EXHIBIT 12.1
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
RATIO OF EARNINGS TO FIXED CHARGES
( $ IN THOUSANDS )
RATIO OF EARNINGS TO FIXED CHARGES
( $ IN THOUSANDS )
| Year Ended December 31, | |||||||||||||||||||||
| 2006 | 2005(1) | 2004 | 2003 | 2002 | |||||||||||||||||
| Earnings / Income (Losses) before Income Taxes (Benefits) | $447,829 | $(160,220 | ) | $194,993 | $295,255 | $110,499 | |||||||||||||||
| Fixed Charges: | |||||||||||||||||||||
| Interest Expense on Senior notes/Bank Loan | 16,149 | 15,615 | |||||||||||||||||||
| Interest Expense on Senior notes | 16,417 | ||||||||||||||||||||
| One third of payments under operating lease | 2,058 | — | — | — | — | ||||||||||||||||
| Total Fixed Charges | 34,624 | 15,615 | — | — | — | ||||||||||||||||
| Earnings plus Fixed Charges | 482,453 | (144,605 | ) | 194,993 | 295,255 | 130,499 | |||||||||||||||
| RATIO OF EARNINGS TO FIXED CHARGES | 13.9 | (9.3 | ) | * | * | * | |||||||||||||||
| * | Our bank loan was funded on March 30, 2005. Prior to this date, we did not have any fixed charges, and accordingly, no ratios can be calculated for the years ended December 31, 2002 through December 31, 2004. | |
| (1) | For the year ended December 31, 2005, earnings were insufficient to cover fixed charges by $175.3 million. |