(EXHIBIT 12.01) Ambac Financial Group, Inc. Ratio of Earnings to Fixed Charges The following table contains our ratio of earnings to fixed charges for each of the periods indicated: Years Ended December 31, ---------------------------------------------------------- 1999 1998 1997 1996 1995 ---------------------------------------------------------- Ratio of earnings to fixed charges 11.56x 10.50x 13.41x 17.91x 10.77x ___________________ We computed the ratio of earnings to fixed charges by dividing earnings before income taxes and extraordinary items plus fixed charges by the fixed charges. For the purpose of this ratio, fixed charges consist of interest expense incurred, capitalized interest, amortization of debt expense and one- third of rental payments under operating leases (an amount deemed representative of the appropriate interest factor).