EX-12.1 8 dex121.txt CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12.1 JOHN HANCOCK LIFE INSURANCE COMPANY STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions)
Q1 For the Year Ended December 31, 2002 2001 2000 1999 1998 1997 ---------- ---------- ---------- ---------- ---------- --------- Earnings: (a) Income before provision for income taxes $ 180.3 $ 767.4 $1,101.1 $ 217.1 $ 610.1 $ 570.5 Add fixed charges 321.1 1,466.5 1,395.3 1,284.3 1,242.5 1,264.4 ---------- ---------- ---------- ---------- ---------- --------- Earnings $ 501.4 $2,233.9 $2,496.4 $1,501.4 $1,852.6 $1,834.9 Fixed charges: Interest on debt and capitalized leases (b) $ 13.0 $ 59.0 $ 62.6 $ 70.1 $ 76.7 $ 76.9 Amortization of direct financing costs - - - - - - Amortization of discount on debt - - - - - - Interest element of rentals 0.1 1.2 2.0 1.7 2.1 2.4 Interest credited to policyholders 308.0 1,406.3 1,330.7 1,212.5 1,163.7 1,185.1 ---------- ---------- ---------- ---------- ---------- --------- Total fixed charges $ 321.1 $1,466.5 $1,395.3 $1,284.3 $1,242.5 $1,264.4 Ratio of Earnings to Fixed Charges 1.6 1.5 1.8 1.2 1.5 1.5
(a) For the purpose of calculating the ratio of earnings to fixed charges, "earnings" represent income before provision for income taxes plus fixed charges. "Fixed charges" consist of interest expensed and capitalized, amortization of debt issuance costs, amortization of discount on debt, the portion of rental expense which management believes is representative of the interest component of lease expense, and interest credited to policyholders. (b) This amount reflects both long and short-term debt and includes amortization of debt issuance costs and amortization of discount on debt.