EX-12.1 10 exhibit121computationofrat.htm EXHIBIT 12.1 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit
Exhibit 12.1

Third Point Reinsurance Ltd.

Computation of Ratio of Earnings to Fixed Charges

The following table sets forth the Company’s consolidated ratio of earnings to fixed charges for the periods indicated.
 
 
 
 
 
 
 
 
 
Period from October 6, 2011
 
Years ended December 31,
 
(date of incorporation) to
 
2015
 
2014
 
2013
 
2012
 
December 31, 2011
Fixed charges:
($ in thousands)
 
 
Interest expense on deposit contracts and certain reinsurance contracts
$
8,614

 
$
7,395

 
$
4,922

 
$
446

 
$
—

Interest expense on senior notes
7,236

 
—

 
—

 
—

 
—

Total fixed charges
$
15,850

 
$
7,395

 
$
4,922

 
$
446

 
$
—

 
 
 
 
 
 
 
 
 
 
Earnings available for fixed charges:
 
 
 
 
 
 
 
 
 
Income (loss) before income tax expense (benefit)
$
(87,439
)
 
$
56,710

 
$
233,078

 
$
100,617

 
$
(1,130
)
Add: Fixed charges
15,850

 
7,395

 
4,922

 
446

 
—

Less: Net (income) loss from non-controlling interests
49

 
(6,315
)
 
(5,767
)
 
(1,216
)
 
—

Total earnings available for fixed charges
$
(71,540
)
 
$
57,790

 
$
232,233

 
$
99,847

 
$
(1,130
)
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
—

(1)
7.8

 
47.2

 
223.9

 
N/A

(1) Our deficiency in earnings necessary to cover fixed charges was approximately $87.4 million for the year ended December 31, 2015.

We computed the ratio of earnings to fixed charges by dividing (1) income (loss) before income tax expense (benefit) plus fixed charges minus net (income) loss from non-controlling interests by (2) our fixed charges. For the purposes of this ratio, fixed charges consist of interest expense on deposit contracts and certain of our reinsurance contracts and interest expense on senior notes. There is no ratio for the period from October 6, 2011 (date of incorporation) to December 31, 2011 because there were no fixed charges attributable to us during that period.