EX-12.1 6 cno03312014ex121.htm EXHIBIT 12.1 CNO 03.31.2014 EX 12.1



Exhibit 12.1

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

 
Three months
 
 
 
ended
 
Year ended
 
March 31,
2014
 
December 31,
2013
Pretax income (loss) from operations:
 
 
 
Net income (loss)
$
(228.0
)
 
$
478.0

Add income tax expense (benefit)
58.4

 
(173.2
)
Pretax income (loss) from operations
(169.6
)
 
304.8

Add fixed charges:
 
 
 
Interest expense on corporate debt
11.1

 
51.3

Interest expense on investment borrowings and borrowings related to variable interest entities
13.5

 
54.0

Interest added to policyholder account balances
54.3

 
232.5

Portion of rental (a)
3.5

 
13.3

Fixed charges
82.4

 
351.1

Adjusted earnings (loss)
$
(87.2
)
 
$
655.9

Ratio of earnings to fixed charges
(b)
 
1.87X


____________________
(a)
Interest portion of rental is estimated to be 33 percent.
(b)
For such ratio, earnings were $169.6 million less than fixed charges.