EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS [1]
| Years Ended December 31, | |||||||||||||||||||
| ($ amounts in millions) | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||
| Income (loss) from continuing operations before income taxes | $ | 16.7 | $ | (156.0 | ) | $ | 2.7 | $ | (41.6 | ) | $ | (73.9 | ) | ||||||
Less: Equity in earnings (losses) of limited partnership and other investments | 52.6 | 59.5 | 44.6 | 57.4 | (41.3 | ) | |||||||||||||
Add: Distributed earnings of limited partnership and other investments | 24.9 | 28.7 | 33.1 | 61.3 | 20.6 | ||||||||||||||
Income (loss) from continuing operations before income taxes and equity in undistributed earnings of limited partnership and other investments | $ | (11.0 | ) | $ | (186.8 | ) | $ | (8.8 | ) | $ | (37.7 | ) | $ | (12.0 | ) | ||||
| Fixed Charges: | |||||||||||||||||||
| Interest expense on indebtedness | $ | 28.9 | $ | 30.8 | $ | 31.8 | $ | 31.8 | $ | 33.1 | |||||||||
| Interest expense on attributable to rentals | 0.2 | 0.3 | 0.4 | 0.5 | 0.7 | ||||||||||||||
| Total fixed charges [2] | 29.1 | 31.1 | 32.2 | 32.3 | 33.8 | ||||||||||||||
| Interest credited on policyholder contract balances | 136.9 | 122.6 | 115.2 | 124.2 | 136.2 | ||||||||||||||
| Total fixed charges, including interest credited to policyholders | $ | 166.0 | $ | 153.7 | $ | 147.4 | $ | 156.5 | $ | 170.0 | |||||||||
Income (loss) from continuing operations before income taxes, equity in undistributed earnings of limited partnership and other investments and fixed charges | $ | 155.0 | $ | (33.1 | ) | $ | 138.6 | $ | 118.8 | $ | 158.0 | ||||||||
| Ratio of earnings to fixed charges and preferred stock dividends | 0.9 | (0.2 | ) | 0.9 | 0.8 | 0.9 | |||||||||||||
| Additional earnings required to achieve 1:1 ratio coverage | $ | 11.0 | $ | 186.8 | $ | 8.8 | $ | 37.7 | $ | 12.0 | |||||||||
| SUPPLEMENTAL RATIO [3] --- Ratio of earnings to fixed charges and preferred stock dividends exclusive of interest credited on policyholder contract balances: | |||||||||||||||||||
Income (loss) from continuing operations before income taxes and equity in undistributed earnings of limited partnership and other investments | $ | (11.0 | ) | $ | (186.8 | ) | $ | (8.8 | ) | $ | (37.7 | ) | $ | (12.0 | ) | ||||
| Fixed Charges: | |||||||||||||||||||
| Total fixed charges, as above | $ | 29.1 | $ | 31.1 | $ | 32.2 | $ | 32.3 | $ | 33.8 | |||||||||
Income (loss) from continuing operations before income taxes, equity in undistributed earnings of limited partnership and other investments and fixed charges | $ | 18.1 | $ | (155.7 | ) | $ | 23.4 | $ | (5.4 | ) | $ | 21.8 | |||||||
| Ratio of earnings to fixed charges and preferred stock dividends | 0.6 | (5.0 | ) | 0.7 | (0.2 | ) | 0.6 | ||||||||||||
| Additional earnings required to achieve 1:1 ratio coverage | $ | 11.0 | $ | 186.8 | $ | 8.8 | $ | 37.7 | $ | 12.0 | |||||||||
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| [1] | We had no dividends on preferred stock for the years 2009 to 2013. |
| [2] | Total fixed charges consist of interest expense on indebtedness and an interest factor attributable to rentals. The interest factor attributable to rentals consists of one-third of rental charges, which we deem to be representative of the interest factor inherent in rents. |
| [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. |