Exhibit 12.1
Arch Capital Group Ltd. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges (1)
(in thousands, except ratios)
|
| 9 Months |
| Year Ended December 31, |
| ||
|
| 30, 2013 |
| 2012 |
| ||
|
|
|
|
|
| ||
Income before income taxes |
| $ | 565,561 |
| $ | 589,387 |
|
|
|
|
|
|
| ||
Equity in net (income) loss of investees |
| 38,336 |
| (43,632 | ) | ||
Fixed charges |
| 21,961 |
| 34,223 |
| ||
|
|
|
|
|
| ||
Income available for fixed charges |
| $ | 625,858 |
| $ | 579,978 |
|
|
|
|
|
|
| ||
Fixed charges: |
|
|
|
|
| ||
Interest and amortization on indebtedness |
| 17,687 |
| 28,525 |
| ||
Estimate of interest component within rental expense net of sublease (income) (2) |
| 4,274 |
| 5,698 |
| ||
Total fixed charges |
| 21,961 |
| 34,223 |
| ||
|
|
|
|
|
| ||
Ratio of earnings to fixed charges |
| 28.5 |
| 16.9 |
|
(1) Reflects the computation of ratio of earnings to fixed charges for periods not previously filed.
(2) Represents a reasonable approximation of the interest cost component of rental expense net of sublease (income) incurred by the Company (deemed to be 33% of operating lease rentals).