Exhibit 12.1
Ratio of Earnings to Fixed Charges
(dollars in millions)
Years Ended December 31, | |||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||
Income before income taxes | $ | 1,043.9 | $ | 744.8 | $ | 1,008.5 | $ | 635.3 | $ | 919.2 | |||||||||||
Less: | |||||||||||||||||||||
Undistributed income (loss) of investees accounted for under the | |||||||||||||||||||||
equity method | 1.6 | 7.0 | 3.0 | 4.3 | 3.3 | ||||||||||||||||
Adjusted earnings before fixed charges | 1,042.3 | 737.8 | 1,005.5 | 631.0 | 915.9 | ||||||||||||||||
Add fixed charges: | |||||||||||||||||||||
Interest expense | 163.5 | 165.5 | 108.1 | 134.8 | 117.5 | ||||||||||||||||
Interest credited on reinsurance contracts | 364.7 | 337.0 | 451.0 | 476.5 | 379.9 | ||||||||||||||||
One-third of rentals | 4.6 | 4.0 | 6.4 | 6.2 | 6.5 | ||||||||||||||||
Total fixed charges | 532.8 | 506.5 | 565.5 | 617.5 | 503.9 | ||||||||||||||||
Total earnings plus fixed charges | $ | 1,575.1 | $ | 1,244.3 | $ | 1,571.0 | $ | 1,248.5 | $ | 1,419.8 | |||||||||||
Ratio of earnings to fixed charges | 3.0 | 2.5 | 2.8 | 2.0 | 2.8 | ||||||||||||||||
Total fixed charges | $ | 532.8 | $ | 506.5 | $ | 565.5 | $ | 617.5 | $ | 503.9 | |||||||||||
Less interest credited on reinsurance contracts | 364.7 | 337.0 | 451.0 | 476.5 | 379.9 | ||||||||||||||||
Total fixed charges excluding interest credited(1) | $ | 168.1 | $ | 169.5 | $ | 114.5 | $ | 141.0 | $ | 124.0 | |||||||||||
Total earnings plus fixed charges excluding interest credited | |||||||||||||||||||||
under reinsurance contracts(1) | $ | 1,210.4 | $ | 907.3 | $ | 1,120.0 | $ | 772.0 | $ | 1,039.9 | |||||||||||
Ratio of earnings to fixed charges excluding interest credited | |||||||||||||||||||||
under reinsurance contracts(1) | 7.2 | 5.4 | 9.8 | 5.5 | 8.4 | ||||||||||||||||
(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. |