EXHIBIT 12.1
THE CHUBB CORPORATION
COMPUTATION OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES
(in millions except for ratio amounts)
| | Year Ended December 31, | | Six Months Ended June 30, | |
| | 2000 | | 2001 | | 2002 | | 2003 | | 2004 | | 2004 | | 2005 | |
| | | | | | | | | | | | | | | |
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 | |
| | | | | | | | | | | | | | | |
Less: | | | | | | | | | | | | | | | |
Income (loss) from equity investees | | (6.6 | ) | (9.3 | ) | (6.1 | ) | 92.8 | | 206.8 | | 132.2 | | 135.7 | |
| | | | | | | | | | | | | | | |
Add: | | | | | | | | | | | | | | | |
Interest expensed | | 52.9 | | 55.0 | | 83.8 | | 130.1 | | 138.7 | | 69.3 | | 69.7 | |
Capitalized interest amortized or expensed | | 9.4 | | 10.7 | | 14.2 | | 9.1 | | 13.8 | | 7.3 | | 4.9 | |
Portion of rents representative of the interest factor | | 30.0 | | 32.6 | | 37.2 | | 37.5 | | 37.9 | | 18.9 | | 19.0 | |
Distributions from equity investees | | 1.6 | | 2.3 | | 12.4 | | 17.1 | | 101.1 | | 57.3 | | 76.2 | |
Income as adjusted | | $ | 951.5 | | $ | 43.9 | (1) | $ | 322.1 | (2) | $ | 1,034.6 | | $ | 2,152.9 | | $ | 975.9 | | $ | 1,329.9 | |
| | | | | | | | | | | | | | | |
Fixed charges: | | | | | | | | | | | | | | | |
Interest expensed | | $ | 52.9 | | $ | 55.0 | | $ | 83.8 | | $ | 130.1 | | $ | 138.7 | | $ | 69.3 | | $ | 69.7 | |
Capitalized interest | | — | | 2.3 | | 3.6 | | — | | — | | — | | — | |
Portion of rents representative of the interest factor | | 30.0 | | 32.6 | | 37.2 | | 37.5 | | 37.9 | | 18.9 | | 19.0 | |
Fixed charges | | $ | 82.9 | | $ | 89.9 | | $ | 124.6 | | $ | 167.6 | | $ | 176.6 | | $ | 88.2 | | $ | 88.7 | |
| | | | | | | | | | | | | | | |
Ratio of consolidated earnings to fixed charges | | 11.48 | | 0.49 | (1) | 2.59 | (2) | 6.17 | | 12.19 | | 11.06 | | 14.99 | |
(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.
