EX-12.1 4 h85807a1ex12-1.txt COMPUTATION OF STATEMENT OF RATIOS OF EARNINGS 1 EXHIBIT 12.1 HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES STATEMENT OF RATIOS (DOLLARS IN THOUSANDS)
============================================================================================================================ FOR THE THREE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, MARCH 31, 2001 2000 1999 1998 1997 1996 ---------------------------------------------------------------------------------------------------------------------------- Interest factor of rent expense(1) $ 590 $ 2,467 $ 1,955 $ 1,493 $ 1,263 $ 844 Interest expense 3,347 20,347 12,964 6,021 6,004 4,993 Capitalized interest -- 78 110 -- -- -- ------- -------- ------- -------- ------- ------- Total fixed charges $ 3,937 $ 22,892 $15,029 $ 7,514 $ 7,267 $ 5,837 ======= ======== ======= ======== ======= ======= Earnings before accounting change $15,178 $ 57,481 $26,572 $ 73,110 $50,083 $38,603 Interest factor of rent expense(1) 590 2,467 1,955 1,493 1,263 844 Interest expense 3,347 20,347 12,964 6,021 6,004 4,993 Income taxes 10,717 37,202 12,271 35,208 23,305 9,885 ------- -------- ------- -------- ------- ------- Earnings per calculation $29,832 $117,497 $53,762 $115,832 $80,655 $54,325 ======= ======== ======= ======== ======= ======= Ratio of earnings to fixed charges(2) 7.58 5.13 3.58 15.42 11.10 9.31 ======= ======== ======= ======== ======= =======
(1) Estimated to be 33.3% of total rent expense. (2) Earnings per calculation divided by total fixed charges. On January 19, 2001 we acquired all of the outstanding shares of Schanen Consulting Corporation and its operating subsidiary, Schanen Consulting Group, L.L.C. (collectively "Schanen") in a business combination recorded using the pooling-of-interests method of accounting. Accordingly, our historical financial information has been restated to include the accounts and operations of Schanen for all periods presented.