(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,
                                           --------------------------------------------------------------
                                              1998         1997        1996         1995        1994
                                           --------------------------------------------------------------
                                                                                           
Ratio of earnings to fixed charges           10.50x       13.41x      17.91x       10.77x      10.14x

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        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).