Prudential Premier Retirement Variable Annuity B Series SM

Transcription

1 Prudential Premier Retirement Variable Annuity B Series SM Portfolio Analysis Customized for: Joe Client Prepared by: John Q. Doe Firm name: Prudential Annuities Date Prepared: February 25, 2011 Pg. 1 of 13 Not valid without all pages. ANNUITIES: NOT A DEPOSIT NOT FDIC INSURED NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT BANK OR CREDIT UNION GUARANTEED MAY LOSE VALUE

2 Prudential Annuities - Invest with Guarantees Our mission at Prudential Annuities is easy -- to help your financial professional provide a variety of investment opportunities and income guarantees that can boost your earnings potential and mitigate the risks you may encounter as you approach retirement. The investments in the Portfolio are subject to the risks of the underlying portfolios in which it invests. Our variable annuity product line includes some of the most advanced retirement products available today, with innovative features that guarantee you'll never outlive your income. Our investment platform provides you with options that are as simple or as sophisticated as you need them to be. For more straightforward investing, you can use traditional asset allocations, ranging from single-manager portfolios to multiple manager portfolios. In addition, we also offer more actively managed tactical portfolios and quantitative portfolios. The point of differentiation for our platform is our alternative asset allocation portfolios. Prudential offers four alternative asset allocation options that apply concepts used by institutional and endowment fund managers to offer exposure to traditional and non-traditional asset classes with a lower level or correlation to the overall market. These alternative portfolios, as with all of our asset allocation portfolios, can be combined to help lower volatility and potentially increase return. Offering a widely diversified array of options gives you the kind of flexibility you need to manage your retirement assets efficiently in all market cycles. Complementary Asset Allocation Strategies There are more than 100 individual subaccounts in our investment platform which include a multitude of turnkey asset allocation portfolios. Our asset allocation portfolios span both traditional and non-traditional strategies, many of which can be used with our optional living benefits. These complementary strategies allow you to adjust your asset mix as market conditions fluctuate and your tolerance for risk changes. Prudential Annuities also has the necessary experience and expertise to help you achieve your retirement objectives. What's more, all of our investment options are managed by world-class professionals who are held to the highest standards of accountability and ethical behavior. Ask your financial professional how you can customize your retirement portfolio to meet your individual needs, risk tolerance and time horizon. Then ask how you can be certain you'll receive steady, predictable income for the rest of your life. All guarantees are backed by the claims paying ability of the issuing company. Bear in mind, however, that these guarantees do not apply to the investment performance or the safety of the underlying subaccounts in variable annuities, which are subject to market fluctuation, investment risk and possible loss of principal. Also, asset allocation does not guarantee a profit or protect against loss. Your initial portfolio allocation of $500,000 AST Advanced Strategies % AST CLS Moderate Asset Allocation % AST First Trust Balanced Target Portfolio % AST T. Rowe Price Asset Allocation % Pg. 2 of 13 Not valid without all pages.

3 Combined Performance Analysis as of 01/31/11 Growth of your $500,000 investment $500.00k $450.00k $400.00k $350.00k $300.00k Inception 11/30/07 Non-standard $482,974 Non-standard w/cdsc $453,852 Comparative Index: S&P 500 Composite $250.00k I Combined Portfolio Non-Standardized Returns 20% 15% 10% Inception 11/30/07 Non-standardized Comparitive Index - S&P 500 Composite 5% 0 YTD 1 Yr 3 Yr ITD YTD 1 Yr 3 Yr 5 Yr 10 Yr ITD Non-Standardized 1.16% 15.09% 0.34% N/A N/A -1.04% Index 2.26% 19.77% -2.29% 0.09% -0.60% -4.16% Past performance does not guarantee future results. Please note: Although the subaccounts and initial allocations depicted in this historical illustration may represent the holding within an asset allocation model, the holdings may not represent the current allocation of that particular model. Our asset allocation models are actively managed, as such, the holdings are subject to change. Additionally, the portfolio shown is not intended to represent the performance of any asset allocation model, which would be lower due to the additional fees associated with these models. Please refer to the Important Disclosures section for a complete listing of charges and fees. Please refer to page 4 for standardized returns for each subaccount. Pg. 3 of 13 Not valid without all pages.

