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
Nine Months Ended September 30, | Years Ended December 31, | |||||||||||||||||||||||||||
(in millions, except ratios) | 2012 | 2011 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Income (loss) from continuing operations before provision for income taxes and extraordinary item | $ | 70.8 | $ | (70.0 | ) | $ | (61.9 | ) | $ | 121.9 | $ | 139.1 | $ | 79.6 | $ | 118.4 | ||||||||||||
Add: | ||||||||||||||||||||||||||||
Fixed charges | 20.4 | 19.7 | 26.7 | 26.6 | 29.5 | 34.0 | 23.6 | |||||||||||||||||||||
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Total earnings | $ | 91.2 | $ | (50.3 | ) | $ | (35.2 | ) | $ | 148.5 | $ | 168.6 | $ | 113.6 | $ | 142.0 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 17.0 | $ | 16.5 | $ | 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 | 3.4 | 3.2 | 4.6 | 3.7 | 3.8 | 4.1 | 2.6 | |||||||||||||||||||||
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Total fixed charges | $ | 20.4 | $ | 19.7 | $ | 26.7 | $ | 26.6 | $ | 29.5 | $ | 34.0 | $ | 23.6 | ||||||||||||||
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Ratio of earnings to fixed charges | 4.5:1 | (a | ) | (a | ) | 5.6:1 | 5.7:1 | 3.3:1 | 6.0:1 | |||||||||||||||||||
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(a) | The coverage deficiency for the nine months ended September 30, 2011 and for the year ended December 31, 2011 is $70.0 million and $61.9 million, respectively. |
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