EX-12.1 3 a2018-06x30_exhibit121.htm EXHIBIT 12.1
Exhibit 12.1
Ratio of Earnings to Fixed Charges

| Six Months Ended |  | Year Ended December 31,
| June 30, 2018 |  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
| (Dollars in thousands)
Consolidated income before income taxes | $ | 291,853 |  |  | $ | 316,271 |  |  | $ | 130,247 |  |  | $ | 337,314 |  |  | $ | 196,064 |  |  | $ | 389,332 |
Interest sensitive and index product benefits and amortization of deferred sales inducements | 1,120,581 |  |  | 2,200,280 |  |  | 976,638 |  |  | 1,177,443 |  |  | 1,605,119 |  |  | 1,525,980 |
Interest expense on notes and loan payable | 12,746 |  |  | 30,368 |  |  | 28,248 |  |  | 28,849 |  |  | 36,370 |  |  | 38,870 |
Interest expense on subordinated debentures | 7,508 |  |  | 14,124 |  |  | 12,958 |  |  | 12,239 |  |  | 12,122 |  |  | 12,088 |
Interest expense on amounts due under repurchase agreements and other interest expense | 515 |  |  | 334 |  |  | 30 |  |  | 2 |  |  | 18 |  |  | 139 |
Interest portion of rental expense | 547 |  |  | 967 |  |  | 920 |  |  | 902 |  |  | 896 |  |  | 843 |
Consolidated earnings | $ | 1,433,750 |  |  | $ | 2,562,344 |  |  | $ | 1,149,041 |  |  | $ | 1,556,749 |  |  | $ | 1,850,589 |  |  | $ | 1,967,252 |
Interest sensitive and index product benefits and amortization of deferred sales inducements | $ | 1,120,581 |  |  | $ | 2,200,280 |  |  | $ | 976,638 |  |  | $ | 1,177,443 |  |  | $ | 1,605,119 |  |  | $ | 1,525,980 |
Interest expense on notes and loan payable | 12,746 |  |  | 30,368 |  |  | 28,248 |  |  | 28,849 |  |  | 36,370 |  |  | 38,870 |
Interest expense on subordinated debentures | 7,508 |  |  | 14,124 |  |  | 12,958 |  |  | 12,239 |  |  | 12,122 |  |  | 12,088 |
Interest expense on amounts due under repurchase agreements and other interest expense | 515 |  |  | 334 |  |  | 30 |  |  | 2 |  |  | 18 |  |  | 139 |
Interest portion of rental expense | 547 |  |  | 967 |  |  | 920 |  |  | 902 |  |  | 896 |  |  | 843 |
Combined fixed charges | $ | 1,141,897 |  |  | $ | 2,246,073 |  |  | $ | 1,018,794 |  |  | $ | 1,219,435 |  |  | $ | 1,654,525 |  |  | $ | 1,577,920 |
Ratio of consolidated earnings to fixed charges | 1.3 |  |  | 1.1 |  |  | 1.1 |  |  | 1.3 |  |  | 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 | 14.7 |  |  | 7.9 |  |  | 4.1 |  |  | 9.0 |  |  | 5.0 |  |  | 8.5 |