EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
($ amounts in millions)
Nine Months Ended September 30, 2007 and 2006
2007 | 2006 | |||||
Income from continuing operations before income taxes and minority interest | $ | 150.9 | $ | 72.2 | ||
Less: Equity in losses of venture capital partnership investments | 0.2 | 1.1 | ||||
Add: Distributed earnings of affiliates | — | — | ||||
Distributed earnings of venture capital partnership investments | 1.4 | 4.2 | ||||
Income from continuing operations before income taxes, minority interest and equity | $ | 152.1 | $ | 75.3 | ||
Fixed Charges: | ||||||
Interest expense on indebtedness(1) | $ | 32.6 | $ | 36.8 | ||
Stock purchase contract adjustment payments | — | — | ||||
Rental expense | 0.9 | 0.5 | ||||
Fixed charges, exclusive of interest credited on policyholder contract balances | $ | 33.5 | $ | 37.3 | ||
Interest credited on policyholder contract balances | 117.3 | 131.0 | ||||
Total fixed charges, inclusive of interest credited on policyholder contract balances | $ | 150.8 | $ | 168.3 | ||
Income from continuing operations before income taxes, minority interest, equity in | $ | 302.9 | $ | 243.6 | ||
Ratio of earnings to fixed charges | 2.0 | 1.4 | ||||
Additional earnings required to achieve 1:1 ratio coverage | $ | — | $ | — | ||
SUPPLEMENTAL RATIO(2) — ratio of earnings to fixed charges | ||||||
Income from continuing operations before income taxes, minority interest and equity | $ | 152.1 | $ | 75.3 | ||
Fixed Charges: | ||||||
Total fixed charges, as above | $ | 33.5 | $ | 37.3 | ||
Income from continuing operations before income taxes, minority interest, equity in | $ | 185.6 | $ | 112.6 | ||
Ratio of earnings to fixed charges | 5.5 | 3.0 | ||||
Additional earnings required to achieve 1:1 ratio coverage | $ | — | $ | — | ||
(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. |
(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. |