4 Performance Analysis as of 01/31/11 Individual Portfolio Performance AST Advanced Strategies YTD 1 Yr 3 Yr 5 Yr 10 Yr ITD Inception Non-Standardized 1.08% 16.43% 0.42% N/A N/A 2.56% 3/20/2006 Non-Standardized with CDSC -5.92% 9.43% -1.60% N/A N/A 1.61% 3/20/2006 Standardized as of 12/31/ % - N/A N/A 1.58% 3/20/2006 AST CLS Moderate Asset Allocation YTD 1 Yr 3 Yr 5 Yr 10 Yr ITD Inception Non-Standardized 0.59% 13.64% 0.22% N/A N/A -0.89% 11/19/2007 Non-Standardized with CDSC -6.41% 6.64% -1.81% N/A N/A -2.84% 11/19/2007 Standardized as of 12/31/ % - N/A N/A -2.98% 11/19/2007 AST First Trust Balanced Target Portfolio YTD 1 Yr 3 Yr 5 Yr 10 Yr ITD Inception Non-Standardized 0.91% 16.30% -2.29% N/A N/A 0.48% 3/20/2006 Non-Standardized with CDSC -6.09% 9.30% -4.44% N/A N/A -0.55% 3/20/2006 Standardized as of 12/31/ % - N/A N/A -0.62% 3/20/2006 AST T. Rowe Price Asset Allocation YTD 1 Yr 3 Yr 5 Yr 10 Yr ITD Inception Non-Standardized 1.53% 14.18% 1.28% 2.72% 2.80% 5.83% 1/3/1994 Non-Standardized with CDSC -5.47% 7.18% -0.71% 1.80% 2.80% 5.83% 1/3/1994 Standardized as of 12/31/ % % 2.74% 5.80% 1/3/1994 Past performance does not guarantee future results. Pg. 4 of 13 Not valid without all pages.

5 Risk/Return Analysis as of 01/31/11 This chart depicts the risk and the return for the selected individual subaccounts, and the combined portfolio. Risk is measured by standard deviation, a measure indicating the range of returns. A higher standard deviation indicates that the range of returns may be wider, which implies greater volatility, while a lower standard deviation indicates that the range of returns may be narrower, which implies less volatility. The returns shown are average annual non-standardized returns. The standard deviation and returns depicted are since 11/30/07. Return 2.00% 1.00% 0.00% D -1.00% B A -2.00% -3.00% -4.00% C -5.00% Combined Portfolio Risk A AST Advanced Strategies B AST CLS Moderate Asset Allocation C AST First Trust Balanced Target Portfolio D AST T. Rowe Price Asset Allocation For more information regarding standard deviation, please see Important Disclosures and Definitions sections towards the end of the report. Please note that there are additional types of risks that may apply to certain investment options such as credit, interest rate, currency fluctuations, economic, political instability and volatility. Please refer to page 4 for standardized returns for each subaccount. Pg. 5 of 13 Not valid without all pages.

6 Combined Portfolio Composition as of 12/31/10 Total Composition EQUITY 57.35% FIXED INCOME 29.88% CASH 12.06% OTHER 0.72% Total Holdings Equity 1615 Bond 2966 Other 996 Total 5577 Composition By Asset Type US Stocks 41.10% Foreign Stocks 16.14% US Bonds 22.94% Foreign Bonds 6.94% Preferred 0.07% Convertible 0.03% Cash 12.06% Other 0.72% Equity Style Composition Large Cap Growth 25.83% Large Cap Value 24.43% Large Cap Blend 25.97% Mid Cap Growth 6.72% Mid Cap Value 4.61% Mid Cap Blend 5.77% Small Cap Growth 2.44% Small Cap Value 1.81% Small Cap Blend 2.42% The composition of the selected sub-accounts represents the apportioning of investment assets among stocks, bonds, and cash. The equity and fixed income composition breakdown represents 100% of their respective asset allocations. Portfolio composition is subject to change. Pg. 6 of 13 Not valid without all pages.

