Ratio of Earnings to Fixed Charges
|
| Year Ended December 31, |
| |||||||||||||
|
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| |||||
Consolidated income before income taxes and minority interests(a) |
| $ | 116,925 |
| $ | 70,894 |
| $ | 69,481 |
| $ | 39,308 |
| $ | 28,951 |
|
Interest credited to account balances |
| 429,062 |
| 311,479 |
| 309,034 |
| 248,075 |
| 183,503 |
| |||||
Interest expense on General Agency Commission and Servicing Agreement(a) |
| — |
| — |
| — |
| — |
| 3,596 |
| |||||
Interest expense on notes payable(a) |
| 20,382 |
| 16,324 |
| 2,358 |
| 2,713 |
| 1,901 |
| |||||
Interest expense on subordinated debentures(a) |
| 21,354 |
| 14,145 |
| 9,609 |
| 7,661 |
| — |
| |||||
Interest expense on amounts due under repurchase agreements and other interest expense |
| 32,931 |
| 11,280 |
| 3,148 |
| 1,278 |
| 1,777 |
| |||||
Interest portion of rental expense |
| 431 |
| 388 |
| 344 |
| 314 |
| 267 |
| |||||
Consolidated earnings |
| $ | 621,085 |
| $ | 424,510 |
| $ | 393,974 |
| $ | 299,349 |
| $ | 219,995 |
|
Interest credited to account balances |
| 429,062 |
| 311,479 |
| 309,034 |
| 248,075 |
| 183,503 |
| |||||
Interest expense on General Agency Commission and Servicing Agreement(a) |
| — |
| — |
| — |
| — |
| 3,596 |
| |||||
Interest expense on notes payable(a) |
| 20,382 |
| 16,324 |
| 2,358 |
| 2,713 |
| 1,901 |
| |||||
Interest expense on subordinated debentures(a) |
| 21,354 |
| 14,145 |
| 9,609 |
| 7,661 |
| — |
| |||||
Interest expense on amounts due under repurchase agreements and other interest expense |
| 32,931 |
| 11,280 |
| 3,148 |
| 1,278 |
| 1,777 |
| |||||
Interest portion of rental expense |
| 431 |
| 388 |
| 344 |
| 314 |
| 267 |
| |||||
Combined fixed charges |
| $ | 504,160 |
| $ | 353,616 |
| $ | 324,493 |
| $ | 260,041 |
| $ | 191,044 |
|
Ratio of consolidated earnings to fixed charges |
| 1.2 |
| 1.2 |
| 1.2 |
| 1.2 |
| 1.2 |
| |||||
Ratio of consolidated earnings to fixed charges excluding interest credited to account balances |
| 2.6 |
| 2.7 |
| 5.5 |
| 4.3 |
| 4.8 |
| |||||
(a) On December 31, 2003, retroactive to January 1, 2003, we adopted Financial Accounting Standards Board (“FASB”) Interpretation No. 46, Consolidation of Variable Interest Entities, an Interpretation of Accounting Research Bulletin No. 51 (“FIN 46”) 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.