**Exhibit 12**

 

**INGUSA ANNUITY AND LIFE INSURANCE COMPANY**

**COMPUTATIONOF EARNINGS TO FIXED CHARGES RATIO**

 
|       |       |                                                                                                       | ** ** | **Nine  Months**       | ** **                | ** **   |       |            |       |         |            |        |       |                      |
|------------|------------|------------------------------------------------------------------------------------------------------------|------------|------------------------|---------------------------|--------------|------------|-----------------|------------|--------------|-----------------|-------------|------------|---------------------------|
|       |       |                                                                                                       | ** ** | **Ended**              | ** **                | ** **   |       |            |       |         |            |        |       |                      |
|       |       |                                                                                                       | ** ** | **September 30,** | ** **                | ** **   |       |            |       |         |            |        |       |                      |
|       | ** ** | ** **                                                                                                 | ** ** | **2010**               | ** **                | **2009**     | ** ** | **2008**        | ** ** | **2007**     | ** **      | **2006**    | ** ** | **2005**                  |
|       |       |                                                                                                       |       |                   |                      |         |       |            |       |         |            |        |       |                      |
|       | ** ** | **Earnings:**                                                                                              |       |                   |                      |         |       |            |       |         |            |        |       |                      |
| 1.         |       | Income  (loss) before income taxes and cumulative effect of changes in accounting  principles              |       | $                      | 29.8                      |         | $          | (133.3)    |       | $            | (1,626.4)  |        | $          | 127.4                     |   | $ | 276.6 |   | $ | 224.1 |
|       |       |                                                                                                       |       |                   |                      |         |       |            |       |         |            |        |       |                      |
|       | ** ** | **Fixed Charges:**                                                                                         |       |                   |                      |         |       |            |       |         |            |        |       |                      |
| 2.         |       | Interest  expense                                                                                          |       | 24.0                   |                      | 32.9         |       | 30.5            |       | 32.5         |            | 30.3        |       | 29.6                      |
| 3.         |       | Interest  factor on rental expense                                                                         |       | 2.9                    |                      | 5.1          |       | 5.1             |       | 5.5          |            | 6.5         |       | 8.0                       |
| 4.         |       | Interest  credited to contractowners                                                                       |       | 605.3                  |                      | 875.2        |       | 1,024.1         |       | 1,067.0      |            | 980.8       |       | 946.5                     |
| 5.         |       | Net  (undistributed) distributed income from equity investees                                              |       | (5.9)             |                      | 20.2         |       | 90.9            |       | (11.7)  |            | (1.7)  |       | (1.6)                |
| 6.         | ** ** | **Total fixed charges**(2 + 3 + 4 + 5)                                                                     |       | 626.3                  |                      | 933.4        |       | 1,150.6         |       | 1,093.3      |            | 1,015.9     |       | 982.5                     |
| 7.         | ** ** | **Total fixed charges excluding interest credited to  contractowners (6 - 4)**                             |       | 21.0                   |                      | 58.2         |       | 126.5           |       | 26.3         |            | 35.1        |       | 36.0                      |
| 8.         | ** ** | **Earnings and fixed charges (1 + 6)**                                                                     |       | 656.1                  |                      | 800.1        |       | (475.8)    |       | 1,220.7      |            | 1,292.5     |       | 1,206.6                   |
| 9.         | ** ** | **Earnings and fixed charges, excluding interest credited to  contractowners (1 + 7)**                     |       | 50.8                   |                      | (75.1)  |       | (1,499.9)  |       | 153.7        |            | 311.7       |       | 260.1                     |
| ** ** | ** ** | ** **                                                                                                 | ** ** | ** **             | ** **                | ** **   | ** ** | ** **      | ** ** | ** **   | ** **      | ** **  | ** ** | ** **                |
|       | ** ** | **Ratios:**                                                                                                |       |                   |                      |         |       |            |       |         |            |        |       |                      |
| 10.        |       | Earnings  and fixed charges, to total fixed charges (8 / 6)                                                |       | 1.0                    |                      | 0.9          |       | (0.4)      |       | 1.1          |            | 1.3         |       | 1.2                       |
| 11.        |       | Earnings  and fixed charges, excluding interest credited to contractowners to total  fixed charges (9 / 7) |       | 2.4                    |                      | (1.3)   |       | (11.9)     |       | 5.8          |            | 8.9         |       | 7.2                       |
| 12.        |       | Deficiency  of earnings to fixed charges (6 - 8)*                                                          |       | $                      | -     |         | $          | 133.3           |       | $            | 1,626.4         |        | $          | -     |   | $ | -     |   | $ | -     |

 

*Represents additional earnings that wouldbe necessary to result in a one to one ratio of earnings to fixed charges.

 

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