EX-12 2 ex12.htm EXHIBIT 12 Exhibit 12

CIGNA CORPORATION
              
 EXHIBIT 12
  
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                      
(Dollars in millions)
                      
                       
Year Ended December 31,
 
2003
 
2002
 
2001
 
2000
 
1999
  
                       
Income (loss) from continuing operations before income taxes (benefits)
  
$
876
  
$
(503
)
$
1,663
  
$
1,046
  
$
1,161
  
                                 
Adjustments:
                                
     Loss (income) from equity investee
    
4
   
4
   
(79
)
  
-
   
-
 
     Minority Interest
    
-
   
-
   
-
   
53
   
31
 
                                 
Income (loss) from continuing operations before
    income taxes (benefits), as adjusted
  
$
880
  
$
(499
)
$
1,584
  
$
1,099
  
$
1,192
  
                                 
Fixed charges included in income (loss):
                                
                                 
    Interest expense
  
$
111
  
$
121
  
$
118
  
$
104
  
$
116
  
    Interest portion of rental expense
    
54
   
52
   
50
   
43
   
50
 
                                 
     
165
   
173
   
168
   
147
   
166
 
                                 
    Interest credited to contractholders
    
877
   
1,036
   
1,071
   
1,017
   
975
 
                                 
   
$
1,042
  
$
1,209
  
$
1,239
  
$
1,164
  
$
1,141
  
                                 
Income available for fixed charges (including interest
                                
     credited to contractholders)
  
$
1,922
  
$
710
  
$
2,823
  
$
2,263
  
$
2,333
  
                                 
Income available for fixed charges (excluding interest
                                
     credited to contractholders) (1)
  
$
1,045
  
$
-
  
$
1,752
  
$
1,246
  
$
1,358
  
                                 
RATIO OF EARNINGS TO FIXED CHARGES:
                                
                                 
    Including interest credited to contractholders (1)
    
1.8
   
-
    
2.3
   
1.9
   
2.0
 
                                 
SUPPLEMENTAL RATIO:
                                
                                 
    Excluding interest credited to contractholders (1)
    
6.3
   
-
    
10.4
   
8.5
   
8.2
 
                                 
                                 
(1) Due to the loss in 2002, the ratio coverage was less than 1:1. CIGNA must generate additional earnings of $499 million to achieve a coverage of 1:1.