EX-12.1 3 d412464dex121.htm COMPUTATION OF RATIO OF EARNINGS Computation of Ratio of Earnings

Exhibit 12.1

NATIONAL FINANCIAL PARTNERS CORP.

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES

AND PREFERRED DIVIDENDS

(Amounts in thousands of dollars, except ratios)

 Nine Months EndedSeptember 30, 2012 Years Ended December 31, 2011 2010 2009 2008 2007 Income (loss) before income taxes (a) \$ 14,069 \$ 65,319 \$ 69,039 \$ (567,770 ) \$ 41,809 \$ 91,956 Add: Interest Expense(a) \$ 11,337 \$ 14,250 \$ 15,662 \$ 18,187 \$ 19,832 \$ 16,587 Amortization of debt-related expenses 1,102 1,483 2,871 2,380 1,932 1,723 Appropriate portion of rents(b) 5,039 6,648 7,019 9,297 7,306 5,400 17,478 22,381 25,552 29,864 29,070 23,710 Earnings available for fixed charges \$ 31,547 \$ 87,700 \$ 94,591 \$ (537,906 ) \$ 70,879 \$ 115,666 Fixed Charges: Interest Expense(a) \$ 11,337 \$ 14,250 \$ 15,662 \$ 18,187 \$ 19,832 \$ 16,587 Amortization of debt-related expenses 1,102 1,483 2,871 2,380 1,932 1,723 Appropriate portion of rents(b) 5,039 6,648 7,019 9,297 7,306 5,400 Total Fixed Charges \$ 17,478 \$ 22,381 \$ 25,552 \$ 29,864 \$ 29,070 \$ 23,710 Ratio of Earnings to Combined Fixed Charges and Preferred Dividends (c) 1.80x 3.92x 3.70x N/M 2.44x 4.88x

 N/M indicates the metric is not meaningful
 (a) Interest expense and Income before income taxes exclude interest expense accrued on uncertain tax positions. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of September 30, 2012, the Company had accrued interest related to unrecognized tax benefits of \$6.6 million.
 (b) Portion of rental expenses which is deemed representative of an interest factor, which is approximately twenty percent of total rental expense.
 (c) Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges and earnings available for fixed charges must be approximately \$29.9 million in order to attain a ratio of earnings to combined fixed charges and preferred dividends of one-to-one.