Form: 10-K

Annual report [Section 13 and 15(d), not S-K Item 405]

Documents

Exhibit 12.1

PRUDENTIAL FINANCIAL, INC.

RATIO OF EARNINGS TO FIXED CHARGES

 

     Year Ended December 31,  
     2006    2005    2004    2003    2002  
               ($ in millions)       

Earnings:

               

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

    $ 4,725    $ 4,502    $ 3,357    $ 1,965    $ 89  

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

      101      306      116      94      (37 )

Interest capitalized

      —        —        —        —        8  
                                    

Adjusted earnings

      4,624      4,196      3,241      1,871      118  
                                    

Add fixed charges:

               

Interest credited to policyholders’ account balances

      2,917      2,699      2,359      1,857      1,869  

Gross interest expense(1)

      1,161      775      492      403      435  

Interest component of rental expense

      58      64      66      103      150  
                                    

Total fixed charges

      4,136      3,538      2,917      2,363      2,454  
                                    

Total earnings plus fixed charges

    $ 8,760    $ 7,734    $ 6,158    $ 4,234    $ 2,572  
                                    

Ratio of earnings to fixed charges

      2.12      2.19      2.11      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.