EX-12 3 a15-17973_1ex12.htm EX-12

Exhibit 12

 

CONSOLIDATED EARNINGS RATIOS

 

The following table sets forth, for the years and periods ended, Protective Life Insurance Company’s (the “Company”) ratios of:

 

·                  Consolidated earnings to fixed charges.

·                  Consolidated earnings to fixed charges before interest credited on investment products.

 

 

 

Successor Company

 

 

Predecessor Company

 

 

 

February 1, 2015

 

 

January 1, 2015

 

For The Nine

 

 

 

 

 

 

 

 

 

 

 

 

 

to

 

 

to

 

Months ended

 

For The Year Ended December 31,

 

 

 

September 30, 2015

 

 

January 31, 2015

 

September 30, 2014

 

2014

 

2013

 

2012

 

2011

 

2010

 

Ratio of Consolidated Earnings to Fixed Charges (1)

 

1.2

 

 

2.5

 

1.7

 

1.8

 

1.4

 

1.4

 

1.4

 

1.3

 

Ratio of Consolidated Earnings to Fixed Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before Interest Credited on Investment
Products (2)

 

2.8

 

 

13.9

 

6.6

 

7.0

 

4.7

 

5.8

 

6.1

 

5.5

 

 

(1)             The Company calculates the ratio of “Consolidated Earnings to Fixed Charges” by dividing the sum of income (loss) from continuing operations before income tax (BT), interest expense (which includes an estimate of the interest component of operating lease expense) (I) and interest credited on investment products (IP) by the sum of interest expense (I) and interest credited on investment products (IP).   The formula for this ratio is: (BT+I+IP)(I+IP). The Company continues to sell investment products that credit interest to the contract holder.  Investment products include products such as guaranteed investment contracts, annuities, and variable universal life interest credited insurance policies.  The inclusion of interest credited on investment products results in a negative impact on the ratio of earnings to fixed charges because the effect of increases in interest credited to contract holders more than offsets the effect of the increase in earnings.

(2)             The Company calculates the ratio of “Consolidated Earnings to Fixed Charges Before Interest Credited on Investment Products” by dividing the sum of income (loss) from continuing operations before income tax (BT) and interest expense (I) by interest expense (I).  The formula for this calculation, therefore, would be: (BT+I)/I.

 


 

Computation of Consolidated Earnings Ratios

 

 

 

Successor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Predecessor Company

 

 

 

February 1, 2015

 

 

January 1, 2015

 

For The Nine

 

 

 

 

 

 

 

 

 

 

 

 

 

to

 

 

to

 

Months Ended

 

For The Year Ended December 31,

 

 

 

September 30, 2015

 

 

January 31, 2015

 

September 30, 2014

 

2014 

 

2013 

 

2012 

 

2011 

 

2010 

 

 

 

 

 

 

(Dollars In Thousands, Except Ratio Data)

 

Computation of Ratio of Consolidated Earnings to Fixed Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from Continuing Operations before Income Tax

 

$

145,090

 

 

$

132,847

 

$

508,346

 

$

738,789

 

$

422,499

 

$

459,579

 

$

475,275

 

$

333,176

 

Add Interest Expense (1)

 

79,413

 

 

10,265

 

90,811

 

122,152

 

115,113

 

95,759

 

93,797

 

73,841

 

Add Interest Credited on Investment Products

 

521,760

 

 

79,088

 

663,117

 

824,418

 

875,180

 

962,678

 

993,574

 

972,806

 

Earnings before Interest, Interest Credited on Investment Products and Taxes

 

$

746,263

 

 

$

222,200

 

$

1,262,274

 

$

1,685,359

 

$

1,412,792

 

$

1,518,016

 

$

1,562,646

 

$

1,379,823

 

Earnings before Interest, Interest Credited on Investment Products and Taxes Divided by Interest expense and Interest Credited on Investment Products

 

1.2

 

 

2.5

 

1.7

 

1.8

 

1.4

 

1.4

 

1.4

 

1.3

 

Computation of Ratio of Consolidated Earnings to Fixed Charges Before Interest Credited on Investment Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from Continuing Operations before Income Tax

 

$

145,090

 

 

$

132,847

 

$

508,346

 

$

738,789

 

$

422,499

 

$

459,579

 

$

475,275

 

$

333,176

 

Add Interest Expense (1)

 

79,413

 

 

10,265

 

90,811

 

122,152

 

115,113

 

95,759

 

93,797

 

73,841

 

Earnings before Interest and Taxes

 

$

224,503

 

 

$

143,112

 

$

599,157

 

$

860,941

 

$

537,612

 

$

555,338

 

$

569,072

 

$

407,017

 

Earnings before Interest and Taxes Divided by Interest Expense

 

2.8

 

 

13.9

 

6.6

 

7.0

 

4.7

 

5.8

 

6.1

 

5.5

 

 

(1)Interest expense primarily relates to interest on our non-recourse funding obligations.