Exhibit 12(b)
Aon CORPORATION AND CONSOLIDATED SUBSIDIARIES
COMBINED WITH UNCONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
First Quarter
Ended March 31, Years Ended December 31,
--------------------- ---------------------------------------------------------
(millions except ratios) 1997 1996 1996 1995 1994 1993 1992(1)
--------- --------- --------- --------- --------- --------- ---------
Income from continuing operations
before provision for income taxes (2) $ 15.2 $ 145.6 $ 445.6 $ 458.0 $ 397.0 $ 331.6 $ 179.1
Add back fixed charges:
Interest on indebtedness 14.6 13.8 44.7 55.5 46.4 42.3 41.9
Interest on ESOP 1.0 1.2 4.3 5.3 5.9 6.5 6.9
Portion of rents representative of
interest factor 14.7 6.7 28.6 21.4 28.7 26.1 19.2
--------- --------- --------- --------- --------- --------- ---------
INCOME AS ADJUSTED $ 45.5 $ 167.3 $ 523.2 $ 540.2 $ 478.0 $ 406.5 $ 247.1
========= ========= ========= ========= ========= ========= =========
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS:
Interest on indebtedness: $ 14.6 $ 13.8 $ 44.7 $ 55.5 $ 46.4 $ 42.3 $ 41.9
Preferred stock dividends 19.4 7.8 28.7 37.5 48.4 47.5 20.3
--------- --------- --------- --------- --------- --------- ---------
INTEREST AND DIVIDENDS 34.0 21.6 73.4 93.0 94.8 89.8 62.2
Interest on ESOP 1.0 1.2 4.3 5.3 5.9 6.5 6.9
Portion of rents representative of
interest factor 14.7 6.7 28.6 21.4 28.7 26.1 19.2
--------- --------- --------- --------- --------- --------- ---------
TOTAL FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS $ 49.7 $ 29.5 $ 106.3 $ 119.7 $ 129.4 $ 122.4 $ 88.3
========= ========= ========= ========= ========= ========= =========
RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS (3) 0.9 5.7 4.9 4.5 3.7 3.3 2.8
========= ========= ========= ========= ========= ========= =========
Ratio of earnings to combined fixed
charges and preferred stock dividends (4) 3.8 5.8 3.8
========= ========= =========
<FN>
(1) Income from continuing operations before provision for income taxes
excludes the cumulative effect of changes in accounting principles.
(2) Income from continuing operations before provision for income taxes and
minority interest includes special charges of $145 million in first quarter
ended March 31, 1997 and $90.5 million and $86.5 million in the years ended
December 31, 1996 and 1992, respectively.
(3) The ratio of earnings to combined fixed charges and preferred stock dividends
for first quarter ended March 31, 1997 is less than a one-to-one coverage
indicating that earnings are inadequate to cover fixed charges by $4.2 million.
Included in total fixed charges and preferred stock dividends for first
quarter ended March 31, 1997 are $14.1 million of pretax distributions on
the 8.205% trust preferred captial securities which are classified as
"minority interest" on the condensed consolidated statements of operations.
(4) The calculation of this ratio of earnings to fixed charges reflects the
exclusion of special charges from the income from continuing operations before
provision for income taxes component for the first quarter ended March 31, 1997
and the years ended December 31, 1996 and 1992, respectively.
</FN>