EX-12.(B) 7 a2176366zex-12_b.htm EX-12.(B)
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Exhibit 12(b)


Aon Corporation and Consolidated Subsidiaries
Combined With Unconsolidated Subsidiaries
Computation of Ratio of Earnings to Combined Fixed Charges
and Preferred Stock Dividends

 
  Years Ended December 31,
(millions except ratios)

  2006
  2005
  2004
  2003
  2002
 
   
  As
Restated

  As
Restated

  As
Restated

  As
Restated

 
   
  (1)

  (1)

  (1)

  (1)

Income from continuing operations before provision for income taxes and minority interest   $ 920   $ 808   $ 733   $ 960   $ 676

Less: Earnings from unconsolidated entities under the equity method of accounting

 

 

4

 

 

7

 

 

34

 

 

49

 

 

19

Add back fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
Interest on indebtedness (2)

 

 

129

 

 

125

 

 

136

 

 

101

 

 

124
 
Interest credited on deposit-type insurance contracts

 

 


 

 


 

 

1

 

 


 

 

29
 
Portion of rents representative of interest factor

 

 

79

 

 

71

 

 

73

 

 

67

 

 

59
   
 
 
 
 
   
Income as adjusted

 

$

1,124

 

$

997

 

$

909

 

$

1,079

 

$

869
   
 
 
 
 

Fixed charges and preferred stock dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
Interest on indebtedness (2)

 

$

129

 

$

125

 

$

136

 

$

101

 

$

124
 
Preferred stock dividends (3)

 

 


 

 

3

 

 

3

 

 

61

 

 

58
   
 
 
 
 
   
Interest and dividends

 

 

129

 

 

128

 

 

139

 

 

162

 

 

182

Interest credited on deposit-type insurance contracts

 

 


 

 


 

 

1

 

 


 

 

29

Portion of rents representative of interest factor

 

 

79

 

 

71

 

 

73

 

 

67

 

 

59
   
 
 
 
 
   
Total fixed charges and preferred stock dividends

 

$

208

 

$

199

 

$

213

 

$

229

 

$

270
   
 
 
 
 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

 

5.4

 

 

5.0

 

 

4.3

 

 

4.7

 

 

3.2
   
 
 
 
 

(1)
See Note 2 "Restatement of Consolidated Financial Statements."

(2)
As a result of the adoption of FIN 46 on December 31, 2003, Aon was required to deconsolidate its 8.205% mandatorily redeemable preferred capital securities. This decrease was offset by an increase in notes payable. Beginning in 2004, interest expense ($58 million for the years ended December 31, 2006, 2005 and 2004) on these notes payable is reported as part of interest expense in the consolidated statements of income.

(3)
Included in preferred stock dividends are $57 million and $54 million for the years ended December 31, 2003 and 2002, respectively.



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Aon Corporation and Consolidated Subsidiaries Combined With Unconsolidated Subsidiaries Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends