EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES |
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($ amounts in millions) |
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Nine Months Ended September 30, 2008 and 2007 |
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| 2008 |
| 2007 | ||
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Income (loss) from continuing operations before income taxes | $ | (456.9) |
| $ | 140.9 |
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Less: Equity in earnings (losses) of venture capital partnership investments |
| (0.4) |
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| 0.2 |
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Add: Distributed earnings of venture capital partnership investments |
| 2.5 |
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| 1.4 |
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Income (loss) from continuing operations before income taxes and equity in undistributed earnings |
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of venture capital partnership investments | $ | (454.0) |
| $ | 142.1 |
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Fixed Charges: |
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Interest expense on indebtedness(1) | $ | 27.8 |
| $ | 32.6 |
Rental expense |
| 0.9 |
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| 0.9 |
Fixed charges, exclusive of interest credited on policyholder contract balances | $ | 28.7 |
| $ | 33.5 |
Interest credited on policyholder contract balances |
| 116.8 |
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| 117.3 |
Total fixed charges, inclusive of interest credited on policyholder contract balances | $ | 145.5 |
| $ | 150.8 |
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Income (loss) from continuing operations before income taxes, equity in undistributed earnings of |
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venture capital partnership investments and fixed charges | $ | (308.5) |
| $ | 292.9 |
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Ratio of earnings to fixed charges |
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| 1.9 |
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Additional earnings required to achieve 1:1 ratio coverage | $ | 454.0 |
| $ | — |
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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 undistributed earnings |
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of venture capital partnership investments | $ | (454.0) |
| $ | 142.1 |
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Fixed Charges: |
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Total fixed charges, as above | $ | 28.7 |
| $ | 33.5 |
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Income (loss) from continuing operations before income taxes and equity in undistributed earnings of |
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venture capital partnership investments and fixed charges | $ | (425.3) |
| $ | 175.6 |
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Ratio of earnings to fixed charges |
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| 5.2 |
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Additional earnings required to achieve 1:1 ratio coverage | $ | 454.0 |
| $ | — |
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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 | |||||
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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 | |||||
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