Exhibit 12.1
CONSOLIDATED OPERATIONS
Ratio of Earnings to Fixed Charges and Preference |
| Six Months |
| Year Ended December 31, |
| ||||||||
(£ in millions, except ratios) |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit / (loss) before tax attributable to shareholders’ profits (including non-controlling interests) |
| (68 | ) | 2,440 |
| 1,805 |
| (1,300 | ) | 1,832 |
| 2,977 |
|
Share of (profit) / loss of joint ventures and associates |
| (180 | ) | (131 | ) | 504 |
| 1,128 |
| 304 |
| (485 | ) |
Profit / (loss) before tax attributable to shareholders’ profits (before non-controlling interests) |
| (248 | ) | 2309 |
| 2309 |
| (172 | ) | 2,136 |
| 2,492 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed charges (see below) |
| 543 |
| 1256 |
| 1365 |
| 1,576 |
| 1,246 |
| 876 |
|
Amortization of capitalized interest |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
|
Dividends from joint ventures and associates |
| 0 |
| 63 |
| 22 |
| 87 |
| 32 |
| 12 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest capitalized |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
|
Preference share dividend requirements of consolidated subsidiaries(2) |
| 15 |
| 29 |
| 29 |
| 29 |
| 29 |
| 29 |
|
Earnings |
| 281 |
| 3,599 |
| 3,667 |
| 1,462 |
| 3,385 |
| 3,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on core structural borrowings |
| 164 |
| 323 |
| 335 |
| 286 |
| 259 |
| 230 |
|
Interest on operational borrowings |
| 161 |
| 330 |
| 375 |
| 532 |
| 363 |
| 360 |
|
Other interest costs |
| 143 |
| 422 |
| 449 |
| 582 |
| 393 |
| 165 |
|
Other similar charges(3) |
| 61 |
| 152 |
| 177 |
| 147 |
| 202 |
| 92 |
|
Interest capitalized |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
|
Preference share dividend requirements of consolidated subsidiaries(2) |
| 15 |
| 29 |
| 29 |
| 29 |
| 29 |
| 29 |
|
Fixed charges |
| 543 |
| 1,256 |
| 1,365 |
| 1,576 |
| 1,246 |
| 876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of Earnings to Fixed Charges and Preference Share Dividends |
| 0.52 | x | 2.87 | x | 2.69 | x | 0.93 | x | 2.72 | x | 3.82 | x |
Notes:
(1) The ratio of earnings to fixed charges and preference share dividends for the years ended December 31, 2010, 2009, 2008, 2007 and 2006 and for the period from January 1, 2011 to May 5, 2011 includes the results of Delta Lloyd. From May 6, 2011, we ceased to consolidate the results and net assets of Delta Lloyd. Please see our Current Reports on Form 6-K, with respect to our restatement of our audited financial statements as of and for the three years ended
December 31, 2010, in connection with the classification of Delta Lloyd as discontinued operations, and with respect to our financial results for the six months ended June 30, 2011, each as filed with the SEC on November 10, 2011.
(2) Preference shares represent those shares issued by General Accident plc. To calculate the preference share dividend requirement, the dividend has been divided by one minus the current tax rate of 28%.
(3) Amortized premiums, discounts and capitalized expenses related to indebtedness and an estimate of the interest within rental expense are reported within Other similar charges.
CONTINUING OPERATIONS (EXCLUDING DELTA LLOYD)
Ratio of Earnings to Fixed Charges and Preference Share Dividends |
| Six Months |
| Year Ended December 31, |
| ||||
(£ in millions, except ratios) |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
|
|
|
|
|
|
|
|
|
|
|
Profit / (loss) before tax attributable to shareholders’ profits (including non-controlling interests) |
| 658 |
| 1,545 |
| 1,795 |
| (1,100 | ) |
Share of (profit) / loss of joint ventures and associates |
| (152 | ) | (141 | ) | 463 |
| 1,101 |
|
Profit / (loss) before tax attributable to shareholders’ profits (before non-controlling interests) |
| 506 |
| 1404 |
| 2258 |
| 1 |
|
Add: |
|
|
|
|
|
|
|
|
|
Fixed charges (see below) |
| 332 |
| 601 |
| 693 |
| 893 |
|
Amortization of capitalized interest |
| 0 |
| 0 |
| 0 |
| 0 |
|
Dividends from joint ventures and associates |
| 0 |
| 0 |
| 0 |
| 0 |
|
Less: |
|
|
|
|
|
|
|
|
|
Interest capitalized |
| 0 |
| 0 |
| 0 |
| 0 |
|
Preference share dividend requirements of consolidated subsidiaries(2) |
| 15 |
| 29 |
| 29 |
| 29 |
|
Earnings |
| 823 |
| 1,976 |
| 2,922 |
| 865 |
|
|
|
|
|
|
|
|
|
|
|
Interest on core structural borrowings |
| 159 |
| 311 |
| 315 |
| 275 |
|
Interest on operational borrowings |
| 81 |
| 145 |
| 153 |
| 160 |
|
Other interest costs |
| 16 |
| 28 |
| 59 |
| 332 |
|
Other similar charges(3) |
| 61 |
| 88 |
| 137 |
| 97 |
|
Interest capitalized |
| 0 |
| 0 |
| 0 |
| 0 |
|
Preference share dividend requirements of consolidated subsidiaries(2) |
| 15 |
| 29 |
| 29 |
| 29 |
|
Fixed charges |
| 332 |
| 601 |
| 693 |
| 893 |
|
|
|
|
|
|
|
|
|
|
|
Ratio of Earnings to Fixed Charges and Preference Share Dividends |
| 2.48 | x | 3.29 | x | 4.22 | x | 0.97 | x |
Notes:
(1) The ratio of earnings to fixed charges and preference share dividends for the years ended December 31, 2010, 2009 and 2008 and for the six months ended June 30, 2011 excludes the results of Delta Lloyd. From May 6, 2011, we ceased to consolidate the results and net assets of Delta Lloyd. Please see our Current Reports on Form 6-K, with respect to our restatement of our audited financial statements as of and for the three years ended December 31, 2010, in connection
with the classification of Delta Lloyd as discontinued operations, and with respect to our financial results for the six months ended June 30, 2011, each as filed with the SEC on November 10, 2011.
(2) Preference shares represent those shares issued by General Accident plc. To calculate the preference share dividend requirement, the dividend has been divided by one minus the current tax rate of 28%.
(2) Amortized premiums, discounts and capitalized expenses related to indebtedness and an estimate of the interest within rental expense are reported within Other similar charges.