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Aon Corporation and Consolidated Subsidiaries
Combined With Unconsolidated Subsidiaries
Computation of Ratio of Earnings to Combined Fixed Charges
and Preferred Stock Dividends
| Three Months Ended March 31, | | | | | | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Years Ended December 31, | ||||||||||||||||||||||
(millions except ratios) | |||||||||||||||||||||||
2003 | 2002 | 2002 | 2001 | 2000 | 1999 | 1998 | |||||||||||||||||
Income before provision for income taxes and minority interest | $ | 256 | $ | 271 | $ | 793 | $ | 309 | $ | 854 | $ | 635 | $ | 931 | |||||||||
Add back fixed charges: | |||||||||||||||||||||||
Interest on indebtedness | 28 | 29 | 124 | 127 | 140 | 105 | 87 | ||||||||||||||||
Interest credited on investment-type insurance contracts | 1 | 12 | 29 | 56 | 71 | 77 | 72 | ||||||||||||||||
Interest on ESOP | — | — | — | — | — | 1 | 2 | ||||||||||||||||
Portion of rents representative of interest factor | 14 | 15 | 59 | 57 | 54 | 49 | 51 | ||||||||||||||||
Income as adjusted | $ | 299 | $ | 327 | $ | 1,005 | $ | 549 | $ | 1,119 | $ | 867 | $ | 1,143 | |||||||||
Fixed charges and preferred stock dividends: | |||||||||||||||||||||||
Interest on indebtedness | $ | 28 | $ | 29 | $ | 124 | $ | 127 | $ | 140 | $ | 105 | $ | 87 | |||||||||
Preferred stock dividends | 15 | 17 | 58 | 70 | 70 | 70 | 70 | ||||||||||||||||
Interest and dividends | 43 | 46 | 182 | 197 | 210 | 175 | 157 | ||||||||||||||||
Interest credited on investment-type insurance contracts | 1 | 12 | 29 | 56 | 71 | 77 | 72 | ||||||||||||||||
Interest on ESOP | — | — | — | — | — | 1 | 2 | ||||||||||||||||
Portion of rents representative of interest factor | 14 | 15 | 59 | 57 | 54 | 49 | 51 | ||||||||||||||||
Total fixed charges and preferred stock dividends | $ | 58 | $ | 73 | $ | 270 | $ | 310 | $ | 335 | $ | 302 | $ | 282 | |||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends (1) | 5.2 | 4.5 | 3.7 | 1.8 | 3.3 | 2.9 | 4.1 | ||||||||||||||||
- (1)
- Included in total fixed charges and preferred stock dividends are $14 million and $16 million for the three months ended March 31, 2003 and 2002, respectively, $54 million for the year ended December 31, 2002 and $66 million for the years ended December 31, 2001, 2000, 1999 and 1998, of pretax distributions on the 8.205% mandatorily redeemable preferred capital securities which are classified as "minority interest" on the condensed consolidated statements of income.
Aon Corporation and Consolidated Subsidiaries Combined With Unconsolidated Subsidiaries Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends