EX-12.1 2 a2013-09x30_exhibit121.htm EXHIBIT 12.1
Exhibit 12.1
Ratio of Earnings to Fixed Charges

| Nine Months Ended |  | Year Ended December 31,
| September 30, 2013 |  | 2012 |  | 2011 |  | 2010 |  | 2009 |  | 2008
|  |  | (Dollars in thousands)
Consolidated income before income taxes | $ | 310,007 |  |  | $ | 85,989 |  |  | $ | 132,914 |  |  | $ | 65,266 |  |  | $ | 86,164 |  |  | $ | 77,053 |
Interest sensitive and index product benefits and amortization of deferred sales inducements | 1,073,802 |  |  | 905,244 |  |  | 847,538 |  |  | 793,091 |  |  | 387,882 |  |  | 235,836 |
Interest expense on notes payable | 26,985 |  |  | 28,479 |  |  | 31,633 |  |  | 22,125 |  |  | 14,853 |  |  | 19,773 |
Interest expense on subordinated debentures | 9,061 |  |  | 13,458 |  |  | 13,977 |  |  | 14,906 |  |  | 15,819 |  |  | 19,445 |
Interest expense on amounts due under repurchase agreements and other interest expense | 64 |  |  | — |  |  | 30 |  |  | — |  |  | 534 |  |  | 8,207 |
Interest portion of rental expense | 575 |  |  | 697 |  |  | 665 |  |  | 648 |  |  | 570 |  |  | 459 |
Consolidated earnings | $ | 1,420,494 |  |  | $ | 1,033,867 |  |  | $ | 1,026,757 |  |  | $ | 896,036 |  |  | $ | 505,822 |  |  | $ | 360,773 |
Interest sensitive and index product benefits and amortization of deferred sales inducements | $ | 1,073,802 |  |  | $ | 905,244 |  |  | $ | 847,538 |  |  | $ | 793,091 |  |  | $ | 387,882 |  |  | $ | 235,836 |
Interest expense on notes payable | 26,985 |  |  | 28,479 |  |  | 31,633 |  |  | 22,125 |  |  | 14,853 |  |  | 19,773 |
Interest expense on subordinated debentures | 9,061 |  |  | 13,458 |  |  | 13,977 |  |  | 14,906 |  |  | 15,819 |  |  | 19,445 |
Interest expense on amounts due under repurchase agreements and other interest expense | 64 |  |  | — |  |  | 30 |  |  | — |  |  | 534 |  |  | 8,207 |
Interest portion of rental expense | 575 |  |  | 697 |  |  | 665 |  |  | 648 |  |  | 570 |  |  | 459 |
Combined fixed charges | $ | 1,110,487 |  |  | $ | 947,878 |  |  | $ | 893,843 |  |  | $ | 830,770 |  |  | $ | 419,658 |  |  | $ | 283,720 |
Ratio of consolidated earnings to fixed charges | 1.3 |  |  | 1.1 |  |  | 1.1 |  |  | 1.1 |  |  | 1.2 |  |  | 1.3 |
Ratio of consolidated earnings to fixed charges, both excluding interest sensitive and index product benefits and amortization of deferred sales inducements | 9.5 |  |  | 3.0 |  |  | 3.9 |  |  | 2.7 |  |  | 3.7 |  |  | 2.6 |