EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES |
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($ amounts in millions) |
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Three Months Ended March 31, 2008 and 2007 |
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| 2008 |
| 2007 | ||
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Income (loss) from continuing operations before income taxes | $ | (30.1) |
| $ | 70.6 |
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Less: Equity in earnings (losses) of venture capital partnership investments |
| (0.3) |
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| (0.5) |
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Add: Distributed earnings of venture capital partnership investments |
| 0.1 |
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| 0.1 |
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Income (loss) from continuing operations before income taxes and equity in |
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undistributed earnings of venture capital partnership investments | $ | (29.7) |
| $ | 71.2 |
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Fixed Charges: |
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Interest expense on indebtedness(1) | $ | 10.2 |
| $ | 9.5 |
Rental expense |
| 0.3 |
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| 0.3 |
Fixed charges, exclusive of interest credited on policyholder contract balances |
| 10.5 |
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| 9.8 |
Interest credited on policyholder contract balances |
| 39.1 |
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| 39.7 |
Total fixed charges, inclusive of interest credited on policyholder contract balances | $ | 49.6 |
| $ | 49.5 |
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Income from continuing operations before income taxes, equity in undistributed |
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earnings of venture capital partnership investments and fixed charges | $ | 19.9 |
| $ | 120.7 |
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Ratio of earnings to fixed charges |
| 0.4 |
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| 2.4 |
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Additional earnings required to achieve 1:1 ratio coverage | $ | 29.7 |
| $ | -- |
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SUPPLEMENTAL RATIO(2) — ratio of earnings to fixed charges exclusive of |
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interest credited on policyholder contract balances: |
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Income (loss) from continuing operations before income taxes and equity in |
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undistributed earnings of venture capital partnership investments | $ | (29.7) |
| $ | 71.2 |
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Fixed Charges: |
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Total fixed charges, as above | $ | 10.5 |
| $ | 9.8 |
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Income (loss) from continuing operations before income taxes and equity in |
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undistributed earnings of venture capital partnership investments and fixed charges | $ | (19.2) |
| $ | 81.0 |
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Ratio of earnings to fixed charges |
| (1.8) |
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| 8.3 |
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Additional earnings required to achieve 1:1 ratio coverage | $ | 29.7 |
| $ | -- |
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(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. | |||||
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(2) 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. |