<DOCUMENT>
<TYPE>EX-12
<SEQUENCE>10
<FILENAME>exhibit12.txt
<DESCRIPTION>EXHIBIT 12.1
<TEXT>
CONSECO, INC. AND SUBSIDIARIES
Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges,
Preferred Dividends and Distributions on Company-Obligated Mandatorily
Redeemable Preferred Securities of Subsidiary Trusts
- Consolidated Basis for the years ended
December 31, 2002, 2001 and 2000
(Dollars in millions)
<TABLE>
<CAPTION>
2002 2001 2000
---- ---- ----
<S> <C> <C> <C>
Pretax loss from operations:
Net loss ..................................................................... $(7,835.7) $ (405.9) $(1,191.2)
Add income tax expense (benefit).............................................. 864.3 (63.5) (166.2)
Add discontinued operations................................................... 2,223.1 106.7 381.9
Add extraordinary (gain) loss on extinguishment of debt....................... (8.1) (17.2) 5.0
Add minority interest......................................................... 173.2 119.5 145.3
Add cumulative effect of accounting change.................................... 2,949.2 - 55.3
--------- -------- ---------
Pretax loss from operations................................................ (1,634.0) (260.4) (769.9)
---------- -------- ---------
Add fixed charges:
Interest expense on corporate debt, including amortization.................... 346.7 369.5 438.5
Interest expense on investment borrowings..................................... 16.4 30.5 15.8
Interest added to policyholder account balances............................... 501.7 530.0 560.7
Portion of rental (a)......................................................... 13.8 15.1 14.1
--------- -------- ---------
Fixed charges.............................................................. 878.6 945.1 1,029.1
--------- -------- ---------
Adjusted earnings (loss)................................................... $ (755.4) $ 684.7 $ 259.2
========= ======== =========
Ratio of earnings to fixed charges...................................... (b) (d) (f)
= = =
Ratio of earnings to fixed charges, excluding interest added to
policyholder account balances....................................... (b) (d) (f)
= = =
Ratio of earnings to fixed charges, excluding interest added to
policyholder account balances and interest expense on
investment borrowings............................................... (b) (d) (f)
= = =
Fixed charges .................................................................. $ 878.6 $ 945.1 $ 1,029.1
Add dividends on preferred stock, including dividends on preferred
stock of subsidiaries (divided by the ratio of income before minority
interest and extraordinary charge to pretax income)........................... 3.2 19.8 17.0
Add distributions on Company-obligated mandatorily redeemable
preferred securities of subsidiary trusts..................................... 173.2 183.9 223.5
--------- -------- ---------
Fixed charges plus preferred dividends and distributions on
Company-obligated mandatorily redeemable preferred
securities of subsidiary trusts..................................... $ 1,055.0 $1,148.8 $ 1,269.6
========= ======== =========
Adjusted earnings (loss)................................................... $ (755.4) $ 684.7 $ 259.2
========= ======== =========
Ratio of earnings to fixed charges, preferred dividends and
distributions on Company-obligated mandatorily redeemable
preferred securities of subsidiary trusts........................... (c) (e) (g)
= = =
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
Ratio of earnings to fixed charges, preferred dividends and
distributions on Company-obligated mandatorily redeemable
preferred securities of subsidiary trusts, excluding
interest added to policyholder account balances..................... (c) (e) (g)
= = =
Ratio of earnings to fixed charges, preferred dividends and
distributions on Company-obligated mandatorily redeemable
preferred securities of subsidiary trusts, excluding interest
added to policyholder account balances and interest expense on
investment borrowings............................................... (c) (e) (g)
= = =
<FN>
--------------------
(a) Interest portion of rental is estimated to be 33 percent.
(b) For such ratios, adjusted earnings were $1,634.0 million less than
fixed charges. Adjusted earnings for the year ended December 31, 2002,
included: (i) special and reorganization charges of $110.9 million;
(ii) goodwill impairment charges of $500 million; and (iii) provision
for losses related to loan guarantees of $240.0 million, as described
in greater detail in the notes to the accompanying consolidated
financial statements.
(c) For such ratios, adjusted earnings were $1,810.4 million less than
fixed charges. Adjusted earnings for the year ended December 31, 2002,
included: (i) special and reorganization charges of $110.9 million;
(ii) goodwill impairment charges of $500 million; and (iii) provision
for losses related to loan guarantees of $240.0 million, as described
in greater detail in the notes to the accompanying consolidated
financial statements.
(d) For such ratios, adjusted earnings were $260.4 million less than fixed
charges. Adjusted earnings for the year ended December 31, 2001,
included: (i) special charges of $80.4 million; and (ii) provision for
losses related to loan guarantees of $169.6 million, as described in
greater detail in the notes to the accompanying consolidated financial
statements.
(e) For such ratios, adjusted earnings were $464.1 million less than fixed
charges. Adjusted earnings for the year ended December 31, 2001,
included: (i) special charges of $80.4 million; and (ii) provision for
losses related to loan guarantees of $169.6 million, as described in
greater detail in the notes to the accompanying consolidated financial
statements.
(f) For such ratios, adjusted earnings were $769.9 million less than fixed
charges. Adjusted earnings for the year ended December 31, 2000,
included: (i) special charges of $305.0 million; and (ii) provision
for losses related to loan guarantees of $231.5 million, as described
in greater detail in the notes to the accompanying consolidated
financial statements.
(g) For such ratios, adjusted earnings were $1,010.4 million less than
fixed charges. Adjusted earnings for the year ended December 31, 2000,
included: (i) special charges of $305.0 million; and (ii) provision
for losses related to loan guarantees of $231.5 million, as described
in greater detail in the notes to the accompanying consolidated
financial statements.
</FN>
</TABLE>
</TEXT>
</DOCUMENT>