CONSECO, INC. AND SUBSIDIARIES --------------- Exhibit 12.1 Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends (Dollars in millions) Successor ---------- Six months ended June 30, 2004 ---- Pretax income from operations: Net income....................................................................................... $141.1 Add income tax expense........................................................................... 78.1 ------ Pretax income from operations................................................................. 219.2 ------ Add fixed charges: Interest expense................................................................................. 48.9 Interest expense on investment borrowings........................................................ 3.3 Interest added to policyholder account balances ................................................. 203.6 Portion of rental (a)............................................................................ 6.3 ------ Fixed charges................................................................................. 262.1 ------ Adjusted earnings............................................................................. $481.3 ====== Ratio of earnings to fixed charges........................................................ 1.84x ===== Fixed charges...................................................................................... $262.1 Add dividends on preferred stock (divided by the ratio of net income to pretax income)................................................................................ 72.3 ------ Fixed charges plus preferred dividends........................................................ $334.4 ====== Adjusted earnings............................................................................. $481.3 ====== Ratio of earnings to fixed charges and preferred dividends................................ 1.44x ===== <FN> - -------------------- (a) Interest portion of rental is estimated to be 33 percent. </FN> 86