CONSECO, INC. AND SUBSIDIARIES
Exhibit 12.1
Computation of Ratios of Earnings to Fixed Charges,
Preferred Dividends and Distributions on Company-Obligated Mandatorily
Redeemable Preferred Securities of Subsidiary Trusts
(Dollars in millions)
Nine Months Ended
Year Ended December 31, September 30,
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1994 1995 1996 1997 1998 1998 1999
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Pretax income from operations:
Net income.................................... $ 330.5 $ 470.9 $ 452.2 $ 866.4 $ 467.1 $ 183.5 $ 787.4
Add income tax expense........................ 231.2 240.7 302.2 560.1 445.6 275.1 503.9
Add extraordinary charge on
extinguishment of debt...................... 4.0 2.1 26.5 6.9 42.6 42.6 -
Add minority interest......................... 59.0 109.0 34.9 52.3 90.4 60.4 93.9
Less equity in undistributed
earnings of CCP Insurance, Inc.............. (23.8) - - - - - -
Less equity in undistributed
earnings of Western National Corp........... (37.2) - - - - - -
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Pretax income from operations........... 563.7 822.7 815.8 1,485.7 1,045.7 561.6 1,385.2
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Add fixed charges:
Interest expense on corporate debt,
including amortization..................... 59.3 119.4 108.1 109.4 165.4 120.6 124.0
Interest expense on finance debt.............. 41.6 57.3 70.1 160.9 209.8 160.3 204.5
Interest expense on investment borrowings..... 7.7 22.2 22.0 42.0 65.3 51.9 42.8
Other ....................................... .9 1.0 .9 .7 .5 .4 .3
Portion of rental(1).......................... 7.9 8.9 10.9 13.7 14.6 11.0 11.1
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Fixed charges............................. 117.4 208.8 212.0 326.7 455.6 344.2 382.7
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Adjusted earnings......................... $681.1 $1,031.5 $1,027.8 $1,812.4 $1,501.3 $ 905.8 $1,767.9
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Ratio of earnings to fixed charges...... 5.80X 4.94X 4.85X 5.55X 3.30X 2.63X 4.62X
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Ratio of earnings to fixed charges,
excluding interest expense on debt
related to finance receivables and
other investments..................... 9.28X 7.36X 7.80X 13.00X 6.79X 5.25X 11.23X
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Fixed charges................................. $117.4 $ 208.8 $ 212.0 $ 326.7 $ 455.6 $344.2 $382.7
Add dividends on preferred stock, including
dividends on preferred stock of subsidiaries
(divided by the rate of income before
minority interest and extraordinary
charge to pretax income).................... 34.8 40.3 57.6 40.4 13.6 11.6 .9
Add distributions on Company-obligated
mandatorily redeemable preferred securities
of subsidiary trusts........................ - - 5.5 75.4 139.1 92.2 144.5
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Fixed charges............................. $152.2 $ 249.1 $ 275.1 $ 442.5 $ 608.3 $ 448.0 $ 528.1
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Adjusted earnings......................... $681.1 $1,031.5 $1,027.8 $1,812.4 $1,501.3 $ 905.8 $1,767.9
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Ratio of earnings to fixed charges,
preferred dividends and distributions
on Company-obligated mandatorily
redeemable preferred securities
of subsidiary trusts.................. 4.48X 4.14X 3.74X 4.10X 2.47X 2.02X 3.35X
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Ratio of earnings to fixed charges,
preferred dividends and distributions
on Company-obligated mandatorily
redeemable preferred securities of
subsidiary trusts, excluding interest
expense on debt related to finance
receivables and other investments..... 6.14X 5.61X 5.11X 6.72X 3.68X 2.94X 5.42X
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<FN>
(1) Interest portion of rental is assumed to be 33 percent.
</FN>