Exhibit 12.1
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
STATEMENTS OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED SHARE DIVIDENDS
| Three Months Ended March 31, | Years Ended December 31, | |||||||||||||||||||||||||||
(in millions, except ratios) | 2012 | 2011 | 2011 | 2010 | 2009(b) | 2008(b) | 2007(b) | |||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Income (loss) from continuing operations before provision for income taxes and extraordinary item | $ | 28.1 | $ | (96.7 | ) | $ | (61.9 | ) | $ | 121.7 | $ | 142.4 | $ | 86.4 | $ | 119.8 | ||||||||||||
Add: | ||||||||||||||||||||||||||||
Fixed charges | 6.9 | 6.5 | 26.7 | 26.6 | 29.5 | 34.0 | 23.6 | |||||||||||||||||||||
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Total earnings | $ | 35.0 | $ | (90.2 | ) | $ | (35.2 | ) | $ | 148.3 | $ | 171.9 | $ | 120.4 | $ | 143.4 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 5.7 | $ | 5.4 | $ | 22.1 | $ | 22.9 | $ | 25.7 | $ | 29.9 | $ | 20.9 | ||||||||||||||
Preferred share dividends | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | |||||||||||||||||||||
Rental interest factor | 1.2 | 1.1 | 4.6 | 3.7 | 3.8 | 4.1 | 2.6 | |||||||||||||||||||||
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Total fixed charges | $ | 6.9 | $ | 6.5 | $ | 26.7 | $ | 26.6 | $ | 29.5 | $ | 34.0 | $ | 23.6 | ||||||||||||||
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Ratio of earnings to fixed charges | 5.1:1 | (a | ) | (a | ) | 5.6:1 | 5.8:1 | 3.5:1 | 6.1:1 | |||||||||||||||||||
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| (a) | The coverage deficiency for the three months ended March 31, 2011 and for the year ended December 31, 2011 is $96.7 million and $61.9 million, respectively. |
| (b) | Income from continuing operations before provision for income taxes and extraordinary item has not been restated for the retrospective adoption of the Deferred Acquisition Costs pronouncement. |