EX-12.1 2 cno12312013ex121.htm EXHIBIT 12.1 CNO 12.31.2013 EX 12.1


CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
Exhibit 12.1
Computation of Ratio of Earnings to
Fixed Charges and Preferred Dividends
(Dollars in millions)

 
2013
 
2012
 
2011
 
2010
 
2009
Pretax income from operations:
 
 
 
 
 
 
 
 
 
Net income
$
478.0

 
$
221.0

 
$
335.7

 
$
240.6

 
$
20.4

Add income tax expense (benefit)
(173.2
)
 
(65.3
)
 
(29.5
)
 
(15.7
)
 
51.4

Pretax income from operations
304.8

 
155.7

 
306.2

 
224.9

 
71.8

Add fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense on corporate debt
51.3

 
66.2

 
76.3

 
79.3

 
84.7

Interest expense on investment borrowings and borrowings related to variable interest entities
54.0

 
48.4

 
37.8

 
33.9

 
33.2

Interest added to policyholder account balances
232.5

 
260.5

 
282.5

 
303.9

 
324.4

Portion of rental (a)
13.3

 
14.6

 
13.1

 
13.0

 
12.8

Fixed charges
351.1

 
389.7

 
409.7

 
430.1

 
455.1

Adjusted earnings
$
655.9

 
$
545.4

 
$
715.9

 
$
655.0

 
$
526.9

Ratio of earnings to fixed charges
1.87X

 
1.40X

 
1.75X

 
1.52X

 
1.16X


____________________
(a)
Interest portion of rental is estimated to be 33 percent.