Travelers 2005 Annual Report Download - page 252

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240
Exhibit 12.1
THE ST. PAUL TRAVELERS COMPANIES, INC.AND SUBSIDIARIES
COMPUTATION OF RATIO OFEARNINGS TO FIXED CHARGES
(for the year ended December 31, in millions, except ratios) 2005 2004 2003 2002 2001
Income (loss) from continuing operations before income
taxes (benefit), minority interest and cumulative effect
of changes inaccounting principles ................... $2,671 $946 $2,229 $(260 ) $1,389
Interest............................................. 286 236 167 157 205
Portion of rentals deemed to be interest. ................ 72 68 38 46 44
Income available for fixed charges(1) ................... $3,029 $1,250 $2,434 $ (57) $1,638
Fixed charges:
Interest........................................... $ 286 $236 $167 $157 $ 205
Portion of rentals deemed to be interest. .............. 72 68 38 46 44
Total fixed charges ................................... 358 304 205 203 249
Preferred stock dividend requirements.................. 9
8 — — —
Total fixed charges and preferred stock dividend
requirements ...................................... $ 367 $312 $205 $203 $ 249
Ratio of earnings to fixed charges(1).................... 8.46 4.11 11.89 N/A 6.58
Ratio of earnings to combined fixed charges and preferred
dividend requirements.............................. 8.25 4.01 11.89 N/A 6.58
Data for 2005 reflects results of the Company for the year ended December 31, 2005. Data for the year
ended December 31, 2004 reflects information for TPC for the period January 1, 2004 through March 31,
2004, and for the Company for the nine-month period from the merger date of April 1, 2004 through
December 31, 2004. Data for the years 2001 through 2003 reflects information for TPC only.
The ratio of earnings to fixed charges is computed by dividing income available for fixed charges by the
fixed charges. For purposes of this ratio, fixed charges consist of that portion of rentals deemed
representative of the appropriate interest factor.
(1) Income (loss) available for fixed charges in 2002 included a $1.39 billion charge for strengthening
asbestos reserves, net of the benefit from an indemnification agreement with Citigroup, Inc., a former
affiliate. For the year ended December 31, 2002, the Company’s earnings were not sufficient to cover
fixed charges by $260 million.