Prudential AR2013

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P R U D E N T I A L F I N A N C I A L , I N C . A N N U A L R E P O R T

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WHO WE ARE

For more than 135 years, Prudential Financial, Inc. has

helped people grow and protect their wealth. We offer

individual and institutional clients a wide array of financial

products and services. Today, we are one of the worlds largest

financial services institutions. We have more than $1.1 trillion

in assets under management and approximately $3.5 trillion

of gross life insurance in force worldwide as of December 31,

2013. We have operations in the United States, Asia, Europeand Latin America. We also have one of the most recognized

and trusted brand symbols: The Rock, an icon of strength,

stability, expertise and innovation. We measure our long-

term success by our ability to deliver value for shareholders,

meet customer needs, attract and develop the best talent

in our industry, offer an inclusive work environment where

employees can develop to their full potential and support the

communities where we live and work.

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Prudential Financial, Inc. 2013 Annual Report

Dear fellow shareholders:

I am pleased to report that Prudential Financial delivered another strong performance in 2013

Our outstanding results for the year were broadly based, reflecting strong growth across our

businesses, coupled with effective pricing discipline and risk management. We also benefited

from meaningful contributions from the significant transactions we have completed over the

past three years: our acquisition of Star Life and Edison Life from AIG in 2011, the completion

in late 2012 of two landmark pension risk transfer transactions, and our acquisition in early2013 of the U.S. individual life insurance business from The Hartford.

The strength of our operations was proven by the achievement of our objective to deliver a

return on equity in 2013 of 13 to 14 percent. In fact, we exceeded the top end of that goal.

In addition, in 2013 we altered our schedule of dividend payments to shareholders from

annual to quarterly, ultimately delivering more than $800 million in Common Stock dividends

during the year.

The achievement of our earnings objectives and other actions throughout the year

demonstrate our ongoing commitment to maintaining a strategic mix of high-quality

businesses, managing risk appropriately, deploying capital effectively, and pursuing profitable

growth for the long term.

We continue to adhere to four key characteristics that drive our companys success:

1. Our unique business mix,which we have developed by deliberately focusing on our core

strengths and on markets in which we see opportunities. The complementary nature of our

portfolio of operations provides a mix of growth and stability, helping balance risk across

the company.

2. Our high-quality businesses,which have outstanding leadership, robust fundamentals and

strong positioning in the markets in which we operate.

3. Our financial strength,which enables us to continue delivering on our promises to our

stakeholders, while also seizing opportunities to innovate and grow.

4. The talent and integrity of our people,who remain our most important point of

differentiation in the market. Our commitment to nurturing a diverse and inclusive culture

helps us attract, develop and retain high-quality employees.

In short, 2013 was a year of major progress and accomplishments for the company on

many fronts. We maintained strong momentum in our businesses and further enhanced our

long-term positioning.

For 2013, on an after-tax adjusted operating income basis,* our Financial Services Businesses

earned $4.586 billion, or $9.67 per share of Common Stock, compared to $3.019 billion, or

$6.40 per share of Common Stock in 2012. On this basis, our earnings per share represent a

20 percent compound growth rate over the past three years.

Based on U.S. generally accepted accounting principles, our Financial Services Businesses

reported a net loss of $713 million, or $1.55 per share of Common Stock, in 2013, compared

to net income of $479 million, or $1.05 per share of Common Stock, in 2012. The 2013 net

loss was mainly driven by volatility in the currency markets and remeasurement of non-yenproduct reserves in our Japanese insurance operations, which we consider non-economic since

we support these reserves with investments in appropriate currencies. Changes in the market

value of derivatives we use to manage our interest rate exposure were also a factor, largely due

to rising U.S. interest rates.

Our worldwide assets under management continued to increase, reaching more than

$1.1 trillion by year-end 2013. This growth is an important indicator of the confidence

our clients continue to have in Prudential.

MESSAGE FROM THE CHAIRMAN

*Adjusted operating income is not calculated under U.S. generally accepted accounting principles (GAAP) and is afinancial measure we use to analyze the operating performance of our Financial Services Businesses. See footnote (1)on page 5 and footnote (A) on page 7 for a further description of adjusted operating income.

2013 was a year of

major progress and

accomplishments for

the company on many

fronts. We maintained

strong momentum in

our businesses and

further enhanced our

long-term positioning.John Strangfeld

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2 Prudential Financial, Inc. 2013 Annual Report

Our strong operating results for the year were driven by

solid underlying performance across our businesses. Based

on our excellent performance, our solid positioning in the

marketplace and the talent of our people, we remain confident

in our long-term prospects and excited about our potential

as a company.

Achieving our 2013 ROE objectiveIn 2010, we announced our objective to achieve an ROE of

13 to 14 percent in 2013. We believed then, as we do now,

that achieving and sustaining that level of performance would

demonstrate our superior performance relative to our peers.

Our ability to achieve and exceed that goal in 2013

confirms our belief in our earnings power. Yet we never saw

that objective as a one-year, once and done objective.

Looking ahead, we remain confident in our ability to sustain an

ROE of 13 to 14 percent over the long term.

Building on our momentumIn 2013, we benefited from the contributions of several

targeted acquisitions and transactions we have completed

since 2011 in key markets and segments that complement our

strategic business mix.

We have substantially completed the integration of the

Star Life and Edison Life companies with our Gibraltar Life

operation in Japan. This acquisition is delivering what we

expected in terms of both synergies and business results. We

are benefiting from expanded distribution capabilities from

this acquisition, including new sales professionals and third-

party distributors, as well as the addition of a large force of

independent agents to our existing channel.

The integration of the U.S. individual life insurance operations

we acquired from The Hartford in 2013 is also well on track.

Through this acquisition, our U.S. life insurance operations

achieved greater scale, expanded product offerings andbroader distribution capabilities. Our domestic individual

life insurance business is already benefiting from a unified

distribution system, strong connections with financial

institutions, and our solid positioning in the brokerage general

agency channel.

The two landmark pension risk transfer transactions we

completed in 2012 contributed to the achievement of record

earnings in 2013 in our Retirement unit. We are confident

that the pension risk transfer market will continue to offer

exciting opportunities to our company, for which we are

uniquely suited.

In addition to producing significant contributions to our

earnings, these acquisitions and transactions have brought

more diversity to our stream of earnings and, thus, morebalance to our operations as a whole. Their successful

execution has further distinguished our company within our

industry and positioned us for further growth.

In 2013, we continued to invest in and expand our operations

in pursuit of other promising opportunities, particularly on the

international front. In August, we announced an agreement to

purchase Uni.Asia Life Assurance Berhad (UAL), a mid-sized

life insurer in Malaysia, through a new joint venture with Bank

Simpanan Nasional, a government-owned bank. We closed

this transaction in January 2014, and hold 70 percent of

UAL. Malaysia is an attractive market, with low life insurance

penetration, a well-developed regulatory environment and

long-term growth potential. This transaction is aligned with ourstrategy to build upon our success in Japan, South Korea and

Taiwan, and expand our footprint in growth markets in Asia.

Our success with all of these transactions demonstrates our

ability to identify, seize and execute on opportunities that

offer the potential for significant earnings and that further

differentiate Prudential in the marketplace.

Operating high-performing businessesW