Prudential Financial, Inc. (NYSE: PRU) today pre-announced selected elements of expected results for its Financial Services Businesses for the third quarter of 2008.

The company expects after-tax adjusted operating income for its Financial Services Businesses to be between $275 million (67 cents per Common share) and $375 million (90 cents per Common share) for the third quarter of 2008.

These expected results reflect an estimated negative pre-tax impact of approximately $700 million (equivalent to $1.26 per Common share) on adjusted operating income of the Financial Services Businesses for several items which are identified below.

The expected results include estimated pre-tax income of approximately $80 million (equivalent to 14 cents per Common share) relating to a net decrease in amortization of deferred policy acquisition and related costs for the Company’s Individual Life Insurance business, and estimated pre-tax charges of approximately $380 million (equivalent to 68 cents per Common share) relating to a net increase in amortization of such costs for the Company’s Individual Annuity business. The expected pre-tax charge for the Individual Annuity business reflects an updated estimate of profitability for this business that is largely related to declines in customer account values through September 30, 2008.

The expected results also include estimated pre-tax charges of approximately $115 million (equivalent to 21 cents per Common share) relating to investment results from fixed income and equity investment funds of the Asset Management segment’s proprietary investing business.

In addition, expected results include absorption of the company’s share of a charge within its retail securities brokerage joint venture with Wachovia Corporation relating to a previously announced global settlement of investigations concerning the underwriting, sale and subsequent auction of certain auction rate securities by subsidiaries of Wachovia Securities, with a pre-tax impact of approximately $235 million (equivalent to 42 cents per Common share) on adjusted operating income of the Financial Services Businesses. Results of the retail brokerage joint venture to be reported by the company’s Financial Advisory segment will also include the company’s share of transition costs relating to the acquired retail securities brokerage business of A.G. Edwards business, expected to be approximately $45 million (equivalent to 8 cents per Common share).

Adjusted operating income is a non-GAAP measure as discussed below.

The company expects realized investment losses of the Financial Services Businesses for the third quarter to include pre-tax credit-related losses, and losses on sales of credit-impaired securities, of between $325 million and $375 million, inclusive of losses and impairments on previously disclosed holdings of securities issued by Lehman Brothers Holdings, Inc., American International Group, Inc., and Washington Mutual. These realized investment losses will be included in net income but excluded from adjusted operating income.

In light of recent market volatility and extraordinary events and developments affecting financial markets generally, including market conditions for issuance of certain capital instruments such as hybrid securities, the company has determined to suspend all purchases of its Common Stock under its existing share repurchase program effective October 10, 2008. During the first nine months of 2008, the Company repurchased 28.6 million shares of its Common Stock at a total cost of $2.125 billion, including 5.4 million shares at a cost of $375 million in the third quarter.

The company believes that its capital position as of September 30, 2008 is consistent with its “AA” ratings objectives and that it has the liquidity to meet requirements at the parent company and at all operating subsidiaries.