Prudential Financial, Inc. 5.62 (PRS) 10-Q 2005 Q2 Quarterly report

Exhibit 12.1

PRUDENTIAL FINANCIAL, INC.

RATIO OF EARNINGS TO FIXED CHARGES

	For the Six Months Ended June 30, 2005		For the Three Months Ended June 30, 2005		Year Ended December 31,
					2004		2003		2002			2001			2000
					($ in millions)
Earnings:
Income (loss) from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change	$	2,634	$	1,316	$	3,368	$	1,983	$	88		$	(121	)	$	675
Undistributed income (loss) of investees accounted for under the equity method		123		66		196		119		(37	)		29			25
Interest capitalized		—		—		—		—		8			6			—
Adjusted earnings		2,511		1,250		3,172		1,864		117			(156	)		650
Add fixed charges:
Interest credited to policyholders’ account balances		1,356		803		2,334		1,830		1,846			1,804			1,751
Gross interest expense(1)		345		186		492		403		435			653			1,056
Interest component of rental expense		34		17		66		103		150			173			166
Total fixed charges		1,735		1,006		2,892		2,336		2,431			2,630			2,973
Total earnings plus fixed charges	$	4,246	$	2,256	$	6,064	$	4,200	$	2,548		$	2,474		$	3,623
Ratio of earnings to fixed charges(2)		2.45		2.24		2.10		1.80		1.05			—			1.22

(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 than1:1. Additional earnings of $160 million would have been required in 2001 to achieve a ratio of 1:1.