Exhibit 12.1
CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Dollars in millions)
Nine months ended September 30, 2012 | Year ended December 31, 2011 | ||||||
Pretax income from operations: | |||||||
Net income | $ | 119.8 | $ | 335.7 | |||
Add income tax benefit | (81.8 | ) | (29.5 | ) | |||
Pretax income from operations | 38.0 | 306.2 | |||||
Add fixed charges: | |||||||
Interest expense on corporate debt | 50.4 | 76.3 | |||||
Interest expense on investment borrowings and borrowings related to variable interest entities | 36.3 | 37.8 | |||||
Interest added to policyholder account balances | 199.2 | 282.5 | |||||
Portion of rental (a) | 10.5 | 13.1 | |||||
Fixed charges | 296.4 | 409.7 | |||||
Adjusted earnings | $ | 334.4 | $ | 715.9 | |||
Ratio of earnings to fixed charges | 1.13X | 1.75X |
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(a) | Interest portion of rental is estimated to be 33 percent. |