EX-12 7 pmaex12.htm EXHIBIT 12 PMA CAPITAL CORPORATION EXHIBIT 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(1)
(Dollar Amounts In Thousands)

2000 1999 1998 1997 1996
 
EARNINGS                        
Pre-tax income (loss)   $ 123   $ 40,092   $ 55,069   $ 25,153   $ (191,394 )
Fixed charges    13,024    13,109    15,865    16,683    17,913  





Total (a)   $ 13,147   $ 53,201   $ 70,934   $ 41,836   $ (173,481 )





 
FIXED CHARGES  
Interest expense and amortization of  
   debt discount and premium on all  
   indebtedness   $ 11,889   $ 12,221   $ 15,009   $ 15,768   $ 17,052  
Interest portion of rental expense    1,135    888    856    915    861  





Total fixed charges (b)   $ 13,024   $ 13,109   $ 15,865   $ 16,683   $ 17,913  





 
Ratio of earnings to fixed  
charges (a)/(b)    1.0x    4.1x    4.5x    2.5x    (2 )


(1)  

For purposes of determining this ratio, pre-tax income (loss) consists of income before income taxes, cumulative effect of accounting change (1999) and extraordinary loss (1997), plus fixed charges. Fixed charges consist of interest expense and the portion of operating leases that management believes are representative of the interest factor.

(2)  

Earnings were insufficient to cover fixed charges by $191.4 million in 1996.