Exhibit 12.1
Ratio of Earnings to Fixed Charges
(dollars in millions)
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
Income before income taxes | $ | 1,008.5 | $ | 635.3 | $ | 919.2 | $ | 763.6 | $ | 806.2 | |||||||||||
Less: | |||||||||||||||||||||
Undistributed income of investees accounted for under the | |||||||||||||||||||||
equity method | 3.0 | 4.3 | 3.3 | 3.1 | — | ||||||||||||||||
Adjusted earnings before fixed charges | 1,005.5 | 631.0 | 915.9 | 760.5 | 806.2 | ||||||||||||||||
Add fixed charges: | |||||||||||||||||||||
Interest expense | 108.1 | 134.8 | 117.5 | 115.0 | 98.9 | ||||||||||||||||
Interest credited on reinsurance contracts | 451.0 | 476.5 | 379.9 | 316.4 | 310.0 | ||||||||||||||||
One-third of rentals | 6.4 | 6.2 | 6.5 | 6.3 | 5.7 | ||||||||||||||||
Total fixed charges | 565.5 | 617.5 | 503.9 | 437.7 | 414.6 | ||||||||||||||||
Total earnings plus fixed charges | $ | 1,571.0 | $ | 1,248.5 | $ | 1,419.8 | $ | 1,198.2 | $ | 1,220.8 | |||||||||||
Ratio of earnings to fixed charges | 2.8 | 2.0 | 2.8 | 2.7 | 2.9 | ||||||||||||||||
Total fixed charges | $ | 565.5 | $ | 617.5 | $ | 503.9 | $ | 437.7 | $ | 414.6 | |||||||||||
Less interest credited on reinsurance contracts | 451.0 | 476.5 | 379.9 | 316.4 | 310.0 | ||||||||||||||||
Total fixed charges excluding interest credited(1) | $ | 114.5 | $ | 141.0 | $ | 124.0 | $ | 121.3 | $ | 104.6 | |||||||||||
Total earnings plus fixed charges excluding interest credited | |||||||||||||||||||||
under reinsurance contracts(1) | $ | 1,120.0 | $ | 772.0 | $ | 1,039.9 | $ | 881.8 | $ | 910.8 | |||||||||||
Ratio of earnings to fixed charges excluding interest credited | |||||||||||||||||||||
under reinsurance contracts(1) | 9.8 | 5.5 | 8.4 | 7.3 | 8.7 | ||||||||||||||||
(1) | This information is not required, but the Company believes it provides additional useful information on the coverage of fixed charges that are not related to its products. |