EX-12 2 pnx_78009-ex12.htm RATIO OF EARNINGS REPORT 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)

     

Six Months Ended June 30, 2006 and 2005

     
      
 

2006

 

2005

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

     

  earnings attributed to mandatorily redeemable noncontrolling interests (1)

$

26.7 

 

$

50.4 

      

Less:

Equity in earnings (losses) of venture capital partnership investments

 

(0.9)

  

0.5 

 

     

Add:

Distributed earnings of affiliates

 

— 

  

0.8 

Distributed earnings of venture capital partnership investments

 

1.1 

  

27.7 

      

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

     

  equity in undistributed earnings of affiliates and venture capital

     

  partnership investments

$

28.7 

 

$

78.4 

Fixed Charges:

     

  Interest expense on indebtedness (2)

$

24.7 

 

$

22.5 

  Stock purchase contract adjustment payments

 

— 

  

4.1 

  Rental expense

 

0.2 

  

0.5 

Fixed charges, exclusive of interest credited on policyholder contract balances

$

24.9 

 

$

27.1 

  Interest credited on policyholder contract balances

 

90.5 

  

94.4 

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

$

115.4 

 

$

121.5 

      

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

     

  equity in undistributed earnings of affiliates and venture capital

     

  partnership investments and fixed charges

$

144.1 

 

$

199.9 

Ratio of earnings to fixed charges

 

1.2 

  

1.6 

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

$

28.7 

 

$

78.4 

Fixed Charges:

     

  Total fixed charges, as above

$

24.9 

 

$

27.1 

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

$

53.6 

 

$

105.5 

Ratio of earnings to fixed charges

 

2.2 

  

3.9 

Additional earnings required to achieve 1:1 ratio coverage

$

— 

 

$

— 

      
      

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

the six months ended June 2005 were $5.1 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.