Travelers 2008 Annual Report Download - page 283

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) 2008 2007 2006 2005 2004
Income from continuing operations before income taxes
and minority interest .......................... $3,716 $6,216 $5,725 $2,671 $ 946
Interest ..................................... 370 346 324 286 236
Portion of rentals deemed to be interest .............. 80 79 78 72 68
Income available for fixed charges .................. $4,166 $6,641 $6,127 $3,029 $1,250
Fixed charges:
Interest .................................... $ 370 $ 346 $ 324 $ 286 $ 236
Portion of rentals deemed to be interest ............ 80 79 78 72 68
Total fixed charges ............................. 450 425 402 358 304
Preferred stock dividend requirements ............... 56898
Total fixed charges and preferred stock dividend
requirements ................................ $ 455 $ 431 $ 410 $ 367 $ 312
Ratio of earnings to fixed charges .................. 9.26 15.64 15.24 8.46 4.11
Ratio of earnings to combined fixed charges and preferred
stock dividend requirements ..................... 9.15 15.41 14.96 8.25 4.01
Data for the years 2005 through 2008 reflect results of the Company for the years ended
December 31, 2008, 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.
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.
271