EX-12.1 3 a05-14412_1ex12d1.htm EX-12.1

EXHIBIT 12.1

 

THE CHUBB CORPORATION

 

COMPUTATION OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES

(in millions except for ratio amounts)

 

 

 

Year Ended December 31,

 

Six Months Ended June 30,

 

 

 

2000

 

2001

 

2002

 

2003

 

2004

 

2004

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before provision for income taxes

 

$

851.0

 

$

(66.0

)

$

168.4

 

$

933.6

 

$

2,068.2

 

$

955.3

 

$

1,295.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from equity investees

 

(6.6

)

(9.3

)

(6.1

)

92.8

 

206.8

 

132.2

 

135.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed

 

52.9

 

55.0

 

83.8

 

130.1

 

138.7

 

69.3

 

69.7

 

Capitalized interest amortized or expensed

 

9.4

 

10.7

 

14.2

 

9.1

 

13.8

 

7.3

 

4.9

 

Portion of rents representative of the interest factor

 

30.0

 

32.6

 

37.2

 

37.5

 

37.9

 

18.9

 

19.0

 

Distributions from equity investees

 

1.6

 

2.3

 

12.4

 

17.1

 

101.1

 

57.3

 

76.2

 

Income as adjusted

 

$

951.5

 

$

43.9

(1)

$

322.1

(2)

$

1,034.6

 

$

2,152.9

 

$

975.9

 

$

1,329.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed

 

$

52.9

 

$

55.0

 

$

83.8

 

$

130.1

 

$

138.7

 

$

69.3

 

$

69.7

 

Capitalized interest

 

—

 

2.3

 

3.6

 

—

 

—

 

—

 

—

 

Portion of rents representative of the interest factor

 

30.0

 

32.6

 

37.2

 

37.5

 

37.9

 

18.9

 

19.0

 

Fixed charges

 

$

82.9

 

$

89.9

 

$

124.6

 

$

167.6

 

$

176.6

 

$

88.2

 

$

88.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of consolidated earnings to fixed charges

 

11.48

 

0.49

(1)

2.59

(2)

6.17

 

12.19

 

11.06

 

14.99

 

 

(1)          For the year ended December 31, 2001, consolidated earnings were not sufficient to cover fixed charges by $46 million. Consolidated earnings for the period, as defined, reflect a $635 million loss before income taxes from the September 11 attack in the United States and net surety bond losses of $220 million before income taxes arising from the bankruptcy of Enron Corp.

 

(2)          Consolidated earnings, as defined, for the year ended December 31, 2002 reflect aggregate net losses of $700 million before income taxes related to asbestos and toxic waste claims and a reduction in net surety losses of $88 million before income taxes resulting from the settlement of litigation related to Enron.