Exhibit 12.1
LINCOLN NATIONAL CORPORATION AND SUBSIDIARIES
HISTORICAL RATIO OF EARNINGS TO FIXED CHARGES
(dollars in millions)
For the Six Months | ||||||||
Ended June 30, | ||||||||
2009 | 2008 | |||||||
Income (loss) from continuing operations before taxes | $ | (699 | ) | $ | 581 | |||
Sub-total of fixed charges | 140 | 159 | ||||||
Sub-total of adjusted income (loss) | (559 | ) | 740 | |||||
Interest on annuities and financial products | 1,245 | 1,262 | ||||||
Adjusted income base | $ | 686 | $ | 2,002 | ||||
Fixed Charges | ||||||||
Interest and debt expense (1) | $ | 125 | $ | 140 | ||||
Interest expense related to uncertain tax positions | 6 | 9 | ||||||
Portion of rent expense representing interest | 9 | 10 | ||||||
Sub-total of fixed charges excluding interest on annuities and financial products | 140 | 159 | ||||||
Interest on annuities and financial products | 1,245 | 1,262 | ||||||
Total fixed charges | $ | 1,385 | $ | 1,421 | ||||
Ratio of sub-total of adjusted income to sub-total of fixed charges excluding interest on | ||||||||
annuities and financial products (2) | NM | 4.65 | ||||||
Ratio of adjusted income base to total fixed charges (2) | NM | 1.41 |
(1) | Interest and debt expense excludes a $64 million gain related to the early retirement of debt in the first quarter 2009. |
(2) | The ratios of earnings to fixed charges, for the six months ended June 30, 2009, indicated less than one-to-one coverage and are therefore not presented. Additional earnings of $699 million would have been required for the six months ended June 30, 2009, to achieve ratios of one-to-one coverage. |