EX-12 2 pnx_ex12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS pnx_ex12.htm
EXHIBIT 12

STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (1)
($ amounts in millions)
 
   
 Three
Months
Ended
Sept 30,
   
 Nine
Months
Ended
Sept 30,
     Year Ended December 31,
   
2012
   
2012
   
2011
   
2010
    2009    
2008
               
As restated
and amended
   
As restated
and amended
   
As restated
and amended
   
As restated
and amended
Income (loss) from continuing operations before income taxes
  $ (96.9 )   $ (136.1 )   $ 2.7     $ (41.6 )   $ (73.9 )   $ (257.4 )
                                                 
Less:  Equity in earnings (losses) of limited partnership and
  other investments
    12.4       48.6       44.6       57.4       (41.3 )      5.9  
                                                 
Add:  Distributed earnings of limited partnership and
  other investments
    7.4       27.8       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
  $ (101.9 )   $ (156.9 )   $ (8.8 )   $ (37.7 )   $ (12.0 )   $ (236.9 )
                                                 
Fixed Charges:
                                               
  Interest expense on indebtedness
  $ 7.9     $ 23.7     $ 31.8     $ 31.8     $ 33.1     $ 36.7  
  Interest expense attributable to rentals
    0.1       0.2       0.4       0.5       0.7        0.7  
Total fixed charges (2)
    8.0       23.9       32.2       32.3       33.8        37.4  
  Interest credited on policyholder contract balances
    31.3       90.2       115.2       124.2       136.2        152.0  
Total fixed charges, including interest credited to policyholders
  $ 39.3     $ 114.1     $ 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
  $ (62.6 )   $ (42.8 )   $ 138.6     $ 118.8     $ 158.0     $ (47.5 )
                                                 
Ratio of earnings to fixed charges and preferred stock dividends
    (1.6 )     (0.4 )     0.9       0.8       0.9        (0.3)  
                                                 
Additional earnings required to achieve 1:1 ratio coverage
  $ 101.9     $ 156.9     $ 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
  $ (101.9 )   $ (156.9 )   $ (8.8 )   $ (37.7 )   $ (12.0 )   $ (236.9 )
                                                 
Fixed Charges:
                                               
  Total fixed charges, as above
  $ 8.0     $ 23.9     $ 32.2       32.3       33.8        37.4  
                                                 
Income (loss) from continuing operations before income taxes
  and equity in undistributed earnings of limited partnerships and
  other investments and fixed charges
  $ (93.9 )   $ (133.0 )   $ 23.4     $ (5.4 )   $ 21.8     $ (199.5 )
                                                 
Ratio of earnings to fixed charges and preferred stock dividends
    (11.7 )     (5.6 )     0.7       (0.2 )     0.6        (5.3)  
                                                 
Additional earnings required to achieve 1:1 ratio coverage
  $ 101.9     $ 156.9     $ 8.8     $ 37.7     $ 12.0     $ 236.9  
_______
(1)
We had no dividends on preferred stock for the three and nine months ended September 30, 2012 and years ended December 31, 2011, 2010, 2009 and 2008.
(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.