Exhibit 12.1
Chubb Limited
Ratio of Earnings to Fixed Charges
| Six Months Ended June 30 | Fiscal Year Ended December 31 | |||||||||||||||||||||||
(in millions of U.S. dollars, except ratios) | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||
Net income | $ | 2,376 | $ | 3,861 | $ | 4,135 | $ | 2,834 | $ | 2,853 | $ | 3,758 | ||||||||||||
Add: | ||||||||||||||||||||||||
Provision for income taxes(1) | 353 | (139 | ) | 815 | 462 | 634 | 480 | |||||||||||||||||
Fixed charges | 354 | 677 | 675 | 342 | 322 | 318 | ||||||||||||||||||
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Earnings for computation | $ | 3,083 | $ | 4,399 | $ | 5,625 | $ | 3,638 | $ | 3,809 | $ | 4,556 | ||||||||||||
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Fixed charges | ||||||||||||||||||||||||
Interest expense(1)(2) | $ | 324 | $ | 607 | $ | 605 | $ | 300 | $ | 280 | $ | 275 | ||||||||||||
Portion of rental expense deemed to be interest | 30 | 70 | 70 | 42 | 42 | 43 | ||||||||||||||||||
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Total fixed charges | $ | 354 | $ | 677 | $ | 675 | $ | 342 | $ | 322 | $ | 318 | ||||||||||||
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Ratio of earnings to fixed charges | 8.7 | 6.5 | 8.3 | 10.6 | 11.8 | 14.4 | ||||||||||||||||||
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| (1) | Chubb Limited recognizes accruals for interest and penalties, if any, related to unrecognized tax benefits in income tax expense (i.e., excluded from interest expense). |
| (2) | Six months ended June 30, 2018 and full year 2017 and 2016 included a $22 million, $49 million and $48 million benefit, respectively, related to amortization of the purchase accounting fair value adjustment to long-term debt assumed in connection with The Chubb Corporation acquisition. |
