EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS [1 | |||||||||||||||||||||||||||
Three Months Ended Sept 30, | Nine Months Ended Sept 30, | Years Ended December 31, | |||||||||||||||||||||||||
($ amounts in millions) | 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (13.1 | ) | $ | (110.0 | ) | $ | (156.0 | ) | $ | 2.7 | $ | (41.6 | ) | $ | (73.9 | ) | (257.4 | ) | ||||||||
Less: Equity in earnings (losses) of limited partnership and other investments | 13.9 | 37.5 | 59.5 | 44.6 | 57.4 | (41.3 | ) | 5.9 | |||||||||||||||||||
Add: Distributed earnings of limited partnership and other investments | 3.6 | 9.7 | 28.7 | 33.1 | 61.3 | 20.6 | 26.4 | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes and equity in undistributed earnings of limited partnership and other investments | $ | (23.4 | ) | $ | (137.8 | ) | $ | (186.8 | ) | $ | (8.8 | ) | $ | (37.7 | ) | $ | (12.0 | ) | (236.9 | ) | |||||||
Fixed Charges: | |||||||||||||||||||||||||||
Interest expense on indebtedness | $ | 7.1 | $ | 21.8 | $ | 30.8 | $ | 31.8 | $ | 31.8 | $ | 33.1 | 36.7 | ||||||||||||||
Interest expense on attributable to rentals | 0.1 | 0.1 | 0.3 | 0.4 | 0.5 | 0.7 | 0.7 | ||||||||||||||||||||
Total fixed charges [2] | 7.1 | 21.9 | 31.1 | 32.2 | 32.3 | 33.8 | 37.4 | ||||||||||||||||||||
Interest credited on policyholder contract balances | 37.2 | 98.6 | 122.6 | 115.2 | 124.2 | 136.2 | 152.0 | ||||||||||||||||||||
Total fixed charges, including interest credited to policyholders | $ | 44.3 | $ | 120.5 | $ | 153.7 | $ | 147.4 | $ | 156.5 | $ | 170.0 | 189.4 | ||||||||||||||
Income (loss) from continuing operations before income taxes, equity in undistributed earnings of limited partnership and other investments and fixed charges | $ | 20.9 | $ | (17.3 | ) | $ | (33.1 | ) | $ | 138.6 | $ | 118.8 | $ | 158.0 | $ | (47.5 | ) | ||||||||||
Ratio of earnings to fixed charges an preferred stock dividends | 0.5 | (0.1 | ) | (0.2 | ) | 0.9 | 0.8 | 0.9 | (0.3 | ) | |||||||||||||||||
Additional earnings required to achieve 1:1 ratio coverage | $ | 23.4 | $ | 137.8 | $ | 186.8 | $ | 8.8 | $ | 37.7 | $ | 12.0 | $ | 236.9 | |||||||||||||
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 | $ | (23.4 | ) | $ | (137.8 | ) | $ | (186.8 | ) | $ | (8.8 | ) | $ | (37.7 | ) | $ | (12.0 | ) | $ | (236.9 | ) | ||||||
Fixed Charges: | |||||||||||||||||||||||||||
Total fixed charges, as above | $ | 7.1 | $ | 21.9 | $ | 31.1 | $ | 32.2 | $ | 32.3 | $ | 33.8 | $ | 37.4 | |||||||||||||
Income (loss) from continuing operations before income taxes, equity in undistributed earnings of limited partnership and other investments and fixed charges | $ | (16.3 | ) | $ | (115.9 | ) | $ | (155.7 | ) | $ | 23.4 | $ | (5.4 | ) | $ | 21.8 | $ | (199.5 | ) | ||||||||
Ratio of earnings to fixed charges and preferred stock dividends | (2.3 | ) | (5.3 | ) | (5.0 | ) | 0.7 | (0.2 | ) | 0.6 | (5.3 | ) | |||||||||||||||
Additional earnings required to achieve 1:1 ratio coverage | $ | 23.4 | $ | 137.8 | $ | 186.8 | $ | 8.8 | $ | 37.7 | $ | 12.0 | $ | 236.9 |
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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. |