EXHIBIT 12.1
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
RATIO OF EARNINGS TO FIXED CHARGES
($ IN THOUSANDS)
Nine Months | Year Ended December 31, | ||||||||||||||||||
| 2007 | 2006 | 2005(1) | 2004 | 2003 | 2002 | ||||||||||||||
Earnings/Income(Losses) before Income Taxes (Benefits) | $ | 346,559 | $ | 447,829 | $ | (160,220 | ) | $ | 194,993 | $ | 295,255 | $ | 110,499 | ||||||
Fixed Charges: | |||||||||||||||||||
Interest Expense on Bank Loan | — | 16,149 | 15,615 | ||||||||||||||||
Interest Expense on Senior notes | 28,337 | 16,147 | — | — | — | — | |||||||||||||
One third of payments under operating lease | 1,957 | 2,058 | — | — | — | — | |||||||||||||
Total Fixed Charges | 30,294 | 34,624 | 15,615 | — | — | — | |||||||||||||
Earnings plus Fixed Charges | 376,853 | 482,453 | (144,605 | ) | 194,993 | 295,255 | 130,499 | ||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 12.4 | 13.9 | (9.3 | ) | * | * | * | ||||||||||||
| * | Our former bank loan was funded on March 30, 2005 and was repaid from the proceeds of our initial public offering in July 2006. Prior to this funding, we did not have any fixed charges and no ratios have been provided for prior periods. |
| (1) | For the year ended December 31, 2005, earnings were insufficient to cover fixed charges by $175.8 million. |