Marsh & McLennan Companies, Inc. and Subsidiaries Exhibit 12
Ratio of Earnings to Fixed Charges
(In millions, except ratios)
Years Ended December 31,
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2002 2001 2000 1999(1) 1998
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Earnings
Income before income taxes and minority interest* $2,133 $1,590 $1,955 $1,255 $1,305
Interest expense 160 196 247 233 140
Portion of rents representative of
the interest factor 135 122 121 104 88
Amortization of capitalized interest -- -- -- 1 1
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$2,428 $1,908 $2,323 $1,593 $1,534
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Fixed Charges
Interest expense $ 160 $ 196 $ 247 $ 233 $ 140
Portion of rents representative of
the interest factor 135 122 121 104 88
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$ 295 $ 318 $ 368 $ 337 $ 228
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Ratio of Earnings to Fixed Charges 8.2 6.0 6.3 4.7 6.7
* Minority interest has been reclassified in the prior years (1998-1999) to
conform to the current year presentation.
(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.