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, 2007 2006 ---- ---- Pretax income from operations: Net income........................................................................... $ 10.4 $ 96.5 Add income tax expense............................................................... 5.8 55.8 ------ ------ Pretax income from operations..................................................... 16.2 152.3 ------ ------ Add fixed charges: Interest expense on corporate debt................................................... 16.1 52.9 Interest expense on investment borrowings............................................ 7.5 20.6 Interest added to policyholder account balances ..................................... 103.5 426.8 Portion of rental (a)................................................................ 3.7 13.2 ------ ------ Fixed charges..................................................................... 130.8 513.5 ------ ------ Adjusted earnings................................................................. $147.0 $665.8 ====== ====== Ratio of earnings to fixed charges............................................ 1.12x 1.30x ===== ===== Fixed charges.......................................................................... $130.8 $513.5 Add dividends on preferred stock, including dividends on preferred stock of subsidiaries (divided by the ratio of income to pretax income).................................... 14.8 60.0 ------ ------ Fixed charges plus preferred dividends............................................ $145.6 $573.5 ====== ====== Adjusted earnings................................................................. $147.0 $665.8 ====== ====== Ratio of earnings to fixed charges and preferred dividends.................... 1.01x 1.16x ===== ===== -------------------- (a) Interest portion of rental is estimated to be 33 percent.