EXHIBIT 12.1
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED SHARE DIVIDENDS
| Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||||
| (in millions, except ratios) | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||
Earnings: | ||||||||||||||||||
Income from continuing operations before provision for income taxes | $ | 53.9 | $ | 86.4 | $ | 119.8 | $ | 163.0 | $ | 81.5 | $ | 60.7 | ||||||
Add: | ||||||||||||||||||
Fixed charges | 15.5 | 34.0 | 23.7 | 16.4 | 21.0 | 16.9 | ||||||||||||
Sub-total | 69.4 | 120.4 | 143.5 | 179.4 | 102.5 | 77.6 | ||||||||||||
Less: Preferred dividends | — | — | 0.1 | 1.5 | 3.4 | 3.8 | ||||||||||||
Total earnings | $ | 69.4 | $ | 120.4 | $ | 143.4 | $ | 177.9 | $ | 99.1 | $ | 73.8 | ||||||
Fixed charges: | ||||||||||||||||||
Interest expense, net | $ | 13.7 | $ | 29.9 | $ | 21.0 | $ | 13.0 | $ | 15.0 | $ | 11.0 | ||||||
Assumed rental interest factor | 1.8 | 4.1 | 2.6 | 1.9 | 2.6 | 2.1 | ||||||||||||
Total fixed charges | 15.5 | 34.0 | 23.6 | 14.9 | 17.6 | 13.1 | ||||||||||||
Preferred share dividends | — | — | 0.1 | 1.5 | 3.4 | 3.8 | ||||||||||||
Total fixed charges and preferred dividends | $ | 15.5 | $ | 34.0 | $ | 23.7 | $ | 16.4 | $ | 21.0 | $ | 16.9 | ||||||
Ratio of earnings to fixed charges | 4.5:1 | 3.5:1 | 6.1:1 | 10.9:1 | 4.9:1 | 4.6:1 | ||||||||||||
Ratio of earnings to fixed charges and preferred dividends | 4.5:1 | 3.5:1 | 6.1:1 | 10.8:1 | 4.7:1 | 4.4:1 | ||||||||||||