Exhibit 7.1
Ratio of earnings to fixed charges
The ratio of earnings to fixed charges is calculated by dividing earnings by fixed charges. Fixed charges consist of interest expense and the interest portion of rental expense.
Year ended December 31, | |||||||||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | |||||||||||||||||
Income (loss) before taxes | 57.4 | (537.3 | ) | (48.8 | ) | 98.4 | 178.3 | ||||||||||||||
Fixed charges: | |||||||||||||||||||||
Interest expense | 16.4 | 24.2 | 17.1 | 17.5 | 16.1 | ||||||||||||||||
Interest portion of rental expense | 439 | 3.6 | 3.4 | 2.5 | 2.5 | ||||||||||||||||
Income (loss) before taxes plus fixed charges | 78.7 | (509.5 | ) | (28.3 | ) | 118.4 | 196.9 | ||||||||||||||
Fixed charges: | |||||||||||||||||||||
Interest expense | 16.4 | 24.2 | 17.1 | 17.5 | 16.1 | ||||||||||||||||
Interest portion of rental expense | 4.9 | 3.6 | 3.4 | 2.5 | 2.5 | ||||||||||||||||
21.3 | 27.8 | 20.5 | 20.0 | 18.6 | |||||||||||||||||
Ratio of earnings to fixed charges | 3.7 | (a) | (b) | 5.9 | 10.6 |
(a) | The ratio coverage is less than 1:1. Converium would need to generate additional earnings of $537.3 million to achieve a coverage ratio of 1:1. | |
(b) | The ratio coverage is less than 1:1. Converium would need to generate additional earnings of $48.8 million to achieve a coverage ratio of 1:1. |