SAFECO Corporation and Subsidiaries
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COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES Exhibit 12
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RATIO OF EARNINGS (LOSS) TO FIXED CHARGES*
YEAR ENDED DECEMBER 31 2001 2000 1999 1998 1997
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(In Millions Except For Ratios)
EARNINGS (LOSS)
Income (Loss) Before Income Taxes $(1,482.3) $ 70.4 $ 240.6 $ 371.0 $ 528.3
Total Fixed Charges 1,119.4 1,123.5 1,024.9 1,001.6 778.5
Less Interest Capitalized (8.3) (6.1) -- (0.5) (2.0)
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Total Earnings (Loss) $ (371.2) $1,187.8 $1,265.5 $1,372.1 $1,304.8
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FIXED CHARGES
Interest $ 65.7 $ 73.2 $ 70.6 $ 92.5 $ 45.5
Interest on Deposit Contracts 960.2 959.9 872.2 831.4 702.8
Distributions on Capital Securities 69.0 69.0 69.0 69.1 22.8
Interest Capitalized 8.3 6.1 -- 0.5 2.0
Interest Portion of Rental Expense 15.0 14.3 12.0 8.7 4.8
Amortization of Deferred Debt Expense 1.2 1.0 1.1 1.4 0.7
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Total Fixed Charges $ 1,119.4 $1,123.5 $1,024.9 $1,001.6 $ 778.5
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RATIO OF EARNINGS (LOSS) TO FIXED CHARGES (0.3) 1.1 1.2 1.4 1.7
Dollar Amount of Deficiency in Earnings
(Loss) to Fixed Charges $ 1,490.6 N/A N/A N/A N/A
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SUPPLEMENTAL RATIOS**
RATIO OF EARNINGS (LOSS) TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSIT CONTRACTS
AND DISTRIBUTIONS ON CAPITAL SECURITIES (15.5) 1.7 3.9 4.7 10.9
Dollar Amount of Deficiency in Earnings
(Loss) to Fixed Charges $ 1,490.6 N/A N/A N/A N/A
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RATIO OF EARNINGS (LOSS) TO FIXED CHARGES
(INCLUDING INTEREST ON DEPOSIT CONTRACTS) (8.4) 1.4 2.6 3.2 7.9
Dollar Amount of Deficiency in Earnings
(Loss) to Fixed Charges $ 1,490.6 N/A N/A N/A N/A
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* As defined in Item 503(d) Of Regulation S-K of the Securities Exchange
Act of 1934.
** These Ratios are presented to provide additional measures of the ratio of
earnings (loss) to fixed charges and are provided as a supplement to the
ratios calculated under Item 503(d). While not required or encouraged by
Securities and Exchange Commission rules or regulations SAFECO believes
these supplemental ratios provide useful additional measures of financial
performance for investors and creditors.
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