Exhibit 12.1
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
Six Months Ended June 30, | Years Ended December 31, | ||||||||||||||||||||
(in millions, except ratios) | 2008 | 2007 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||
Earnings: | |||||||||||||||||||||
Income from continuing operations before provision for income taxes | $ | 70.9 | $ | 67.8 | $ | 119.8 | $ | 163.0 | $ | 81.5 | $ | 60.7 | $ | 135.3 | |||||||
Add: | |||||||||||||||||||||
Fixed charges | 15.8 | 7.7 | 23.7 | 16.4 | 21.0 | 16.9 | 13.3 | ||||||||||||||
Total earnings | $ | 86.7 | $ | 75.5 | $ | 143.5 | $ | 179.4 | $ | 102.5 | $ | 77.6 | $ | 148.6 | |||||||
Fixed charges: | |||||||||||||||||||||
Interest expense, net | $ | 14.0 | $ | 6.6 | $ | 21.0 | $ | 13.0 | $ | 15.0 | $ | 11.0 | $ | 8.4 | |||||||
Preferred stock dividends | — | 0.1 | 0.1 | 1.5 | 3.4 | 3.8 | 2.8 | ||||||||||||||
Rental interest factor | 1.8 | 1.0 | 2.6 | 1.9 | 2.6 | 2.1 | 2.1 | ||||||||||||||
Total fixed charges | $ | 15.8 | $ | 7.7 | $ | 23.7 | $ | 16.4 | $ | 21.0 | $ | 16.9 | $ | 13.3 | |||||||
Ratio of earnings to fixed charges | 5.5:1 | 9.8:1 | 6.1:1 | 10.9:1 | 4.9:1 | 4.6:1 | 11.2:1 | ||||||||||||||
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