EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |||||
($ amounts in millions) | |||||
Six Months Ended June 30, 2006 and 2005 | |||||
2006 | 2005 | ||||
Income (loss) from continuing operations before income taxes, minority interest and | |||||
earnings attributed to mandatorily redeemable noncontrolling interests(1) | $ | 26.7 | $ | 50.4 | |
Less: Equity in earnings (losses) of venture capital partnership investments | (0.9) | 0.5 | |||
| |||||
Add: Distributed earnings of affiliates | — | 0.8 | |||
Distributed earnings of venture capital partnership investments | 1.1 | 27.7 | |||
Income (loss) from continuing operations before income taxes, minority interest and | |||||
equity in undistributed earnings of affiliates and venture capital | |||||
partnership investments | $ | 28.7 | $ | 78.4 | |
Fixed Charges: | |||||
Interest expense on indebtedness(2) | $ | 24.7 | $ | 22.5 | |
Stock purchase contract adjustment payments | — | 4.1 | |||
Rental expense | 0.2 | 0.5 | |||
Fixed charges, exclusive of interest credited on policyholder contract balances | $ | 24.9 | $ | 27.1 | |
Interest credited on policyholder contract balances | 90.5 | 94.4 | |||
Total fixed charges, inclusive of interest credited on policyholder contract balances | $ | 115.4 | $ | 121.5 | |
Income (loss) from continuing operations before income taxes, minority interest, | |||||
equity in undistributed earnings of affiliates and venture capital | |||||
partnership investments and fixed charges | $ | 144.1 | $ | 199.9 | |
Ratio of earnings to fixed charges | 1.2 | 1.6 | |||
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: | |||||
Income (loss) from continuing operations before income taxes, minority interest and | |||||
equity in undistributed earnings of affiliates and venture capital | |||||
partnership investments | $ | 28.7 | $ | 78.4 | |
Fixed Charges: | |||||
Total fixed charges, as above | $ | 24.9 | $ | 27.1 | |
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 | $ | 53.6 | $ | 105.5 | |
Ratio of earnings to fixed charges | 2.2 | 3.9 | |||
Additional earnings required to achieve 1:1 ratio coverage | $ | — | $ | — | |
(1) Earnings attributed to mandatorily redeemable noncontrolling interests included in Other operating expenses for | |||||
the six months ended June 2005 were $5.1 million. | |||||
(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. |