Exhibit 12.1
Computation of Ratio ofEarnings to FixedCharges
Forpurposes ofcomputing thefollowingratios,earningsconsist of netincomebeforeincome taxexpense plus fixedcharges to theextent that suchcharges areincluded in thedetermination ofearnings. Fixedchargesconsist ofinterest costs plus one-third ofminimumrentalpayments underoperatingleases(estimated bymanagement to be theinterestfactor of suchrentals).
| For the twelve months ended | |||||||||||||||
| 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||
| Earnings | $ | 492,353 | $ | 467,679 | $ | 190,302 | $ | (160,482 | ) | $ | 142,307 | ||||
| Add: | |||||||||||||||
| Income taxes | 7,560 | 2,110 | 2,661 | (69,307 | ) | (43,738 | ) | ||||||||
| Fixed charges: | |||||||||||||||
| Interest expense | 35,214 | 18,570 | 12,960 | 13,044 | 13,029 | ||||||||||
| Interest credited to life policyholders (1) | 13,860 | 17,041 | 19,679 | 17,364 | 17,691 | ||||||||||
| Interest credited to retrocessionnaires on funds held on | |||||||||||||||
| reinsurance treaties | 1,325 | 1,282 | 1,180 | 1,098 | 942 | ||||||||||
| One third of rental payments | 6,865 | 5,467 | 4,528 | 3,751 | 3,070 | ||||||||||
| Distributions related to Trust Preferred and Mandatorily | |||||||||||||||
| Redeemable Preferred Securities, net of applicable taxes | - | 16,120 | 21,730 | 2,311 | - | ||||||||||
| Earnings before income taxes and fixed charges | $ | 557,178 | $ | 528,268 | $ | 253,040 | $ | (192,221) | $ | 133,302 | |||||
| Fixed charges: | |||||||||||||||
| Interest expense | 35,214 | 18,570 | 12,960 | 13,044 | 13,029 | ||||||||||
| Interest credited to life policyholders (1) | 13,860 | 17,041 | 19,679 | 17,364 | 17,691 | ||||||||||
| Interest credited to retrocessionnaires on funds held on | |||||||||||||||
| reinsurance treaties | 1,325 | 1,282 | 1,180 | 1,098 | 942 | ||||||||||
| One third of rental payments | 6,865 | 5,467 | 4,528 | 3,751 | 3,070 | ||||||||||
| Total fixed charges | 57,265 | 42,359 | 38,347 | 35,257 | 34,733 | ||||||||||
| Preference share dividends (2) | 21,485 | 29,390 | 20,000 | 20,000 | 20,000 | ||||||||||
| Distributions related to Trust Preferred and Mandatorily | |||||||||||||||
| Redeemable Preferred Securities, net of applicable taxes | - | 16,120 | 21,730 | 2,311 | - | ||||||||||
| Total fixed charges | $ | 78,750 | $ | 87,869 | $ | 80,077 | $ | 57,568 | $ | 54,733 | |||||
| Ratio of earnings to fixed charges | 9.73 | 12.47 | 6.60 | NM (3 | ) | 3.84 | |||||||||
| Deficiency of earnings to fixed charges (4) | $ | 227.5 | |||||||||||||
| Ratio of earnings to combined fixed | |||||||||||||||
| charges and preference share dividends | 7.08 | 6.01 | 3.16 | NM (3 | ) | 2.44 | |||||||||
| Deficiency of earnings to combined fixed | |||||||||||||||
| charges and preference share dividends (4) | $ | 249.8 | |||||||||||||
(1)Representsinterestcredited topolicyholders oncertain lifereinsurancetreaties for which theCompany earnscompensatinginterest income.
(2)Dividends have not been taxeffectedbecause they arepresumed to be paid out of aBermudaentity whose tax rate is zero.
(3) NM: Notmeaningful. Theratios for the 2001periods above are notmeaningful due to the net loss whichPartnerRe reported for 2001, whichincludedlossesrelated to theterroristattacks ofSeptember 11, 2001.
(4)Representsadditionalearnings that would benecessary toresult in a one-to-onecoverageratio.Expressed inmillions of U.S.dollars.
