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ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES ("ACGL")
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
| Years Ended December 31, | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||
Income (loss) before income taxes, extraordinary item and cumulative effect of accounting change | $ | 306,500 | $ | 54,540 | $ | 24,144 | $ | 503 | $ | (56,199 | ) | |||||||
Deduct: Equity in net income (loss) of investees | 3,011 | 2,175 | 2,608 | 1,945 | (3,698 | ) | ||||||||||||
Fixed charges: | ||||||||||||||||||
Add: | ||||||||||||||||||
Interest and amortization on indebtedness | 1,410 | — | — | — | — | |||||||||||||
Estimate of interest component within rental expense net of sublease income(1) | 2,900 | 1,067 | (44 | ) | 63 | 192 | ||||||||||||
Income (loss) available for fixed charges | $ | 307,799 | $ | 53,432 | $ | 21,492 | $ | (1,379 | )(2) | $ | (52,309 | )(2) | ||||||
Fixed charges: | ||||||||||||||||||
Interest and amortization on indebtedness | $ | 1,410 | $ | — | $ | — | $ | — | $ | — | ||||||||
Estimate of interest component within rental expense net of sublease income(1) | 2,900 | 1,067 | (44 | ) | 63 | 192 | ||||||||||||
Total fixed charges | $ | 4,310 | $ | 1,067 | $ | (44 | ) | $ | 63 | $ | 192 | |||||||
Ratio of earnings to fixed charges | 71.4 | 50.1 | 488.5 | N/A | (2) | N/A | (2) | |||||||||||
- (1)
- Represents a reasonable approximation of the interest cost component of interest expense, net of sublease income, incurred by ACGL.
- (2)
- For the years ended December 31, 2000 and 1999, ACGL's income was not sufficient to cover its fixed charges.
N/A = Not applicable
ARCH CAPITAL GROUP LTD. AND SUBSIDIARIES ("ACGL ") COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (in thousands, except ratios)