Exhibit 12.1
Loews Corporation
Calculation of Ratio of Earnings to Fixed Charges
(Dollar amounts in millions)
Years Ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Pretax income from continuing operations before | ||||||||||||||||||||
minority interest | $ | 587 | $ | 3,195 | $ | 3,104 | $ | 676 | $ | 769 | ||||||||||
Add (deduct): | ||||||||||||||||||||
Undistributed loss (income) from equity investees | 451 | (107 | ) | (206 | ) | (72 | ) | (39 | ) | |||||||||||
Capitalized interest | (115 | ) | (55 | ) | (12 | ) | (2 | ) | — | |||||||||||
Amortization of capitalized interest | 2 | 1 | 1 | 1 | 1 | |||||||||||||||
Earnings before fixed charges | 925 | 3,034 | 2,887 | 603 | 731 | |||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expensed | 345 | 318 | 304 | $ | 363 | 324 | ||||||||||||||
Capitalized interest | 115 | 55 | 12 | 2 | — | |||||||||||||||
Other interest related factors | 38 | 35 | 41 | 77 | 94 | |||||||||||||||
Total fixed charges | 498 | 408 | 357 | 442 | 418 | |||||||||||||||
Total earnings and fixed charges | $ | 1,423 | $ | 3,442 | $ | 3,244 | $ | 1,045 | $ | 1,149 | ||||||||||
Ratio of earnings to fixed charges | 2.9 | x | 8.4 | x | 9.1 | x | 2.4 | x | 2.7 | x | ||||||||||
Ratio of earnings, excluding interest credited to | ||||||||||||||||||||
policyholders, to fixed charges, excluding | ||||||||||||||||||||
interest credited to policyholders (a) | 2.9 | x | 8.6 | x | 9.5 | x | 2.5 | x | 3.1 | x |
(a) | This second ratio is disclosed for the convenience of fixed income investors and the rating agencies that serve them. Management believes it is more comparable to the ratios disclosed by all issuers of fixed income securities. Interest credited to policyholders was $6 million, $9 million, $17 million, $47 million and $64 million for the years ended December 31, 2008, 2007, 2006, 2005 and 2004, respectively. |