EX-12 17 ex12.htm 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, 2008 and 2007

 

 

 

 

 

 

 

 

 

 

 

 

2008

 

2007

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

$

(30.1)

 

$

70.6 

 

 

 

 

 

 

Less:

Equity in earnings (losses) of venture capital partnership investments

 

(0.3)

 

 

(0.5)

 

 

 

 

 

 

Add:

Distributed earnings of venture capital partnership investments

 

0.1 

 

 

0.1 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes and equity in

 

 

 

 

 

  undistributed earnings of venture capital partnership investments

$

(29.7)

 

$

71.2 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

  Interest expense on indebtedness (1)

$

10.2 

 

$

9.5 

  Rental expense

 

0.3 

 

 

0.3 

Fixed charges, exclusive of interest credited on policyholder contract balances

 

10.5 

 

 

9.8 

  Interest credited on policyholder contract balances

 

39.1 

 

 

39.7 

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

$

49.6 

 

$

49.5 

 

 

 

 

 

 

Income from continuing operations before income taxes, equity in undistributed

 

 

 

 

 

  earnings of venture capital partnership investments and fixed charges

$

19.9 

 

$

120.7 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

0.4 

 

 

2.4 

 

 

 

 

 

 

Additional earnings required to achieve 1:1 ratio coverage

$

29.7 

 

$

-- 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL RATIO(2) — ratio of earnings to fixed charges exclusive of

 

 

 

 

 

interest credited on policyholder contract balances:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes and equity in

 

 

 

 

 

  undistributed earnings of venture capital partnership investments

$

(29.7)

 

$

71.2 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

  Total fixed charges, as above

$

10.5 

 

$

9.8 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes and equity in

 

 

 

 

 

  undistributed earnings of venture capital partnership investments and fixed charges

$

(19.2)

 

$

81.0 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

(1.8)

 

 

8.3 

 

 

 

 

 

 

Additional earnings required to achieve 1:1 ratio coverage

$

29.7 

 

$

-- 

 

 

 

 

 

 

 

(1) 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.

 

(2) 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.