EX-12.1 21 y50594ex12-1.txt STATEMENT RE: COMPUTATION OF RATIOS 1 Exhibit 12.1 TRENWICK GROUP LTD. COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED SHARE DIVIDENDS (Amounts in thousands of United States dollars)
Three Months Ended Year Ended Year Ended Year Ended Year Ended March 31, December 31, September 30, September 30, September 30, 2001 2000 1999 1998 1997 Earnings available for fixed charges and preferred share dividends Net (loss) income before minority interest and income taxes $15,356 $ 4,215 $ (5,679) $65,232 $121,468 Interest expense and dividends on preferred stock of subsidiaries(1) 7,472 6,404 1,714 1,881 1,678 ------------- ----------- --------- --------- ----------- Total earnings available for fixed charges and preferred dividends $22,828 $10,619 $ (3,965) $67,113 $123,146 ============= =========== ========= ========= =========== Fixed charges and preferred share dividends Interest expense and dividends on preferred stock of subsidiaries $ 7,472 $ 6,404 $ 1,714 $ 1,881 $ 1,678 ------------- ----------- --------- --------- ----------- Total fixed charges $ 7,472 $ 6,404 $ 1,714 $ 1,881 $ 1,678 ------------- ----------- --------- --------- ----------- Preferred share dividends(1) -- 4,923 6,563 6,563 2,807 ------------- ----------- --------- --------- ----------- Combined fixed charges and preferred share dividends $ 7,472 $11,327 $ 8,277 $ 8,444 $ 4,485 ============= =========== ========= ========= =========== Ratio of earnings to combined fixed charges and preferred share dividends 3.06 -- -- 7.9 27.5 ============= =========== ========= ========= =========== Deficiency of earnings to cover fixed charges $ (708) $(12,242) =========== =========
(1) Preferred share dividends were not deducted from net income before minority interest prior to the September 27, 2000 Trenwick/LaSalle business combination. 2 TRENSWICK AMERICA CORPORATION COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES (Amounts in Thousands of United States dollars)
Three Months Ended March 31, Year Ended December 31, 2001 2000 1999 1998 1997 1996 ---- ---- ---- ---- ---- ---- Earnings Net income (loss) $ 6,747 $(36,972) $ (9,895) $25,608 $31,976 $33,127 Extraordinary loss on debt redemption, net of income tax benefit - 825 - - 1,037 - Income taxes (benefit) (3,022) (22,084) (12,355) 4,762 9,541 9,701 ------- -------- -------- ------- ------- ------- Income (loss) before income taxes and extraordinary item 3,725 (58,231) (22,250) 30,370 42,554 42,828 Fixed charges (as below) 5,148 27,053 18,550 13,656 9,814 6,503 ======= ======== ======== ======= ======= ======= Earnings (loss) (for ratio calculation) $ 8,873 $(31,178) $ (3,700) $44,026 $52,368 $49,331 ------- -------- -------- ------- ------- ------- Fixed charges: Interest expense $2,722 $ 17,351 $ 8,848 $ 3,954 $ 894 $ 6,503 Dividends on capital securities of subsidiary trust 2,426 9,702 9,702 9,702 8,920 - ------- -------- -------- ------- ------- ------- Total fixed charges $5,148 $ 27,053 $ 18,550 $13,656 $ 9,814 $ 6,503 ======= ======== ======== ======= ======= ======= Ratio of earnings of fixed charges 1.7 - - 3.2 5.3 7.6 ======= ======== ======== ======= ======= ======= Deficiency of earnings to fixed charges $(58,231) $(22,250) ======== ========