EX-12.1 14 cb-12312017xex121.htm EXHIBIT 12.1
Exhibit 12.1
Chubb Limited
Ratio of Earnings to Fixed Charges

| Years Ended December 31
(in millions of U.S. dollars, except ratios) | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2014 |  |  | 2013 |
Net income | $ | 3,861 |  |  | $ | 4,135 |  |  | $ | 2,834 |  |  | $ | 2,853 |  |  | $ | 3,758 |
Add: |  |  |  |  |  |  |  |  |
Provision for income taxes (1) | (139 | ) |  | 815 |  |  | 462 |  |  | 634 |  |  | 480 |
Fixed charges | 677 |  |  | 675 |  |  | 342 |  |  | 322 |  |  | 318 |
Earnings for computation | $ | 4,399 |  |  | $ | 5,625 |  |  | $ | 3,638 |  |  | $ | 3,809 |  |  | $ | 4,556 |
Fixed charges |  |  |  |  |  |  |  |  |
Interest expense (1) (2) | $ | 607 |  |  | $ | 605 |  |  | $ | 300 |  |  | $ | 280 |  |  | $ | 275 |
Portion of rental expense deemed to be interest | 70 |  |  | 70 |  |  | 42 |  |  | 42 |  |  | 43 |
Total fixed charges | $ | 677 |  |  | $ | 675 |  |  | $ | 342 |  |  | $ | 322 |  |  | $ | 318 |
Ratio of earnings to fixed charges | 6.5 |  |  | 8.3 |  |  | 10.6 |  |  | 11.8 |  |  | 14.4 |

(1) | Chubb Limited recognizes accruals for interest and penalties, if any, related to unrecognized tax benefits in income tax expense (i.e., excluded from interest expense).

(2) | 2017 and 2016 included a $49 million and $48 million benefit, respectively, related to amortization of the purchase accounting fair value adjustment to long-term debt assumed in connection with The Chubb Corporation acquisition, respectively.