EX-12 4 pnx80444-ex12.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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended 2006, 2005, 2004, 2003 and 2002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2006

 

2005

 

2004

 

2003

 

2002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes,
 minority interest and earnings attributed to mandatorily
 redeemable noncontrolling interests (1)

$

143.8 

 

$

144.1 

 

$

151.5 

 

$

(8.2)

 

$

(191.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:    Equity in earnings (losses) of venture capital partnership

  investments

 

1.1 

 

 

14.8 

 

 

19.3 

 

 

36.2 

 

 

(59.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:     Distributed earnings of affiliates

 

— 

 

 

— 

 

 

1.5 

 

 

1.2 

 

 

4.6 

 

Distributed earnings of venture capital partnership

  investments

 

6.7 

 

 

68.0 

 

 

50.4 

 

 

31.8 

 

 

14.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes,
 minority interest, equity in undistributed earnings of affiliates and
 venture capital partnership investments

$

149.4 

 

$

197.3 

 

$

184.1 

 

$

(11.4)

 

$

(113.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Interest expense on indebtedness (2)

$

49.2 

 

$

46.6 

 

$

40.8 

 

$

39.6 

 

$

31.4 

 

  Stock purchase contract adjustment payments

 

— 

 

 

7.4 

 

 

8.2 

 

 

8.2 

 

 

1.0 

 

  Rental expense

 

4.2 

 

 

2.3 

 

 

3.5 

 

 

3.8 

 

 

4.0 

 

Fixed charges, exclusive of interest credited on policyholder
 contract balances

$

53.4 

 

$

56.3 

 

$

52.5 

 

$

51.6 

 

$

36.4 

 

  Interest credited on policyholder contract balances

 

171.8 

 

 

191.2 

 

 

201.6 

 

 

207.9 

 

 

181.4 

 

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

$

225.2 

 

$

247.5 

 

$

254.1 

 

$

259.5 

 

$

217.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes,
 minority interest, equity in undistributed earnings of affiliates and
 venture capital partnership investments and fixed charges

$

374.6 

 

$

444.8 

 

$

438.2 

 

$

248.1 

 

$

104.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

1.7 

 

 

1.8 

 

 

1.7 

 

 

— 

 

 

— 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional earnings required to achieve 1:1 ratio coverage

$

— 

 

$

— 

 

$

— 

 

$

11.4 

 

$

113.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 , equity in undistributed earnings of affiliates
 and venture capital partnership investments

$

149.4 

 

$

197.3 

 

$

184.1 

 

$

(11.4)

 

$

(113.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Total fixed charges, as above

$

53.4 

 

$

56.3 

 

$

52.5 

 

$

51.6 

 

$

36.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes,
 minority interest, equity in undistributed earnings of affiliates and
venture capital partnership investments and fixed charges

$

202.8 

 

$

253.6 

 

$

236.6 

 

$

40.2 

 

$

(77.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

3.8 

 

 

4.5 

 

 

4.5 

 

 

— 

 

 

— 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional earnings required to achieve 1:1 ratio coverage

$

— 

 

$

— 

 

$

— 

 

$

11.4 

 

$

113.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Earnings attributed to mandatorily redeemable noncontrolling interests included in Other operating expenses for the years ended 2006

     through 2002 were $0.0 million, $6.7 million, $14.3 million, $12.0 million and $11.9 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.