EX-12.1 2 a2012-09x30xaelxexhibit121.htm EXHIBIT 12.1
Exhibit 12.1
Ratio of Earnings to Fixed Charges

| Nine Months Ended |  | Year Ended December 31,
| September 30, 2012 |  | 2011 |  | 2010 |  | 2009 |  | 2008 |  | 2007
|  |  | (Dollars in thousands)
Consolidated income before income taxes and minority interests | $ | 32,350 |  |  | $ | 132,914 |  |  | $ | 65,266 |  |  | $ | 86,164 |  |  | $ | 77,053 |  |  | $ | 38,144 |
Interest credited to account balances and amortization of deferred sales inducements | 578,320 |  |  | 847,538 |  |  | 793,091 |  |  | 387,882 |  |  | 235,836 |  |  | 571,917 |
Interest expense on notes payable | 21,208 |  |  | 31,633 |  |  | 22,125 |  |  | 14,853 |  |  | 19,773 |  |  | 20,916 |
Interest expense on subordinated debentures | 10,384 |  |  | 13,977 |  |  | 14,906 |  |  | 15,819 |  |  | 19,445 |  |  | 22,520 |
Interest expense on amounts due under repurchase agreements and other interest expense | — |  |  | 30 |  |  | — |  |  | 534 |  |  | 8,207 |  |  | 15,926 |
Interest portion of rental expense | 516 |  |  | 665 |  |  | 648 |  |  | 570 |  |  | 459 |  |  | 468 |
Consolidated earnings | $ | 642,778 |  |  | $ | 1,026,757 |  |  | $ | 896,036 |  |  | $ | 505,822 |  |  | $ | 360,773 |  |  | $ | 669,891 |
Interest credited to account balances and amortization of deferred sales inducements | 578,320 |  |  | 847,538 |  |  | 793,091 |  |  | 387,882 |  |  | 235,836 |  |  | 571,917 |
Interest expense on notes payable | 21,208 |  |  | 31,633 |  |  | 22,125 |  |  | 14,853 |  |  | 19,773 |  |  | 20,916 |
Interest expense on subordinated debentures | 10,384 |  |  | 13,977 |  |  | 14,906 |  |  | 15,819 |  |  | 19,445 |  |  | 22,520 |
Interest expense on amounts due under repurchase agreements and other interest expense | — |  |  | 30 |  |  | — |  |  | 534 |  |  | 8,207 |  |  | 15,926 |
Interest portion of rental expense | 516 |  |  | 665 |  |  | 648 |  |  | 570 |  |  | 459 |  |  | 468 |
Combined fixed charges | $ | 610,428 |  |  | $ | 893,843 |  |  | $ | 830,770 |  |  | $ | 419,658 |  |  | $ | 283,720 |  |  | $ | 631,747 |
Ratio of consolidated earnings to fixed charges | 1.1 |  |  | 1.1 |  |  | 1.1 |  |  | 1.2 |  |  | 1.3 |  |  | 1.1 |
Ratio of consolidated earnings to fixed charges, excluding interest credited to account balances and amortization of deferred sales inducements | 2.0 |  |  | 3.9 |  |  | 2.7 |  |  | 3.7 |  |  | 2.6 |  |  | 1.6 |