Exhibit 12.1
TRENWICK AMERICA CORPORATION
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands of United States dollars)
Years ended December 31,
---------------------------------------------------------
2001 2000 1999 1998 1997
-------- -------- -------- ------- -------
Earnings
Net income (loss) $(19,525) $(36,972) $ (9,895) $25,608 $31,976
Income taxes (benefit) (14,628) (22,529) (12,355) 4,762 8,983
-------- -------- -------- ------- -------
Income (loss) before income taxes (34,153) (59,501) (22,250) 30,370 40,959
Fixed charges (as below) 31,336 35,769 18,550 13,656 10,140
-------- -------- -------- ------- -------
Earnings (loss) (for ratio calculation) $ (2,817) $(23,732) $ (3,700) $44,026 $51,099
======== ======== ======== ======= =======
Fixed charges:
Interest expense $ 21,634 $ 26,067 $ 8,848 $ 3,954 $ 1,220
Dividends on capital securities of
subsidiary trust 9,702 9,702 9,702 9,702 8,920
-------- -------- -------- ------- -------
Total fixed charges $ 31,336 $ 35,769 $ 18,550 $13,656 $10,140
======== ======== ======== ======= =======
Ratio of earnings of fixed charges (0.09) (0.66) (.20) 3.2 5.0
======== ======== ======== ======= =======
Deficiency $(34,153) $(59,501) $(22,250)
======== ======== ========
For purposes of computing the consolidated ratio of earnings to fixed charges,
"earnings" represent income before income taxes 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.