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EXHIBIT 12
HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
STATEMENT OF RATIOS
<Table>
<Caption>
FOR THE YEARS ENDED DECEMBER 31,
(IN THOUSANDS)
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ----------
Gross premium to surplus ratio:
Gross written premium $1,746,413 $1,163,397 $1,014,833 $ 972,154 $ 576,184
Policyholders' surplus 591,889 523,807 401,393 326,249 315,474
Premium to surplus ratio (1) 295.1% 222.1% 252.8% 298.0% 182.6%
(Gross premium to surplus ratio = gross written premium divided by policyholders' surplus)
Net premium to surplus ratio:
Net written premium $ 867,795 $ 545,475 $ 371,409 $ 283,947 $ 150,261
Policyholders' surplus 591,889 523,807 401,393 326,249 315,474
Premium to surplus ratio (1) 146.6% 104.1% 92.5% 87.0% 47.6%
(Net premium to surplus ratio = net written premium divided by policyholders' surplus)
Loss ratio:
Incurred loss and loss
adjustment expense $ 494,024 $ 313,744 $ 266,537 $ 190,272 $ 160,908
Net earned premium 739,376 506,371 341,779 267,481 150,304
Loss ratio (1) 66.8% 62.0% 78.0% 71.1% 107.1%
(Loss ratio = incurred loss and loss adjustment expense divided by net earned premium)
Expense ratio:
Underwriting expense $ 199,927 $ 130,578 $ 88,461 $ 76,548 $ 34,220
Net written premium 867,795 545,475 371,409 283,947 150,261
Expense ratio (1) 23.0% 23.9% 23.8% 27.0% 22.8%
(Expense ratio = underwriting expense divided by net written premium)
Combined ratio (1) 89.8% 85.9% 101.8% 98.1% 129.9%
</Table>
(Combined ratio = loss ratio plus expense ratio)
(1) Calculated for our insurance companies on the basis of statutory accounting
principles.
HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
STATEMENT OF RATIOS
(continued)
<Table>
<Caption>
FOR THE YEARS ENDED DECEMBER 31,
(IN THOUSANDS)
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ----------
Loss ratio:
Incurred loss and loss
adjustment expense $ 488,652 $ 306,491 $ 267,390 $ 198,470 $ 109,650
Net earned premium 738,272 505,521 342,787 267,647 141,362
Loss ratio (2) 66.2% 60.6% 78.0% 74.2% 77.6%
(Loss ratio = incurred loss and loss adjustment expense divided by net earned premium)
Expense ratio:
Underwriting expense $ 182,907 $ 128,528 $ 88,192 $ 56,223 $ 73,123
Net earned premium 738,272 505,521 342,787 267,647 141,362
Expense ratio (2) 24.8% 25.4% 25.7% 21.0% 51.7%
(Expense ratio = underwriting expense divided by net earned premium)
Combined ratio (2) 91.0% 86.0% 103.7% 95.2% 129.3%
</Table>
(Combined ratio = loss ratio plus expense ratio)
(2) Calculated for our insurance companies on the basis of generally accepted
accounting principles.