EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES |
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($ amounts in millions) |
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Nine Months Ended September 30, 2006 and 2005 |
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| 2006 |
| 2005 | ||
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Income from continuing operations before income taxes, minority interest and |
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earnings attributed to mandatorily redeemable noncontrolling interests(1) | $ | 72.2 |
| $ | 81.4 |
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Less: Equity in earnings of venture capital partnership investments |
| 1.1 |
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| 13.2 |
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Add: Distributed earnings of venture capital partnership investments |
| 4.2 |
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| 51.9 |
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Income from continuing operations before income taxes, minority interest and |
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equity in undistributed earnings of affiliates and venture capital |
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partnership investments | $ | 75.3 |
| $ | 120.1 |
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Fixed Charges: |
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Interest expense on indebtedness(2) | $ | 36.8 |
| $ | 34.2 |
Stock purchase contract adjustment payments |
| — |
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| 6.1 |
Rental expense |
| 0.5 |
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| 0.7 |
Fixed charges, exclusive of interest credited on policyholder contract balances | $ | 37.3 |
| $ | 41.0 |
Interest credited on policyholder contract balances |
| 131.0 |
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| 144.6 |
Total fixed charges, inclusive of interest credited on policyholder contract balances | $ | 168.3 |
| $ | 185.6 |
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Income from continuing operations before income taxes, minority interest, |
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equity in undistributed earnings of affiliates and venture capital |
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partnership investments and fixed charges | $ | 243.6 |
| $ | 305.7 |
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Ratio of earnings to fixed charges |
| 1.4 |
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| 1.6 |
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Additional earnings required to achieve 1:1 ratio coverage | $ | — |
| $ | — |
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SUPPLEMENTAL RATIO — ratio of earnings to fixed charges |
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exclusive of interest credited on policyholder contract balances:(3) |
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Income from continuing operations before income taxes, minority interest and |
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equity in undistributed earnings of affiliates and venture capital |
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partnership investments | $ | 75.3 |
| $ | 120.1 |
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Fixed Charges: |
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Total fixed charges, as above | $ | 37.3 |
| $ | 41.0 |
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Income from continuing operations before income taxes, minority interest and |
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equity in undistributed earnings of affiliates and venture capital partnership |
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investments and fixed charges | $ | 112.6 |
| $ | 161.1 |
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Ratio of earnings to fixed charges |
| 3.0 |
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| 3.9 |
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Additional earnings required to achieve 1:1 ratio coverage | $ | — |
| $ | — |
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(1) Earnings attributed to mandatorily redeemable noncontrolling interests included in Other operating expenses for | |||||
the nine months ended September 2006 and 2005 were $0.0 million and $6.7 million respectively. | |||||
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(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. | |||||
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(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. |