EX-12 3 ex12_2qtr.txt Exhibit 12.1 Marsh & McLennan Companies, Inc. and Subsidiaries Ratio of Earnings to Fixed Charges (In millions, except ratios) Six Months Ended June 30, Years Ended December 31, ------------------------------------------ 2001 2000 1999 (1) 1998 1997 (2) 1996 (unaudited) ---------------------------------------------------------------------------------------------
Earnings Income before income taxes and minority Interest* $1,075 $1,955 $1,255 $1,305 $ 715 $ 668 Interest expense 108 247 233 140 107 61 Portion of rents representative of the interest factor 56 120 121 104 88 72 Amortization of capitalized interest - - 1 1 1 1 --------------------------------------------------------------------------------------------- $1,239 $2,322 $1,610 $1,550 $ 911 $ 802 --------------------------------------------------------------------------------------------- Fixed Charges Interest expense $ 108 $ 247 $ 233 $ 140 $ 107 $ 61 Portion of rents representative of the interest factor 56 120 121 104 88 72 --------------------------------------------------------------------------------------------- $ 164 $ 367 $ 354 $ 244 $ 195 $ 133 --------------------------------------------------------------------------------------------- Ratio of Earnings to Fixed Charges 7.6 6.3 4.5 6.4 4.7 6.0
* Minority interest has been reclassified in the prior years to conform to the current year presentation. (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.