| For the Quarter Ended | For the Nine Months Ended | ||||
September 30, 2007 | September 30, 2006 | September 30, 2007 | September 30, 2006 | ||
| Interest expense on long-term debt | $ 1,123 | 1,088 | $ 3,323 | 3,192 | |
Finance charges incurred in the form of interest on funds withheld under reinsurance agreement | — | 1,265 | — | 4,003 | |
Estimated interest within rental expense related to operating leases | 69 | 102 | 282 | 285 | |
Other interest expense and capitalized expenses related to indebtedness | 7 | 18 | 50 | 56 | |
| Total fixed charges | $ 1,199 | 2,473 | $ 3,655 | 7,536 | |
| Income from continuing operations before income taxes | $ 12,121 | 12,401 | $ 54,558 | 32,717 | |
| Plus fixed charges | 1,199 | 2,473 | 3,655 | 7,536 | |
| Earnings | $ 13,320 | 14,874 | $ 58,213 | 40,253 | |
Ratio of earnings to fixed charges (1),(2) | 11.11 | 6.01 | 15.93 | 5.34 | |
(1) | We have authority to issue up to 50,000,000 shares of preferred stock; however, there are currently no preferred shares outstanding and we do not have any preferred stock dividend obligations. Therefore, the ratio of earnings to fixed charges and preferred stock dividends is equal to the ratio earnings to fixed charges and is not disclosed separately. |
(2) | For the purposes of this computation, earnings consist of income from continuing operations before income taxes plus fixed charges. Fixed charges consist of interest expense, capitalized expenses related to indebtedness, finance charges in the form of interest on funds withheld under a reinsurance agreement, and an estimate of the interest within rental expense. |
