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
Six Months
Ended June 30, Years Ended December 31,
-------- -------- -------- -------- -------- -------- --------
(millions except ratios) 1998 1997 1997 1996 1995 1994 1993
-------- -------- -------- -------- -------- -------- --------
Income from continuing operations
before provision for income taxes (1) $ 477.4 $ 167.1 $ 541.6 $ 445.6 $ 458.0 $ 397.0 $ 331.6
ADD BACK FIXED CHARGES:
Interest on indebtedness 41.3 30.6 69.5 44.7 55.5 46.4 42.3
Interest on ESOP 1.4 1.9 3.5 4.3 5.3 5.9 6.5
Portion of rents representative of
interest factor 22.2 29.4 44.3 28.6 21.4 28.7 26.1
-------- -------- -------- -------- -------- -------- --------
INCOME AS ADJUSTED $ 542.3 $ 229.0 $ 658.9 $ 523.2 $ 540.2 $ 478.0 $ 406.5
======== ======== ======== ======== ======== ======== ========
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS:
Interest on indebtedness $ 41.3 $ 30.6 $ 69.5 $ 44.7 $ 55.5 $ 46.4 $ 42.3
Preferred stock dividends 35.0 42.0 82.1 28.7 37.5 48.4 47.5
-------- -------- -------- -------- -------- -------- --------
INTEREST AND DIVIDENDS 76.3 72.6 151.6 73.4 93.0 94.8 89.8
Interest on ESOP 1.4 1.9 3.5 4.3 5.3 5.9 6.5
Portion of rents representative of
interest factor 22.2 29.4 44.3 28.6 21.4 28.7 26.1
TOTAL FIXED CHARGES AND PREFERRED
-------- -------- -------- -------- -------- -------- --------
STOCK DIVIDENDS $ 99.9 $ 103.9 $ 199.4 $ 106.3 $ 119.7 $ 129.4 $ 122.4
======== ======== ======== ======== ======== ======== ========
RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS (2) 5.4 2.2 3.3 4.9 4.5 3.7 3.3
======== ======== ======== ======== ======== ======== ========
RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS (3) 3.9 4.2 5.8
======== ======== ========
<FN>
(1) Income from continuing operations before provision for income taxes and
minority interest includes special charges of $172 million for the six
months ended June 30, 1997 and the year ended December 31, 1997, and $90.5
million in the year ended December 31, 1996.
(2) Included in total fixed charges and preferred stock dividends for the six
months ended June 30, 1998 and 1997 are $33 million and $31.2 million,
respectively, and $64 million for the year ended December 31, 1997 of
pretax distributions on the 8.205% mandatorily redeemable preferred
capital securities which are classified as "minority interest" on the
condensed consolidated statements of operations.
(3) 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 six months ended June 30,
1997 and for the years ended December 31, 1997 and 1996, respectively.
</FN>