EX-12.A 2 a06-9358_1ex12da.htm EX-12

Exhibit 12(a)

Aon Corporation and Consolidated Subsidiaries
Combined With Unconsolidated Subsidiaries
Computation of Ratio of Earnings to Fixed Charges

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar. 31,

 

Years Ended December 31,

 

(millions except ratios)

 

2006

 

2005

 

2005

 

2004

 

2003

 

2002

 

2001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before provision for income taxes and minority interest

 

$

304

 

$

310

 

$

965

 

$

827

 

$

1,074

 

$

787

 

$

306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Earnings from unconsolidated entities under the equity method of accounting

 

(1

)

1

 

7

 

34

 

49

 

19

 

(139

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add back fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on indebtedness (1)

 

31

 

34

 

125

 

136

 

101

 

124

 

127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited on deposit-type insurance contracts

 

 

 

 

1

 

 

29

 

56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portion of rents representative of interest factor

 

18

 

18

 

71

 

73

 

67

 

59

 

57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income as adjusted

 

$

354

 

$

361

 

$

1,154

 

$

1,003

 

$

1,193

 

$

980

 

$

685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on indebtedness(1)

 

$

31

 

$

34

 

$

125

 

$

136

 

$

101

 

$

124

 

$

127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited on deposit-type insurance contracts

 

 

 

 

1

 

 

29

 

56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portion of rents representative of interest factor

 

18

 

18

 

71

 

73

 

67

 

59

 

57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

49

 

$

52

 

$

196

 

$

210

 

$

168

 

$

212

 

$

240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

7.2

 

6.9

 

5.9

 

4.8

 

7.1

 

4.6

 

2.9

 


(1)             As a result of the adoption of FIN 46 on December 31, 2003, Aon was required to deconsolidate its 8.205% mandatorily redeemable preferred capital securities. This decrease was offset by an increase in notes payable. Beginning in 2004, interest expense ($14 million for both the three months ended March 31, 2006 and 2005 and $58 million for the years ended December 31, 2005 and 2004) on these notes payable is reported as part of interest expense on the condensed consolidated statements of income.