Exhibit 12.1
Ratio of Earnings to Fixed Charges
|
| Nine Months |
| Year Ended December 31, |
| ||||||||||||||
|
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| 2001 |
| 2000 |
| ||||||
|
|
|
| (Restated) |
| (Restated) |
|
|
|
|
|
|
| ||||||
|
| (Dollars in thousands) |
| ||||||||||||||||
Consolidated income before income taxes, minority interest in earnings of subsidiaries and cumulative effect adjustment (a) |
| $ | 52,601 |
| $ | 69,481 |
| $ | 39,308 |
| $ | 28,951 |
| $ | 9,453 |
| $ | 14,618 |
|
Interest credited to account balances |
| 224,812 |
| 305,762 |
| 248,075 |
| 183,503 |
| 100,125 |
| 57,312 |
| ||||||
Interest expense on General Agency Commission and Servicing |
| — |
| — |
| — |
| 3,596 |
| 5,716 |
| 5,958 |
| ||||||
Interest expense on notes payable (a) |
| 12,271 |
| 2,357 |
| 2,713 |
| 1,901 |
| 2,881 |
| 2,339 |
| ||||||
Interest expense on subordinated debentures (a) |
| 10,014 |
| 9,609 |
| 7,661 |
| — |
| — |
| — |
| ||||||
Interest expense on amounts due under repurchase agreements and other interest expense |
| 6,825 |
| 3,148 |
| 1,278 |
| 1,777 |
| 1,504 |
| 3,267 |
| ||||||
Interest portion of rental expense |
| 294 |
| 344 |
| 314 |
| 267 |
| 171 |
| 192 |
| ||||||
Consolidated earnings |
| $ | 306,817 |
| $ | 390,701 |
| $ | 299,349 |
| $ | 219,995 |
| $ | 119,850 |
| $ | 83,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest credited to account balances |
| 224,812 |
| 305,762 |
| 248,075 |
| 183,503 |
| 100,125 |
| 57,312 |
| ||||||
Interest expense on General Agency Commission and Servicing |
| — |
| — |
| — |
| 3,596 |
| 5,716 |
| 5,958 |
| ||||||
Interest expense on notes payable (a) |
| 12,271 |
| 2,357 |
| 2,713 |
| 1,901 |
| 2,881 |
| 2,339 |
| ||||||
Interest expense on subordinated debentures (a) |
| 10,014 |
| 9,609 |
| 7,661 |
| — |
| — |
| — |
| ||||||
Interest expense on amounts due under repurchase agreements and other interest expense |
| 6,825 |
| 3,148 |
| 1,278 |
| 1,777 |
| 1,504 |
| 3,267 |
| ||||||
Interest portion of rental expense |
| 294 |
| 344 |
| 314 |
| 267 |
| 171 |
| 192 |
| ||||||
Combined fixed charges |
| $ | 254,216 |
| $ | 321,220 |
| $ | 260,041 |
| $ | 191,044 |
| $ | 110,397 |
| $ | 69,068 |
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|
|
|
|
|
|
|
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|
|
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Ratio of consolidated earnings to fixed charges |
| 1.2 |
| 1.2 |
| 1.2 |
| 1.2 |
| 1.1 |
| 1.2 |
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|
|
|
|
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|
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|
|
|
|
|
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Ratio of consolidated earnings to fixed charges excluding interest credited to account balances |
| 2.8 |
| 5.5 |
| 4.3 |
| 4.8 |
| 1.9 |
| 2.2 |
| ||||||
(a) On December 31, 2003, retroactive to January 1, 2003, we adopted Financial Accounting Standards Board (“FASB”) Interpretation No. 46 (“FIN 46”), Consolidation of Variable Interest Entities, an Interpretation of Accounting Research Bulletin No. 51. During the first quarter of 2005, retroactive to January 1, 2003, we adopted FASB Staff Position No. FIN 46(R)-5, Implicit Variable Interests under FIN 46. See note 1 to our audited consolidated financial statements for December 31, 2004 and note 1 to our unaudited consolidated financial statements for September 30, 2005.
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