EX-12 7 ex12.htm CIGNA CORPORATION EXHIBIT 12 CIGNA Corporation Exhibit 12

Exhibit 12


CIGNA CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)


 
  
Year ended December 31,
     
2004
 
 
2003
 
 
2002
 
 
2001
 
 
2000
  
                                 
Income (loss) from continuing operations
   before income taxes (benefits) 
  
$
2,375
  
$
848
  
$
(645
)
$
1,392
  
$
1,422
  
Adjustments:
                                
   Loss (income) from equity investees 
    
1
    
4
    
4
    
(79
)
  
-
  
   Minority interest 
    
-
    
-
    
-
    
-
    
53
  
Income (loss) from continuing operations
   before income taxes (benefits), as
   adjusted 
  
$
2,376
  
$
852
  
$
(641
)
$
1,313
  
$
1,475
  
                                 
Fixed charges included in income:
                                
Interest expense 
  
$
107
  
$
111
  
$
121
  
$
118
  
$
104
  
Interest portion of rental expense 
    
43
    
54
    
52
    
50
    
43
  
     
150
    
165
    
173
    
168
    
147
  
Interest credited to contractholders 
    
446
    
877
    
1,036
    
1,071
    
1,017
  
   
$
596
  
$
1,042
  
$
1,209
  
$
1,239
  
$
1,164
  
                                 
Income available for fixed charges
   (including interest credited to
   contractholders) 
  
$
2,972
  
$
1,894
  
$
568
  
$
2,552
  
$
2,639
  
                                 
Income available for fixed charges
   (excluding interest credited to
   contractholders) (1) 
  
$
2,526
  
$
1,017
  
$
--
  
$
1,481
  
$
1,622
  
                                 
RATIO OF EARNINGS TO FIXED CHARGES:
                                
   Including interest credited to
   contractholders(1) 
    
5.0
    
1.8
    
--
    
2.1
    
2.3
  
                                 
SUPPLEMENTAL RATIO:
                                
   Excluding interest credited to
   contractholders(1) 
    
16.8
    
6.2
    
--
    
8.8
    
11.0
  
                                 
________________________
(1)
 
Due to the loss in 2002, the ratio coverage was less than 1:1. CIGNA must generate additional earnings of $641 million to achieve a coverage of 1:1.