EX-12.1 3 a07-25425_1ex12d1.htm EX-12.1

Exhibit 12.1

 

Exhibit 12.1 Ratio of Earnings to Fixed Charges

 

 

 

Nine Months

 

 

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

Year Ended December 31,

 

 

 

2007

 

2006

 

2005

 

2004

 

2003

 

2002

 

 

 

(Dollars in thousands)

 

Consolidated income before income taxes and minority interests

 

$

63,931

 

$

116,925

 

$

70,894

 

$

69,481

 

$

39,308

 

$

28,951

 

Interest credited to account balances and amortization of deferred sales inducements

 

471,872

 

429,062

 

311,479

 

309,034

 

248,075

 

183,503

 

Interest expense of General Agency Commission and Servicing Agreement (a)

 

—

 

—

 

—

 

—

 

—

 

3,596

 

Interest expense on notes payable (a)

 

12,178

 

20,382

 

16,324

 

2,358

 

2,713

 

1,901

 

Interest expense on subordinated debentures (a)

 

16,876

 

21,354

 

14,145

 

9,609

 

7,661

 

—

 

Interest expense on amounts due under repurchase agreements and other interest expense

 

11,842

 

32,931

 

11,280

 

3,148

 

1,278

 

1,777

 

Interest portion of rental expense

 

352

 

431

 

388

 

344

 

314

 

267

 

Consolidated earnings

 

$

577,051

 

$

621,085

 

$

424,510

 

$

393,974

 

$

299,349

 

$

219,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to account balances and amortization of deferred sales inducements

 

$

471,872

 

$

429,062

 

$

311,479

 

$

309,034

 

$

248,075

 

$

183,503

 

Interest expense of General Agency Commission and Servicing Agreement (a)

 

—

 

—

 

—

 

—

 

—

 

3,596

 

Interest expense on notes payable (a)

 

12,178

 

20,382

 

16,324

 

2,358

 

2,713

 

1,901

 

Interest expense on subordinated debentures (a)

 

16,876

 

21,354

 

14,145

 

9,609

 

7,661

 

—

 

Interest expense on amounts due under repurchase agreements and other interest expense

 

11,842

 

32,931

 

11,280

 

3,148

 

1,278

 

1,777

 

Interest portion of rental expense

 

352

 

431

 

388

 

344

 

314

 

267

 

Combined fixed charges

 

$

513,120

 

$

504,160

 

$

353,616

 

$

324,493

 

$

260,041

 

$

191,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of consolidated earnings to fixed charges

 

1.1

 

1.2

 

1.2

 

1.2

 

1.2

 

1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of consolidated earnings to fixed charges, both excluding interest credited to account balances and amortization of deferred sales inducements

 

2.5

 

2.6

 

2.7

 

5.5

 

4.3

 

4.8

 

(a)  On December 31, 2003, retroactive to January 1, 2003, we adopted Financial Accounting Standards Board Interpretation No. 46, Consolidation of Variable Interest Entities, an Interpretation of Accounting Research Bulletin No. 51.  During the first quarter of 2005, retroactive to January 1, 2003, we adopted FASB Staff Position No. FIN 46(R)-5, Implicit Variable Interests under FIN 46.  See note 1 to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2006.