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Arch Capital Group Ltd. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges and Preference Dividends
(in thousands, except ratios)
| Years Ended December 31, | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||
Income (Loss) before income taxes and extraordinary item and cumulative effect of accounting change | $ | 873,544 | $ | 739,893 | $ | 285,435 | $ | 343,127 | $ | 306,500 | |||||||
Minus: Equity in net income (loss) of investees | (9,048 | ) | (431 | ) | 0 | (1,211 | ) | (3,011 | ) | ||||||||
Plus: Fixed charges | 27,032 | 26,386 | 26,204 | 22,103 | 4,310 | ||||||||||||
Income (loss) available for fixed charges | $ | 891,528 | $ | 765,848 | $ | 311,639 | $ | 364,019 | $ | 307,799 | |||||||
Fixed charges: | |||||||||||||||||
Interest and amortization on indebtedness | 22,093 | 22,090 | 22,504 | 17,970 | 1,410 | ||||||||||||
Estimate of interest component within rental expense net of sublease (income)(1) | 4,939 | 4,296 | 3,700 | 4,133 | 2,900 | ||||||||||||
Total fixed charges | 27,032 | 26,386 | 26,204 | 22,103 | 4,310 | ||||||||||||
Preference dividends | 25,844 | 20,655 | — | — | — | ||||||||||||
Total fixed charges and preference dividends | 52,876 | 47,041 | 26,204 | 22,103 | 4,310 | ||||||||||||
Ratio of earnings to fixed charges | 33.0 | 29.0 | 11.9 | 16.5 | 71.4 | ||||||||||||
Ratio of earnings to fixed charges and preference dividends | 16.9 | 16.3 | 11.9 | 16.5 | 71.4 | ||||||||||||
- (1)
- Represents a reasonable approximation of the interest cost component of rental expense net of sublease (income) incurred by the Company.
Arch Capital Group Ltd. and Subsidiaries Computation of Ratio of Earnings to Fixed Charges and Preference Dividends (in thousands, except ratios)