EX-12.1 2 a2016-12x31_exhibit121.htm EXHIBIT 12.1
Exhibit 12.1
Ratio of Earnings to Fixed Charges

| Year Ended December 31,
| 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
Consolidated income before income taxes | $ | 130,247 |  |  | $ | 337,314 |  |  | $ | 196,064 |  |  | $ | 389,332 |  |  | $ | 85,989 |
Interest sensitive and index product benefits and amortization of deferred sales inducements | 976,638 |  |  | 1,177,443 |  |  | 1,605,119 |  |  | 1,525,980 |  |  | 895,636 |
Interest expense on notes and loan payable | 28,248 |  |  | 28,849 |  |  | 36,370 |  |  | 38,870 |  |  | 28,479 |
Interest expense on subordinated debentures | 12,958 |  |  | 12,239 |  |  | 12,122 |  |  | 12,088 |  |  | 13,458 |
Interest expense on amounts due under repurchase agreements and other interest expense | 30 |  |  | 2 |  |  | 18 |  |  | 139 |  |  | — |
Interest portion of rental expense | 920 |  |  | 902 |  |  | 896 |  |  | 843 |  |  | 741 |
Consolidated earnings | $ | 1,149,041 |  |  | $ | 1,556,749 |  |  | $ | 1,850,589 |  |  | $ | 1,967,252 |  |  | $ | 1,024,303 |
Interest sensitive and index product benefits and amortization of deferred sales inducements | $ | 976,638 |  |  | $ | 1,177,443 |  |  | $ | 1,605,119 |  |  | $ | 1,525,980 |  |  | $ | 895,636 |
Interest expense on notes and loan payable | 28,248 |  |  | 28,849 |  |  | 36,370 |  |  | 38,870 |  |  | 28,479 |
Interest expense on subordinated debentures | 12,958 |  |  | 12,239 |  |  | 12,122 |  |  | 12,088 |  |  | 13,458 |
Interest expense on amounts due under repurchase agreements and other interest expense | 30 |  |  | 2 |  |  | 18 |  |  | 139 |  |  | — |
Interest portion of rental expense | 920 |  |  | 902 |  |  | 896 |  |  | 843 |  |  | 741 |
Combined fixed charges | $ | 1,018,794 |  |  | $ | 1,219,435 |  |  | $ | 1,654,525 |  |  | $ | 1,577,920 |  |  | $ | 938,314 |
Ratio of consolidated earnings to fixed charges | 1.1 |  |  | 1.3 |  |  | 1.1 |  |  | 1.2 |  |  | 1.1 |
Ratio of consolidated earnings to fixed charges, both excluding interest sensitive and index product benefits and amortization of deferred sales inducements | 4.1 |  |  | 9.0 |  |  | 5.0 |  |  | 8.5 |  |  | 3.0 |