EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS(1)
($ amounts in millions) |
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Years Ended 2012, 2011, 2010, 2009 and 2008 | 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 | |||||
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| As restated |
| As restated |
| As restated |
| As restated | |||||
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| and amended |
| and amended |
| and amended |
| and amended | |||||
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Income (loss) from continuing operations before income taxes | $ | (156.0) |
| $ | 2.7 |
| $ | (41.6) |
| $ | (73.9) |
| $ | (257.4) |
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Less: Equity in earnings (losses) of limited partnership and |
| 59.5 |
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| 44.6 |
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| 57.4 |
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| (41.3) |
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| 5.9 |
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Add: Distributed earnings of limited partnership and |
| 28.7 |
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| 33.1 |
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| 61.3 |
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| 20.6 |
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| 26.4 |
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Income (loss) from continuing operations before income taxes | $ | (186.8) |
| $ | (8.8) |
| $ | (37.7) |
| $ | (12.0) |
| $ | (236.9) |
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Fixed Charges: |
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Interest expense on indebtedness | $ | 30.8 |
| $ | 31.8 |
| $ | 31.8 |
| $ | 33.1 |
| $ | 36.7 |
Interest expense attributable to rentals |
| 0.3 |
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| 0.4 |
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| 0.5 |
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| 0.7 |
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| 0.7 |
Total fixed charges(2 |
| 31.1 |
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| 32.2 |
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| 32.3 |
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| 33.8 |
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| 37.4 |
Interest credited on policyholder contract balances |
| 122.6 |
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| 115.2 |
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| 124.2 |
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| 136.2 |
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| 152.0 |
Total fixed charges, including interest credited to policyholders | $ | 153.7 |
| $ | 147.4 |
| $ | 156.5 |
| $ | 170.0 |
| $ | 189.4 |
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Income (loss) from continuing operations before income taxes, | $ | (33.1) |
| $ | 138.6 |
| $ | 118.8 |
| $ | 158.0 |
| $ | (47.5) |
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Ratio of earnings to fixed charges and preferred stock dividends |
| (0.2) |
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| 0.9 |
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| 0.8 |
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| 0.9 |
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| (0.3) |
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Additional earnings required to achieve 1:1 ratio coverage | $ | 186.8 |
| $ | 8.8 |
| $ | 37.7 |
| $ | 12.0 |
| $ | 236.9 |
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SUPPLEMENTAL RATIO(3) — Ratio of earnings to fixed |
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Income (loss) from continuing operations before income taxes | $ | (186.8) |
| $ | (8.8) |
| $ | (37.7) |
| $ | (12.0) |
| $ | (236.9) |
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Fixed Charges: |
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Total fixed charges, as above | $ | 31.1 |
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| 32.2 |
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| 32.3 |
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| 33.8 |
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| 37.4 |
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Income (loss) from continuing operations before income taxes | $ | (155.7) |
| $ | 23.4 |
| $ | (5.4) |
| $ | 21.8 |
| $ | (199.5) |
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Ratio of earnings to fixed charges and preferred stock dividends |
| (5.0) |
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| 0.7 |
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| (0.2) |
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| 0.6 |
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| (5.3) |
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Additional earnings required to achieve 1:1 ratio coverage | $ | 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 2008 to 2012.
(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.