EXHIBIT 12.1
THE CHUBB CORPORATION
COMPUTATION OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES
(in millions except for ratio amounts)
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| Year Ended December 31, |
| Six Months Ended June 30, |
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| 2000 |
| 2001 |
| 2002 |
| 2003 |
| 2004 |
| 2004 |
| 2005 |
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Income (loss) from continuing operations before provision for income taxes |
| $ | 851.0 |
| $ | (66.0 | ) | $ | 168.4 |
| $ | 933.6 |
| $ | 2,068.2 |
| $ | 955.3 |
| $ | 1,295.8 |
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Less: |
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Income (loss) from equity investees |
| (6.6 | ) | (9.3 | ) | (6.1 | ) | 92.8 |
| 206.8 |
| 132.2 |
| 135.7 |
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Add: |
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Interest expensed |
| 52.9 |
| 55.0 |
| 83.8 |
| 130.1 |
| 138.7 |
| 69.3 |
| 69.7 |
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Capitalized interest amortized or expensed |
| 9.4 |
| 10.7 |
| 14.2 |
| 9.1 |
| 13.8 |
| 7.3 |
| 4.9 |
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Portion of rents representative of the interest factor |
| 30.0 |
| 32.6 |
| 37.2 |
| 37.5 |
| 37.9 |
| 18.9 |
| 19.0 |
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Distributions from equity investees |
| 1.6 |
| 2.3 |
| 12.4 |
| 17.1 |
| 101.1 |
| 57.3 |
| 76.2 |
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Income as adjusted |
| $ | 951.5 |
| $ | 43.9 | (1) | $ | 322.1 | (2) | $ | 1,034.6 |
| $ | 2,152.9 |
| $ | 975.9 |
| $ | 1,329.9 |
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Fixed charges: |
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Interest expensed |
| $ | 52.9 |
| $ | 55.0 |
| $ | 83.8 |
| $ | 130.1 |
| $ | 138.7 |
| $ | 69.3 |
| $ | 69.7 |
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Capitalized interest |
| — |
| 2.3 |
| 3.6 |
| — |
| — |
| — |
| — |
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Portion of rents representative of the interest factor |
| 30.0 |
| 32.6 |
| 37.2 |
| 37.5 |
| 37.9 |
| 18.9 |
| 19.0 |
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Fixed charges |
| $ | 82.9 |
| $ | 89.9 |
| $ | 124.6 |
| $ | 167.6 |
| $ | 176.6 |
| $ | 88.2 |
| $ | 88.7 |
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Ratio of consolidated earnings to fixed charges |
| 11.48 |
| 0.49 | (1) | 2.59 | (2) | 6.17 |
| 12.19 |
| 11.06 |
| 14.99 |
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(1) For the year ended December 31, 2001, consolidated earnings were not sufficient to cover fixed charges by $46 million. Consolidated earnings for the period, as defined, reflect a $635 million loss before income taxes from the September 11 attack in the United States and net surety bond losses of $220 million before income taxes arising from the bankruptcy of Enron Corp.
(2) Consolidated earnings, as defined, for the year ended December 31, 2002 reflect aggregate net losses of $700 million before income taxes related to asbestos and toxic waste claims and a reduction in net surety losses of $88 million before income taxes resulting from the settlement of litigation related to Enron.