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 |
|
____________________
| |
| (a) | Interest portion of rental is estimated to be 33 percent. |
