EX-12 3 Exh12.htm EX-12 (a)

 

Computation of Ratios of Earnings to Fixed Charges

 

 

 

 

 

 

 

Exhibit 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

 

 

(in millions, except ratios)

 

 

 

 

 

 

 

2014

 

2013

 

2012

 

2011

 

2010

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Pre-tax income (loss)(a):

 

 

 

 

 

 

$

9,106

$

7,942

$

433

$

(2,836)

$

19,666

   Add — Fixed charges

 

 

 

 

 

 

 

2,911

 

4,279

 

4,717

 

4,644

 

8,811

   Adjusted Pre-tax income (loss)

 

 

 

 

 

 

$

12,017

$

12,221

$

5,150

$

1,808

$

28,477

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Interest expense

 

 

 

 

 

 

$

2,034

$

3,292

$

3,605

$

3,576

$

7,613

   Portion of rent expense representing interest

 

 

 

 

 

 

 

157

 

138

 

148

 

161

 

196

   Interest credited to policy and contract holders

 

 

 

 

 

 

 

720

 

849

 

964

 

907

 

1,002

Total fixed charges

 

 

 

 

 

 

$

2,911

$

4,279

$

4,717

$

4,644

$

8,811

Total fixed charges and preferred stock dividend 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   requirements

 

 

 

 

 

 

$

2,911

$

4,279

$

4,717

$

4,644

$

8,811

Total fixed charges, excluding interest credited to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   policy and contract holders

 

 

 

 

 

 

$

2,191

$

3,430

$

3,753

$

3,737

$

7,809

Ratio of earnings to fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Ratio

 

 

 

 

 

 

 

4.13

 

2.86

 

1.09

 

n/a

 

3.23

   Coverage deficiency

 

 

 

 

 

 

 

n/a

 

n/a

 

n/a

$

(2,836)

$

n/a

Ratio of earnings to fixed charges and preferred

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   stock dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Ratio

 

 

 

 

 

 

 

4.13

 

2.86

 

1.09

 

n/a

 

3.23

   Coverage deficiency

 

 

 

 

 

 

 

n/a

 

n/a

 

n/a

$

(2,836)

$

n/a

Ratio of earnings to fixed charges, excluding interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   credited to policy and contract holders(b): 

 

 

 

 

 

 

 

5.48

 

3.56

 

1.37

 

n/a

 

3.65

   Coverage deficiency

 

 

 

 

 

 

 

n/a

 

n/a

 

n/a

$

(1,929)

 

n/a

(a) From continuing operations, excluding undistributed earnings (loss) from equity method investments and capitalized interest.

(b) The Ratio of earnings to fixed charges excluding interest credited to policy and contract holders removes interest credited to guaranteed investment contract (GIC) policyholders and guaranteed investment agreement (GIA) contract holders. Such interest expenses are also removed from earnings used in this calculation. GICs and GIAs are entered into by AIG’s subsidiaries. The proceeds from GICs and GIAs are invested in a diversified portfolio of securities, primarily investment grade bonds. The assets acquired yield rates greater than the rates on the related policyholders obligation or contract, with the intent of earning a profit from the spread.