EX-12 5 pnx_74468-ex12.htm EXHIBIT 12 STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

EXHIBIT 12

 

STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

          

($ amounts in millions)

         

Nine Months Ended September 30, 2005 and 2004

          
           
 

2005

  

2004

Income (loss) from continuing operations before income taxes, minority interest and

          

  earnings attributed to mandatorily redeemable noncontrolling interests (1)  

$

81.4 

  

$

60.5 

           

Less:

Equity in earnings (losses) of venture capital partnership investments

  

13.2 

    

12.1 

 

          

Add:

Distributed earnings of affiliates

  

— 

    

1.1 

Distributed earnings of venture capital partnership investments

  

51.9 

    

39.5 

Income (loss) from continuing operations before income taxes, minority interest and

         

  equity in undistributed earnings of affiliates and venture capital

          

  partnership investments

$

120.1 

  

$

89.0 

           

Fixed Charges:

          

  Interest expense on indebtedness (2)  

$

34.2 

  

$

29.8 

  Stock purchase contract adjustment payments

  

6.1 

    

6.1 

  Rental expense

 

0.7 

    

1.8 

Fixed charges, exclusive of interest credited on policyholder contract balances

$

41.0 

  

$

37.7 

  Interest credited on policyholder contract balances

  

140.7 

    

146.3 

Total fixed charges, inclusive of interest credited on policyholder contract balances

$

181.7 

  

$

184.0 

           

Income (loss) from continuing operations before income taxes, minority interest,

         

  equity in undistributed earnings of affiliates and venture capital

          

  partnership investments and fixed charges

$

301.8 

  

$

273.0 

           

Ratio of earnings to fixed charges

  

1.7 

   

1.5 

           

Additional earnings required to achieve 1:1 ratio coverage

$

— 

 

$

— 

           

SUPPLEMENTAL RATIO — ratio of earnings to fixed charges

          

exclusive of interest credited on policyholder contract balances: (3)
           

Income (loss) from continuing operations before income taxes, minority interest and

         

  equity in undistributed earnings of affiliates and venture capital

          

  partnership investments

$

120.1 

  

$

89.0 

           

Fixed Charges:

          

  Total fixed charges, as above

$

41.0 

  

$

37.7 

           

Income (loss) from continuing operations before income taxes, minority interest and

         

  equity in undistributed earnings of affiliates and venture capital partnership

          

  investments and fixed charges

$

161.1 

  

$

126.7 

           

Ratio of earnings to fixed charges

 

3.9 

   

3.4 

           

Additional earnings required to achieve 1:1 ratio coverage

$

— 

 

$

—    

         

(1) Earnings attributed to mandatorily redeemable noncontrolling interests included in Other operating expenses for

     the nine months ended September 2005 and 2004 were $6.7 million and $10.5 million respectively.

         

(2) 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.

         

(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.