EX-12.1 2 0002.txt RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12.1 Marsh & McLennan Companies, Inc. and Subsidiaries Ratio of Earnings to Fixed Charges (In millions, except ratios) -------------------------------------------------------------------------------- Nine Months Years Ended December 31, Ended Sept. 30, ------------------------------------------- 2000 1999 (1) 1998 1997 (2) 1996 1995 -------------------------------------------------------------------------------- Earnings Income before income taxes $1,461 $1,247 $1,305 $ 715 $ 668 $ 650 Interest expense 191 233 140 107 61 63 Portion of rents representative of the interest factor 90 121 104 88 72 73 Amortization of capitalized interest 1 1 1 1 1 1 -------------------------------------------------------------------------------- $1,743 $1,602 $1,550 $ 911 $ 802 $ 787 -------------------------------------------------------------------------------- Fixed Charges Interest expense $ 191 $ 233 $ 140 $ 107 $ 61 $ 63 Portion of rents representative of the interest factor 90 121 104 88 72 73 -------------------------------------------------------------------------------- $ 281 $ 354 $ 244 $ 195 $ 133 $ 136 -------------------------------------------------------------------------------- Ratio of Earnings to Fixed Charges 6.2 4.5 6.4 4.7 6.0 5.8 (1) For the year ended December 31, 1999, income before income taxes included a $337 million special charge related to the acquisition and integration of Sedgwick. Excluding that charge, the ratio of earnings to fixed charges would have been 5.5. (2) For the year ended December 31, 1997, income before income taxes included a $244 million special charge related to the Johnson & Higgins integration, London real estate and the disposal of certain assets. Excluding that charge, the ratio of earnings to fixed charges would have been 5.9.