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
Nine Months Ended
September 30, Years Ended December 31,
-------------------- ---------------------------------------------------
(millions except ratios) 1999 1998 1998 1997 1996 1995 1994
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Income from continuing operations
before provision for income taxes (1) $ 595 $ 692 $ 931 $ 542 $ 446 $ 458 $ 397
Add back fixed charges:
Interest on indebtedness 74 64 87 70 45 56 46
Interest on ESOP 1 2 2 3 4 5 6
Portion of rents representative of
interest factor 38 33 51 44 29 21 29
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Income as adjusted $ 708 $ 791 $1,071 $ 659 $ 524 $ 540 $ 478
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Fixed charges and preferred stock dividends:
Interest on indebtedness $ 74 $ 64 $ 87 $ 70 $ 45 $ 56 $ 46
Preferred stock dividends 52 52 70 82 29 38 48
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Interest and dividends 126 116 157 152 74 94 94
Interest on ESOP 1 2 2 3 4 5 6
Portion of rents representative of
interest factor 38 33 51 44 29 21 29
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Total fixed charges and preferred
stock dividends $ 165 $ 151 $ 210 $ 199 $ 107 $ 120 $ 129
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Ratio of earnings to combined fixed
charges and preferred stock dividends (2) 4.3 5.2 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) 5.3 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 nine
months ended September 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 $49
million for the nine months ended September 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 income.
(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 nine months ended
September 30, 1999 and for the years ended December 31, 1997 and 1996.
</FN>