Exhibit 12(b)
Aon Corporation and Consolidated Subsidiaries
Combined With Unconsolidated Subsidiaries
Computation of Ratio of Earnings to Combined Fixed Charges
and Preferred Stock Dividends
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| Three Months Ended |
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| Mar. 31, |
| Years Ended December 31, |
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(millions except ratios) |
| 2007 |
| 2006 |
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
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Income from continuing operations before provision for income taxes and minority interest |
| $ | 312 |
| $ | 266 |
| $ | 920 |
| $ | 808 |
| $ | 733 |
| $ | 960 |
| $ | 676 |
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Less: Earnings from unconsolidated entities under the equity method of accounting |
| 1 |
| (1 | ) | 4 |
| 7 |
| 34 |
| 49 |
| 19 |
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Add back fixed charges: |
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Interest on indebtedness (1) |
| 35 |
| 31 |
| 129 |
| 125 |
| 136 |
| 101 |
| 124 |
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Interest on FIN 48 liabilities |
| (1 | ) | — |
| — |
| — |
| — |
| — |
| — |
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Interest credited on deposit-type insurance contracts |
| — |
| — |
| — |
| — |
| 1 |
| — |
| 29 |
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Portion of rents representative of interest factor |
| 18 |
| 18 |
| 79 |
| 71 |
| 73 |
| 67 |
| 59 |
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Income as adjusted |
| $ | 363 |
| $ | 316 |
| $ | 1,124 |
| $ | 997 |
| $ | 909 |
| $ | 1,079 |
| $ | 869 |
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Fixed charges and preferred stock dividends: |
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Interest on indebtedness (1) |
| $ | 35 |
| $ | 31 |
| $ | 129 |
| $ | 125 |
| $ | 136 |
| $ | 101 |
| $ | 124 |
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Preferred stock dividends (2) |
| — |
| — |
| — |
| 3 |
| 3 |
| 61 |
| 58 |
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Interest and dividends |
| 35 |
| 31 |
| 129 |
| 128 |
| 139 |
| 162 |
| 182 |
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Interest credited on deposit-type insurance contracts |
| — |
| — |
| — |
| — |
| 1 |
| — |
| 29 |
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Portion of rents representative of interest factor |
| 18 |
| 18 |
| 79 |
| 71 |
| 73 |
| 67 |
| 59 |
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Total fixed charges and preferred stock dividends |
| $ | 53 |
| $ | 49 |
| $ | 208 |
| $ | 199 |
| $ | 213 |
| $ | 229 |
| $ | 270 |
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Ratio of earnings to combined fixed charges and preferred stock dividends |
| 6.8 |
| 6.4 |
| 5.4 |
| 5.0 |
| 4.3 |
| 4.7 |
| 3.2 |
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(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 both the three months ended March 31, 2007 and 2006 and $58 million for the years ended December 31, 2006, 2005 and 2004) on these notes payable is reported as part of interest expense on the condensed consolidated statements of income. |
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(2) | Included in preferred stock dividends are $57 million and $54 million for the years ended December 31, 2003 and 2002, respectively, of pretax distributions on the capital securities. |