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