EX-12.1 3 dex121.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES. Statement of Computation of Ratio of Earnings to Fixed Charges.

EXHIBIT 12.1

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Year ended December 31
     2008     2007    2006    2005    2004
     (in millions except for ratio amounts)

Income (loss) before income tax and minority interest

    $ (562 )   $ 1,222    $ 1,650    $ 162    $ 504

Less:

              

Income (loss) from equity investees

      (379 )     183      288      254      212

Preferred stock dividends

      29       -      -      -      -

Add:

              

Fixed charges

      186       166      165      195      211

Distributions from equity investees

      67       84      118      199      130
                                   

Income as adjusted

    $ 41     $ 1,289    $ 1,645    $ 302    $ 633
                                   

Fixed charges:

              

Interest expense

    $ 134     $ 140    $ 131    $ 124    $ 124

Portion of rent expense representative of the interest factor

      17       17      17      24      23

Preferred stock dividends

      29       -      -      -      -

Interest credited to policyholders

      6       9      17      47      64
                                   

Fixed charges

    $ 186     $ 166    $ 165    $ 195    $ 211
                                   

Ratio of earnings to fixed charges

      (a )     7.8      10.0      1.5      3.0

 

(a) For the year ended December 31, 2008, income as adjusted was insufficient to cover fixed charges by $145 million.