EX-12.1 2 a2015-09x30_exhibit121.htm EXHIBIT 12.1
Exhibit 12.1
Ratio of Earnings to Fixed Charges

| Nine Months Ended |  | Year Ended December 31,
| September 30, 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011 |  | 2010
| (Dollars in thousands)
Consolidated income before income taxes | $ | 284,356 |  |  | $ | 196,064 |  |  | $ | 389,332 |  |  | $ | 85,989 |  |  | $ | 132,914 |  |  | $ | 65,266 |
Interest sensitive and index product benefits and amortization of deferred sales inducements | 954,709 |  |  | 1,605,119 |  |  | 1,525,980 |  |  | 895,636 |  |  | 846,878 |  |  | 794,803 |
Interest expense on notes payable | 21,976 |  |  | 36,370 |  |  | 38,870 |  |  | 28,479 |  |  | 31,633 |  |  | 22,125 |
Interest expense on subordinated debentures | 9,138 |  |  | 12,122 |  |  | 12,088 |  |  | 13,458 |  |  | 13,977 |  |  | 14,906 |
Interest expense on amounts due under repurchase agreements and other interest expense | 2 |  |  | 18 |  |  | 139 |  |  | — |  |  | 30 |  |  | — |
Interest portion of rental expense | 618 |  |  | 847 |  |  | 797 |  |  | 697 |  |  | 665 |  |  | 648 |
Consolidated earnings | $ | 1,270,799 |  |  | $ | 1,850,540 |  |  | $ | 1,967,206 |  |  | $ | 1,024,259 |  |  | $ | 1,026,097 |  |  | $ | 897,748 |
Interest sensitive and index product benefits and amortization of deferred sales inducements | $ | 954,709 |  |  | $ | 1,605,119 |  |  | $ | 1,525,980 |  |  | $ | 895,636 |  |  | $ | 846,878 |  |  | $ | 794,803 |
Interest expense on notes payable | 21,976 |  |  | 36,370 |  |  | 38,870 |  |  | 28,479 |  |  | 31,633 |  |  | 22,125 |
Interest expense on subordinated debentures | 9,138 |  |  | 12,122 |  |  | 12,088 |  |  | 13,458 |  |  | 13,977 |  |  | 14,906 |
Interest expense on amounts due under repurchase agreements and other interest expense | 2 |  |  | 18 |  |  | 139 |  |  | — |  |  | 30 |  |  | — |
Interest portion of rental expense | 618 |  |  | 847 |  |  | 797 |  |  | 697 |  |  | 665 |  |  | 648 |
Combined fixed charges | $ | 986,443 |  |  | $ | 1,654,476 |  |  | $ | 1,577,874 |  |  | $ | 938,270 |  |  | $ | 893,183 |  |  | $ | 832,482 |
Ratio of consolidated earnings to fixed charges | 1.3 |  |  | 1.1 |  |  | 1.2 |  |  | 1.1 |  |  | 1.1 |  |  | 1.1 |
Ratio of consolidated earnings to fixed charges, both excluding interest sensitive and index product benefits and amortization of deferred sales inducements | 10.0 |  |  | 5.0 |  |  | 8.5 |  |  | 3.0 |  |  | 3.9 |  |  | 2.7 |

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