NATIONAL FINANCIAL PARTNERS CORP - FORM 10-K - EX-12.1 - COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES - February 12, 2010

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10-K - FORM 10-K - NATIONAL FINANCIAL PARTNERS CORPd10k.htm
EX-31.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 - NATIONAL FINANCIAL PARTNERS CORPdex311.htm
EX-21.1 - SUBSIDIARIES OF NFP - NATIONAL FINANCIAL PARTNERS CORPdex211.htm
EX-32.2 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350 - NATIONAL FINANCIAL PARTNERS CORPdex322.htm
EX-23.1 - CONSENT OF PRICEWATERHOUSECOOPERS LLP - NATIONAL FINANCIAL PARTNERS CORPdex231.htm
EX-32.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350 - NATIONAL FINANCIAL PARTNERS CORPdex321.htm
EX-31.2 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 - NATIONAL FINANCIAL PARTNERS CORPdex312.htm
EX-10.21(C) - LETTER AGREEMENT, DATED DECEMBER 10, 2009 - NATIONAL FINANCIAL PARTNERS CORPdex1021c.htm

Exhibit 12.1

NATIONAL FINANCIAL PARTNERS CORP.

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES

AND PREFERRED DIVIDENDS

(Amounts in thousands of dollars, except ratios)

 

     2009     2008     2007     2006     2005  

Earnings Available for Fixed Charges:

           

(Loss) income before income taxes (a)

    $ (567,770 )    $ 41,809      $ 91,956      $ 101,361      $ 97,013   
                                        

Add:

           

Interest Expense(a)

    $ 18,187      $ 19,832      $ 16,587      $ 6,291      $ 4,110   

Amortization of debt-related expenses

      2,380        1,932        1,723        559        920   

Appropriate portion of rents(b)

      9,297        7,306        5,400        4,280        3,640   
                                        
     29,864        29,070        23,710        11,130        8,670   
                                        

Earnings available for fixed charges

    $ (537,906 )    $ 70,879      $ 115,666      $ 112,491      $ 105,683   
                                        

Fixed Charges:

           

Interest Expense(a)

    $ 18,187      $ 19,832      $ 16,587      $ 6,291      $ 4,110   

Amortization of debt-related expenses

      2,380        1,932        1,723        559        920   

Appropriate portion of rents(b)

      9,297        7,306        5,400        4,280        3,640   
                                        

Total Fixed Charges

    $ 29,864      $ 29,070      $ 23,710      $ 11,130      $ 8,670   
                                        

Ratio of Earnings to Combined Fixed Charges and Preferred Dividends(c)(d)

      NM        2.44 x      4.88 x      10.11 x      12.19 x 

 

  NM indicates not meaningful
(a) Interest expense and Income before income taxes exclude interest expense accrued on uncertain tax positions. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2009, the Company had accrued interest related to unrecognized tax benefits of $0.9 million.
(b) Portion of rental expenses which is deemed representative of an interest factor, which is approximately twenty percent of total rental expense.
(c) Dividends paid on preference securities issued would be included as fixed charges and therefore impact the ratio of earnings to fixed charges. As of the date of this report, the Company has not issued any shares of the Company’s preferred stock.
(d) Earnings for the year ended December 31, 2009 are inadequate to cover fixed charges and earnings available for fixed charges must be approximately $29.9 million in order to attain a ratio of earnings to combined fixed charges and preferred dividends of one-to-one.

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