EX-12 9 exh12_01.txt THE HARTFORD FINANCIAL SERVICES GROUP, INC.
EXHIBIT 12.01 THE HARTFORD FINANCIAL SERVICES GROUP, INC. COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS [1] (In millions) 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------------------------ EARNINGS $ (550) $ 1,068 $ 341 $ 1,418 $ 1,235 ADD: FIXED CHARGES Interest expense 1 265 295 250 219 Interest factor attributable to rentals 76 73 72 67 61 Interest credited to contractholders 1,120 1,048 1,050 964 1,071 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FIXED CHARGES 1,467 1,386 1,417 1,281 1,351 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FIXED CHARGES EXCLUDING INTEREST CREDITED TO CONTRACTHOLDERS 347 338 367 317 280 ------------------------------------------------------------------------------------------------------------------------------------ EARNINGS, AS DEFINED 917 2,454 1,758 2,699 2,586 ------------------------------------------------------------------------------------------------------------------------------------ EARNINGS, AS DEFINED, EXCLUDING INTEREST CREDITED TO CONTRACTHOLDERS $ (203) $ 1,406 $ 708 $ 1,735 $ 1,515 ------------------------------------------------------------------------------------------------------------------------------------ RATIOS ------------------------------------------------------------------------------------------------------------------------------------ Earnings, as defined, to total fixed charges [2] [3] NM 1.8 1.2 2.1 1.9 Earnings, as defined, excluding interest credited to contractholders, total fixed charges excluding interest credited to contractholders. [4] [5] NM 4.2 1.9 5.5 5.4 Deficiency of earnings to fixed charges and preference dividends [6] $ 550 -- -- -- -- ==================================================================================================================================== [1] The Company had no dividends on preferred stock for the years 1999 to 2003. [2] NM: Not meaningful. [3] Before the impact of September 11 of $678, the 2001 ratio of earnings to fixed charges was 1.6. [4] Before the impact of September 11 of $678, the 2001 ratio of earnings to fixed charges excluding interest credited to contractholders was 3.8. [5] This secondary ratio is disclosed for the convenience of fixed income investors and the rating agencies that serve them and is more comparable to the ratios disclosed by all issuers of fixed income securities. [6] Represents additional earnings that would be necessary to result in a one to one ratio of consolidated earnings to fixed charges and preference dividends. This amount includes a before-tax charge of $2.6 billion related to the Company's 2003 asbestos reserve addition.