EX-12 3 pnx7687610qex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 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)

       

Three Months Ended March 31, 2006 and 2005

       
        
 

2006

 

2005

        

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

       

  earnings attributed to mandatorily redeemable noncontrolling interests (1)

$

(1.1)

 

$

15.7 

        

Less:

Equity in earnings (losses) of venture capital partnership investments

 

(0.7)

  

(2.2)

 

       

Add:

Distributed earnings of affiliates

 

— 

  

0.4 

Distributed earnings of venture capital partnership investments

 

0.9 

   

13.0 

        

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

       

  equity in undistributed earnings of affiliates and venture capital

       

  partnership investments

$

0.5 

 

$

31.3 

        

Fixed Charges:

       

  Interest expense on indebtedness (2)

$

12.4 

 

$

11.1 

  Stock purchase contract adjustment payments

 

— 

  

2.0 

  Rental expense

 

0.1 

   

0.3 

Fixed charges, exclusive of interest credited on policyholder contract balances

$

12.5 

 

$

13.4 

  Interest credited on policyholder contract balances

 

45.5 

   

49.0 

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

$

58.0 

 

$

62.4 

        

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

       

  equity in undistributed earnings of affiliates and venture capital

       

  partnership investments and fixed charges

$

58.5 

 

$

93.7 

        

Ratio of earnings to fixed charges

 

1.0 

   

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:

       
        

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

       

  equity in undistributed earnings of affiliates and venture capital

       

  partnership investments

$

0.5 

 

$

31.3 

        

Fixed Charges:

       

  Total fixed charges, as above

$

12.5 

 

$

13.4 

        

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

$

13.0 

 

$

44.7 

        

Ratio of earnings to fixed charges

 

1.0 

   

3.3 

        

Additional earnings required to achieve 1:1 ratio coverage

$

— 

 

$

—    

        
        
        

(1)  Earnings attributed to mandatorily redeemable noncontrolling interests included in Other operating expenses for     the three months ended March 2005 were $3.2 million.

 

(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.