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, | | 3 Months Ended
March 31, | |
| | 2001 | | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | |
Income (loss) from continuing operations before
provision for income taxes | | $ | (66 | ) | $ | 168 | | $ | 934 | | $ | 2,068 | | $ | 2,447 | | $ | 952 | |
Less: | | | | | | | | | | | | | |
Income (loss) from equity investees | | (9 | ) | (6 | ) | 93 | | 207 | | 186 | | 80 | |
Add: | | | | | | | | | | | | | |
Interest expensed | | 55 | | 84 | | 130 | | 139 | | 135 | | 31 | |
Capitalized interest amortized or expensed | | 11 | | 14 | | 9 | | 14 | | 15 | | 2 | |
Portion of rents representative of the interest factor | | 33 | | 37 | | 35 | | 35 | | 34 | | 8 | |
Distributions from equity investees | | 2 | | 13 | | 17 | | 101 | | 138 | | 29 | |
Income as adjusted | | $ | 44 | (1) | $ | 322 | | $ | 1,032 | | $ | 2,150 | | $ | 2,583 | | $ | 942 | |
| | | | | | | | | | | | | |
Fixed charges: | | | | | | | | | | | | | |
Interest expensed | | $ | 55 | | $ | 84 | | $ | 130 | | $ | 139 | | $ | 135 | | $ | 31 | |
Capitalized interest | | 2 | | 3 | | — | | — | | — | | — | |
Portion of rents representative of the interest factor | | 33 | | 37 | | 35 | | 35 | | 34 | | 8 | |
Fixed charges | | $ | 90 | | $ | 124 | | $ | 165 | | $ | 174 | | $ | 169 | | $ | 39 | |
| | | | | | | | | | | | | |
Ratio of consolidated earnings to fixed charges | | 0.49 | (1) | 2.59 | | 6.25 | | 12.36 | | 15.28 | | 24.15 | |
(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.