7 Combined Portfolio Securities as of 12/31/10 Statistics Standard Deviation Price to Earnings 14.01x Price to Book 1.98x Earnings Per Share N/A Bond Duration N/A Avg. Maturity N/A Top 20 Securities Prudential Core Invt 4.68% US Treasury Note 0.95% Apple, Inc. 0.90% ExxonMobil Corporation 0.80% US Treasury Note 1% 0.73% AT&T, Inc. 0.65% Microsoft Corporation 0.62% FNMA 4.5% TBA 0.60% US Treasury Note 2.25% 0.55% FNMA 4% TBA 0.53% J.P. Morgan Chase & Co. 0.51% Wells Fargo Company 0.50% Pfizer Inc. 0.50% Chevron Corporation 0.49% ishares MSCI Emerging Markets Index 0.48% ishares Barclays Aggregate Bond 0.47% Union Pacific Corporation 0.44% Us T-Bond Repo 0.25% 01/03/ % Procter & Gamble Company 0.44% Priceline.com, Inc. 0.43% Equity Sectors Financial Services 18.76% Industrial Materials 14.75% Energy 10.99% Consumer Goods 9.82% Consumer Services 9.26% Healthcare 8.41% Telecommunications 6.98% Hardware 6.97% Software 4.00% Utilities 3.98% Business Services 3.84% Media 2.24% Regional Exposure United States 70.95% Canada 1.20% Latin America 1.28% United Kingdom 6.15% EuroZone 7.19% Europe ex-euro 2.78% Europe Emerging 0.16% Africa 0.27% Middle East 0.24% Japan 4.50% Australasia 1.08% Asia Developed 1.29% Asia Emerging 2.98% Securities of the sub-accounts are subject to change and may not be representative of the current securities. The Top 20 Securities are the 20 largest aggregated securities of the selected sub-accounts as of the end of the stated period. The performance figures for these securities do not reflect the performance of the selected sub-accounts. Securities are not recommendations to buy or sell any security. For a complete list of the portfolio's securities as of the most recent month end, please go to our website at Different sectors represent different types of issuers, which may be impacted by changing economic conditions. Pg. 7 of 13 Not valid without all pages.

8 Underlying Subaccount Holdings as of 12/31/10 AST CLS Moderate Asset Allocation AST Money Market 23.63% AST PIMCO Total Return Bond 13.98% AST International Growth 9.77% AST Large-Cap Value 7.12% AST Western Asset Core Plus Bond 6.02% AST International Value 4.67% AST MFS Growth 3.21% AST Goldman Sachs Concentrated Growth 3.19% AST BlackRock Value Portfolio 2.98% AST Small-Cap Growth 2.92% AST Federated Aggressive Growth 2.85% AST Marsico Capital Growth 2.66% Energy Select Sector SPDR 1.99% AST T. Rowe Price Large-Cap Growth 1.98% AST Jennison Large-Cap Growth 1.94% ishares MSCI Germany Index 1.91% ishares MSCI Emerging Markets Index 1.88% AST Jennison Large-Cap Value 1.80% ishares S&P Global Technology 1.46% ishares Russell 2000 Index 0.98% Vanguard Health Care ETF 0.95% Underlying subaccount holdings of the portfolios are subject to change and may not be representative of the current holdings. Pg. 8 of 13 Not valid without all pages.

9 Individual Portfolio Statistics as of 12/31/10 Portfolio Alpha Beta Standard Capitalization Price to Deviation Earnings AST Advanced Strategies AST CLS Moderate Asset Allocation AST First Trust Balanced Target Portfolio AST T. Rowe Price Asset Allocation Price to Book Earnings Bond per Share Duration Avg. Maturity N/A N/A M x 1.95 x N/A N/A N/A N/A N/A M x 2.13 x N/A 5.06 Yrs 7.94 N/A N/A M x 1.74 x N/A N/A N/A N/A N/A M x 2.03 x N/A N/A N/A Pg. 9 of 13 Not valid without all pages.

