Stable earnings profile supporting fixed-charge coverage of nearly 3.9x in 2005, though a decrease from prior-year's 6.8x as the full effects of a $260 million convertible debt issue in late 2004 was felt. Improving operating company dividend capacity supporting strong statutory fixed-charge coverage of more than 5x in 2005. Strong liquidity and demonstrated capital markets access. As of year-end 2005, the company has relatively high debt leverage of 33%%, debt-plus-preferred to capital of 48% excluding FAS 115, though double leverage significantly improved to 1.06x with the company raising $160 million of new equity in December 2005. Significant interest-rate risk exposure driven by negative convexity associated with large holdings in callable agency bonds. Reliance on a single operating company with product
