Exhibit 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
($ amounts in millions)
Years Ended December 31, 2003, 2002, 2001, 2000 and 1999
2003 2002 2001 2000 1999
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Income (loss) from continuing operations before income
taxes and minority interest $ (10.2) $(184.5) $(245.3) $ 172.5 $ 279.9
Less: Equity in earnings (losses) of affiliates (0.1) 5.9 8.2 7.4 4.7
Equity in earnings (losses) of venture capital
partnership investments 36.2 (59.3) (84.5) 277.3 139.9
Add: Distributed earnings of affiliates 1.2 4.6 6.9 5.6 4.5
Distributed earnings of venture capital partnership
investments 31.8 14.2 30.5 222.4 84.0
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Income (loss) from continuing operations before income
taxes, minority interest and equity in undistributed
earnings of affiliates and venture capital partnership
investments $ (13.3) $(112.3) $(131.6) $ 115.8 $ 223.8
========= ========= ========= ========= =========
Fixed Charges:
Interest expense on indebtedness (1) $ 39.6 $ 31.4 $ 27.3 $ 32.7 $ 34.0
Stock purchase contract adjustment payments 8.2 1.0 0.0 0.0 0.0
Rental expense 2.6 2.7 2.7 2.7 3.1
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Total fixed charges $ 50.4 $ 35.1 $ 30.0 $ 35.4 $ 37.1
========= ========= ========= ========= =========
Income (loss) from continuing operations before income
taxes, minority interest, equity in undistributed
earnings of affiliates and venture capital partnership
investments and fixed charges $ 37.1 $ (77.2) $(101.6) $ 151.2 $ 260.9
========= ========= ========= ========= =========
Ratio of earnings to fixed charges 0.7 - - 4.3 7.0
========= ========= ========= ========= =========
Additional earnings required to achieve 1:1 ratio
coverage $ 13.3 $ 112.3 $ 131.6 - -
========= ========= ========= ========= =========
SUPPLEMENTAL RATIO - ratio of earnings to fixed
charges inclusive of interest credited on
policyholder contract balances:
Income (loss) from continuing operations before
income taxes, minority interest and equity in
undistributed earnings of affiliates and venture
capital partnership investments $ (13.3) $(112.3) $(131.6) $ 115.8 $ 223.8
========= ========= ========= ========= =========
Fixed Charges:
Total fixed charges, as above $ 50.4 $ 35.1 $ 30.0 $ 35.4 $ 37.1
Interest credited on policyholder contract balances 207.9 181.4 133.2 109.5 105.6
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Total fixed charges, inclusive of interest credited
on policyholder contract balances $ 258.3 $ 216.5 $ 163.2 $ 144.9 $ 142.7
========= ========= ========= ========= =========
Adjusted income from continuing operations before
income taxes, minority interest and equity in
undistributed earnings of affiliates and venture
capital partnership investments plus fixed charges,
inclusive of interest credited on policyholder
contract balances $ 245.0 $ 104.2 $ 31.6 $ 260.7 $ 366.5
========= ========= ========= ========= =========
Ratio of earnings to fixed charges including interest
credited on policyholder contract balances 0.9 0.5 0.2 1.8 2.6
========= ========= ========= ========= =========
Additional earnings required to achieve 1:1 ratio
coverage $ 13.3 $ 112.3 $ 131.6 - -
========= ========= ========= ========= =========
(1) Interest expense on collateralized obligations is not included as these are non-recourse liabilities to
Phoenix and the interest expense is solely funded by assets pledged as collateral consolidated on our balance
sheet.
