Exhibit 12(a)
Aon Corporation and Consolidated Subsidiaries
Combined With Unconsolidated Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
|
| Nine Months Ended |
| Years Ended December 31, |
| |||||||||||||||||
(millions except ratios) |
| 2006 |
| 2005 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| 2001 |
| |||||||
Income from continuing operations before provision for income taxes and minority interest |
| $ | 672 |
| $ | 669 |
| $ | 811 |
| $ | 737 |
| $ | 974 |
| $ | 691 |
| $ | 160 |
|
Less: Earnings from unconsolidated entities under the equity method of accounting |
| 8 |
| 6 |
| 7 |
| 34 |
| 49 |
| 19 |
| (139 | ) | |||||||
Add back fixed charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Interest on indebtedness (1) |
| 99 |
| 94 |
| 125 |
| 136 |
| 101 |
| 124 |
| 127 |
| |||||||
Interest credited on deposit-type insurance contracts |
| — |
| — |
| — |
| 1 |
| — |
| 29 |
| 56 |
| |||||||
Portion of rents representative of interest factor |
| 55 |
| 53 |
| 71 |
| 73 |
| 67 |
| 59 |
| 57 |
| |||||||
Income as adjusted |
| $ | 818 |
| $ | 810 |
| $ | 1,000 |
| $ | 913 |
| $ | 1,093 |
| $ | 884 |
| $ | 539 |
|
Fixed charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Interest on indebtedness (1) |
| $ | 99 |
| $ | 94 |
| $ | 125 |
| $ | 136 |
| $ | 101 |
| $ | 124 |
| $ | 127 |
|
Interest credited on deposit-type insurance contracts |
| — |
| — |
| — |
| 1 |
| — |
| 29 |
| 56 |
| |||||||
Portion of rents representative of interest factor |
| 55 |
| 53 |
| 71 |
| 73 |
| 67 |
| 59 |
| 57 |
| |||||||
Total fixed charges |
| $ | 154 |
| $ | 147 |
| $ | 196 |
| $ | 210 |
| $ | 168 |
| $ | 212 |
| $ | 240 |
|
Ratio of earnings to fixed charges |
| 5.3 |
| 5.5 |
| 5.1 |
| 4.3 |
| 6.5 |
| 4.2 |
| 2.2 |
|
(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 ($43 million for both the nine months ended September 30, 2006 and 2005 and $58 million for the years ended December 31, 2005 and 2004) on these notes payable is reported as part of interest expense on the condensed consolidated statements of income.