XL CAPITAL Exhibit 12.1
------------
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERENCE DIVIDENDS
000s of U.S. Dollars
Nine Months
Ended Yr End Yr End Yr End Yr End Yr End
30-Sep 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec
2002 2001 2000 1999 1998 1997
---------------- --------------- --------------- --------------- --------------- -----------
Earnings:
Pre-tax income from continuing
operations 213,662 (833,916) 376,734 390,252 636,670 776,550
Fixed charges and pref divs. 140,793 126,219 69,427 53,609 36,898 33,250
Distributed income of equity
investees 11,843 3,662 4,987 1,266 25,319 30,564
----------- --------------- --------------- --------------- --------------- ---------------
Subtotal 366,298 (704,035) 451,148 445,127 698,887 840,364
Less: Minority interest 6,528 2,113 1,093 220 749 308
Preference share dividends 2,369 - - - - -
----------- --------------- --------------- --------------- --------------- ---------------
Total Earnings 357,401 (706,148) 450,055 444,907 698,138 840,056
=========== =============== =============== =============== =============== ===============
Fixed Charges:
Interest costs 78,472 65,350 32,147 37,378 33,444 29,622
Accretion of deposit liabilities 55,104 56,147 31,261 12,394 - -
Rental expense at 30% (1) 4,848 4,722 6,019 3,837 3,454 3,628
----------- --------------- --------------- --------------- --------------- ---------------
Total Fixed charges 138,424 126,219 69,427 53,609 36,898 33,250
----------- --------------- --------------- --------------- --------------- ---------------
Preference share dividends -
XL Capital 2,369 - - - - -
----------- --------------- --------------- --------------- --------------- ---------------
Total Prefered dividends 2,369 - - - - -
----------- --------------- --------------- --------------- --------------- ---------------
Total fixed charges and preference
dividends 140,793 126,219 69,427 53,609 36,898 33,250
=========== =============== =============== =============== =============== ===============
Ratio of Earnings to Fixed Charges 2.6 (5.6) 6.5 8.3 18.9 25.3
----------- --------------- --------------- --------------- --------------- ---------------
Ratio of Earnings to Combined
Fixed Charges and Preference
Dividends 2.5 (5.6) 6.5 8.3 18.9 25.3
----------- --------------- --------------- --------------- --------------- ---------------
Deficiency N/A (832,367) N/A N/A N/A N/A
----------- --------------- --------------- --------------- --------------- ---------------
(1) 30% represents a reasonable approximation of the interest factor
(2) For the year ended December 31, 2001, earnings were insufficient to cover
fixed charges by $832.4 million.