Exhibit 12
Marsh & McLennan Companies, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
(In millions, except ratios)
Years Ended December 31,
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1999 (1) 1998 1997 (2) 1996 1995
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Earnings
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Income before income taxes $ 1,247 $ 1,305 $ 715 $ 668 $ 650
Interest expense 233 140 107 61 63
Portion of rents representative of
the interest factor 121 104 88 72 73
Amortization of capitalized interest 1 1 1 1 1
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$ 1,602 $ 1,550 $ 911 $ 802 $ 787
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Fixed Charges
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Interest expense $ 233 $ 140 $ 107 $ 61 $ 63
Portion of rents representative of
the interest factor 121 104 88 72 73
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$ 354 $ 244 $ 195 $ 133 $ 136
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Ratio of Earnings to Fixed Charges 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.