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,
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(millions except ratios) 1999 1998 1998 1997 1996 1995 1994
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Income from continuing operations
before provision for income taxes (1) $ 356 $ 477 $ 931 $ 542 $ 446 $ 458 $ 397
Add back fixed charges:
Interest on indebtedness 45 41 87 70 45 56 46
Interest on ESOP 1 2 2 3 4 5 6
Portion of rents representative of
interest factor 25 22 51 44 29 21 29
------ ------ ------ ------ ------ ------ ------
Income as adjusted $ 427 $ 542 $1,071 $ 659 $ 524 $ 540 $ 478
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Fixed charges and preferred stock dividends:
Interest on indebtedness $ 45 $ 41 $ 87 $ 70 $ 45 $ 56 $ 46
Preferred stock dividends 35 35 70 82 29 38 48
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Interest and dividends 80 76 157 152 74 94 94
Interest on ESOP 1 2 2 3 4 5 6
Portion of rents representative of
interest factor 25 22 51 44 29 21 29
------ ------ ------ ------ ------ ----- ------
Total fixed charges and preferred
stock dividends $ 106 $ 100 $ 210 $ 199 $ 107 $ 120 $ 129
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Ratio of earnings to combined fixed
charges and preferred stock dividends (2) 4.0 5.4 5.1 3.3 4.9 4.5 3.7
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Ratio of earnings to combined fixed
charges and preferred stock dividends (3) 5.6 4.2 5.8
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<FN>
(1) Income from continuing operations before provision for income taxes and
minority interest includes special charges of $163 million for the six
months ended June 30, 1999, $172 million for the year ended December
31, 1997 and $90 million for the year ended December 31, 1996.
(2) Included in total fixed charges and preferred stock dividends are $32
million for the six months ended June 30, 1999 and 1998, $66 million for
the year ended December 31, 1998 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 the six months ended June
30, 1999 and for the years ended December 31, 1997 and 1996.
</FN>