EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES |
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($ amounts in millions) |
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Six Months Ended June 30, 2008 and 2007 |
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| 2008 |
| 2007 | ||
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Income (loss) from continuing operations before income taxes | $ | (16.0) |
| $ | 99.2 |
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Less: Equity in losses of venture capital partnership investments |
| (0.1) |
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| (0.8) |
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Add: Distributed earnings of venture capital partnership investments |
| 0.6 |
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| 0.2 |
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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 | $ | (15.3) |
| $ | 100.2 |
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Fixed Charges: |
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Interest expense on indebtedness(1) | $ | 19.0 |
| $ | 21.1 |
Rental expense |
| 0.4 |
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| 0.6 |
Fixed charges, exclusive of interest credited on policyholder contract balances | $ | 19.4 |
| $ | 21.7 |
Interest credited on policyholder contract balances |
| 78.2 |
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| 79.3 |
Total fixed charges, inclusive of interest credited on policyholder contract balances | $ | 97.6 |
| $ | 101.0 |
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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 | $ | 82.3 |
| $ | 201.2 |
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Ratio of earnings to fixed charges |
| 0.8 |
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| 2.0 |
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Additional earnings required to achieve 1:1 ratio coverage | $ | 15.3 |
| $ | — |
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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 | $ | (15.3) |
| $ | 100.2 |
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Fixed Charges: |
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Total fixed charges, as above | $ | 19.4 |
| $ | 21.7 |
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Income from continuing operations before income taxes and equity in |
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undistributed earnings of venture capital partnership investments and fixed charges | $ | 4.1 |
| $ | 121.9 |
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Ratio of earnings to fixed charges |
| 0.2 |
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| 5.6 |
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Additional earnings required to achieve 1:1 ratio coverage | $ | 15.3 |
| $ | — |
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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. | |||||
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