Exhibit 12.2
CONSECO, INC.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in millions)
Computation of Ratio of Earnings to Fixed Charges
(Dollars in millions)
Nine months | ||||||||
ended | Year ended | |||||||
September 30, | December 31, | |||||||
2009 | 2008 | |||||||
Pretax income (loss) from operations: | ||||||||
Net income (loss) | $ | 67.5 | $ | (1,132.3 | ) | |||
Add income tax expense | 88.4 | 413.3 | ||||||
Add discontinued operations | — | 722.7 | ||||||
Pretax income | 155.9 | 3.7 | ||||||
Add fixed charges: | ||||||||
Interest expense on corporate debt | 61.6 | 67.9 | ||||||
Interest expense on investment borrowings | 26.2 | 38.6 | ||||||
Interest added to policyholder account balances | 248.9 | 330.5 | ||||||
Portion of rental (a) | 9.3 | 13.4 | ||||||
Fixed charges | 346.0 | 450.4 | ||||||
Adjusted earnings | $ | 501.9 | $ | 454.1 | ||||
Ratio of earnings to fixed charges | 1.45 | X | 1.01 | X | ||||
(a) | Interest portion of rental is estimated to be 33 percent. |