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)
Three Months Ended Sept 30, | Nine Months Ended Sept 30, | Year Ended December 31, | ||||||||||||||||||||||
2012 | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
As restated and amended | As restated and amended | As restated and amended | As restated and amended | |||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (96.9 | ) | $ | (136.1 | ) | $ | 2.7 | $ | (41.6 | ) | $ | (73.9 | ) | $ | (257.4 | ) | |||||||
Less: Equity in earnings (losses) of limited partnership and other investments | 12.4 | 48.6 | 44.6 | 57.4 | (41.3 | ) | 5.9 | |||||||||||||||||
Add: Distributed earnings of limited partnership and other investments | 7.4 | 27.8 | 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 | $ | (101.9 | ) | $ | (156.9 | ) | $ | (8.8 | ) | $ | (37.7 | ) | $ | (12.0 | ) | $ | (236.9 | ) | ||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest expense on indebtedness | $ | 7.9 | $ | 23.7 | $ | 31.8 | $ | 31.8 | $ | 33.1 | $ | 36.7 | ||||||||||||
Interest expense attributable to rentals | 0.1 | 0.2 | 0.4 | 0.5 | 0.7 | 0.7 | ||||||||||||||||||
Total fixed charges (2) | 8.0 | 23.9 | 32.2 | 32.3 | 33.8 | 37.4 | ||||||||||||||||||
Interest credited on policyholder contract balances | 31.3 | 90.2 | 115.2 | 124.2 | 136.2 | 152.0 | ||||||||||||||||||
Total fixed charges, including interest credited to policyholders | $ | 39.3 | $ | 114.1 | $ | 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 | $ | (62.6 | ) | $ | (42.8 | ) | $ | 138.6 | $ | 118.8 | $ | 158.0 | $ | (47.5 | ) | |||||||||
Ratio of earnings to fixed charges and preferred stock dividends | (1.6 | ) | (0.4 | ) | 0.9 | 0.8 | 0.9 | (0.3) | ||||||||||||||||
Additional earnings required to achieve 1:1 ratio coverage | $ | 101.9 | $ | 156.9 | $ | 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 | $ | (101.9 | ) | $ | (156.9 | ) | $ | (8.8 | ) | $ | (37.7 | ) | $ | (12.0 | ) | $ | (236.9 | ) | ||||||
Fixed Charges: | ||||||||||||||||||||||||
Total fixed charges, as above | $ | 8.0 | $ | 23.9 | $ | 32.2 | 32.3 | 33.8 | 37.4 | |||||||||||||||
Income (loss) from continuing operations before income taxes and equity in undistributed earnings of limited partnerships and other investments and fixed charges | $ | (93.9 | ) | $ | (133.0 | ) | $ | 23.4 | $ | (5.4 | ) | $ | 21.8 | $ | (199.5 | ) | ||||||||
Ratio of earnings to fixed charges and preferred stock dividends | (11.7 | ) | (5.6 | ) | 0.7 | (0.2 | ) | 0.6 | (5.3) | |||||||||||||||
Additional earnings required to achieve 1:1 ratio coverage | $ | 101.9 | $ | 156.9 | $ | 8.8 | $ | 37.7 | $ | 12.0 | $ | 236.9 |
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(1) | We had no dividends on preferred stock for the three and nine months ended September 30, 2012 and years ended December 31, 2011, 2010, 2009 and 2008. |
(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. |