,043			301			(193	)		—			1,388		143			(27	)		14,655
Benefits and Expenses:
Insurance and annuity benefits		7,823			(7	)		112			—		—		1,194		192			—			9,314			7,160			(24	)		—			—			1,288		1,628			—			10,052
Interest credited to policyholders’ account balances		955			(27	)		—			—		313		32		5			—			1,278			932			9			—			(85	)		33		5			—			894
Interest expense		392			—			—			—		—		2		1			—			395			347			—			—			—			—		1			—			348
Deferral of acquisition costs		(712	)		—			—			—		—		—		(1	)		—			(713	)		(684	)		—			—			—			—		(2	)		—			(686	)
Amortization of acquisition costs		736			(45	)		83			—		—		7		1			—			782			555			48			—			—			8		2			—			613
General and administrative expenses		3,259			107			6			—		—		87		26			(29	)		3,456			3,072			(9	)		—			—			90		35			(4	)		3,184
Total benefits and expenses		12,453			28			201			—		313		1,322		224			(29	)		14,512			11,382			24			—			(85	)		1,419		1,669			(4	)		14,405
	Six Months Ended June 30, 2019																								Six Months Ended June 30, 2018
				Reconciling Items																								Reconciling Items
	Adjusted Operating Income basis (1)			Total realized investment gains (losses), net, and related charges and adjustments			Market experience updates			Investment gains (losses)  on assets supporting experience-rated contractholder liabilities, net		Change in experience-rated contractholder liabilities due to asset value changes		Closed Block Division		Other Divested and Run-off Businesses			Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests			U.S. GAAP (2)			Adjusted Operating Income basis (1)			Total realized investment gains (losses), net, and related charges and adjustments			Investment gains (losses)  on assets supporting experience-rated contractholder liabilities, net			Change in experience- rated contractholder liabilities due to asset value changes			Closed Block Division		Other Divested and Run-off Businesses			Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests			U.S. GAAP (2)
Revenues:
Premiums		14,695			—			—			—		—		1,108		232			—			16,035			13,348			—			—			—			1,151		250			—			14,749
Policy charges and fee income		3,060			(126	)		8			—		—		—		2			—			2,944			3,145			(163	)		—			—			—		2			—			2,984
Net investment income		7,244			(19	)		—			—		—		1,137		244			—			8,606			6,741			(20	)		—			—			1,184		189			—			8,094
Realized investment gains (losses), net		121			(1,474	)		(15	)		—		—		105		161			—			(1,102	)		214			867			—			—			108		(79	)		—			1,110
Asset management fees, commissions and other income		2,634			282			—			741		—		325		85			(71	)		3,996			2,470			(367	)		(596	)		—			108		(87	)		(53	)		1,475
Total revenues		27,754			(1,337	)		(7	)		741		—		2,675		724			(71	)		30,479			25,918			317			(596	)		—			2,551		275			(53	)		28,412
Benefits and Expenses:
Insurance and annuity benefits		15,343			46			112			—		—		2,456		372			—			18,329			14,013			(86	)		—			—			2,323		1,805			—			18,055
Interest credited to policyholders’ account balances		1,903			(70	)		—			—		716		64		10			—			2,623			1,843			34			—			(503	)		66		4			—			1,444
Interest expense		778			—			—			—		—		3		2			—			783			687			—			—			—			—		2			—			689
Deferral of acquisition costs		(1,471	)		—			—			—		—		—		(3	)		—			(1,474	)		(1,402	)		—			—			—			—		(3	)		—			(1,405	)
Amortization of acquisition costs		1,276			(161	)		83			—		—		16		3			—			1,217			1,085			95			—			—			18		3			—			1,201
General and administrative expenses		6,667			116			6			—		—		176		54			(34	)		6,985			6,310			(67	)		—			—			184		62			(4	)		6,485
Total benefits and expenses		24,496			(69	)		201			—		716		2,715		438			(34	)		28,463			22,536			(24	)		—			(503	)		2,591		1,873			(4	)		26,469

(1) See page 39 for a definition of adjusted operating income.

