Prudential Financial, Inc. 5.62 (PRS) 10-Q 2015 Q1 Quarterly report

Exhibit 12.1

PRUDENTIAL FINANCIAL, INC.

RATIO OF EARNINGS TO FIXED CHARGES

	Three Months  Ended March 31, 2015		Year Ended December 31,
			2014		2013			2012		2011		2010
Earnings:
Income (loss) from continuing operations before income taxes (1)	$	2,735	$	1,715	$	(1,712	)	$	737	$	5,191	$	4,233
Less:
Undistributed income (loss) of investees accounted for under the equity method		66		134		223			107		286		100
Interest capitalized		—		—		—			—		—		—
Adjusted earnings		2,669		1,581		(1,935	)		630		4,905		4,133
Add fixed charges:
Interest credited to policyholders’ account balances		1,233		4,263		3,111			4,234		4,484		4,209
Gross interest expense (2)		326		1,934		1,419			1,389		1,315		1,224
Interest component of rental expense		19		75		85			96		93		69
Total fixed charges		1,578		6,272		4,615			5,719		5,892		5,502
Total earnings plus fixed charges	$	4,247	$	7,853	$	2,680		$	6,349	$	10,797	$	9,635
Ratio of earnings to fixed charges (3)		2.69		1.25		—			1.11		1.83		1.75

(1) Excludes earnings attributable to noncontrolling interests.

(2) Interest expense on short-term and long-term debt, including 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 twelve months ended December 31, 2013, the ratio coverage was less than 1:1 and is therefore not presented. Additional earnings of $1,935 million would have been required for the twelve months ended December 31, 2013, to achieve a ratio of 1:1.