Exhibit 12
PXRE GROUP LTD. AND SUBSIDIARIES
COMPUTATION OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES
AND RATIO OF CONSOLIDATED EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
COMPUTATION OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES
AND RATIO OF CONSOLIDATED EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
Year Ended December 31, | ||||||||||||||||
($000’s except ratios) | 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||
| Net income (loss) | $ | 22,846 | $ | 96,648 | $ | 64,545 | $ | (17,967 | ) | $ | (10,800 | ) | ||||
| Income taxes | (6,474 | ) | 841 | 17,829 | (4,532 | ) | (12,006 | ) | ||||||||
| Income (loss) before income taxes | $ | 16,372 | $ | 97,489 | $ | 82,374 | $ | (22,499 | ) | $ | (22,806 | ) | ||||
| Fixed charges: | ||||||||||||||||
| Interest expense | $ | 14,389 | $ | 13,034 | $ | 11,585 | $ | 13,301 | $ | 13,653 | ||||||
| Appropriated portion (1/3) of rentals | 742 | 997 | 1,205 | 873 | 953 | |||||||||||
| Interest expense on premiums withheld under ceded reinsurance contracts | 7,985 | 9,078 | 9,846 | — | — | |||||||||||
| Total fixed charges | $ | 23,116 | $ | 23,109 | $ | 22,636 | $ | 14,174 | $ | 14,606 | ||||||
| Earnings (loss) before income taxes and fixed charges | $ | 39,488 | $ | 120,598 | $ | 105,010 | $ | (8,325 | ) | $ | (8,200 | ) | ||||
| Preferred dividend requirements | $ | 14,018 | $ | 13,113 | $ | 9,077 | $ | — | $ | — | ||||||
| Ratio of pre-tax income to net income | 0.72 | 1.01 | 1.28 | 1.25 | 2.11 | |||||||||||
| Preferred dividend factor | $ | 14,018 | $ | 13,227 | $ | 11,584 | $ | — | $ | — | ||||||
| Total fixed charges | 23,116 | 23,109 | 22,636 | 14,174 | 14,606 | |||||||||||
| Total fixed charges and preferred dividends | $ | 37,134 | $ | 36,336 | $ | 34,220 | $ | 14,174 | $ | 14,606 | ||||||
| Ratio of earnings to fixed charges | 1.71 | 5.22 | 4.64 | (0.59 | ) | (0.56 | ) | |||||||||
| Ratio of earnings to combined fixed charges and preferred dividends | 1.06 | 3.32 | 3.07 | (0.59 | ) | (0.56 | ) | |||||||||
| Deficiency in ratio | 22,499 | 22,806 | ||||||||||||||
| Deficiency in combined ratio | 22,499 | 22,806 | ||||||||||||||