EX-12.1 2 a2014-06x30_exhibit121.htm EXHIBIT 12.1
Exhibit 12.1
Ratio of Earnings to Fixed Charges

| Six Months Ended |  | Year Ended December 31,
| June 30, 2014 |  | 2013 |  | 2012 |  | 2011 |  | 2010 |  | 2009
| (Dollars in thousands)
Consolidated income before income taxes | $ | 40,958 |  |  | $ | 389,332 |  |  | $ | 85,989 |  |  | $ | 132,914 |  |  | $ | 65,266 |  |  | $ | 86,164 |
Interest sensitive and index product benefits and amortization of deferred sales inducements | 740,981 |  |  | 1,525,980 |  |  | 895,636 |  |  | 846,878 |  |  | 794,803 |  |  | 382,771 |
Interest expense on notes payable | 19,385 |  |  | 38,870 |  |  | 28,479 |  |  | 31,633 |  |  | 22,125 |  |  | 14,853 |
Interest expense on subordinated debentures | 6,032 |  |  | 12,088 |  |  | 13,458 |  |  | 13,977 |  |  | 14,906 |  |  | 15,819 |
Interest expense on amounts due under repurchase agreements and other interest expense | 10 |  |  | 139 |  |  | — |  |  | 30 |  |  | — |  |  | 534 |
Interest portion of rental expense | 422 |  |  | 797 |  |  | 697 |  |  | 665 |  |  | 648 |  |  | 570 |
Consolidated earnings | $ | 807,788 |  |  | $ | 1,967,206 |  |  | $ | 1,024,259 |  |  | $ | 1,026,097 |  |  | $ | 897,748 |  |  | $ | 500,711 |
Interest sensitive and index product benefits and amortization of deferred sales inducements | $ | 740,981 |  |  | $ | 1,525,980 |  |  | $ | 895,636 |  |  | $ | 846,878 |  |  | $ | 794,803 |  |  | $ | 382,771 |
Interest expense on notes payable | 19,385 |  |  | 38,870 |  |  | 28,479 |  |  | 31,633 |  |  | 22,125 |  |  | 14,853 |
Interest expense on subordinated debentures | 6,032 |  |  | 12,088 |  |  | 13,458 |  |  | 13,977 |  |  | 14,906 |  |  | 15,819 |
Interest expense on amounts due under repurchase agreements and other interest expense | 10 |  |  | 139 |  |  | — |  |  | 30 |  |  | — |  |  | 534 |
Interest portion of rental expense | 422 |  |  | 797 |  |  | 697 |  |  | 665 |  |  | 648 |  |  | 570 |
Combined fixed charges | $ | 766,830 |  |  | $ | 1,577,874 |  |  | $ | 938,270 |  |  | $ | 893,183 |  |  | $ | 832,482 |  |  | $ | 414,547 |
Ratio of consolidated earnings to fixed charges | 1.1 |  |  | 1.2 |  |  | 1.1 |  |  | 1.1 |  |  | 1.1 |  |  | 1.2 |
Ratio of consolidated earnings to fixed charges, both excluding interest sensitive and index product benefits and amortization of deferred sales inducements | 2.6 |  |  | 8.5 |  |  | 3.0 |  |  | 3.9 |  |  | 2.7 |  |  | 3.7 |