UNUM CORPORATION AND SUBSIDIARIES FORM 10-Q SEPTEMBER 30, 1996 EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Three Months Ended Nine Months Ended September 30, September 30, ----------------- ---------------- (Unaudited - Dollars in millions) 1996 1995 1996 1995 - ---------------------------------------------------------------------------- Earnings: Income from continuing operations before income taxes $ 63.4 $ 91.1 $272.0 $297.1 Add: Fixed charges 12.9 12.8 39.6 34.9 - ---------------------------------------------------------------------------- Earnings as adjusted $ 76.3 $103.9 $311.6 $332.0 Fixed charges: Interest expense $ 9.9 $ 10.2 $ 30.6 $ 26.8 Interest portion of rent expense 3.0 2.6 9.0 8.1 - ---------------------------------------------------------------------------- Total fixed charges $ 12.9 $ 12.8 $ 39.6 $ 34.9 Ratio of earnings to fixed charges 5.9 8.1 7.9 9.5 ============================================================================= For purposes of computing the ratio of earnings to fixed charges, earnings as adjusted consist of income from continuing operations before income taxes and fixed charges. Fixed charges consist of interest expense and the estimated interest portion of rent expense.