Exhibit 12.1
Marsh & McLennan Companies, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
(In millions, except ratios)
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Qtr. Ended Years Ended December 31,
March 31, --------------------------------------------
2000 1999 (1) 1998 1997 (2) 1996 1995
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Earnings
Income before income taxes $557 $1,247 $1,305 $715 $668 $650
Interest expense 60 233 140 107 61 63
Portion of rents
representative of the
interest factor 30 121 104 88 72 73
Amortization of capitalized
interest 0 1 1 1 1 1
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$647 $1,602 $1,550 $911 $802 $787
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Fixed Charges
Interest expense $ 60 $ 233 $ 140 $107 $ 61 $ 63
Portion of rents
representative of
the interest factor 30 121 104 88 72 73
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$ 90 $ 354 $ 244 $195 $133 $136
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Ratio of Earnings to
Fixed Charges 7.2 4.5 6.4 4.7 6.0 5.8
(1) For the year ended December 31, 1999, income before income taxes included
a $337 million special charge related to the acquisition and integration
of Sedgwick. Excluding that charge, the ratio of earnings to fixed
charges would have been 5.5.
(2) For the year ended December 31, 1997, income before income taxes included
a $244 million special charge related to the Johnson & Higgins
integration, London real estate and the disposal of certain assets.
Excluding that charge, the ratio of earnings to fixed charges would have
been 5.9.