EX-12 8 a2218248zex-12.htm EX-12

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

Exhibit 12

   
Years Ended December 31,
(in millions, except ratios)
  

2013

   2012
   2011
   2010
   2009
  
   

Earnings:

  
 
 
 
                        

Pre-tax income (loss)(a):

  
$
7,942
 
 $ 433   $ (2,836 ) $ 19,666   $ (14,125 )

Add – Fixed charges

  
 
4,279
 
   4,717     4,644     8,811     16,592
   

Adjusted Pre-tax income (loss)

  
$
12,221
 
 $ 5,150   $ 1,808   $ 28,477   $ 2,467
   

Fixed charges:

  
 
 
 
                        

Interest expense

  
$
3,292
 
 $ 3,605   $ 3,576   $ 7,613   $ 15,136  

Portion of rent expense representing interest

  
 
138
 
   148     161     196     244  

Interest credited to policy and contract holders

  
 
849
 
   964     907     1,002     1,212
   

Total fixed charges

  
$
4,279
 
 $ 4,717   $ 4,644   $ 8,811   $ 16,592
   

Preferred stock dividend requirements

  
$
–
 
 $ –   $ –   $ –   $ 1,204  

Total fixed charges and preferred stock dividend requirements

  
$
4,279
 
 $ 4,717   $ 4,644   $ 8,811   $ 17,796  

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

  
$
3,430
 
 $ 3,753   $ 3,737   $ 7,809   $ 15,380
   

Ratio of earnings to fixed charges:

  
 
 
 
                        

Ratio

  
 
2.86
 
   1.09     n/a     3.23     n/a  

Coverage deficiency

  
 
n/a
 
   n/a   $ (2,836 )   n/a   $ (14,125 )
   

Ratio of earnings to fixed charges and preferred stock dividends:

  
 
 
 
                        

Ratio

  
 
2.86
 
   1.09     n/a     3.23     n/a  

Coverage deficiency

  
 
n/a
 
   n/a   $ (2,836 )   n/a   $ (15,329 )
   

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

  
 
3.56
 
   1.37     n/a     3.65     n/a  

Coverage deficiency

  
 
n/a
 
   n/a   $ (1,929 )   n/a   $ (12,913 )
   

(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.

AIG 2013 Form 10-K

358