Exhibit 12.1
TRENWICK AMERICA CORPORATION
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands of United States dollars)
Year Ended December 31,
2000 1999 1998 1997 1996
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Earnings
Net income (loss) $(36,972) $ (9,895) $ 25,608 $ 31,976 $ 33,127
Extraordinary loss on debt redemption,
net of $445 and $558 income tax benefit 825 -- -- 1,037 --
Income taxes (benefit) (22,084) (12,355) 4,762 9,541 9,701
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Income (loss) before income taxes and
extraordinary item (58,231) (22,250) 30,370 42,554 42,828
Fixed charges (as below) 27,053 18,550 13,656 10,140 6,503
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Earnings (loss) (for ratio calculation) $(31,178) $ (3,700) $ 44,026 $ 52,694 $ 49,331
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Fixed charges:
Interest expense $ 17,351 $ 8,848 $ 3,954 $ 1,220 $ 6,503
Dividends on capital securities of
subsidiary trust 9,702 9,702 9,702 8,920 --
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Total fixed charges $ 27,053 $ 18,550 $ 13,656 $ 10,140 $ 6,503
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Ratio of earnings of fixed charges (115.25) (.20) 3.2 5.2 7.6
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For purposes of computing the consolidated ratio of earnings to fixed charges,
"earnings" represent income before income taxes and extraordinary item and fixed
charges. "Fixed charges" include gross interest expense (other than on
deposits), minority interest and the proportion deemed representative of the
interest factor of rent expense.