CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges
(Dollars in millions)
|
| | | | | | | | |
| | Nine months ended September 30, 2011 | | Year ended December 31, 2010 | |
| Pretax income from operations: | | | | |
| Net income | $ | 309.4 |
| | $ | 284.6 |
| |
| Add income tax expense (benefit) | (46.1 | ) | | 8.9 |
| |
| Pretax income from operations | 263.3 |
| | 293.5 |
| |
| Add fixed charges: | | | | |
| Interest expense on corporate debt | 58.6 |
| | 79.3 |
| |
| Interest expense on investment borrowings | 27.4 |
| | 33.9 |
| |
| Interest added to policyholder account balances | 212.8 |
| | 303.9 |
| |
| Portion of rental (a) | 9.7 |
| | 13.0 |
| |
| Fixed charges | 308.5 |
| | 430.1 |
| |
| Adjusted earnings | $ | 571.8 |
| | $ | 723.6 |
| |
| Ratio of earnings to fixed charges | 1.85X |
| | 1.68X |
| |
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| |
| (a) | Interest portion of rental is estimated to be 33 percent. |
