.
.
.
EXHIBIT 12
HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
STATEMENT OF RATIOS
<Table>
<Caption>
====================================================================================================================================
YEARS ENDED DECEMBER 31,
(IN THOUSANDS)
2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Gross premium to surplus ratio:
Gross written premium $ 1,992,361 $ 1,746,413 $ 1,163,397 $ 1,014,833 $ 972,154
Policyholders' surplus 844,851 591,889 523,807 401,393 326,249
Premium to surplus ratio (1) 235.8% 295.1% 222.1% 252.8% 298.0%
(Gross premium to surplus ratio = gross written premium divided by policyholders' surplus)
Net premium to surplus ratio:
Net written premium $ 1,121,343 $ 867,795 $ 545,475 $ 371,409 $ 283,947
Policyholders' surplus 844,851 591,889 523,807 401,393 326,249
Premium to surplus ratio (1) 132.7% 146.6% 104.1% 92.5% 87.0%
(Net premium to surplus ratio = net written premium divided by policyholders' surplus)
Loss ratio:
Incurred loss and loss
adjustment expense $ 651,675 $ 494,024 $ 313,744 $ 266,537 $ 190,272
Net earned premium 1,013,573 739,376 506,371 341,779 267,481
Loss ratio (1) 64.3% 66.8% 62.0% 78.0% 71.1%
(Loss ratio = incurred loss and loss adjustment expense divided by net earned premium)
Expense ratio:
Underwriting expense $ 299,789 $ 199,927 $ 130,578 $ 88,461 $ 76,548
Net written premium 1,121,343 867,795 545,475 371,409 283,947
Expense ratio (1) 26.7% 23.0% 23.9% 23.8% 27.0%
(Expense ratio = underwriting expense divided by net written premium)
Combined ratio (1) 91.0% 89.8% 85.9% 101.8% 98.1%
</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>
===============================================================================================================================
YEARS ENDED DECEMBER 31,
(IN THOUSANDS)
2004 2003 2002 2001 2000
- -------------------------------------------------------------------------------------------------------------------------------
Loss ratio:
Incurred loss and loss
adjustment expense $ 645,230 $ 488,652 $ 306,491 $ 267,390 $ 198,470
Net earned premium 1,010,691 738,272 505,521 342,787 267,647
Loss ratio (2) 63.8% 66.2% 60.6% 78.0% 74.2%
(Loss ratio = incurred loss and loss adjustment expense divided by net earned premium)
Expense ratio:
Underwriting expense $ 271,390 $ 182,907 $ 128,528 $ 88,192 $ 56,223
Net earned premium 1,010,691 738,272 505,521 342,787 267,647
Expense ratio (2) 26.9% 24.8% 25.4% 25.7% 21.0%
(Expense ratio = underwriting expense divided by net earned premium)
Combined ratio (2) 90.7% 91.0% 86.0% 103.7% 95.2%
(Combined ratio = loss ratio plus expense ratio)
</Table>
(2) Calculated for our insurance companies on the basis of generally accepted
accounting principles.