Exhibit 12.1
GE FINANCIAL ASSURANCE HOLDINGS, INC., AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Dollar amounts in millions)
Years Ended December 31, | ||||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||
Net earnings | $ | 1,077 | $ | 1,300 | $ | 1,243 | $ | 1,059 |
| $ | 866 | |||||
Provisions for income taxes |
| 440 |
| 650 |
| 597 |
| 430 |
|
| 456 | |||||
Minority interest |
| 6 |
| 5 |
| 6 |
| 4 |
|
| — | |||||
Cumulative effect of change in accounting principle |
| 380 |
| 15 |
| — |
| (25 | ) |
| — | |||||
Earnings before income taxes, minority interest and cumulative effect of change in accounting principle |
| 1,903 |
| 1,970 |
| 1,846 |
| 1,468 |
|
| 1,322 | |||||
Fixed charges: | ||||||||||||||||
Interest expense |
| 138 |
| 146 |
| 143 |
| 95 |
|
| 95 | |||||
Interest portion of net rentals |
| 30 |
| 30 |
| 34 |
| 23 |
|
| 17 | |||||
Total fixed charges |
| 168 |
| 176 |
| 177 |
| 118 |
|
| 112 | |||||
Less capitalized interest, net of amortization |
| 3 |
| 1 |
| — |
| — |
|
| — | |||||
Earnings before income taxes, minority interest and cumulative effect of change in accounting principle plus fixed charges | $ | 2,068 | $ | 2,145 | $ | 2,023 | $ | 1,586 |
| $ | 1,434 | |||||
Ratio of earnings to fixed charges |
| 12.3 |
| 12.2 |
| 11.4 |
| 13.4 |
|
| 12.8 | |||||
For purposes of computing the ratios, fixed charges consist of interest on all indebtedness and one-third of rentals, which management believes is a reasonable approximation of the interest factor of such rentals.
