Exhibit 12.1 Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends (Dollars in millions) Three months ended Year ended March 31, December 31, 2008 2007 ---- ---- Pretax loss from operations: Net loss............................................................................. $ (5.8) $(179.9) Add income tax expense (benefit)..................................................... (3.3) 6.9 ------ ------- Pretax loss from operations....................................................... (9.1) (173.0) ------ ------- Add fixed charges: Interest expense on corporate debt................................................... 16.4 72.3 Interest expense on investment borrowings............................................ 12.3 45.0 Interest added to policyholder account balances ..................................... 85.0 399.5 Portion of rental (a)................................................................ 3.6 13.7 ------ ------- Fixed charges..................................................................... 117.3 530.5 ------ ------- Adjusted earnings................................................................. $108.2 $ 357.5 ====== ======= Ratio of earnings to fixed charges............................................ (b) (c) = = Fixed charges.......................................................................... $117.3 $ 530.5 Add dividends on preferred stock, including dividends on preferred stock of subsidiaries (divided by the ratio of income to pretax income).................................... - 21.7 ------ ------- Fixed charges plus preferred dividends............................................ $117.3 $ 552.2 ====== ======= Adjusted earnings................................................................. $108.2 $ 357.5 ====== ======= Ratio of earnings to fixed charges and preferred dividends.................... (b) (d) = = <FN> - -------------------- (a) Interest portion of rental is estimated to be 33 percent. (b) For such ratio, earnings were $9.1 million less than fixed charges. (c) For such ratio, earnings were $173.0 million less than fixed charges. (d) For such ratio, earnings were $194.7 million less than fixed charges. </FN>