EX-12.1 3 a06-11777_1ex12d1.htm EX-12

Exhibit 12.1

 

THE CHUBB CORPORATION

COMPUTATION OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES

(in millions except for ratio amounts)

 

 

 

Year Ended December 31,

 

3 Months Ended
March 31,

 

 

 

2001

 

2002

 

2003

 

2004

 

2005

 

2006

 

Income (loss) from continuing operations before
   provision for income taxes

 

$

(66

)

$

168

 

$

934

 

$

2,068

 

$

2,447

 

$

952

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from equity investees

 

(9

)

(6

)

93

 

207

 

186

 

80

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed

 

55

 

84

 

130

 

139

 

135

 

31

 

Capitalized interest amortized or expensed

 

11

 

14

 

9

 

14

 

15

 

2

 

Portion of rents representative of the interest factor

 

33

 

37

 

35

 

35

 

34

 

8

 

Distributions from equity investees

 

2

 

13

 

17

 

101

 

138

 

29

 

Income as adjusted

 

$

 44

(1) 

$

 322

 

$

 1,032

 

$

 2,150

 

$

 2,583

 

$

 942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed

 

$

55

 

$

84

 

$

130

 

$

139

 

$

135

 

$

31

 

Capitalized interest

 

2

 

3

 

—

 

—

 

—

 

—

 

Portion of rents representative of the interest factor

 

33

 

37

 

35

 

35

 

34

 

8

 

Fixed charges

 

$

 90

 

$

 124

 

$

 165

 

$

 174

 

$

 169

 

$

 39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of consolidated earnings to fixed charges

 

0.49

(1) 

2.59

 

6.25

 

12.36

 

15.28

 

24.15

 

 

(1)     For the year ended December 31, 2001, consolidated earnings were not sufficient to cover fixed charges by $46 million. Consolidated earnings for the period, as defined, reflect a $635 million loss before income taxes from the September 11 attack in the United States and net surety bond losses of $220 million before income taxes arising from the bankruptcy of Enron Corp.