EXHIBIT 12
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. |