Exhibit 12.1
GE LIFE AND ANNUITY ASSURANCE COMPANY
Computation of Ratio of Earnings to Fixed Charges
(Dollar amounts in millions)
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| | | Years Ended December 31,
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| | | 2003
| | | 2002
| | 2001
| | 2000
| | 1999
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Net earnings | | $ | 19.7 | | | $ | 115.8 | | $ | 123.9 | | $ | 163.1 | | $ | 112.9 | |
Provision for income taxes | | | (3.1 | ) | | | 42.9 | | | 70.1 | | | 72.9 | | | 56.6 | |
Cumulative effect of change in accounting principle | | | — | | | | — | | | 5.7 | | | — | | | (5.0 | ) |
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Earnings before income taxes and cumulative effect of change in accounting principle | | | 16.6 | | | | 158.7 | | | 199.7 | | | 236.0 | | | 164.5 | |
Fixed charges: | | | | | | | | | | | | | | | | | |
Interest | | | 0.1 | | | | 0.1 | | | 2.2 | | | 1.1 | | | 1.9 | |
Interest portion of net rentals | | | 1.0 | | | | 1.0 | | | 1.8 | | | 1.7 | | | 1.2 | |
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Subtotal | | | 1.1 | | | | 1.1 | | | 4.0 | | | 2.8 | | | 3.1 | |
Interest credited to contractholders | | | 410.6 | | | | 462.1 | | | 533.8 | | | 532.6 | | | 440.8 | |
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Total fixed charges | | | 411.7 | | | | 463.2 | | | 537.8 | | | 535.4 | | | 443.9 | |
Earnings, before income taxes and cumulative effect of change in accounting principle available for fixed charges (including interest credited to contractholders) | | $ | 428.3 | | | $ | 621.9 | | $ | 737.5 | | $ | 771.4 | | $ | 608.4 | |
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Earnings, before income taxes and cumulative effect of change in accounting principle available for fixed charges (excluding interest credited to contractholders) | | $ | 17.7 | | | $ | 159.8 | | $ | 203.7 | | $ | 238.8 | | $ | 167.6 | |
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Ratio of earnings to fixed charges (including interest credited to contractholders) | | | 1.04 | | | | 1.34 | | | 1.37 | | | 1.44 | | | 1.37 | |
Supplemental Ratio (excluding interest credited to contractholders) | | | 16.09 | | | | 145.27 | | | 50.93 | | | 85.29 | | | 54.06 | |
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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.
