Exhibit 12.1
Ratio of Earnings to Fixed Charges
(dollars in millions)
(dollars in millions)
Six Months | ||||||||||||||||||||||||
Years Ended December 31, | Ended | |||||||||||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | June 30, 2011 | |||||||||||||||||||
Income from continuing operations before income taxes | $ | 451.4 | $ | 474.9 | $ | 280.4 | $ | 592.3 | $ | 863.8 | $ | 442.3 | ||||||||||||
Less: | ||||||||||||||||||||||||
Undistributed income of investees accounted for under the equity method | — | — | — | — | — | 1.6 | ||||||||||||||||||
Adjusted earnings before fixed charges | $ | 451.4 | $ | 474.9 | $ | 280.4 | $ | 592.3 | $ | 863.8 | $ | 440.7 | ||||||||||||
Add fixed charges: | ||||||||||||||||||||||||
Interest expense | 88.5 | 128.9 | 104.9 | 78.2 | 98.9 | 56.7 | ||||||||||||||||||
Interest credited on reinsurance contracts | 244.8 | 246.1 | 233.2 | 323.7 | 310.0 | 202.3 | ||||||||||||||||||
One-third of rentals | 2.4 | 3.6 | 4.1 | 4.7 | 5.7 | 3.1 | ||||||||||||||||||
Total fixed charges | $ | 335.7 | $ | 378.6 | $ | 342.2 | $ | 406.6 | $ | 414.6 | $ | 262.1 | ||||||||||||
Total earnings plus fixed charges | $ | 787.1 | $ | 853.5 | $ | 622.6 | $ | 998.9 | $ | 1,278.4 | $ | 702.8 | ||||||||||||
Ratio of earnings to fixed charges | 2.3 | 2.3 | 1.8 | 2.5 | 3.1 | 2.7 | ||||||||||||||||||
Total fixed charges | $ | 335.7 | $ | 378.6 | $ | 342.2 | $ | 406.6 | $ | 414.6 | $ | 262.1 | ||||||||||||
Less interest credited on reinsurance contracts | 244.8 | 246.1 | 233.2 | 323.7 | 310.0 | 202.3 | ||||||||||||||||||
Total fixed charges excluding interest credited(1) | $ | 90.9 | $ | 132.5 | $ | 109.0 | $ | 82.9 | $ | 104.6 | $ | 59.8 | ||||||||||||
Total earnings plus fixed charges excluding interest credited under reinsurance contracts(1) | $ | 542.3 | $ | 607.4 | $ | 389.4 | $ | 675.2 | $ | 968.4 | $ | 500.5 | ||||||||||||
Ratio of earnings to fixed charges excluding interest credited under reinsurance contracts(1) | 6.0 | 4.6 | 3.6 | 8.1 | 9.3 | 8.4 | ||||||||||||||||||
(1) | This information is not required, but the Company believes it provides additional useful information on the coverage of fixed charges that are not related to its products. |