EX-12 10 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, 2006 2005 ---- ---- Pretax income from operations: Net income........................................................................... $ 90.7 $324.9 Add income tax expense............................................................... 52.2 178.5 ------ ------ Pretax income from operations..................................................... 142.9 503.4 ------ ------ Add fixed charges: Interest expense on corporate debt................................................... 36.9 48.1 Interest expense on investment borrowings............................................ 14.4 10.2 Interest added to policyholder account balances ..................................... 313.0 419.9 Portion of rental (a)................................................................ 9.8 12.6 ------ ------ Fixed charges..................................................................... 374.1 490.8 ------ ------ Adjusted earnings................................................................. $517.0 $994.2 ====== ====== Ratio of earnings to fixed charges............................................ 1.38X 2.03X ===== ===== Fixed charges.......................................................................... $374.1 $490.8 Add dividends on preferred stock, including dividends on preferred stock of subsidiaries (divided by the ratio of income to pretax income).................................... 44.9 58.9 ------ ------ Fixed charges plus preferred dividends............................................ $419.0 $549.7 ====== ====== Adjusted earnings................................................................. $517.0 $994.2 ====== ====== Ratio of earnings to fixed charges and preferred dividends.................... 1.23X 1.81X ===== ===== -------------------- (a) Interest portion of rental is estimated to be 33 percent.