Exhibit 12.1
Ratio of Earnings to Fixed Charges
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| Three Months |
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| Ended |
| Year Ended December 31, |
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| March 31, 2009 |
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
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| (As Adjusted) |
| (As Adjusted) |
| (As Adjusted) |
| (As Adjusted) |
| (As Adjusted) |
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| (Dollars in thousands) |
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Consolidated income before income taxes and minority interests |
| $ | 35,000 |
| $ | 77,053 |
| $ | 38,144 |
| $ | 116,029 |
| $ | 66,736 |
| $ | 69,166 |
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Interest credited to account balances and amortization of deferred sales inducements |
| 73,474 |
| 235,836 |
| 571,917 |
| 429,062 |
| 311,479 |
| 309,034 |
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Interest expense on notes payable |
| 4,276 |
| 19,773 |
| 20,916 |
| 21,278 |
| 20,482 |
| 2,673 |
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Interest expense on subordinated debentures |
| 4,208 |
| 19,445 |
| 22,520 |
| 21,354 |
| 14,145 |
| 9,609 |
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Interest expense on amounts due under repurchase agreements and other interest expense |
| 242 |
| 8,207 |
| 15,926 |
| 32,931 |
| 11,280 |
| 3,148 |
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Interest portion of rental expense |
| 120 |
| 459 |
| 468 |
| 431 |
| 388 |
| 344 |
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Consolidated earnings |
| $ | 117,320 |
| $ | 360,773 |
| $ | 669,891 |
| $ | 621,085 |
| $ | 424,510 |
| $ | 393,974 |
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Interest credited to account balances and amortization of deferred sales inducements |
| $ | 73,474 |
| $ | 235,836 |
| $ | 571,917 |
| $ | 429,062 |
| $ | 311,479 |
| $ | 309,034 |
|
Interest expense on notes payable |
| 4,276 |
| 19,773 |
| 20,916 |
| 21,278 |
| 20,482 |
| 2,673 |
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Interest expense on subordinated debentures |
| 4,208 |
| 19,445 |
| 22,520 |
| 21,354 |
| 14,145 |
| 9,609 |
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Interest expense on amounts due under repurchase agreements and other interest expense |
| 242 |
| 8,207 |
| 15,926 |
| 32,931 |
| 11,280 |
| 3,148 |
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Interest portion of rental expense |
| 120 |
| 459 |
| 468 |
| 431 |
| 388 |
| 344 |
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Combined fixed charges |
| $ | 82,320 |
| $ | 283,720 |
| $ | 631,747 |
| $ | 505,056 |
| $ | 357,774 |
| $ | 324,808 |
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Ratio of consolidated earnings to fixed charges |
| 1.4 |
| 1.3 |
| 1.1 |
| 1.2 |
| 1.2 |
| 1.2 |
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Ratio of consolidated earnings to fixed charges, both excluding interest credited to account balances and amortization of deferred sales inducements |
| 5.0 |
| 2.6 |
| 1.6 |
| 2.5 |
| 2.4 |
| 5.4 |
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In May 2008, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) (“FSP APB 14-1”).
The Company adopted FSP APB 14-1 on January 1, 2009, applying it retrospectively to all periods presented and the 2008 and prior amounts above are as adjusted. The Company’s contingent convertible senior notes that fall within the scope of FSP APB 14-1 were issued by the Company in December 2004.
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