EX-12.1 14 cb-12312017xex121.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1

Chubb Limited
Ratio of Earnings to Fixed Charges

 
Years Ended December 31
(in millions of U.S. dollars, except ratios)
2017

 
2016

 
2015

 
2014

 
2013

Net income
$
3,861

 
$
4,135

 
$
2,834

 
$
2,853

 
$
3,758

Add:
 
 
 
 
 
 
 
 
 
Provision for income taxes (1)
(139
)
 
815

 
462

 
634

 
480

Fixed charges
677

 
675

 
342

 
322

 
318

Earnings for computation
$
4,399

 
$
5,625

 
$
3,638

 
$
3,809

 
$
4,556

Fixed charges
 
 
 
 
 
 
 
 
 
Interest expense (1) (2)
$
607

 
$
605

 
$
300

 
$
280

 
$
275

Portion of rental expense deemed to be interest
70

 
70

 
42

 
42

 
43

Total fixed charges
$
677

 
$
675

 
$
342

 
$
322

 
$
318

Ratio of earnings to fixed charges
6.5

 
8.3

 
10.6

 
11.8

 
14.4


(1) 
Chubb Limited recognizes accruals for interest and penalties, if any, related to unrecognized tax benefits in income tax expense (i.e., excluded from interest expense).
(2) 
2017 and 2016 included a $49 million and $48 million benefit, respectively, related to amortization of the purchase accounting fair value adjustment to long-term debt assumed in connection with The Chubb Corporation acquisition, respectively.