EX-12.1 5 d55161_ex12-1.txt COMPUTATION OF RATIOS Exhibit 12.1 TRENWICK AMERICA CORPORATION COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES (Amounts in thousands of United States dollars)
Years ended December 31, ----------------------------------------------------------------- 2002 2001 2000 1999 1998 --------- --------- --------- --------- --------- Earnings Net income (loss) before cumulative effect of change in accounting principle $(223,875) $ (19,525) $ (36,972) $ (9,895) $ 25,608 Income taxes expense (benefit) 61,304 (14,628) (22,529) (12,355) 4,762 --------- --------- --------- --------- --------- Income (loss) before income taxes and before cumulative effect of change in accounting principle (162,571) (34,153) (59,501) (22,250) 30,370 Fixed charges (as below) 22,551 31,336 35,769 18,550 13,656 --------- --------- --------- --------- --------- Earnings (loss) (for ratio calculation) (140,020) ` $ (2,817) $ (23,732) $ (3,700) $ 44,026 ========= ========= ========= ========= ========= Fixed charges: Interest expense $ 12,849 $ 21,634 $ 26,067 $ 8,848 $ 3,954 Dividends on capital securities of subsidiary trust 9,702 9,702 9,702 9,702 9,702 --------- --------- --------- --------- --------- Total fixed charges 22,551 $ 31,336 $ 35,769 $ 18,550 $ 13,656 ========= ========= ========= ========= ========= Ratio of earnings of fixed charges (6.21) (0.09) (0.66) (.20) 3.2 ========= ========= ========= ========= ========= Deficiency $(162,571) $ (34,153) $ (59,501) $ (22,250) ========= ========= ========= =========
For purposes of computing the consolidated ratio of earnings to fixed charges, "earnings" represent income before income taxes and fixed charges. "Fixed charges" include gross interest expense (other than on deposits), minority interest and the proportion deemed representative of the interest factor of rent expense.