(2) U.S. generally accepted accounting principles

Page 37

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES

(in millions)

	Three Months Ended September 30, 2018																						Three Months Ended December 31, 2018
				Reconciling Items																						Reconciling Items
	Adjusted Operating Income basis (1)			Total realized investment gains (losses), net, and related charges and adjustments			Investment gains (losses)  on assets supporting experience-rated contractholder liabilities, net		Change in experience-rated contractholder liabilities due to asset value changes		Closed Block Division			Other Divested and Run-off Businesses			Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests			U.S. GAAP (2)			Adjusted Operating Income basis (1)			Total realized investment gains (losses), net, and related charges and adjustments			Investment gains (losses) on assets supporting experience- rated contractholder liabilities, net			Change in experience- rated contractholder liabilities due to asset value changes			Closed Block Division			Other Divested and Run-off Businesses			Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests			U.S. GAAP (2)
Revenues:
Premiums		8,143			—			—		—		529			138			—			8,810			11,487			—			—			—			621			112			—			12,220
Policy charges and fee income		1,557			(60	)		—		—		—			1			—			1,498			1,570			(51	)		—			—			—			1			—			1,520
Net investment income		3,367			(10	)		—		—		560			129			—			4,046			3,382			(11	)		—			—			544			121			—			4,036
Realized investment gains (losses), net		63			120			—		—		(4	)		(28	)		—			151			249			379			—			—			26			62			—			716
Asset management fees, commissions and other income		1,302			161			10		—		164			36			(30	)		1,643			1,092			(500	)		(277	)		—			(313	)		(42	)		(20	)		(60	)
Total revenues		14,432			211			10		—		1,249			276			(30	)		16,148			17,780			(183	)		(277	)		—			878			254			(20	)		18,432
Benefits and Expenses:
Insurance and annuity benefits		8,464			(31	)		—		—		1,099			225			—			9,757			11,934			42			—			—			786			166			—			12,928
Interest credited to policyholders’ account balances		940			31			—		21		33			5			—			1,030			937			(25	)		—			(228	)		33			5			—			722
Interest expense		355			—			—		—		1			1			—			357			372			—			—			—			1			1			—			374
Deferral of acquisition costs		(708	)		—			—		—		—			(2	)		—			(710	)		(754	)		—			—			—			—			(2	)		—			(756	)
Amortization of acquisition costs		496			57			—		—		8			2			—			563			533			(34	)		—			—			9			1			—			509
General and administrative expenses		3,217			(23	)		—		—		90			33			(4	)		3,313			3,440			49			—			—			89			32			(8	)		3,602
Total benefits and expenses		12,764			34			—		21		1,231			264			(4	)		14,310			16,462			32			—			(228	)		918			203			(8	)		17,379

	Three Months Ended March 31, 2019
				Reconciling Items
	Adjusted Operating Income basis (1)			Total realized investment gains (losses), net, and related charges and adjustments			Investment gains (losses)  on assets supporting experience-rated contractholder liabilities, net		Change in experience-rated contractholder liabilities due to asset value changes		Closed Block Division		Other Divested and Run-off Businesses			Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests			U.S. GAAP (2)
Revenues:
Premiums		7,256			—			—		—		526		118			—			7,900
Policy charges and fee income		1,542			(72	)		—		—		—		1			—			1,471
Net investment income		3,546			(10	)		—		—		563		117			—			4,216
Realized investment gains (losses), net		20			(910	)		—		—		56		68			—			(766	)
Asset management fees, commissions and other income		1,284			257			454		—		229		84			(38	)		2,270
Total revenues		13,648			(735	)		454		—		1,374		388			(38	)		15,091
Benefits and Expenses:
Insurance and annuity benefits		7,520			53			—		—		1,262		180			—			9,015
Interest credited to policyholders’ account balances		948			(43	)		—		403		32		5			—			1,345
Interest expense		386			—			—		—		1		1			—			388
Deferral of acquisition costs		(759	)		—			—		—		—		(2	)		—			(761	)
Amortization of acquisition costs		540			(116	)		—		—		9		2			—			435
General and administrative expenses		3,408			9			—		—		89		28			(5	)		3,529
Total benefits and expenses		12,043			(97	)		—		403		1,393		214			(5	)		13,951

(1) See page 39 for a definition of adjusted operating income.

