Travelers 2007 Annual Report Download - page 273

Exhibit 12.1
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(for the year ended December 31, in millions, except ratios) 2007 2006 2005 2004 2003
Income from continuing operations before income taxes
and minority interest .......................... $6,216 $5,725 $2,671 $ 946 $2,229
Interest ..................................... 346 324 286 236 167
Portion of rentals deemed to be interest .............. 79 78 72 68 38
Income available for fixed charges .................. $6,641 $6,127 $3,029 $1,250 $2,434
Fixed charges:
Interest .................................... $ 346 $ 324 $ 286 $ 236 $ 167
Portion of rentals deemed to be interest ............ 79 78 72 68 38
Total fixed charges ............................. 425 402 358 304 205
Preferred stock dividend requirements ............... 6898—
Total fixed charges and preferred stock dividend
requirements ................................ $ 431 $ 410 $ 367 $ 312 $ 205
Ratio of earnings to fixed charges .................. 15.64 15.24 8.46 4.11 11.89
Ratio of earnings to combined fixed charges and preferred
dividend requirements ......................... 15.41 14.96 8.25 4.01 11.89
Data for 2007, 2006 and 2005 reflects results of the Company for the years ended December 31,
2007, 2006 and 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 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.
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