Exhibit 12.1
Marsh & McLennan Companies, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
(In millions, except ratios)
Nine
Months
Ended
September 30,
2001 Years Ended December 31,
----------- ---------------------------------------
(unaudited) 2000 1999 (1) 1998 1997(2) 1996
Earnings
Income before income taxes
and minority interest* $1,347 $1,955 $1,255 $1,305 $ 715 $668
Interest expense 154 247 233 140 107 61
Portion of rents
representative of
the interest factor 84 120 121 104 88 72
Amortization of
capitalized interest -- -- 1 1 1 1
$1,585 $2,322 $1,610 $1,550 $ 911 $802
Fixed Charges
Interest expense $ 154 $ 247 $ 233 $ 140 $ 107 $ 61
Portion of rents
representative of
the interest factor 84 120 121 104 88 72
$ 238 $ 367 $ 354 $ 244 $ 195 $133
Ratio of Earnings to Fixed
Charges 6.7 6.3 4.5 6.4 4.7 6.0
* Minority interest has been reclassified in the prior years to conform to the
current year presentation.
(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.
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