EXHIBIT 12.1
ACE Limited
Computation of Ratio of Earnings to Fixed Charges and Preferred Share Dividends
Fiscal year ended December 31 | Three months ended December 31 | Fiscal year ended September 30 | ||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | 1998 | |||||||||
Earnings per Financial Statements | 76,549 |
| (146,414 | ) | 542,982 | 364,963 | 238,539 | 560,151 | ||||||
Add (deduct): | ||||||||||||||
Provision for income taxes | (115,688 | ) | (78,674 | ) | 93,908 | 28,684 | 5,342 | 20,040 | ||||||
Fixed charges | 218,494 |
| 219,849 |
| 242,783 | 126,138 | 5,141 | 27,059 | ||||||
Earnings for Computation | 179,355 |
| (5,239 | ) | 879,673 | 519,785 | 249,022 | 607,250 | ||||||
Fixed Charges | ||||||||||||||
Interest Expense | 193,494 |
| 199,182 |
| 221,450 | 105,138 | 4,741 | 25,459 | ||||||
One third of payments under operating leases | 25,000 |
| 20,667 |
| 21,333 | 21,000 | 400 | 1,600 | ||||||
Total Fixed Charges | 218,494 |
| 219,849 |
| 242,783 | 126,138 | 5,141 | 27,059 | ||||||
Ratio of Earnings to Fixed Charges | (1 | ) | (2 | ) | 3.6 | 4.1 | 48.4 | 22.4 | ||||||
Preferred Share Dividends | 25,662 |
| 25,594 |
| 18,391 | — | — | — | ||||||
Total Fixed Charges and Preferred Share Dividends | 244,156 |
| 245,443 |
| 261,174 | 126,138 | 5,141 | 27,059 | ||||||
Ratio of Earnings to Fixed Charges and Preferred Share Dividends | (1 | ) | (2 | ) | 3.4 | 4.1 | 48.4 | 22.4 | ||||||
| (1) | Earnings for the year ended December 31, 2002 were insufficient to cover fixed charges by $39 million and combined fixed charges and preferred share dividends by $65 million. |
| (2) | Earnings for the year ended December 31, 2001 were insufficient to cover fixed charges by $225 million and combined fixed charges and preferred share dividends by $251 million. |
