EX-12.1 2 a2016-09x30_exhibit121.htm EXHIBIT 12.1
Exhibit 12.1
Ratio of Earnings to Fixed Charges

| Nine Months Ended |  | Year Ended December 31,
| September 30, 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011
| (Dollars in thousands)
Consolidated income (loss) before income taxes | $ | (57,344 | ) |  | $ | 337,314 |  |  | $ | 196,064 |  |  | $ | 389,332 |  |  | $ | 85,989 |  |  | $ | 132,914 |
Interest sensitive and index product benefits and amortization of deferred sales inducements | 615,131 |  |  | 1,177,443 |  |  | 1,605,119 |  |  | 1,525,980 |  |  | 895,636 |  |  | 846,878 |
Interest expense on notes and loan payable | 20,649 |  |  | 28,849 |  |  | 36,370 |  |  | 38,870 |  |  | 28,479 |  |  | 31,633 |
Interest expense on subordinated debentures | 9,627 |  |  | 12,239 |  |  | 12,122 |  |  | 12,088 |  |  | 13,458 |  |  | 13,977 |
Interest expense on amounts due under repurchase agreements and other interest expense | — |  |  | 2 |  |  | 18 |  |  | 139 |  |  | — |  |  | 30 |
Interest portion of rental expense | 692 |  |  | 902 |  |  | 847 |  |  | 797 |  |  | 697 |  |  | 665 |
Consolidated earnings | $ | 588,755 |  |  | $ | 1,556,749 |  |  | $ | 1,850,540 |  |  | $ | 1,967,206 |  |  | $ | 1,024,259 |  |  | $ | 1,026,097 |
Interest sensitive and index product benefits and amortization of deferred sales inducements | $ | 615,131 |  |  | $ | 1,177,443 |  |  | $ | 1,605,119 |  |  | $ | 1,525,980 |  |  | $ | 895,636 |  |  | $ | 846,878 |
Interest expense on notes and loan payable | 20,649 |  |  | 28,849 |  |  | 36,370 |  |  | 38,870 |  |  | 28,479 |  |  | 31,633 |
Interest expense on subordinated debentures | 9,627 |  |  | 12,239 |  |  | 12,122 |  |  | 12,088 |  |  | 13,458 |  |  | 13,977 |
Interest expense on amounts due under repurchase agreements and other interest expense | — |  |  | 2 |  |  | 18 |  |  | 139 |  |  | — |  |  | 30 |
Interest portion of rental expense | 692 |  |  | 902 |  |  | 847 |  |  | 797 |  |  | 697 |  |  | 665 |
Combined fixed charges | $ | 646,099 |  |  | $ | 1,219,435 |  |  | $ | 1,654,476 |  |  | $ | 1,577,874 |  |  | $ | 938,270 |  |  | $ | 893,183 |
Ratio of consolidated earnings to fixed charges | 0.9 |  |  | 1.3 |  |  | 1.1 |  |  | 1.2 |  |  | 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 | (0.9 | ) |  | 9.0 |  |  | 5.0 |  |  | 8.5 |  |  | 3.0 |  |  | 3.9 |