Prudential Financial, Inc. 5.62 (PRS) 10-Q 2013 Q2 Quarterly report

Exhibit 12.1

PRUDENTIAL FINANCIAL, INC.

RATIO OF EARNINGS TO FIXED CHARGES

	Three  Months Ended June 30, 2013			Six  Months Ended June 30, 2013			Year Ended December 31,
							2012		2011		2010		2009			2008
	($ in millions)
Earnings:
Income (loss) from continuing operations before income taxes(1)	$	(797	)	$	(2,312	)	$	677	$	5,098	$	4,235	$	3,652		$	(2,154	)
Less:
Undistributed income (loss) of investees accounted for under the equity method		37			182			107		286		100		(172	)		(1,026	)
Interest capitalized		—			—			—		—		—		—			5
Adjusted earnings		(834	)		(2,494	)		570		4,812		4,135		3,824			(1,133	)
Add fixed charges:
Interest credited to policyholders’ account balances		394			1,444			4,234		4,484		4,209		4,484			2,335
Gross interest expense(2)		371			735			1,389		1,315		1,224		1,168			1,401
Interest component of rental expense		21			42			96		93		69		69			64
Total fixed charges		786			2,221			5,719		5,892		5,502		5,721			3,800
Total earnings plus fixed charges	$	(48	)	$	(273	)	$	6,289	$	10,704	$	9,637	$	9,545		$	2,667
Ratio of earnings to fixed charges(3)		—			—			1.10		1.82		1.75		1.67			—

(1) Excludes earnings attributable to noncontrolling interests. The year ended December 31, 2009 includes a $2.247 billion pre-tax gain related to the sale of the Company’s minority joint venture interest in Wachovia Securities.

(2) Interest expense on short-term and long-term debt. 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. Interest expense does not include interest on liabilities recorded under the authoritative guidance on accounting for uncertainty in income taxes. The Company’s policy is to classify such interest in income tax provision in the consolidated statements of operations.

(3) Due to the Company’s loss for the three and six months ended June 30, 2013 and the year ended December 31, 2008, the ratio coverage was less than 1:1 and is therefore not presented. Additional earnings of $834 million, $2,494 million and $1,133 million would have been required for the three and six months ended June 30, 2013 and the year ended December 31, 2008, respectively, to achieve a ratio of 1:1.