(2) U.S. generally accepted accounting principles

Page 38

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure of performance that excludes “Realized investment gains (losses), net,” as adjusted, and related charges and adjustments. 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 generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. However, the effectiveness of our hedging program will ultimately be reflected in adjusted operating income over time. 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. Additionally, market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, are excluded from adjusted operating income beginning with the second quarter of 2019, which we believe enhances the understanding of underlying performance trends.

Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder 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. In addition, adjusted operating income excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations. Earnings attributable to noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjusted operating income.

Adjusted operating income does not equate to “Net income” as determined in accordance with U.S. GAAP but is the measure of profit or loss we use to evaluate segment performance. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above.

2. After-tax adjusted operating income:

Adjusted operating income before taxes, as defined above, less the income tax effect applicable to adjusted operating income before taxes. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments.

3. Annualized New Business Premiums:

Premiums from new sales that are expected to be collected over a one year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the company’s domestic individual life and international insurance operations are included in annualized new business premiums based on a 10% credit. Amounts ascribed to Gibraltar Life Consultants include production by captive agents associated with consolidated joint venture of Gibraltar Life and Other Operations.

4. Assets Under Management:

Fair market value or account value of assets which Prudential manages directly in proprietary products, such as mutual funds and variable annuities, in separate accounts, wrap-fee products and the general account, and assets invested in investment options included in the Company’s products that are managed by third party sub-managers (i.e., the non-proprietary investment options in the Company’s products).

5. Prudential Financial, Inc. Equity:

Amount of capital assigned to each of the Company’s segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment’s risks. Equity represents all of Prudential Financial, Inc. equity that is not attributable to noncontrolling interests.

6. Book value per share of Common Stock:

Equity attributed to Prudential Financial, Inc. divided by the number of Common shares outstanding at end of period, on a diluted basis. Book value per share excluding Accumulated Other Comprehensive Income (Loss) (“AOCI”) and adjusted to remove amount included for remeasurement of foreign currency exchange rate is a non-GAAP measure. These items are excluded in order to highlight the book value attributable to our core business operations. This non-GAAP measure augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations separate from the portion that is affected by capital and currency market conditions and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through AOCI under GAAP. However, book value per share excluding both AOCI and adjusted to remove amount included for foreign currency exchange rate remeasurement is not a substitute for book value per share including AOCI determined in accordance with GAAP, and the adjustments made to derive the measure are important to an understanding of our overall financial position.

Page 39

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

KEY DEFINITIONS AND FORMULAS

7. Borrowings - Capital Debt:

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

8. Borrowings - Operating Debt - Investment Related:

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

9. Borrowings - Operating Debt - Specified Businesses:

Borrowings primarily associated with the investment management business.

10. Client Assets:

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

11. Divested and Run-off Businesses:

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

12. Earned Premiums:

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

13. Full Service Retirement:

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

14. Full Service Stable Value:

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

15. General Account:

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

16. Gibraltar Life:

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

17. Gibraltar Life Consultants:

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

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

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

19. Group Insurance Benefits Ratios:

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

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

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

21. Individual Annuities - Net Amounts at Risk:

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

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

Page 40

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

KEY DEFINITIONS AND FORMULAS

22. Insurance and Annuity Benefits:

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

23. International Life Planners:

Captive insurance Advisors in our Life Planner Operations.

24. Non-recourse and Limited-recourse Debt:

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

25. Other Related Revenues:

Other related revenues include incentive fees, transaction fees, strategic investing results, and commercial mortgage revenues.

