STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | | | | | |
($ amounts in millions) | | | | | |
Nine Months Ended September 30, 2005 and 2004 | | | | | |
| | | | | | |
| | 2005 | | 2004 |
Income (loss) from continuing operations before income taxes, minority interest and | | | | | |
earnings attributed to mandatorily redeemable noncontrolling interests(1) | $ | 81.4 | | $ | 60.5 |
| | | | | | |
Less: Equity in earnings (losses) of venture capital partnership investments | | 13.2 | | | 12.1 |
| | | | | |
Add: Distributed earnings of affiliates | | — | | | 1.1 |
Distributed earnings of venture capital partnership investments | | 51.9 | | | 39.5 |
Income (loss) from continuing operations before income taxes, minority interest and | | | | | |
equity in undistributed earnings of affiliates and venture capital | | | | | |
partnership investments | $ | 120.1 | | $ | 89.0 |
| | | | | | |
Fixed Charges: | | | | | |
Interest expense on indebtedness(2) | $ | 34.2 | | $ | 29.8 |
Stock purchase contract adjustment payments | | 6.1 | | | 6.1 |
Rental expense | | 0.7 | | | 1.8 |
Fixed charges, exclusive of interest credited on policyholder contract balances | $ | 41.0 | | $ | 37.7 |
Interest credited on policyholder contract balances | | 140.7 | | | 146.3 |
Total fixed charges, inclusive of interest credited on policyholder contract balances | $ | 181.7 | | $ | 184.0 |
| | | | | | |
Income (loss) from continuing operations before income taxes, minority interest, | | | | | |
equity in undistributed earnings of affiliates and venture capital | | | | | |
partnership investments and fixed charges | $ | 301.8 | | $ | 273.0 |
| | | | | | |
Ratio of earnings to fixed charges | | 1.7 | | | 1.5 |
| | | | | | |
Additional earnings required to achieve 1:1 ratio coverage | $ | — | | $ | — |
| | | | | | |
SUPPLEMENTAL RATIO — ratio of earnings to fixed charges | | | | | |
exclusive of interest credited on policyholder contract balances:(3) |
| | | | | | |
Income (loss) from continuing operations before income taxes, minority interest and | | | | | |
equity in undistributed earnings of affiliates and venture capital | | | | | |
partnership investments | $ | 120.1 | | $ | 89.0 |
| | | | | | |
Fixed Charges: | | | | | |
Total fixed charges, as above | $ | 41.0 | | $ | 37.7 |
| | | | | | |
Income (loss) from continuing operations before income taxes, minority interest and | | | | | |
equity in undistributed earnings of affiliates and venture capital partnership | | | | | |
investments and fixed charges | $ | 161.1 | | $ | 126.7 |
| | | | | | |
Ratio of earnings to fixed charges | | 3.9 | | | 3.4 |
| | | | | | |
Additional earnings required to achieve 1:1 ratio coverage | $ | — | | $ | — |
| | | | | |
(1) Earnings attributed to mandatorily redeemable noncontrolling interests included in Other operating expenses for |
the nine months ended September 2005 and 2004 were $6.7 million and $10.5 million respectively. |
| | | | | |
(2) 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. |
| | | | | |
(3) This ratio is disclosed for the convenience of investors and may be more comparable to the ratios disclosed by |
other issuers of fixed income securities. |
