EX-12 9 ex12.htm EXHIBIT 12 Unassociated Document
Exhibit 12


CIGNA CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)


   
Year ended December 31,
  
   
2006
  
2005
  
2004
  
2003
  
2002
  
                       
Income (loss) from continuing operations
   before income taxes (benefits) 
  
$
1,731
  
$
1,793
   $
2,375
  
$
848
  
$
(645
)
Adjustments:
                                
Loss from equity investees 
    
1
    
1
    
1
    
4
    
4
  
Income (loss) from continuing operations
   before income taxes (benefits), as adjusted 
  
$
1,732
  
$
1,794
  
$
2,376
  
$
852
 
$
(641
)
                                 
Fixed charges included in income:
                                
Interest expense 
  
$
104
  
$
105
  
$
107
  
$
111
 
$
121
  
Interest portion of rental expense 
    
34
    
36
    
43
    
54
    
52
  
     
138
    
141
    
150
    
165
    
173
  
Interest credited to contractholders 
    
--
    
1
    
446
    
877
    
1,036
  
   
$
138
  
$
142
  
$
596
  
$
1,042
  
$
1,209
  
                                 
Income available for fixed charges
   (including interest credited to contractholders) 
  
$
1,870
  
$
1,936
  
$
2,972
  
$
1,894
  
$
568
  
                                 
Income available for fixed charges
   (excluding interest credited to contractholders)(1) 
  
$
1,870
  
$
1,935
  
$
2,526
  
$
1,017
  
$
-
  
                                 
RATIO OF EARNINGS TO FIXED CHARGES:
                                
   Including interest credited to contractholders(1) 
    
13.6
    
13.6
    
5.0
    
1.8
    
-
  
                                 
SUPPLEMENTAL RATIO:
                                
   Excluding interest credited to contractholders(1) 
    
13.6
    
13.7
    
16.8
    
6.2
    
-
  
________________________
(1) Due to the loss in 2002, the ratio coverage was less than 1:1. CIGNA must generate additional earnings of $641 million to achieve a coverage of 1:1.