Exhibit 12. Statement re computation of ratios
TORCHMARK CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollar amounts in thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||
Earnings: | ||||||||||||
Pre-tax earnings | $ | 201,584 | $ | 189,273 | $ | 597,916 | $ | 567,251 | ||||
Fixed charges | 34,914 | 37,117 | 102,398 | 102,471 | ||||||||
Earnings before fixed charges | $ | 236,498 | $ | 226,390 | $ | 700,314 | $ | 669,722 | ||||
Fixed charges: | ||||||||||||
Interest expense* | 17,459 | 20,995 | 51,022 | 54,218 | ||||||||
Amortization of bond issue costs | 120 | 442 | 355 | 847 | ||||||||
Interest credited for deposit products | 16,816 | 15,305 | 49,615 | 46,059 | ||||||||
Estimated interest factor of rental expense | 519 | 375 | 1,406 | 1,347 | ||||||||
Total fixed charges | $ | 34,914 | $ | 37,117 | $ | 102,398 | $ | 102,471 | ||||
Ratio of earnings to fixed charges | 6.8 | 6.1 | 6.8 | 6.5 | ||||||||
Rental expense | $ | 1,572 | $ | 1,135 | $ | 4,260 | $ | 4,082 | ||||
Estimated interest factor of rental expense (33%) | $ | 519 | $ | 375 | $ | 1,406 | $ | 1,347 | ||||
| * | There was no interest capitalized in any period indicated. |
