Exhibit 12.1
Ratio of Earnings to Fixed Charges
|
| Nine Months |
| Year Ended December 31, |
| ||||||||||||||
|
| 2009 |
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| ||||||
|
| (Dollars in thousands) |
| ||||||||||||||||
Consolidated income before income taxes and minority interests |
| $ | 43,814 |
| $ | 77,053 |
| $ | 38,144 |
| $ | 116,029 |
| $ | 66,736 |
| $ | 69,166 |
|
Interest sensitive and index product benefits and amortization of deferred sales inducements |
| 221,867 |
| 235,836 |
| 571,917 |
| 429,062 |
| 311,479 |
| 309,034 |
| ||||||
Interest expense on notes payable |
| 11,288 |
| 19,773 |
| 20,916 |
| 21,278 |
| 20,482 |
| 2,673 |
| ||||||
Interest expense on subordinated debentures |
| 12,078 |
| 19,445 |
| 22,520 |
| 21,354 |
| 14,145 |
| 9,609 |
| ||||||
Interest expense on amounts due under repurchase agreements and other interest expense |
| 344 |
| 8,207 |
| 15,926 |
| 32,931 |
| 11,280 |
| 3,148 |
| ||||||
Interest portion of rental expense |
| 361 |
| 459 |
| 468 |
| 431 |
| 388 |
| 344 |
| ||||||
Consolidated earnings |
| $ | 289,752 |
| $ | 360,773 |
| $ | 669,891 |
| $ | 621,085 |
| $ | 424,510 |
| $ | 393,974 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest sensitive and index product benefits and amortization of deferred sales inducements |
| $ | 221,867 |
| $ | 235,836 |
| $ | 571,917 |
| $ | 429,062 |
| $ | 311,479 |
| $ | 309,034 |
|
Interest expense on notes payable |
| 11,288 |
| 19,773 |
| 20,916 |
| 21,278 |
| 20,482 |
| 2,673 |
| ||||||
Interest expense on subordinated debentures |
| 12,078 |
| 19,445 |
| 22,520 |
| 21,354 |
| 14,145 |
| 9,609 |
| ||||||
Interest expense on amounts due under repurchase agreements and other interest expense |
| 344 |
| 8,207 |
| 15,926 |
| 32,931 |
| 11,280 |
| 3,148 |
| ||||||
Interest portion of rental expense |
| 361 |
| 459 |
| 468 |
| 431 |
| 388 |
| 344 |
| ||||||
Combined fixed charges |
| $ | 245,938 |
| $ | 283,720 |
| $ | 631,747 |
| $ | 505,056 |
| $ | 357,774 |
| $ | 324,808 |
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Ratio of consolidated earnings to fixed charges |
| 1.2 |
| 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 |
| 2.8 |
| 2.6 |
| 1.6 |
| 2.5 |
| 2.4 |
| 5.4 |
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On January 1, 2009, we adopted and applied retrospectively to all periods presented an accounting standard for convertible debt instruments that may be settled in whole or in part in cash. Our contingent convertible senior notes that fall within the scope of this accounting standard were issued by us in December 2004.