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EXHIBIT 12.0
TRENWICK GROUP INC.
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31,
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1997 1996 1995 1994 1993
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(dollars in thousands)
Earnings:
Net Income $35,252 $33,848 $29,841 $20,282 $23,739
Extraordinary loss on debt redemption,
net of tax $558 income tax benefit 1,037 -- -- -- --
Income taxes 11,241 9,980 8,572 2,753 4,220
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Income before income taxes and
extraordinary item 47,530 43,828 38,413 $23,035 $27,959
Fixed charges (as below) 10,140 6,826 6,805 6,785 6,737
Earnings (for ratio calculation) $ 57,670 $50,654 $45,218 $29,820 $34,696
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Fixed charges:
Interest expense $ 894 $ 6,503 $ 6,496 $ 6,469 $ 6,486
Minority interest 8,920 -- -- -- --
Portion of rental expense which
approximates the interest factor 326 323 309 316 251
Total fixed charges $ 10,140 $ 6,826 $ 6,805 $ 6,785 $ 6,737
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Ratio of earnings to fixed charges 5.7 7.4 6.6 4.4 5.2
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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.