EX-12.1 2 a07-4921_1ex12d1.htm EX-12.1

Exhibit 12.1

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(for the year ended December 31, in millions, except ratios)

 

 

 

2006

 

2005

 

2004

 

2003

 

2002

 

Income (loss) from continuing operations before income taxes (benefit), minority interest and cumulative effect of change in accounting principles

 

$

5,725

 

$

2,671

 

$

946

 

$

2,229

 

$

(260

)

Interest

 

324

 

286

 

236

 

167

 

157

 

Portion of rentals deemed to be interest

 

78

 

72

 

68

 

38

 

46

 

Income available for fixed charges (1)

 

$

6,127

 

$

3,029

 

$

1,250

 

$

2,434

 

$

(57

)

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

324

 

$

286

 

$

236

 

$

167

 

$

157

 

Portion of rentals deemed to be interest

 

78

 

72

 

68

 

38

 

46

 

Total fixed charges

 

402

 

358

 

304

 

205

 

203

 

Preferred stock dividend requirements

 

8

 

9

 

8

 

—

 

—

 

Total fixed charges and preferred stock dividend requirements

 

$

410

 

$

367

 

$

312

 

$

205

 

$

203

 

Ratio of earnings to fixed charges (1)

 

15.24

 

8.46

 

4.11

 

11.89

 

N/A

 

Ratio of earnings to combined fixed charges and preferred dividend requirements

 

14.96

 

8.25

 

4.01

 

11.89

 

N/A

 

 

Data for 2006 and 2005 reflects results of the Company for the years ended December 31, 2006 and 2005. Data for the year ended December 31, 2004 reflects information for TPC for the period January 1, 2004 through March 31, 2004, and for the Company for the nine-month period from the merger date of April 1, 2004 through December 31, 2004. Data for the years 2002 and 2003 reflects information for TPC only.

The ratio of earnings to fixed charges is computed by dividing income available for fixed charges by the fixed charges. For purposes of this ratio, fixed charges consist of that portion of rentals deemed representative of the appropriate interest factor.

(1)          Income (loss) available for fixed charges in 2002 included a $1.39 billion charge for strengthening asbestos reserves, net of the benefit from an indemnification agreement with Citigroup, Inc., a former affiliate. For the year ended December 31, 2002, the Company’s earnings were not sufficient to cover fixed charges by $260 million.

1