EX-12 3 a2216136zex-12.htm EX-12

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 

Exhibit 12

 
  


   
  


   
  
   
 
   Three Months Ended
June 30,		   Six Months Ended
June 30,		  
(in millions, except ratios)
  

2013

   2012
  

2013

   2012
  
   

Earnings:

  
 
 
 
      
 
 
 
      

Pre-tax income(a):

  
$
2,952
 
 $ 1,998  
$
5,235
 
 $ 4,441  

Add — Fixed charges

  
 
1,122
 
   1,150  
 
2,236
 
   2,279
   

Adjusted Pre-tax income

  
$
4,074
 
 $ 3,148  
$
7,471
 
 $ 6,720
   

Fixed charges:

  
 
 
 
      
 
 
 
      

Interest expense

  
$
836
 
 $ 889  
$
1,734
 
 $ 1,799  

Portion of rent expense representing interest

  
 
34
 
   26  
 
68
 
   66  

Interest credited to policy and contract holders

  
 
252
 
   235  
 
434
 
   414
   

Total fixed charges

  
$
1,122
 
 $ 1,150  
$
2,236
 
 $ 2,279
   

Total fixed charges, excluding interest credited to

  
 
 
 
      
 
 
 
      

policy and contract holders

  
$
870
 
 $ 915  
$
1,802
 
 $ 1,865
   

Ratio of earnings to fixed charges

  
 
3.63
 
   2.74  
 
3.34
 
   2.95
   

Ratio of earnings to fixed charges, excluding interest

  
 
 
 
      
 
 
 
      

credited to policy and contract holders(b):

  
 
4.68
 
   3.44  
 
4.15
 
   3.60
   

(a)  From continuing operations, excluding undistributed earnings (loss) from equity method investments and capitalized interest.

(b)  The Ratio of earnings to fixed charges, excluding interest credited to policy and contract holders, removes interest credited to guaranteed investment contract (GIC) policyholders and guaranteed investment agreement (GIA) contract holders. Such interest amounts are also removed from earnings used in this calculation. GICs and GIAs are entered into by our subsidiaries. The proceeds from GICs and GIAs are invested in a diversified portfolio of securities, primarily investment grade bonds. When these investments yield rates are greater than the rates on the related policyholders obligation or contract, a profit is earned from the spread.

 

195