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)
Nine months ended Year ended September 30, December 31, 2005 2004 ---- ---- Pretax income from operations: Net income........................................................................... $247.8 $294.8 Add income tax expense............................................................... 140.7 159.3 ------ ------ Pretax income from operations..................................................... 388.5 454.1 ------ ------ Add fixed charges: Interest expense..................................................................... 37.2 71.5 Interest expense on investment borrowings............................................ 6.5 8.0 Interest added to policyholder account balances ..................................... 316.1 410.4 Portion of rental (a)................................................................ 9.8 13.5 ------ ------ Fixed charges..................................................................... 369.6 503.4 ------ ------ Adjusted earnings................................................................. $758.1 $957.5 ====== ====== Ratio of earnings to fixed charges............................................ 2.05X 1.90X ===== ===== Fixed charges.......................................................................... $369.6 $503.4 Add dividends on preferred stock, including dividends on preferred stock of subsidiaries (divided by the ratio of income to pretax income)....................... 44.7 100.9 ------- ------ Fixed charges plus preferred dividends............................................ $414.3 $604.3 ====== ====== Adjusted earnings................................................................. $758.1 $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.