Exhibit 7.1
Ratio of earnings to fixed charges
| As of December 31, | ||||||||||||||||||||
| (US$ millions, except ratios) | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||||
| Income (loss) before taxes | 84.3 | (381.2 | ) | 210.7 | 17.9 | (538.0 | ) | |||||||||||||
| Fixed charges: | ||||||||||||||||||||
| Interest expense | 31.6 | 33.1 | 31.0 | 16.4 | 24.2 | |||||||||||||||
| Interest portion of rental expense | 4.5 | 5.2 | 5.2 | 4.9 | 3.6 | |||||||||||||||
| Income (loss ) before taxes plus fixed charges | 120.4 | (342.9 | ) | 246.9 | 39.2 | (510.2 | ) | |||||||||||||
| Fixed charges | ||||||||||||||||||||
| Interest expense | 31.6 | 33.1 | 31.0 | 16.4 | 24.2 | |||||||||||||||
| Interest portion of rental expense | 4.5 | 5.2 | 5.2 | 4.9 | 3.6 | |||||||||||||||
| Total fixed charges | 36.1 | 38.3 | 36.2 | 21.3 | 27.8 | |||||||||||||||
| Ratio of earnings to fixed charges | 3.3 | (a | ) | 6.8 | 1.8 | (b | ) | |||||||||||||
The ratio of earnings to fixed charges is calculated by dividing income (loss) before taxes plus fixed charges by fixed charges. Fixed charges consist of interest expense and the interest portion of rental expense.
(a) Due to Converium’s loss in 2004 the ratio coverage was less than 1:1. Converium would have needed to generate additional earnings of US$ 381.2 million to achieve coverage of 1:1.
(b) Due to Converium’s loss in 2001 the ratio coverage was less than 1:1. Converium would have needed to generate additional earnings of US$ 538.0 million to achieve coverage of 1:1.