EX-12 8 exh12.htm EXHIBIT 12.1

 

OHIO CASUALTY CORPORATION

 

EXHIBIT 12.1 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(DOLLARS IN THOUSANDS)

 

 

Year Ended December 31,

 

 

2006

 

 

2005

 

 

2004

 

 

2003

 

 

2002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income (loss) from

 

 

 

 

 

 

 

 

 

 

 

 

 

 

continuing operations

$

300,806

 

$

280,722

 

$

186,485

 

$

107,575

 

$

(6,706)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

14,671

 

 

17,727

 

 

17,462

 

 

10,148

 

 

9,482 

Interest expense

 

471

 

 

2,291

 

 

1,075

 

 

553

 

 

577 

Amortization of debt expense

 

3,133

 

 

3,383

 

 

3,437

 

 

3,921

 

 

4,321 

One-third of rentals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

319,080

 

$

304,123

 

$

208,460

 

$

122,197

 

$

7,674 

EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

14,671

 

 

17,727

 

 

17,462

 

 

10,148

 

 

9,482 

Amortization of debt expense

 

471

 

 

2,291

 

 

1,075

 

 

553

 

 

577 

One-third of rentals

 

3,133

 

 

3,383

 

 

3,437

 

 

3,921

 

 

4,321 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES

$

18,274

 

$

23,401

 

$

21,975

 

$

14,622

 

$

14,380 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

17.46

 

 

13.00

 

 

9.49

 

 

8.36

 

 

0.53* 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings in Excess of Fixed Charges

$

300,806

 

$

280,722

 

$

186,485

 

$

107,575

 

$

(6,706)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*      Due to the Registrant's loss in 2002, the ratio coverge was less than 1:1. The registrant must generate additional earnings of $6,706 in 2002 to have achieved a coverage of 1:1.