Exhibit 12.1
Genworth Financial, Inc.
Computation Of Ratio Of Earnings To Fixed Charges
(Dollar amounts in millions)
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Pro Forma |
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Historical |
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Year ended December 31, |
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Year ended December 31, |
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2003 |
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2002 |
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2001 |
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2000 |
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1999 |
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2003 |
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Net earnings from continuing operations before income taxes and accounting changes |
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$ |
1,382 |
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$ |
1,791 |
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$ |
1,821 |
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$ |
1,851 |
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$ |
1,589 |
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$ |
1,330 |
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Fixed charges included in earnings from continuing operations: |
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Interest expense |
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140 |
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124 |
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126 |
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126 |
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78 |
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138 |
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Interest portion of rental expense |
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23 |
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25 |
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23 |
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25 |
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24 |
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23 |
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Interest credited to contractholder |
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1,624 |
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1,645 |
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1,620 |
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1,456 |
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1,290 |
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1,358 |
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Subtotal |
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1,787 |
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1,794 |
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1,769 |
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1,607 |
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1,392 |
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1,519 |
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Fixed charges included in earnings from discontinued operations: |
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Interest expense |
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12 |
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16 |
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15 |
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17 |
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17 |
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12 |
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Interest portion of rental expense |
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8 |
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12 |
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12 |
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12 |
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9 |
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8 |
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Interest credited to contractholder |
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68 |
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79 |
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51 |
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41 |
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6 |
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68 |
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Subtotal |
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88 |
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107 |
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78 |
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70 |
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32 |
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88 |
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Total fixed charges |
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$ |
1,875 |
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$ |
1,901 |
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$ |
1,847 |
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$ |
1,677 |
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$ |
1,424 |
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$ |
1,607 |
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Earnings available for fixed charges (including interest credited to contractholders) |
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$ |
3,257 |
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$ |
3,692 |
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$ |
3,668 |
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$ |
3,528 |
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$ |
3,013 |
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$ |
2,937 |
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Ratio of earnings to fixed charges (including interest credited to contractholders) (1) |
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1.74 |
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1.94 |
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1.99 |
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2.10 |
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2.12 |
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1.83 |
(2) |
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(1) For purposes of determining the historical ratio of earnings to fixed charges, earnings consist of earnings from continuing operations before taxes and accounting changes plus fixed charges from continuing and discontinued operations. Fixed charges consist of (a) interest expense on short-term and long-term borrowings; (b) interest credited to policyholders on annuities and financial products; and (c) the portion of operating leases that are representative of the interest factor.
(2) For purposes of determining the ratio of pro forma earnings to pro forma fixed charges, pro forma earnings consist of pro forma earnings from continuing operations before taxes plus pro forma fixed charges from continuing operations and fixed charges from discontinued operations. Pro Forma fixed charges consist of (a) pro forma interest expense on short-term and long-term borrowings, including dividends on Series A Preferred Stock; (b) pro forma interest credited to policyholders on annuities and financial products; and (c) the portion of operating leases that are representative of the interest factor.