10 Underlying Subaccount Performance as of 01/31/11 AST CLS Moderate Asset Allocation Non-Standardized Standardized Fund Inception 3 Mo 1 Yr 3 Yr 5 Yr 10 Yr ITD 1 Yr 5 Yr 10 Yr ITD AST Money Market 11/5/ % -1.28% -0.51% 1.04% 0.76% 1.91% -8.33% 0.06% 0.75% 1.87% AST PIMCO Total Return Bond 1/3/ % 4.78% 4.75% 5.19% 4.89% 5.17% -0.74% 4.35% 4.94% 5.13% AST International Growth 1/2/ % 19.11% -6.89% -0.70% -0.05% 4.55% 5.94% -0.26% 0.43% 4.60% AST Large-Cap Value 1/3/ % 16.63% -7.35% -3.36% -1.20% 4.13% 4.62% -4.40% -1.26% 3.99% AST Western Asset Core Plus Bond 11/19/ % 5.01% 2.38% N/A N/A 2.93% -0.67% N/A N/A 1.04% AST International Value 5/1/ % 16.73% -4.12% 1.94% 1.31% 3.93% 2.57% 1.71% 0.97% 3.75% AST MFS Growth 10/18/ % 17.48% -2.25% 0.76% -2.10% -1.46% 4.25% 0.05% -2.21% -1.64% AST Goldman Sachs Concentrated Growth 11/5/ % 16.25% 2.28% 2.34% -3.86% 6.09% 1.79% 1.97% -3.61% 5.95% AST BlackRock Value Portfolio 10/23/ % 18.43% -4.93% -1.16% 1.46% 1.72% 3.92% -1.89% 1.60% 1.39% AST Small-Cap Growth 1/3/ % 43.00% 8.05% 4.67% -0.35% 5.01% 27.57% 5.19% 0.50% 4.94% AST Federated Aggressive Growth 10/23/ % 33.59% 1.10% 1.65% 2.33% 2.25% 23.75% 1.98% 3.28% 2.24% AST Marsico Capital Growth 12/22/ % 24.89% -2.37% -0.19% 0.41% 4.72% 11.13% -0.86% 0.13% 4.64% AST T. Rowe Price Large-Cap Growth 5/1/ % 23.96% 4.40% 2.59% -0.86% 3.63% 7.24% 1.50% -0.58% 3.44% AST Jennison Large-Cap Growth 11/16/ % 18.09% N/A N/A N/A 11.64% 3.07% N/A N/A 5.53% AST Jennison Large-Cap Value 11/16/ % 17.81% N/A N/A N/A 15.13% 5.35% N/A N/A 7.79% AST Neuberger Berman Mid-Cap Growth 10/19/ % 34.20% 0.73% 3.09% -0.01% 6.19% 19.93% 3.46% 0.13% 6.15% AST Goldman Sachs Mid-Cap Growth 5/1/ % 24.85% 5.61% 5.03% -2.84% -5.05% 11.20% 4.90% -1.52% -5.21% AST Mid-Cap Value 10/23/ % 27.84% 3.17% 2.50% 3.04% 3.60% 14.93% 2.19% 3.37% 3.37% Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's units when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. Performance information as of the most recent month end is available at Management fees and other expenses of the underlying portfolios are reflected in the portfolios' share prices, and we deduct insurance and administration charges from the assets in each sub-account. In addition, amounts withdrawn may be subject to a withdrawal charge equal to 7.00%, 7.00%, 6.00%, 6.00%, 5.00%, 5.00%, 5.00%. The cost of any optional benefits selected are not reflected. If these charges were reflected the performance shown would be reduced. Please see the important discussion of annuity performance on the following pages. Pg. 10 of 13 Not valid without all pages.

