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Aon Corporation and Consolidated Subsidiaries
Combined With Unconsolidated Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
| Three Months Ended March 31, | | | | | | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Years Ended December 31, | ||||||||||||||||||||||
(millions except ratios) | |||||||||||||||||||||||
2004 | 2003 | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||||
Income from continuing operations before provision for income taxes and minority interest | $ | 300 | $ | 268 | $ | 1,132 | $ | 840 | $ | 369 | $ | 850 | $ | 625 | |||||||||
Less: Earnings from unconsolidated entities under the equity method of accounting | 17 | 7 | 49 | 19 | (139 | ) | 44 | 50 | |||||||||||||||
Add back fixed charges: | |||||||||||||||||||||||
Interest on indebtedness | 34 | 28 | 101 | 124 | 127 | 140 | 105 | ||||||||||||||||
Interest credited on deposit-type insurance contracts | — | 1 | — | 29 | 56 | 71 | 77 | ||||||||||||||||
Interest on ESOP | — | — | — | — | — | — | 1 | ||||||||||||||||
Portion of rents representative of interest factor | 15 | 14 | 67 | 59 | 57 | 54 | 49 | ||||||||||||||||
Income as adjusted | $ | 332 | $ | 304 | $ | 1,251 | $ | 1,033 | $ | 748 | $ | 1,071 | $ | 807 | |||||||||
Fixed charges: | |||||||||||||||||||||||
Interest on indebtedness(1) | $ | 34 | $ | 28 | $ | 101 | $ | 124 | $ | 127 | $ | 140 | $ | 105 | |||||||||
Interest credited on deposit-type insurance contracts | — | 1 | — | 29 | 56 | 71 | 77 | ||||||||||||||||
Interest on ESOP | — | — | — | — | — | — | 1 | ||||||||||||||||
Portion of rents representative of interest factor | 15 | 14 | 67 | 59 | 57 | 54 | 49 | ||||||||||||||||
Total fixed charges | $ | 49 | $ | 43 | $ | 168 | $ | 212 | $ | 240 | $ | 265 | $ | 232 | |||||||||
Ratio of earnings to fixed charges | 6.8 | 7.1 | 7.4 | 4.9 | 3.1 | 4.0 | 3.5 | ||||||||||||||||
- (1)
- As a result of the adoption of FIN 46 on December 31, 2003, Aon was required to deconsolidate its 8.205% mandatorily redeemable preferred capital securities. This decrease was offset by an increase in notes payable. Beginning in 2004, interest expense ($14 million for the three months ended March 31, 2004) on these notes payable is reported as part of interest expense on the condensed consolidated statements of income.