EXHIBIT 12.1
LOEWS CORPORATION
Statement of Computation of Ratio of Earnings to Fixed Charges
(Dollar Amount in Millions)
Year Ended December 31, | ||||||||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||||||
Pretax income (loss) from continuing operations | $ | 1,647.1 |
| $ | (822.2 | ) | $ | 3,151.1 |
| $ | 876.5 |
| $ | 993.7 |
| |||||
Add (deduct): | ||||||||||||||||||||
Undistributed loss (income) of associated companies |
| (5.3 | ) |
| (44.5 | ) |
| (21.5 | ) |
| (0.5 | ) |
| (8.5 | ) | |||||
Capitalized interest |
| (2.9 | ) |
| (5.7 | ) |
| (16.2 | ) |
| (7.9 | ) |
| (8.5 | ) | |||||
Amortization of capitalized interest |
| 4.7 |
|
| 1.5 |
|
| 0.5 |
|
| 0.4 |
|
| 0.3 |
| |||||
Earnings before fixed charges |
| 1,643.6 |
|
| (870.9 | ) |
| 3,113.9 |
|
| 868.5 |
|
| 977.0 |
| |||||
Fixed charges: | ||||||||||||||||||||
Interest expense |
| 309.6 |
|
| 332.0 |
|
| 356.9 |
|
| 354.2 |
|
| 369.1 |
| |||||
Capitalized interest |
| 2.9 |
|
| 5.7 |
|
| 16.2 |
|
| 7.9 |
|
| 8.5 |
| |||||
Interest element of operating lease rental |
| 39.0 |
|
| 42.0 |
|
| 38.0 |
|
| 42.0 |
|
| 54.0 |
| |||||
Interest credited to policyholders |
| 116.0 |
|
| 134.0 |
|
| 171.0 |
|
| 167.0 |
|
| 284.0 |
| |||||
Total fixed charges |
| 467.5 |
|
| 513.7 |
|
| 582.1 |
|
| 571.1 |
|
| 715.6 |
| |||||
Total earnings and fixed charges | $ | 2,111.1 |
| $ | (357.2 | ) | $ | 3,696.0 |
| $ | 1,439.6 |
| $ | 1,692.6 |
| |||||
Ratio of earnings to fixed charges |
| 4.5 |
|
| (0.7 | ) |
| 6.3 |
|
| 2.5 |
|
| 2.4 |
| |||||
| (A | ) | ||||||||||||||||||
Earnings before fixed charges |
| 1,643.6 |
|
| (870.9 | ) |
| 3,113.9 |
|
| 868.5 |
|
| 977.0 |
| |||||
Fixed charges, excluding interest credited to policyholders |
| 351.5 |
|
| 379.7 |
|
| 411.1 |
|
| 404.1 |
|
| 431.6 |
| |||||
Total earnings and fixed charges, excluding interest credited to policyholders | $ | 1,995.1 |
| $ | (491.2 | ) | $ | 3,525.0 |
| $ | 1,272.6 |
| $ | 1,408.6 |
| |||||
Ratio of earnings to fixed charges, excluding interest credited to policyholders |
| 5.7 |
|
| (1.3 | ) |
| 8.6 |
|
| 3.1 |
|
| 3.3 |
| |||||
(A) | We incurred a loss for the year ended December 31, 2001, and income from continuing operations was insufficient to cover fixed charges by $870.9 million. |