**Exhibit 12**

 

 

 

**ING USA ANNUITY AND LIFE INSURANCE COMPANY**

**COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO**

 

 

|                                                                                                                                                                                                                 |                                                                                                                     |                                                                                                        |   |              |            | **2005** |              |            | **2004** |            |           | **2003** |            |           | **2002** |            |          | **2001** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------------|----------|-------------------|-----------------|----------|-----------------|----------------|----------|-----------------|----------------|----------|-----------------|---------------|----------|
|                                                                                                                                                                                                                 |                                                                                                                     |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |          |     |
|                                                                                                                                                                                                                 | **Earnings:**                                                                                                            |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |
| 1.                                                                                                                                                                                                                   | Income (loss) before income taxes and cumulative                                           |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |
|                                                                                                                                                                                                                 |                                                                                                                     | effect of changes in accounting principles                                         |   | $                 | 224.1      |     | $                 | 173.6      |     | $               | 56.5      |     | $               | (176.3)        |     | $               | (3.8)         |
|                                                                                                                                                                                                                 |                                                                                                                     |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |          |     |
|                                                                                                                                                                                                                 | **Fixed** **Charges:**                                                                                              |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |
| 2.                                                                                                                                                                                                                   | Interest expense                                                                                                    |                                                                                                        |   | 29.6         |            |     | 5.1          |            |     | 8.2        |           |     | 8.5        |           |     | 4.9        |
| 3.                                                                                                                                                                                                                   | Interest factor on rental expense                                                                    |                                                                                                        |   | 8.0          |            |     | 5.0          |            |     | 5.3        |           |     | 5.4        |           |     | 2.5        |
| 4.                                                                                                                                                                                                                   | Interest credited to contractowners                                                                       |                                                                                                        |   | 1,048.6      |            |     | 1,090.3      |            |     | 887.2      |           |     | 786.6      |           |     | 825.7      |
| 5.                                                                                                                                                                                                                   | Net (undistributed) distributed income from                                                          |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |
|                                                                                                                                                                                                                 |                                                                                                                     | equity investees                                                                                       |   |              | (1.6)           |     |              | (1.8)           |     |            | 13.7      |     |            | -    |     |            | -   |
| 6.                                                                                                                                                                                                                   | **Total** **fixed** **charges** **(2** **+** **3** **+** **4** **+** **5)** |                                                                                                        |   | **1,084.6**  |            |     | **1,098.6**  |            |     | **914.4**  |           |     | **800.5**  |           |     | **833.1**  |
| 7.                                                                                                                                                                                                                   | **Total** **fixed** **charges** **excluding** **interest**                                      |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |
|                                                                                                                                                                                                                 |                                                                                                                     | **credited** **to** **contractowners** **(6** **-** **4)**                         |   |              | **36.0**   |     |              | **8.3**    |     |            | **27.2**  |     |            | **13.9**  |     |            | **7.4**  |
|                                                                                                                                                                                                                 |                                                                                                                     |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |          |     |
| 8.                                                                                                                                                                                                                   | **Earnings** **and** **fixed** **charges** **(1** **+** **6)**                             |                                                                                                        |   | **1,308.7**  |            |     | **1,272.2**  |            |     | **970.9**  |           |     | **624.2**  |           |     | **829.3**  |
| 9.                                                                                                                                                                                                                   | **Earnings** **and** **fixed** **charges,** **excluding**                                       |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |
|                                                                                                                                                                                                                 |                                                                                                                     | **interest** **credited** **to** **contractowners** **(1** **+** **7)**  |   |              | **260.1**  |     |              | **181.9**  |     |            | **83.7**  |     |            | **(162.4)**    |     |            | **3.6**  |
|                                                                                                                                                                                                                 |                                                                                                                     |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |          |     |
|                                                                                                                                                                                                                 | **Ratios**                                                                                                               |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |
| 10.                                                                                                                                                                                                                  | Earnings and fixed charges, to total fixed charges (8 / 6)             |                                                                                                        |   | 1.2          |            |     | 1.2          |            |     | 1.1        |           |     | 0.8        |           |     | 1.0        |
|                                                                                                                                                                                                                 |                                                                                                                     |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |          |     |
| 11.                                                                                                                                                                                                                  | Earnings and fixed charges, excluding interest credited to                       |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |
|                                                                                                                                                                                                                 |                                                                                                                     | contractowners to total fixed charges (9 / 7)                            |   |              | 7.2        |     |              | 21.9       |     |            | 3.1       |     |            | NM        |     |            | 0.5      |
|                                                                                                                                                                                                                 |                                                                                                                     |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |          |     |
| 12.                                                                                                                                                                                                                  | Deficiency of earnings to fixed charges (6 - 8)*                                 |                                                                                                        | $      | -       |            | $        | -       |            | $        | -     |           | $        | 176.3      |           | $        | 3.8        |
|                                                                                                                                                                                                                 |                                                                                                                     |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |          |     |
| *Represents additional earnings that would be necessary to result in a one to one ratio of earnings to fixed charges. |                                                                                                                     |                                                                                                        |   |              |            |
|                                                                                                                                                                                                                 |                                                                                                                     |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |            |          |     |
| NM - Not meaningful.                                                                                                                                                                                  |                                                                                                                     |                                                                                                        |   |              |            |     |              |            |     |            |           |     |            |           |     |

 

 

 

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