EX-12 2 exhibit121.txt EXHIBIT 12.1 Exhibit 12.1 Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends (Dollars in millions) Three months ended Year ended March 31, December 31, 2005 2004 ---- ---- Pretax income from operations: Net income............................................................................. $ 81.8 $294.8 Add income tax expense................................................................. 45.4 159.3 ------ ------ Pretax income from operations....................................................... 127.2 454.1 ------ ------ Add fixed charges: Interest expense....................................................................... 12.0 71.5 Interest expense on investment borrowings.............................................. 2.7 8.0 Interest added to policyholder account balances ....................................... 103.4 410.4 Portion of rental (a).................................................................. 2.8 13.5 ------ ------ Fixed charges....................................................................... 120.9 503.4 ------ ------ Adjusted earnings................................................................... $248.1 $957.5 ====== ====== Ratio of earnings to fixed charges.............................................. 2.05X 1.90X ===== ===== Fixed charges............................................................................ $120.9 $503.4 Add dividends on preferred stock, including dividends on preferred stock of subsidiaries (divided by the ratio of income to pretax income)...................................... 14.8 100.9 ------ ------ Fixed charges plus preferred dividends.............................................. $135.7 $604.3 ====== ====== Adjusted earnings................................................................... $248.1 $957.5 ====== ====== Ratio of earnings to fixed charges and preferred dividends...................... 1.83X 1.58X ===== ===== -------------------- (a) Interest portion of rental is estimated to be 33 percent.