Exhibit 12.2
Everest Re Group, Ltd.
Ratio of Earnings (Losses) to Fixed Charges (including Annuity Interest Expense) (1)
(Dollars in thousands)
Nine Months Ended September 30, | Years Ended December 31, | |||||||||||||||||||||
Restated | Restated | |||||||||||||||||||||
2005 | 2004 | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||
Earnings: Income (Loss) before income taxes (benefits) | ($ | 42,072 | ) | $ | 480,177 | $ | 559,711 | $ | 491,213 | $ | 262,044 | $ | 90,343 | $ | 231,742 | |||||||
Fixed Charges: | ||||||||||||||||||||||
Assumed interest component of rent expense | 1,600 | 1,634 | 2,265 | 2,033 | 2,025 | 1,713 | 1,325 | |||||||||||||||
Interest expense | 61,451 | 62,509 | 86,287 | 69,461 | 58,609 | 60,561 | 39,386 | |||||||||||||||
Total fixed charges | 63,051 | 64,143 | 88,552 | 71,494 | 60,634 | 62,274 | 40,711 | |||||||||||||||
Earnings plus fixed charges | $ | 20,979 | $ | 544,320 | $ | 648,263 | $ | 562,707 | $ | 322,678 | $ | 152,617 | $ | 272,453 | ||||||||
Ratio of earnings (losses) to fixed charges (2) | 0.3 to 1 | 8.5 to 1 | 7.3 to 1 | 7.9 to 1 | 5.3 to 1 | 2.5 to 1 | 6.7 to 1 | |||||||||||||||
(1) | For purposes of determining this ratio, “earnings” consist of consolidated net income before federal income taxes plus fixed charges. “Fixed charges” consist of interest expense on senior and subordinated debt and the revolving credit agreement and that portion of operating leases that are representative of the interest factor. |
(2) | For the nine-month period ended September 30, 2005, the amount of additional earnings that would have been required to achieve a one-to-one coverage ratio is approximately $42,072,000. |