EX-12.1 2 cno12312012ex121.htm EXHIBIT 12.1 CNO 12.31.2012 EX 12.1


CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
Exhibit 12.1
Computation of Ratio of Earnings to
Fixed Charges and Preferred Dividends
(Dollars in millions)

 
2012
 
2011
 
2010
 
2009
 
2008
Pretax income (loss) from operations:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
221.0

 
$
335.7

 
$
240.6

 
$
20.4

 
$
(1,205.3
)
Add income tax expense (benefit)
(65.3
)
 
(29.5
)
 
(15.7
)
 
51.4

 
372.5

Add discontinued operations
—

 
—

 
—

 
—

 
722.7

Pretax income (loss) from operations
155.7

 
306.2

 
224.9

 
71.8

 
(110.1
)
 
 
 
 
 
 
 
 
 
 
Add fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense on corporate debt
66.2

 
76.3

 
79.3

 
84.7

 
67.9

Interest expense on investment borrowings
48.4

 
37.8

 
33.9

 
33.2

 
38.6

Interest added to policyholder account balances
260.5

 
282.5

 
303.9

 
324.4

 
330.5

Portion of rental (a)
14.6

 
13.1

 
13.0

 
12.8

 
13.4

Fixed charges
389.7

 
409.7

 
430.1

 
455.1

 
450.4

Adjusted earnings
$
545.4

 
$
715.9

 
$
655.0

 
$
526.9

 
$
340.3

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
1.40X

 
1.75X

 
1.52X

 
1.16X

 
(b)


____________________
(a)
Interest portion of rental is estimated to be 33 percent.
(b)
For such ratio, earnings were $110.1 million less than fixed charges.