EX-12 3 a2214786zex-12.htm EX-12

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 

Exhibit 12

 
  


   
  
   
Three Months Ended March 31,
(in millions, except ratios)
  

2013

   2012
  
   

Earnings:

  
 
 
 
      

Pre-tax income (loss)(a):

  
$
2,283
 
 $ 2,443  

Add — Fixed charges

  
 
1,114
 
   1,129
   

Adjusted Pre-tax income (loss)

  
$
3,397
 
 $ 3,572
   

Fixed charges:

  
 
 
 
      

Interest expense

  
$
898
 
 $ 910  

Portion of rent expense representing interest

  
 
34
 
   40  

Interest credited to policy and contract holders

  
 
182
 
   179
   

Total fixed charges

  
$
1,114
 
 $ 1,129
   

Total fixed charges, excluding interest credited to policy and contract holders

  
$
932
 
 $ 950
   

Ratio of earnings to fixed charges

  
 
3.05
 
   3.16
   

Ratio of earnings to fixed charges, excluding interest credited to policy and contract
holders(b):

  
 
3.64
 
   3.76
   

(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 amounts are also removed from earnings used in this calculation. GICs and GIAs are entered into by our subsidiaries. The proceeds from GICs and GIAs are invested in a diversified portfolio of securities, primarily investment grade bonds. When these investments yield rates are greater than the rates on the related policyholders obligation or contract, a profit is earned from the spread.

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