EX-12 4 a20161231-exhibit12.htm EXHIBIT 12 Exhibit


Exhibit 12

VALIDUS HOLDINGS, LTD.
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED SHARE DIVIDENDS

The following table sets forth our historical ratio of earnings to fixed charges for each of the periods indicated:
 
 
Years Ended December 31,
 
 
2016
 
2015
 
2014
 
2013
 
2012
Net income available to Validus
 
$
363,839

 
$
374,893

 
$
479,963

 
$
532,666

 
$
408,438

Tax (benefit) expense
 
(19,729
)
 
6,376

 
155

 
383

 
2,501

Pre-tax net income available to Validus
 
344,110

 
381,269

 
480,118

 
533,049

 
410,939

Distributed income from investment affiliates
 
11,089

 
—

 
—

 
—

 
—

Distributed (losses) from operating affiliate
 
(761
)
 
(9,505
)
 
—

 
—

 
—

Loss (income) from investment affiliates
 
2,083

 
(4,281
)
 
(8,411
)
 
(4,790
)
 
964

Loss (income) from operating affiliate
 
23

 
3,949

 
4,340

 
(542
)
 
1,758

Earnings before fixed charges
 
356,544

 
371,432

 
476,047

 
527,717

 
413,661

 
 
 
 
 
 
 
 
 
 
 
Estimated interest component of rent expense (a)
 
3,254

 
3,381

 
3,513

 
3,405

 
2,557

2006 Junior Subordinated Deferrable Debentures
 
8,893

 
8,868

 
8,868

 
8,868

 
6,964

2007 Junior Subordinated Deferrable Debentures
 
7,362

 
7,341

 
7,341

 
7,341

 
8,922

Flagstone 2006 Junior Subordinated Deferrable Debentures
 
9,028

 
8,989

 
9,001

 
8,259

 
459

Flagstone 2007 Junior Subordinated Deferrable Debentures
 
7,100

 
7,123

 
7,129

 
6,222

 
327

2010 Senior Notes due 2040
 
22,388

 
22,388

 
22,388

 
22,388

 
22,388

Other finance expenses (b)
 
3,749

 
20,033

 
13,597

 
14,929

 
20,650

Fixed charges
 
61,774

 
78,123

 
71,837

 
71,412

 
62,267

Earnings available for fixed charges
 
$
418,318

 
$
449,555

 
$
547,884

 
$
599,129

 
$
475,928

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
6.77
 
5.75
 
7.63
 
8.39
 
7.64
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
$
61,774

 
$
78,123


$
71,837


$
71,412


$
62,267

Preferred share dividends (c)
 
4,455

 
—

 
—

 
—

 
—

Fixed charges and preferred share dividends
 
$
66,229

 
78,123

 
$
71,837

 
$
71,412

 
$
62,267

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges and preferred share dividends
 
6.32
 
5.75
 
7.63
 
8.39
 
7.64

___________________________

(a)
33.3% represents a reasonable approximation of the interest factor.

(b)
Other finance expenses consist of fees relating to credit facilities, bank charges, Talbot FAL facility and other charges as well as fees incurred by AlphaCat Managers Ltd. in relation to fund raising for the AlphaCat sidecars, the AlphaCat ILS funds and AlphaCat direct.

(d)
Dividends have been tax effected at a 0% rate as it is presumed they will be funded from a Bermuda entity.