Prudential 2007 Annual Report Download - page 10

8Prudential Financial 2007 Annual Report
PRUDENTIAL OFFICERS AND DIRECTORS
Executive Officers
Arthur F. Ryan
Chairman of the Board
John R. Strangfeld Jr.
Chief Executive Officer
and President
Mark B. Grier
Vice Chairman
Edward P. Baird
Executive Vice President,
International Businesses
Richard J. Carbone
Executive Vice President
and Chief Financial Officer
Robert C. Golden
Executive Vice President,
Operations and Systems
Bernard B. Winograd
Executive Vice President,
U.S. Businesses
Susan L. Blount
Senior Vice President
and General Counsel
Helen M. Galt
Senior Vice President,
Company Actuary and
Chief Risk Officer
Sharon C. Taylor
Senior Vice President,
Corporate Human Resources
Board of Directors
Frederic K. Becker
President, Wilentz
Goldman & Spitzer, P.A.
Gordon M. Bethune
Former Chairman of the
Board and Chief Executive
Officer, Continental
Airlines, Inc.
Gaston Caperton
President, The College
Board
Gilbert F. Casellas
Vice President, Corporate
Responsibility, Dell, Inc.
James G. Cullen
Retired President and Chief
Operating Officer, Bell
Atlantic Corporation
William H. Gray III
Chairman, The Amani
Group, LLC
Mark B. Grier
Vice Chairman, Prudential
Financial, Inc.
Jon F. Hanson
Chairman, The Hampshire
Companies
Constance J. Horner
Former Assistant to the
President of the United
States
Karl J. Krapek
Retired President and
Chief Operating Officer,
United Technologies
Corporation
Christine A. Poon
Vice Chairman, Board of
Directors, Johnson &
Johnson
Arthur F. Ryan
Chairman of the Board,
Prudential Financial, Inc.
John R. Strangfeld Jr.
Chief Executive Officer
and President, Prudential
Financial, Inc.
James A. Unruh
Founding Principal, Alerion
Capital Group, LLC
(1) We measure our Return on Equity (ROE) based on after-tax adjusted operating income and attributed equity of our Financial Services
Businesses, which is referred to as “Operating return on average equity” on page 6. Adjusted operating income, which is not measured in
accordance with accounting principles generally accepted in the United States of America (GAAP), 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 profile. Realized investment
gains (losses) representing profit or loss of certain of our businesses which primarily originate investments for sale or syndication to unrelated
investors, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted
operating income. Realized investment gains and losses from products that are free-standing derivatives or contain embedded derivatives, and
from associated derivative portfolios that are part of an economic hedging program related to the risk of those products, are included in adjusted
operating income. Adjusted operating income also excludes investment gains and losses on trading account assets supporting insurance liabilities
and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values
will ultimately accrue to contractholders. Trends in the underlying profitability of our businesses can be more clearly identified without the
fluctuating effects of these transactions. In addition, adjusted operating income also excludes the results of divested businesses, which are not
relevant to our ongoing operations, and certain other items, described elsewhere herein. We believe that the presentation of adjusted operating
income as we measure it for management purposes enhances understanding of the results of operations of the Financial Services Businesses by
highlighting the results from ongoing operations and the underlying profitability of our businesses. However, adjusted operating income is not
a substitute for income determined in accordance with GAAP, and the excluded items are important to an understanding of our overall results
of operations. Because we do not predict future realized investment gains/losses or recorded changes in asset and liability values that will ultimately
accrue to contractholders, we cannot provide a measure of our goals based on income from continuing operations of the Financial Services
Businesses, which is the GAAP measure most comparable to adjusted operating income.
All facts and figures are as of or for the year ended December 31, 2007, unless otherwise noted.
Annuities issued by Pruco Life Insurance Company (in New York, Pruco Life Insurance Company of New Jersey), both located in Newark, NJ,
or Prudential Annuities Life Assurance Corporation, Shelton, CT, and distributed by Prudential Annuities Distributors, Inc.
Life Insurance issued by The Prudential Insurance Company of America, Newark, NJ, and its insurance affiliates.
We define customers as primary customers, plan participants and consumers of our products and services.
(as of January 18, 2008)