EX-12 2 pnx-20130331xexhibit12.htm EXHIBIT PNX-2013.03.31-Exhibit 12

EXHIBIT 12


STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS [1]
 
Three
Months
Ended
March 31,
 
Years Ended December 31,
($ amounts in millions)
2013
 
2012
 
2011
 
2010
 
2009
 
2008
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes
$
(63.0
)
 
$
(156.0
)
 
$
2.7

 
$
(41.6
)
 
$
(73.9
)
 
(257.4
)
 
 
 
 
 
 
 
 
 
 
 
 
Less: Equity in earnings (losses) of limited partnership
  and other investments
10.5

 
59.5

 
44.6

 
57.4

 
(41.3
)
 
5.9

 
 
 
 
 
 
 
 
 
 
 
 
Add: Distributed earnings of limited partnership and
  other investments
1.3

 
28.7

 
33.1

 
61.3

 
20.6

 
26.4

 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes and
  equity in undistributed earnings of limited partnership and
  other investments
$
(72.2
)
 
$
(186.8
)
 
$
(8.8
)
 
$
(37.7
)
 
$
(12.0
)
 
$
(236.9
)
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
  Interest expense on indebtedness
$
7.7

 
$
30.8

 
$
31.8

 
$
31.8

 
$
33.1

 
36.7

  Interest expense on attributable to rentals
—

 
0.3

 
0.4

 
0.5

 
0.7

 
0.7

Total fixed charges [2]
7.7

 
31.1

 
32.2

 
32.3

 
33.8

 
37.4

  Interest credited on policyholder contract balances
29.0

 
122.6

 
115.2

 
124.2

 
136.2

 
152.0

Total fixed charges, including interest credited to policyholders
$
36.7

 
$
153.7

 
$
147.4

 
$
156.5

 
$
170.0

 
$
189.4

 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes,
  equity in undistributed earnings of limited partnership and
  other investments and fixed charges
$
(35.5
)
 
$
(33.1
)
 
$
138.6

 
$
118.8

 
$
158.0

 
$
(47.5
)
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges and preferred stock dividends
(1.0
)
 
(0.2
)
 
0.9

 
0.8

 
0.9

 
(0.3
)
 
 
 
 
 
 
 
 
 
 
 
 
Additional earnings required to achieve 1:1 ratio coverage
$
72.2

 
$
186.8

 
$
8.8

 
$
37.7

 
$
12.0

 
$
236.9

 
 
 
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL RATIO [3] --- Ratio of earnings to fixed charges
and preferred stock dividends exclusive of interest credited on
policyholder contract balances:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes and
  equity in undistributed earnings of limited partnership and
  other investments
$
(72.2
)
 
$
(186.8
)
 
$
(8.8
)
 
$
(37.7
)
 
$
(12.0
)
 
$
(236.9
)
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
  Total fixed charges, as above
$
7.7

 
$
31.1

 
$
32.2

 
$
32.3

 
$
33.8

 
$
37.4

 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes,
  equity in undistributed earnings of limited partnership and
  other investments and fixed charges
$
(64.5
)
 
$
(155.7
)
 
$
23.4

 
$
(5.4
)
 
$
21.8

 
$
(199.5
)
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges and preferred stock dividends
(8.4
)
 
(5.0
)
 
0.7

 
(0.2
)
 
0.6

 
(5.3
)
 
 
 
 
 
 
 
 
 
 
 
 
Additional earnings required to achieve 1:1 ratio coverage
$
72.2

 
$
186.8

 
$
8.8

 
$
37.7

 
$
12.0

 
$
236.9

———————
[1]
We had no dividends on preferred stock for the years 2009 to 2013.
[2]
Total fixed charges consist of interest expense on indebtedness and an interest factor attributable to rentals. The interest factor attributable to rentals consists of one-third of rental charges, which we deem to be representative of the interest factor inherent in rents.
[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.