EX-12 5 a2192842zex-12.htm EX-12

Exhibit 12

 

THE ALLSTATE CORPORATION

COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO

 

 

 

 

 

For the three months

 

 

 

 

 

 

 

ended March 31,

 

For the year ended December 31,

 

 

 

 

 

2009

 

2008

 

2008

 

2007

 

2006

 

2005

 

2004

 

1.

 

Income from operations before income tax and cumulative effect of change in accounting principle, after-tax

 

$

(131

)

$

427

 

$

(3,025

)

$

6,653

 

$

7,178

 

$

2,088

 

$

4,586

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.

 

Interest on indebtedness

 

$

88

 

$

88

 

$

351

 

$

333

 

$

357

 

$

330

 

$

308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.

 

Interest factor of annual rental expense

 

12

 

10

 

43

 

41

 

38

 

37

 

41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.

 

Total fixed charges (2+3)

 

$

100

 

$

98

 

$

394

 

$

374

 

$

395

 

$

367

 

$

349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.

 

Income from continuing operations before income taxes and fixed charges (1+4)

 

$

(31

)

$

525

 

$

(2,631

)

$

7,027

 

$

7,573

 

$

2,455

 

$

4,935

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.

 

Ratio of earnings to fixed charges, excluding interest credited to contractholder funds (A) (B) (C) (5/4)

 

—

X

5.4

X

—

X

18.8

X

19.2

X

6.7

X

14.1

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.

 

Interest credited to contractholder funds

 

$

579

 

$

624

 

$

2,411

 

$

2,681

 

$

2,609

 

$

2,403

 

$

2,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.

 

Total fixed charges including interest credited to contractholder funds (4+7)

 

$

679

 

$

722

 

$

2,805

 

$

3,055

 

$

3,004

 

$

2,770

 

$

2,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9.

 

Income from continuing operations before income taxes and fixed charges including interest credited to contractholder funds (1+4+7)

 

$

548

 

$

1,149

 

$

(220

)

$

9,708

 

$

10,182

 

$

4,858

 

$

6,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10.

 

Ratio of earnings to fixed charges (C) (9/8)

 

—

X

1.6

X

—

X

3.2

X

3.4

X

1.8

X

3.0

X

 

(A)

The Company has authority to issue up to 25,000,000 shares of preferred stock, par value $1.00 per share; however, there are currently no shares outstanding and the Company does not have a preferred stock dividend obligation. Therefore, the Ratio of Earnings to Fixed Charges and Preferred Stock Dividends is equal to the Ratio of Earnings to Fixed Charges and is not disclosed separately.

 

 

(B)

In this presentation, interest credited to contractholder funds is excluded to promote transparency and allows users of this exhibit to quantify the impact of interest credited to contractholder funds on the ratio of earnings to fixed charges.

 

 

(C)

Earnings for the three months ended March 31, 2009 were insufficient to cover fixed charges by $131 million. Earnings for the year ended December 31, 2008 were insufficient to cover fixed charges by $3.03 billion.