EX-12 3 ex12.htm EXHIBIT 12 Exhibit 12
Exhibit 12


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


   
Year ended December 31,
  
   
2005
  
2004
  
2003
  
2002
  
2001
  
                       
Income (loss) from continuing operations
   before income taxes (benefits) 
  
$
1,793
  
$
2,375
  
$
848
  
$
(645
)
$
1,392
  
Adjustments:
                                
   Loss (income) from equity investees 
    
1
    
1
    
4
    
4
    
(79
)
Income (loss) from continuing operations
   before income taxes (benefits), as
   adjusted 
  
$
1,794
  
$
2,376
  
$
852
  
$
(641
)
$
1,313
  
Fixed charges included in income:
                                
      Interest expense 
  
$
105
  
$
107
  
$
111
  
$
121
  
$
118
  
      Interest portion of rental expense 
    
36
    
43
    
54
    
52
    
50
  
     
141
    
150
    
165
    
173
    
168
  
      Interest credited to contractholders 
    
1
    
446
    
877
    
1,036
    
1,071
  
   
$
142
  
$
596
  
$
1,042
  
$
1,209
  
$
1,239
  
Income available for fixed charges
   (including interest credited to
   contractholders) 
  
$
1,936
  
$
2,972
  
$
1,894
  
$
568
  
$
2,552
  
Income available for fixed charges
   (excluding interest credited to
   contractholders) (1) 
  
$
1,935
  
$
2,526
  
$
1,017
  
$
-
  
$
1,481
  
RATIO OF EARNINGS TO FIXED CHARGES:
                                
   Including interest credited to
      contractholders(1) 
    
13.6
    
5.0
    
1.8
    
-
    
2.1
  
SUPPLEMENTAL RATIO:
                                
   Excluding interest credited to
      contractholders(1) 
    
13.7
    
16.8
    
6.2
    
-
    
8.8
  
________________________
(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.