Exhibit 12.1
AXIS CAPITAL HOLDINGS LIMITED
RATIO OF EARNINGS TO FIXED CHARGES
Year ended December 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Earnings: income before income taxes | $ | 895,403 | $ | 539,861 | $ | 407,485 | $ | 1,133,509 | $ | 996,902 | ||||||||||
Add: fixed charges | 58,010 | 34,061 | 33,784 | 52,188 | 32,412 | |||||||||||||||
Earnings for computation | $ | 953,413 | $ | 573,922 | $ | 441,269 | $ | 1,185,697 | $ | 1,029,314 | ||||||||||
Assumed interest component of rent expense(1) | 5,798 | 4,860 | 4,583 | 3,759 | 3,212 | |||||||||||||||
Interest expense | 52,212 | 29,201 | 29,201 | 48,429 | 29,200 | |||||||||||||||
Total fixed charges | $ | 58,010 | $ | 34,061 | $ | 33,784 | $ | 52,188 | $ | 32,412 | ||||||||||
Ratio of earnings to fixed charges | 16.4 | 16.8 | 13.1 | 22.7 | 31.8 | |||||||||||||||
Preferred share dividends(2) | 36,875 | 36,875 | 36,875 | 36,775 | 37,295 | |||||||||||||||
Total fixed charges and preferred share dividends | $ | 94,885 | $ | 70,936 | $ | 70,659 | $ | 88,963 | $ | 69,707 | ||||||||||
Ratio of earnings to fixed charges and preferred share dividends | 10.0 | 8.1 | 6.2 | 13.3 | 14.8 | |||||||||||||||
(1) | 33.3% represents a reasonable approximation of the interest factor. |
(2) | Dividends have been tax effected at a 0% rate because it is presumed they will be funded from a Bermuda entity. |