Prudential Financial, Inc. 5.62 (PRS) 10-K 2003 FY Annual report

Exhibit 12.1

PRUDENTIAL FINANCIAL, INC.

RATIO OF EARNINGS TO FIXED CHARGES

	For the Year Ended December 31,
	2003		2002			2001			2000		1999
Earnings:
Income (loss) from continuing operations before income taxes	$	1,958	$	80		$	(121	)	$	693	$	2,222
Undistributed income (loss) of investees accounted for under the equity method		119		(37	)		29			25		(14	)
Interest capitalized		—		8			6			—		—
Adjusted earnings		1,839		109			(156	)		668		2,236
Add fixed charges:
Interest credited to policyholders’ account balances		1,830		1,846			1,804			1,751		1,811
Gross interest expense(1)		403		435			653			1,056		863
Interest component of rental expense		103		150			173			166		167
Total fixed charges		2,336		2,431			2,630			2,973		2,841
Total earnings plus fixed charges	$	4,175	$	2,540		$	2,474		$	3,641	$	5,077
Ratio of earnings to fixed charges(2)		1.79		1.04			0.94			1.22		1.79

(1) Includes Securities business related interest expense which is included in “Net investment income” in the Consolidated Statements of Operations, interest which has been capitalized 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.