HARTFORD FINANCIAL SERVICES GROUP, INC. - FORM 10-K - EX-12.01 - EXHIBIT 12.01 - February 25, 2011

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10-K - FORM 10-K - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002e10vk.htm
EX-31.01 - EXHIBIT 31.01 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv31w01.htm
EX-10.27 - EXHIBIT 10.27 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv10w27.htm
EX-32.01 - EXHIBIT 32.01 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv32w01.htm
EX-10.07 - EXHIBIT 10.07 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv10w07.htm
EX-31.02 - EXHIBIT 31.02 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv31w02.htm
EX-99.02 - EXHIBIT 99.02 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv99w02.htm
EX-10.08 - EXHIBIT 10.08 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv10w08.htm
EX-23.01 - EXHIBIT 23.01 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv23w01.htm
EX-10.10 - EXHIBIT 10.10 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv10w10.htm
EX-10.12 - EXHIBIT 10.12 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv10w12.htm
EX-10.11 - EXHIBIT 10.11 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv10w11.htm
EX-24.01 - EXHIBIT 24.01 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv24w01.htm
EX-32.02 - EXHIBIT 32.02 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv32w02.htm
EX-10.09 - EXHIBIT 10.09 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv10w09.htm
EX-99.01 - EXHIBIT 99.01 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv99w01.htm
EX-21.01 - EXHIBIT 21.01 - HARTFORD FINANCIAL SERVICES GROUP, INC.c13002exv21w01.htm
EXHIBIT 12.01
THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND PREFERRED SHARE DIVIDENDS
(In millions)
                                         
    Years Ended December 31,  
    2010     2009     2008     2007     2006  
EARNINGS:
                                        
Income (loss) before income taxes
   $ 2,264     $ (1,728 )   $ (4,591 )   $ 4,005     $ 3,602  
Less: Undistributed earnings from limited partnerships and other alternative investments
     60       (380 )     (539 )     93       58  
Add: Total fixed charges, before interest credited to contractholders
     566       537       413       332       354  
 
                              
Total earnings, before interest credited to contractholders
     2,770       (811 )     (3,639 )     4,244       3,898  
Interest credited to contractholders [1]
     763       4,947       (8,533 )     2,022       3,553  
 
                              
Total earnings
   $ 3,533     $ 4,136     $ (12,172 )   $ 6,266     $ 7,451  
 
                              
 
                                        
FIXED CHARGES:
                                        
Interest expense
   $ 508     $ 476     $ 343     $ 263     $ 277  
Interest factor attributable to rentals and other [2]
     58       61       70       69       77  
 
                              
Total fixed charges, before interest credited to contractholders
     566       537       413       332       354  
Interest credited to contractholders [1]
     763       4,947       (8,533 )     2,022       3,553  
 
                              
Total fixed charges
     1,329       5,484       (8,120 )     2,354       3,907  
Preferred stock dividend requirements [3]
     694       249       13       —       —  
 
                              
Total fixed charges and preferred stock dividend requirements, before interest credited to contractholders
     1,260       786       426       332       354  
 
                              
Total fixed charges and preferred stock dividend requirements
   $ 2,023     $ 5,733     $ (8,107 )   $ 2,354     $ 3,907  
 
                              
 
                                        
RATIOS:
                                        
Total earnings to total fixed charges [4]
     2.7     NM     NM       2.7       1.9  
Total earnings to total fixed charges and preferred stock dividend requirements [4]
     1.7     NM     NM       2.7       1.9  
 
                                        
Deficiency of total earnings to total fixed charges [5]
   $ —     $ 1,348     $ 4,052       —       —  
Deficiency of total earnings to total fixed charges and preferred stock dividend requirements [5]
   $ —     $ 1,597     $ 4,065       —       —  
 
                                        
Ratios before interest credited to contractholders [6]
                                        
Total earnings to total fixed charges [4]
     4.9     NM     NM       12.8       11.0  
Total earnings to total fixed charges and preferred stock dividend requirements [4]
     2.2     NM     NM       12.8       11.0  
     
[1]  
Interest credited to contractholders includes interest credited on general account assets and interest credited on consumer notes. For the year ended December 31, 2008, the $(8.5) billion in interest credited to contractholders was primarily due to $(10.3) billion in investment income losses and mark-to-market effects of equity securities, trading, supporting the international variable annuity business.
 
[2]  
Interest factor attributable to rental and others includes 1/3 of total rent expense as disclosed in the notes to the financial statements, capitalized interest and amortization of debt issuance costs.
 
[3]  
Preferred stock dividend requirements include preferred stock dividends accrued and accretion of discount on preferred stock issuance.
 
[4]  
Ratios of less than one-to-one are presented as “NM” or not meaningful.
 
[5]  
Represents additional earnings that would be necessary to result in a one-to-one ratio. These amounts are primarily due to before-tax realized losses of $(2.0) billion and $(5.9) billion, which includes before-tax impairments of $(1.5) billion and $(4.0) billion, for the years ended December 31, 2009 and 2008, respectively.
 
[6]  
These secondary ratios are disclosed for the convenience of fixed income investors and the rating agencies that serve them and are more comparable to the ratios disclosed by all issuers of fixed income securities.

 

 

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