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, | |||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
Earnings: | ||||||||||||
Pre-tax earnings | $ | 147,057 | $ | 105,631 | $ | 433,760 | $ | 468,667 | ||||
Fixed charges | 40,758 | 33,812 | 109,142 | 100,183 | ||||||||
Earnings before fixed charges | $ | 187,815 | $ | 139,443 | $ | 542,902 | $ | 568,850 | ||||
Fixed charges: | ||||||||||||
Interest expense* | 20,149 | 15,380 | 50,455 | 46,117 | ||||||||
Amortization of bond issue costs | 194 | 127 | 468 | 380 | ||||||||
Interest credited for deposit products | 20,013 | 17,874 | 57,098 | 52,372 | ||||||||
Estimated interest factor of rental expense | 402 | 431 | 1,121 | 1,314 | ||||||||
Total fixed charges | $ | 40,758 | $ | 33,812 | $ | 109,142 | $ | 100,183 | ||||
Ratio of earnings to fixed charges | 4.6 | 4.1 | 5.0 | 5.7 | ||||||||
Rental expense | $ | 1,218 | $ | 1,305 | $ | 3,398 | $ | 3,983 | ||||
Estimated interest factor of rental expense (33%) | $ | 402 | $ | 431 | $ | 1,121 | $ | 1,314 | ||||
| * | There was no interest capitalized in any period indicated. |