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EXHIBIT 12.01
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS
TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
<TABLE>
<CAPTION>
Nine Months Ended
September 30, Year Ended December 31,
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(In millions) 2000 1999 1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C> <C> <C>
EARNINGS $ 921 $ 904 $1,235 $1,475 $ 1,703 $ (318) $ 742
ADD:
FIXED CHARGES
Interest expense $ 180 $ 160 $ 219 $ 216 $ 213 $ 148 $ 101
Interest factor attributable to
rentals 50 46 61 54 48 36 49
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TOTAL FIXED CHARGES 230 206 280 270 261 184 150
Interest credited to contractholders 828 894 1,197 1,475 1,180 1,258 1,174
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TOTAL FIXED CHARGES INCLUDING INTEREST
CREDITED TO CONTRACTHOLDERS 1,058 1,100 1,477 1,745 1,441 1,442 1,324
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EARNINGS, AS DEFINED $1,151 $1,110 $1,515 $1,745 $ 1,964 $ (134) $ 892
EARNINGS, AS DEFINED, INCLUDING
INTEREST CREDITED TO CONTRACTHOLDERS $1,979 $2,004 $2,712 $3,220 $ 3,144 $ 1,124 $2,066
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FIXED CHARGES
Fixed charges above $ 230 $ 206 $ 280 $ 270 $ 261 $ 184 $ 150
Dividends on subsidiary preferred
stock -- -- -- -- -- -- 4
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TOTAL FIXED CHARGES AND PREFERRED
DIVIDEND REQUIREMENTS $ 230 $ 206 $ 280 $ 270 $ 261 $ 184 $ 154
TOTAL FIXED CHARGES, INTEREST CREDITED
TO CONTRACTHOLDERS AND PREFERRED
DIVIDEND REQUIREMENTS $1,058 $1,100 $1,477 $1,745 $ 1,441 $ 1,442 $1,328
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</TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
RATIOS
Earnings, as defined, to fixed
charges [1] 5.0 5.4 5.4 6.5 7.5 $ (318) 5.9
Earnings, as defined, to fixed
charges and preferred dividend
requirements 5.0 5.4 5.4 6.5 7.5 $ (318) 5.8
Earnings, as defined, including
interest credited to
contractholders, to total fixed
charges including interest
credited to contractholders [2] 1.9 1.8 1.8 1.8 2.2 $ (318) 1.6
Earnings, as defined, including interest
credited to contractholders, to
total fixed charges including interest
credited to contractholders and
preferred dividend requirements 1.9 1.8 1.8 1.8 2.2 $ (318) 1.6
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</TABLE>
[1] Excluding the equity gain on HLI initial public offering of $368, the 1997
ratio of earnings to fixed charges was 6.1. Excluding other charges of $1,061,
before-tax, primarily related to environmental and asbestos reserve increases
and recognition of losses on GIC, the 1996 ratio of earnings to fixed charges
was 5.0.
[2] Excluding the equity gain on HLI initial public offering of $368, the 1997
ratio of earnings to fixed charges including interest credited to
contractholders was 1.9. Excluding other charges of $1,061, before-tax,
primarily related to environmental and asbestos reserve increases and
recognition of losses on GIC, the 1996 ratio of earnings to fixed charges
including interest credited to contractholders was 1.5.
2
