Form: 10-Q

Quarterly report [Sections 13 or 15(d)]

Documents

Exhibit 12.1

PRUDENTIAL FINANCIAL, INC.

RATIO OF EARNINGS TO FIXED CHARGES

 

     Three months ended
March 31, 2006		    Year Ended December 31,  
        2005    2004    2003    2002     2001  
          ($ in millions)  
Earnings:                 

Income (loss) from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change

    $ 1,041    $ 4,471    $ 3,368    $ 1,983    $ 88     $ (121 )

Undistributed income (loss) of investees accounted for under the equity method

      141      460      196      119      (37 )     29  

Interest capitalized

      —        —        —        —        8       6  
                                            

Adjusted earnings

      900      4,011      3,172      1,864      117       (156 )
                                            
Add fixed charges:                 

Interest credited to policyholders’ account balances

      623      2,699      2,359      1,857      1,869       1,826  

Gross interest expense(1)

      256      775      492      403      435       653  

Interest component of rental expense

      14      64      66      103      150       173  
                                            

Total fixed charges

      893      3,538      2,917      2,363      2,454       2,652  
                                            

Total earnings plus fixed charges

    $ 1,793    $ 7,549    $ 6,089    $ 4,227    $ 2,571     $ 2,496  
                                            

Ratio of earnings to fixed charges(2)

      2.01      2.13      2.09      1.79      1.05       —    
                                            
(1) Includes interest expense of securities businesses reported in “Net investment income” in the Consolidated Statements of Operations, capitalized interest and amortization of debt discounts and premiums.
(2) Due to the Company’s loss in 2001, the ratio coverage was less than 1:1. Additional earnings of $156 million would have been required in 2001 to achieve a ratio of 1:1.