11 Important Disclosures This report is authorized for use only when preceded or accompanied by a current prospectus containing complete information, including fees and expenses and all applicable fund prospectuses. It should be read carefully before investing or sending money. To obtain additional prospectuses, go to This illustration represents the weighted average historical performance of sub-accounts selected for you by your financial professional. The sub-accounts and the percentage allocations shown here represent just one of many possible combinations of sub-accounts. You and your financial professional should carefully consider your goals, risk tolerance, investment time horizon and other important factors before selecting or investing in any sub-account or combination of sub-accounts. Different allocations or combinations of sub-accounts may result in performance that is higher or lower than the performance shown in this illustration. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's units when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. Performance information as of the most recent month-end is available at Fees and Charges Assessed By Prudential Premier Retirement Variable Annuity B Series SM Insurance Charge: 1.30% Maintenance Fee: $50 Contingent Deferred Sales Charge: 7.0%, 7.0%, 6.0%, 6.0%, 5.0%, 5.0%, 5.0% (For years, 1, 2, 3 and so on, respectively as indicated.) Variable annuities deduct all management fees and expenses of the underlying subaccounts, insurance charges, administration fees, and other charges automatically from the assets in each subaccount. For purposes of this document, insurance (mortality & expense risk) and administrative charges are assumed to be the amount shown. The insurance charge is the combination of the mortality & expense risk charge and the administrative charge. The charge is intended to cover the cost of providing the insurance benefits under the annuity, the administrative costs associated with providing those annuity benefits, and the risk that our assumptions about the mortality risks and expenses under the annuity are incorrect. A contingent deferred sales charge, or CDSC, may be assessed if you surrender your annuity or when you make a partial withdrawal. The CDSC reimburses us for expenses related to sales and distribution of the annuity, including commissions, marketing materials, and other promotional expenses. The CDSC is calculated as a percentage of your purchase payment being withdrawn during the applicable annuity year. The maintenance fee is deducted annually on the anniversary of the issue date of your annuity or, if you surrender your annuity during the annuity year, at the time of surrender. Performance of Underlying Subaccounts - Underlying funds may have existed prior to the inception of the subaccounts. Performance regarding such subaccounts is calculated using the actual fees and charges of the product as if such product was available since the inception of such subaccount. Non-standardized performance is calculated from the underlying fund's inception date, which may be different from its adoption in the contract. Performance that predates the adoption of the subaccount in the contract is hypothetical. Non-Standardized Returns - Non-standardized returns are net of all underlying charges but do not reflect deduction of the annual maintenance fee and the contingent deferred sales charges, except where noted. Standardized Returns - Standardized Returns are calculated, in accordance with SEC Rules, from inception of the subaccount assuming a $1,000 investment made at the beginning of the applicable period. Standardized returns reflect deduction of all underlying fund fees and insurance charges (excluding any charges for optional benefits), maintenance fees and CDSC, where applicable. Pg. 11 of 13 Not valid without all pages.

12 Definitions Alpha - Alpha is a sub-account's return above its appointed benchmark index. Average Maturity - Maturity is the date on which the last principal payment of a debt instrument becomes due and payable. Beta - Beta measures a sub-account's sensitivity to changes in the overall market. The overall market is designated by the sub-account's category benchmark. Bond Duration - Duration is the weighted average time to receive the present value of cash flows from a specific security or sub-account. Earnings per Share - Earnings Per Share or EPS is the portion of a company's annual profit allocated to each outstanding share of common stock. The profit figure is calculated after paying taxes and after paying preferred shareholders and bondholders. Market Capitalization - Market capitalization is the value of a corporation as determined by the market price of its issued and outstanding common stock. Price to Book - Price to book ratio or Price/Book Value is the price of a stock divided by the stockholder's equity per share. Price to Earnings - Price/earnings ratio or P/E is the price of a stock divided by its earnings per share. Standard Deviation - Standard deviation is a statistical measurement that depicts how widely returns varied over a certain time period. The measurement is generally used to understand the range of returns that are most likely for a given sub-account. When a sub-account has a high standard deviation, the range of performance may be wider, implying greater volatility. Pg. 12 of 13 Not valid without all pages.

13 Notes For more information, please call your financial professional. Annuity contracts contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your licensed financial professional can provide you with costs and complete details. Performance for the subaccount investing in this fund is not yet available. We expect to display this performance in the near future. If you require additional information, please call us at PRU Please be aware that Prudential Annuities offers the portfolio only through our variable annuities, and therefore the portfolio's gross performance that you will see prior to July 16, 2010 will appear to be higher than your actual returns would have been, as the performance of the portfolio has not been adjusted by the asset based expenses of your variable annuity contract, so your actual returns would have been lowered by the asset-based expenses of the annuity product and any other fees or expense imposed by Prudential Annuities. Prudential Premier Retirement Variable Annuity B Series SM is issued on form P-B/IND(2/10) et al, or a state variation thereof. Premier Retirement B or certain of its investment options may not be available in all states. You should always consult competent tax advisors regarding the implications of this product, or any use of this product in your particular situation. Variable annuities are issued by Pruco Life Insurance Company (in New York issued by Pruco Life Insurance Company of New Jersey), Newark, NJ and distributed by Prudential Annuities Distributors, Inc., Shelton, CT. Neither the issuer nor distributor offers investment advice or is registered as an investment advisor under federal or state law. Pruco Life Insurance Company, Pruco Life Insurance Company of New Jersey and Prudential Annuities Distributors, Inc. are all Prudential Financial companies. Each is solely responsible for its financial condition and contractual obligations. Prudential Annuities is a business of Prudential Financial, Inc. Prudential Annuities, Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities. Pg. 13 of 13 Not valid without all pages.