26. Policy Persistency - Group Insurance:

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

27. Policy Persistency - International Insurance:

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

28. Prudential Advisors:

Captive financial professionals and field managers in our insurance operations in the United States.

29. Prudential Advisor productivity:

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

30. Separate Accounts:

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

31. Variable Investment Income

Consists of income from equity and alternative investments along with prepayment fee income.

32. Wrap-Fee Products:

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

Page 41

Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2019

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of July 31, 2019

	A.M. Best*		Standard & Poor’s		Moody’s*		Fitch Ratings*
The Prudential Insurance Company of America		A+		AA-		Aa3		AA-
PRUCO Life Insurance Company		A+		AA-		Aa3		AA-
PRUCO Life Insurance Company of New Jersey		A+		AA-		NR		AA-
Prudential Annuities Life Assurance Corporation		A+		AA-		NR		AA-
Prudential Retirement Insurance and Annuity Company		A+		AA-		Aa3		AA-
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)		NR		A+		NR		NR
Gibraltar Life Insurance Company, Ltd.		NR		A+		NR		NR
The Prudential Gibraltar Financial Life Insurance Co. Ltd.		NR		A+		NR		NR
Prudential Life Insurance Co. of Taiwan, Inc. (1)		NR		twAAA		NR		NR
CREDIT RATINGS:
as of July 31, 2019
Prudential Financial, Inc.:
Short-Term Borrowings		AMB-1		A-1		P-2		F1
Long-Term Senior Debt		a-		A		A3		A-
Junior Subordinated Long-Term Debt		bbb		BBB+		Baa1		BBB
The Prudential Insurance Company of America:
Capital and surplus notes		a		A		A2		A
Prudential Funding, LLC:
Short-Term Debt		AMB-1		A-1+		P-1		F1+
Long-Term Senior Debt		a+		AA-		A1		A+
PRICOA Global Funding I
Long-Term Senior Debt		aa-		AA-		Aa3		AA-

* NR indicates not rated.

(1) Prudential Life Insurance Co. of Taiwan was assigned a financial strength rating by Taiwan Ratings Corporation, an S&P Global Company.

INVESTOR INFORMATION:

Corporate Offices:	Investor Information Hotline:
Prudential Financial, Inc.	Dial 877-998-ROCK for additional printed information or inquiries.
751 Broad Street
Newark, New Jersey 07102	Web Site:
	www.prudential.com

Common Stock:

Common Stock of Prudential Financial, Inc. is traded on the New York Stock Exchange under the symbol PRU.

Page 42

XML

Document and Entity Information	Jul. 31, 2019
Document And Entity Information [Line Items]
Entity Registrant Name	PRUDENTIAL FINANCIAL INC
Amendment Flag	false
Entity Central Index Key	0001137774
Document Type	8-K
Document Period End Date	Jul. 31, 2019
Entity Incorporation State Country Code	NJ
Entity File Number	001-16707
Entity Tax Identification Number	22-3703799
Entity Address, Address Line One	751 Broad Street
Entity Address, City or Town	Newark
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07102
City Area Code	(973)
Local Phone Number	802-6000
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock [Member]
Document And Entity Information [Line Items]
Security 12b Title	Common Stock, Par Value $.01
Trading Symbol	PRU
Security Exchange Name	NYSE
M 5.75 Junior Subordinated Notes 3 [Member]
Document And Entity Information [Line Items]
Security 12b Title	5.75% Junior Subordinated Notes
Trading Symbol	PJH
Security Exchange Name	NYSE
M 5.70 Junior Subordinated Notes 1 [Member]
Document And Entity Information [Line Items]
Security 12b Title	5.70% Junior Subordinated Notes
Trading Symbol	PRH
Security Exchange Name	NYSE
M 5.625 Junior Subordinated Notes 2 [Member]
Document And Entity Information [Line Items]
Security 12b Title	5.625% Junior Subordinated Notes
Trading Symbol	PRS
Security Exchange Name	NYSE