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Exhibit 12.1
TRENWICK GROUP LTD.
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands of United States dollars)
Three Months
Ended Year Ended
March 31, December 31, Year Ended September 30,
2001 2000 1999 1998 1997
------------ ------------ --------- ------- --------
Income (loss) before income taxes and extraordinary item $15,536 $4,215 $(5,679) $65,232 $121,468
Fixed charges (as below) 7,472 6,404 1,714 1,881 1,678
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Earnings (loss) (for ratio calculation) $22,828 $10,619 $(3,965) $67,113 $123,146
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Fixed charges:
Interest expense and dividends on preferred stock
of subsidiaries $ 7,472 $6,404 $ 1,714 $ 1,881 $ 1,678
-------- -------- -------- -------- --------
Total fixed charges $ 7,472 $6,404 $ 1,714 $ 1,881 $ 1,678
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Ratio of earnings to fixed charges 3.06 1.66 -- 35.68 73.39
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Deficiency of earnings to fixed charges $(5,679)
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TRENWICK GROUP LTD.
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED SHARE DIVIDENDS
(Amounts in thousands of United States dollars)
Three Months
Ended Year Ended Year Ended Year Ended Year Ended
March 31, December 31, September 30, September 30, September 30,
2001 2000 1999 1998 1997
Earnings available for fixed charges
and preferred share dividends
Net (loss) income before minority
interest and income taxes $15,356 $ 4,215 $ (5,679) $65,232 $121,468
Interest expense and dividends on
preferred stock of subsidiaries(1) 7,472 6,404 1,714 1,881 1,678
------------- ----------- --------- --------- -----------
Total earnings available for fixed
charges and preferred dividends $22,828 $10,619 $ (3,965) $67,113 $123,146
============= =========== ========= ========= ===========
Fixed charges and preferred share
dividends
Interest expense and dividends on
preferred stock of subsidiaries $ 7,472 $ 6,404 $ 1,714 $ 1,881 $ 1,678
------------- ----------- --------- --------- -----------
Total fixed charges $ 7,472 $ 6,404 $ 1,714 $ 1,881 $ 1,678
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Preferred share dividends(1) -- 4,923 6,563 6,563 2,807
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Combined fixed charges and
preferred share dividends $ 7,472 $11,327 $ 8,277 $ 8,444 $ 4,485
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Ratio of earnings to combined fixed
charges and preferred share dividends 3.06 -- -- 7.9 27.5
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Deficiency of earnings to combined
fixed charges and preferred $ (708) $(12,242)
share dividends =========== =========
(1) Preferred share dividends were not deducted from net income before minority
interest prior to the September 27, 2000 Trenwick/LaSalle business
combination.
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TRENSWICK AMERICA CORPORATION
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in Thousands of United States dollars)
Three Months
Ended
March 31, Year Ended December 31,
2001 2000 1999 1998 1997 1996
---- ---- ---- ---- ---- ----
Earnings
Net income (loss) $ 6,747 $(36,972) $ (9,895) $25,608 $31,976 $33,127
Extraordinary loss on debt redemption, net of income tax benefit - 825 - - 1,037 -
Income taxes (benefit) (3,022) (22,084) (12,355) 4,762 9,541 9,701
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Income (loss) before income taxes and extraordinary item 3,725 (58,231) (22,250) 30,370 42,554 42,828
Fixed charges (as below) 5,148 27,053 18,550 13,656 9,814 6,503
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Earnings (loss) (for ratio calculation) $ 8,873 $(31,178) $ (3,700) $44,026 $52,368 $49,331
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Fixed charges:
Interest expense $2,722 $ 17,351 $ 8,848 $ 3,954 $ 894 $ 6,503
Dividends on capital securities of subsidiary trust 2,426 9,702 9,702 9,702 8,920 -
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Total fixed charges $5,148 $ 27,053 $ 18,550 $13,656 $ 9,814 $ 6,503
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Ratio of earnings of fixed charges 1.7 - - 3.2 5.3 7.6
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Deficiency of earnings to fixed charges $(58,231) $(22,250)
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