Summary of PRUDENTIAL FINANCIAL INC

Item 7.01 Regulation FD Disclosure.

A. Earnings Release. The Company furnishes herewith, as Exhibit 99.0, a news release announcing first quarter 2009 results.

B. Quarterly Financial Supplement. The Company furnishes herewith, as Exhibit 99.1, the Quarterly Financial Supplement for its Financial Services Businesses for the quarterly period ended March 31, 2009.

C. Investments in Residential and Commercial Mortgage-Backed Securities, Asset-Backed Securities, and Commercial Mortgage and Other Loans. In connection with its announcement of first quarter 2009 results, the Company furnishes herewith, as Exhibit 99.2, information about the Company's investments, as of March 31, 2009, in residential and commercial mortgage-backed securities, asset-backed securities, and commercial mortgage and other loans.

D. Investments Supported by Guarantees from Monoline Bond Insurers. Certain of the Company's fixed maturity investments are supported by guarantees from monoline bond insurers. As of March 31, 2009, on an amortized cost basis, $1.542 billion, or 1%, of general account fixed maturity investments attributable to the Financial Services Businesses were supported by bond insurance. As of March 31, 2009, 70% of these investments had investment grade credit ratings, which in some cases may reflect the credit quality of the monoline bond insurers. Management estimates, taking into account the structure and credit quality of the underlying investments and giving no effect to the support of these securities by guarantees from monoline bond insurers, that 43% of the $1.542 billion total (based upon amortized cost) would have investment grade credit ratings. Based on amortized cost, $885 million of the $1.542 billion of securities supported by bond insurance were asset-backed securities collateralized by sub-prime mortgages, $260 million were other asset-backed securities, and $397 million were municipal bonds. Management estimates that 15% of the asset-backed securities collateralized by sub-prime mortgages, 53% of the other asset-backed securities, and all of the municipal bonds would have investment grade credit ratings giving no effect to the support of these securities by guarantees from monoline bond insurers. As of March 31, 2009, the bond insurance is provided by five insurance companies, with no company representing more than 37% of the overall amortized cost of the securities supported by bond insurance attributable to the Financial Services Businesses.

As of March 31, 2009, on an amortized cost basis, $636 million, or 1%, of fixed maturity investments attributable to the Closed Block Business were supported by bond insurance. As of March 31, 2009, 64% of these investments had investment grade credit ratings, which in some cases may reflect the credit quality of the monoline bond insurers. Management estimates, taking into account the structure and credit quality of the underlying investments and giving no effect to the support of these securities by guarantees from monoline bond insurers, that 49% of the $636 million total (based upon amortized cost) would have investment grade credit ratings. Based on amortized cost, $444 million of the $636 million of securities supported by bond insurance were asset-backed securities collateralized by sub-prime mortgages, $63 million were other asset-backed securities, and $129 million were municipal bonds. Management estimates that 29% of the asset-backed securities collateralized by sub-prime mortgages, 88% of the other asset-backed securities, and all of the municipal bonds would have investment grade credit ratings giving no effect to the support of these securities by guarantees from monoline bond insurers. As of March 31, 2009, the bond insurance is provided by five insurance companies, with no company representing more than 37% of the overall amortized cost of the securities supported by bond insurance attributable to the Closed Block Business.

E. Liquidity and Capital Resources.

Parent Company Short-term Investments and Borrowings

As of March 31, 2009, the parent holding company, Prudential Financial, had cash and short-term investments of $4.745 billion, which included $1.202 billion of subsidiary funds that were invested short-term with Prudential Financial as part of our intercompany liquidity program. Parent holding company cash and short-term investments include $364 million of short-term investments that is comprised primarily of government agency securities and money market funds.

As of March 31, 2009, parent company short-term borrowings amounted to $2.685 billion. This amount includes $734 million of outstanding commercial paper, $1.898 billion principal amount of convertible debt securities, and $53 million current portion of long-term debt. The vast majority of the parent company's outstanding commercial paper proceeds are held in cash or invested in short-term financial instruments. The next date on which holders of the convertible notes may require Prudential Financial to repurchase the notes is June 15, 2009 with respect to $1.894 billion in principal amount.

Prudential Financial's commercial paper is currently rated A-1, P-2, and F2 by Standard & Poor's, Moody's and Fitch, respectively. The ratings from Moody's and Fitch currently have a negative outlook. On February 19, 2009, the commercial paper credit rating of Prudential Financial was downgraded by Fitch from F1 to F2. Consequently, as of that date, Prudential Financial was no longer eligible to issue commercial paper under the Commercial Paper Funding Facility (CPFF) sponsored by the Federal Reserve Bank of New York. As of March 31, 2009, Prudential Financial's outstanding commercial paper borrowings with CPFF were $374 million, with a maturity of 30 days. Excluding CPFF borrowings, Prudential Financial's outstanding commercial paper as of March 31, 2009 had a weighted average maturity of 17 days and approximately 14% was overnight.

Prudential Funding, LLC Commercial Paper Program

As of March 31, 2009, Prudential Funding, LLC, a wholly-owned subsidiary of Prudential Insurance, had outstanding commercial paper and master note borrowings of $2.573 billion, of which $743 million of the proceeds were held in cash and cash equivalents and the remainder was primarily utilized to fund short-term cash flow timing mismatches, and fund working capital needs of our affiliates.

