EX-12.01 2 y22829a1exv12w01.htm EX-12.01: STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EX-12.01
 

EXHIBIT 12.01
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
                                                         
    Six Months    
    Ended    
    June 30,   Year Ended December 31,
    2006   2005   2005   2004   2003   2002   2001
    (in millions, except for ratios)
     
Income (loss) from Operations before Federal Income Taxes and Cumulative Effect of Accounting Changes
   $ 1,589     $ 1,741     $ 2,985     $ 2,523     $ (550 )   $ 1,068     $ 341  
Add:
                                                        
Fixed Charges
                                                        
Interest expense
     137       127       252       251       271       265       295  
Interest factor attributable to rentals and other
     37       34       69       64       76       73       72  
Interest credited to contractholders
     335       1,446       5,671       2,481       1,120       1,048       1,050  
Total fixed charges
     509       1,607       5,992       2,796       1,467       1,386       1,417  
Total fixed charges excluding interest credited to contractholders
     174       161       321       315       347       338       367  
Earnings, as defined
     2,098       3,348       8,977       5,319       917       2,454       1,758  
Earnings, as defined, less interest credited to contractholders
   $ 1,763     $ 1,902     $ 3,306     $ 2,838     $ (203 )   $ 1,406     $ 708  
Ratios
                                                        
Earnings, as defined, to total fixed charges(1)(2)
     4.1       2.1       1.5       1.9     NM     1.8       1.2  
Earnings, as defined, less interest credited to contractholders, to total fixed charges excluding interest credited to contractholders(1)(3)(4)
     10.1       11.8       10.3       9.0     NM     4.2       1.9  
Deficiency of earnings, as defined, to fixed charges(5)
   $ —     $ —     $ —     $ —     $ 550     $ —     $ —  
 
(1)   NM: Not meaningful.
 
(2)   Before the impact of September 11 of $678 million, the 2001 ratio of earnings to fixed charges was 1.6.
 
(3)   Before the impact of September 11 of $678 million, the 2001 ratio of earnings to fixed charges excluding interest credited to contractholders was 3.8.
 
(4)   This secondary ratio is disclosed for the convenience of fixed income investors and the rating agencies that serve them and is more comparable to the ratios disclosed by all issuers of fixed income securities.
 
(5)   Represents additional earnings that would be necessary to result in a one to one ratio of consolidated earnings to fixed charges. This amount is principally due to a before-tax charge of $2.6 billion related to the our 2003 asbestos reserve addition.