EX-12 5 a12-17090_1ex12.htm EX-12

Exhibit 12

 

CIGNA CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

 

Year Ended December 31, 

 

2011

 

2010

 

2009

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

1,876

 

$

1,802

 

$

1,853

 

$

329

 

$

1,575

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Loss (income) from equity investee

 

(12

)

(15

)

(13

)

(10

)

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

(Income) attributable to noncontrolling interest

 

(1

)

(4

)

(3

)

(2

)

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes, as adjusted

 

$

1,863

 

$

1,783

 

$

1,837

 

$

317

 

$

1,568

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges included in income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

202

 

$

182

 

$

166

 

$

146

 

$

122

 

Interest portion of rental expense

 

38

 

45

 

47

 

45

 

34

 

Interest credited to contractholders

 

5

 

5

 

3

 

6

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

245

 

$

232

 

$

216

 

$

197

 

$

163

 

 

 

 

 

 

 

 

 

 

 

 

 

Income available for fixed charges

 

$

2,108

 

$

2,015

 

$

2,053

 

$

514

 

$

1,731

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Including interest credited to contractholders

 

8.6

 

8.7

 

9.5

 

2.6

 

10.6

 

 

This Exhibit 12 has been updated from the Company’s 2011  Form 10-K to reflect changes resulting from the retrospective adoption of amended accounting guidance for deferred policy acquisition costs, effective January 1, 2012.  See Note 2 to the Consolidated Financial Statements within this Form 8-K for additional information.

 

139