Exhibit 12.1
Marsh & McLennan Companies, Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
(In millions, except ratios)
Three
Months Years Ended
Ended December 31,
March 31, ----------------------
2001 2000 1999(1)
---- ---- ------
(Unaudited)
Earnings
- --------
Income before income taxes and minority
interest $ 598 $1,955 $1,255
Interest expense 52 247 233
Portion of rents representative of
the interest factor 28 120 121
Amortization of capitalized interest -- -- 1
------ ------ ------
$ 678 $2,322 $1,610
====== ====== ======
Fixed Charges
- -------------
Interest expense $ 52 $ 247 $ 233
Portion of rents representative of
the interest factor 28 120 121
------ ------ ------
$ 80 $ 367 $ 354
====== ====== ======
Ratio of Earnings to Fixed Charges 8.5 6.3 4.5
Years Ended
December 31,
1998 1997(2) 1996
---------------------------------
Earnings
- --------
Income before income taxes and minority
interest $1,305 $ 715 $ 668
Interest expense 140 107 61
Portion of rents representative of
the interest factor 104 88 72
Amortization of capitalized interest 1 1 1
------ ------ ------
$1,550 $ 911 $ 802
====== ====== ======
Fixed Charges
- -------------
Interest expense $ 140 $ 107 $ 61
Portion of rents representative of
the interest factor 104 88 72
------ ------ ------
$ 244 $ 195 $ 133
====== ====== ======
Ratio of Earnings to Fixed Charges 6.4 4.7 6.0
(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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