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THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(for the year ended December 31, in millions, except ratios) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Income from continuing operations before income taxes and minority interest | $ | 6,216 | $ | 5,725 | $ | 2,671 | $ | 946 | $ | 2,229 | ||||||
Interest | 346 | 324 | 286 | 236 | 167 | |||||||||||
Portion of rentals deemed to be interest | 79 | 78 | 72 | 68 | 38 | |||||||||||
Income available for fixed charges | $ | 6,641 | $ | 6,127 | $ | 3,029 | $ | 1,250 | $ | 2,434 | ||||||
Fixed charges: | ||||||||||||||||
Interest | $ | 346 | $ | 324 | $ | 286 | $ | 236 | $ | 167 | ||||||
Portion of rentals deemed to be interest | 79 | 78 | 72 | 68 | 38 | |||||||||||
Total fixed charges | 425 | 402 | 358 | 304 | 205 | |||||||||||
Preferred stock dividend requirements | 6 | 8 | 9 | 8 | — | |||||||||||
Total fixed charges and preferred stock dividend requirements | $ | 431 | $ | 410 | $ | 367 | $ | 312 | $ | 205 | ||||||
Ratio of earnings to fixed charges | 15.64 | 15.24 | 8.46 | 4.11 | 11.89 | |||||||||||
Ratio of earnings to combined fixed charges and preferred dividend requirements | 15.41 | 14.96 | 8.25 | 4.01 | 11.89 | |||||||||||
Data for 2007, 2006 and 2005 reflects results of the Company for the years ended December 31, 2007, 2006 and 2005. Data for the year ended December 31, 2004 reflects information for TPC for the period January 1, 2004 through March 31, 2004, and for the Company for the nine-month period from the merger date of April 1, 2004 through December 31, 2004. Data for 2003 reflects information for TPC only.
The ratio of earnings to fixed charges is computed by dividing income available for fixed charges by the fixed charges. For purposes of this ratio, fixed charges consist of that portion of rentals deemed representative of the appropriate interest factor.