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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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1998 1997 1996 1995 1994
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(dollars in thousands)
Earnings:
Net income $34,792 $35,252 $33,848 $29,841 $20,282
Extraordinary loss on debt redemption,
net of $558 income tax benefit -- 1,037 -- -- --
Income taxes 8,245 11,241 9,980 8,572 2,753
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Income before income taxes and
extraordinary item 43,037 47,530 43,828 38,413 23,035
Fixed charges (as below) 14,492 10,140 6,826 6,805 6,785
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Earnings (for ratio calculation) $57,529 $57,670 $50,654 $45,218 $29,820
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Fixed charges:
Interest expense $ 3,954 $ 894 $ 6,503 $ 6,496 $ 6,469
Minority interest 9,702 8,920 -- -- --
Portion of rental expense which
approximates the interest factor 836 326 323 309 316
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Total fixed charges $14,492 $10,140 $ 6,826 $ 6,805 $ 6,785
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Ratio of earnings to fixed charges 4.0 5.7 7.4 6.6 4.4
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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.