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
| Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||
| (in millions, except ratios) | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
(Loss) income from continuing operations before provision for income taxes and extraordinary item | $ | 53.1 | $ | (61.9 | ) | $ | 121.9 | $ | 139.1 | $ | 79.6 | $ | 118.4 | |||||||||||
Add: | ||||||||||||||||||||||||
Fixed charges | 13.5 | 26.7 | 26.6 | 29.5 | 34.0 | 23.6 | ||||||||||||||||||
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Total earnings | $ | 66.6 | $ | (35.2 | ) | $ | 148.5 | $ | 168.6 | $ | 113.6 | $ | 142.0 | |||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense | $ | 11.2 | $ | 22.1 | $ | 22.9 | $ | 25.7 | $ | 29.9 | $ | 20.9 | ||||||||||||
Preferred share dividends | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | ||||||||||||||||||
Rental interest factor | 2.3 | 4.6 | 3.7 | 3.8 | 4.1 | 2.6 | ||||||||||||||||||
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Total fixed charges | $ | 13.5 | $ | 26.7 | $ | 26.6 | $ | 29.5 | $ | 34.0 | $ | 23.6 | ||||||||||||
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Ratio of earnings to fixed charges | 4.9:1 | (a) | 5.6:1 | 5.7:1 | 3.3:1 | 6.0:1 | ||||||||||||||||||
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| (a) | The coverage deficiency for the year ended December 31, 2011 is $61.9 million. |