Prudential Funding's commercial paper is currently rated A-1+, P-1, and F1 by Standard & Poor's, Moody's and Fitch, respectively. The rating from Moody's is currently on review for a possible downgrade, and the Fitch rating has a negative outlook. Based on these current ratings, Prudential Funding is able to participate in the CPFF. The maximum amount of commercial paper that Prudential Funding is eligible to issue under the CPFF is $9.815 billion, less the outstanding amount of any non-CPFF commercial paper at any applicable time. As of March 31, 2009, Prudential Funding's outstanding commercial paper borrowings with CPFF were $750 million, with a maturity of 30 days. Excluding CPFF borrowings, Prudential Funding's outstanding commercial paper as of March 31, 2009, had a weighted average maturity of 22 days and approximately 4% was overnight. Access to the CPFF for new issuances of commercial paper is scheduled to terminate on October 30, 2009, unless such date is extended by the Federal Reserve Bank of New York.

Asset-based Financing

As of March 31, 2009, Prudential's Financial Services Businesses had liabilities totaling $5.999 billion under asset-based financing programs, including $3.743 billion representing securities sold under agreements to repurchase, $1.966 billion representing cash collateral for loaned securities and $290 million of securities sold but not yet purchased. Under these programs, the company loans securities in return for cash collateral which is primarily used to purchase securities for the short-term spread portfolios in our domestic insurance entities. These portfolios comprise cash and cash equivalents, short-term investments and fixed maturities with a weighted average life at the time of purchase of two years or less. Of the total $5.999 billion, $2.449 billion represents securities that may be returned to the company overnight requiring immediate return of the cash collateral, and the remainder has maturities ranging from 2 days to 3 months with a weighted average maturity of 43 days. As of March 31, 2009, the asset-based financing programs represented approximately 3.4% of total investments of $178.6 billion for the Financial Services Businesses.

As of March 31, 2009, Prudential's Closed Block Business had liabilities totaling $5.468 billion under such programs, including $4.240 billion representing securities sold under agreements to repurchase and $1.228 billion representing cash collateral for loaned securities. Of the total $5.468 billion, $1.850 billion represents securities that may be returned to the company overnight requiring immediate return of the cash collateral, and the remainder has maturities ranging from 2 days to 3 months with a weighted average maturity of 32 days. As of March 31, 2009, the asset-based financing programs represented approximately 9.5% of total investments of $57.8 billion for the Closed Block Business.

Ratings-Driven Contingencies

A downgrade in the credit or financial strength (i.e., claims-paying) ratings of Prudential Financial or its rated subsidiaries could potentially, among other things, limit our ability to market products, reduce our competitiveness, increase the number or value of policy surrenders and withdrawals, increase our borrowing costs and potentially make it more difficult to borrow funds, adversely affect the availability of financial guarantees, such as letters of credit, cause additional collateral requirements or other required payments under certain agreements, allow counterparties to terminate derivative agreements and/or hurt our relationships with creditors or trading counterparties thereby potentially negatively effecting our profitability, liquidity and/or capital. Additional collateral requirements or other required payments under certain agreements, including derivative agreements, are eligible to be satisfied in cash or by posting securities held by the subsidiaries subject to the agreements. A ratings downgrade of three ratings levels from the ratings levels as of March 31, 2009 would result in

estimated additional collateral posting requirements or payments under such agreements of approximately $200 million. In addition, a ratings downgrade by
A.M. Best to "A-" for our domestic life insurance companies would require Prudential Insurance to post a letter of credit in the amount of approximately $1.5 billion, based on the level of statutory reserves related to an acquired business, that we estimate would result in annual cash outflows of approximately $180 million, or collateral posting in the form of cash or securities to be held in a trust. Similarly, if the financial strength rating of Prudential Insurance falls below "A-" from S&P or "A3" from Moody's, Prudential Insurance is required under another agreement to deposit approximately $500 million of assets in the form of cash or securities into a trust for the purpose of securing insurance liabilities related to the disposition of our property and casualty operations in 2003. In each case, we believe that the posting of such collateral would not be a material liquidity event for Prudential Insurance.

In addition, agreements in connection with capital management activities for our universal life insurance products would require us to post cash collateral based on tests that consider the level of 10-year credit default swap spreads on Prudential Financial's senior debt. As of March 31, 2009, when estimates of Prudential Financial's 10-year credit default swap spreads were approximately 860 basis points, we had posted $145 million of collateral under this agreement. We estimate that the collateral posting requirements could be up to $400 million at an effective 10-year credit default swap spread of 2,000 basis points, based on indications of forward LIBOR rates as of March 31, 2009.

Federal Home Loan Bank of New York Facility

In June 2008, Prudential Insurance became a member of the Federal Home Loan Bank of New York, or FHLBNY. Membership allows Prudential Insurance to participate in FHLBNY's product line of financial services, including collateralized funding agreements, general asset/liability management, and collateralized advances that can be used for liquidity management and as an alternative source of funding. Under FHLBNY guidelines, borrowings by its members are at the discretion of the FHLBNY.

Under guidance of the New Jersey Department of Banking and Insurance, the total amount of qualifying mortgage-related assets and U.S. Treasury securities that may be pledged as collateral by Prudential Insurance to FHLBNY is limited to 5% of the prior year's admitted assets of Prudential Insurance on a statutory basis, exclusive of separate account assets, which equates to $7.5 billion based on admitted assets as of December 31, 2008. Based upon the existing guidance and on the fair value of qualifying assets owned by Prudential Insurance within the Financial Services Businesses as of March 31, 2009 (including assets on loan and assets pledged to the FHLBNY at that date and taking into account applicable required collateralization levels and required purchases of activity based FHLBNY stock), the estimated total borrowing capacity with the FHLBNY was approximately $6.5 billion as of March 31, 2009. As of March 31, 2009, total outstanding borrowings with FHLBNY amounted to $4.5 billion, which includes $3.0 billion of collateralized advances and $1.5 billion of collateralized funding agreements. Subsequent to March 31, 2009, $1.0 billion of collateralized advances have been repaid upon maturity.

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