EX-12.1 3 exb12_1.htm EXHIBIT 12.1 Unassociated Document
Exhibit 12.1
 
Loews Corporation
Calculation of Ratio of Earnings to Fixed Charges
(Dollar amounts in millions)

   
Years Ended December 31,
  
   
2008
    
2007
    
2006
    
2005
    
2004
  
                               
Pretax income from continuing operations before
                              
     minority interest
   $ 587     $ 3,195     $ 3,104     $ 676     $ 769  
                                         
Add (deduct):
                                        
Undistributed loss (income) from equity investees
     451       (107 )     (206 )     (72 )     (39 )
Capitalized interest
     (115 )     (55 )     (12 )     (2 )     —  
Amortization of capitalized interest
     2       1       1       1       1  
Earnings before fixed charges
     925       3,034       2,887       603       731  
                                         
Fixed charges:
                                        
Interest expensed
     345       318       304     $ 363       324  
Capitalized interest
     115       55       12       2       —  
Other interest related factors
     38       35       41       77       94  
Total fixed charges
     498       408       357       442       418  
                                         
Total earnings and fixed charges
   $ 1,423     $ 3,442     $ 3,244     $ 1,045     $ 1,149  
                                         
Ratio of earnings to fixed charges
     2.9 x     8.4 x     9.1 x     2.4 x     2.7 x
                                         
Ratio of earnings, excluding interest credited to
                                        
     policyholders, to fixed charges, excluding
                                        
     interest credited to policyholders (a)
     2.9 x     8.6 x     9.5 x     2.5 x     3.1 x

   

(a)
This second ratio is disclosed for the convenience of fixed income investors and the rating agencies that serve them. Management believes it is more comparable to the ratios disclosed by all issuers of fixed income securities. Interest credited to policyholders was $6 million, $9 million, $17 million, $47 million and $64 million for the years ended December 31, 2008, 2007, 2006, 2005 and 2004, respectively.