NAC RE CORP. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in Thousands) Year Ended December 31, ---------------------------------------------------- 1998 1997 1996 1995 1994 -------- -------- -------- -------- -------- Earnings: Operating income before income taxes $117,882 $122,830 $ 89,036 $ 78,821 $ 42,290 -------- -------- -------- -------- -------- Add back fixed charges: Interest expense 21,371 21,390 21,976 15,381 14,196 Amortization of related debt expenses 345 345 346 267 258 Assumed interest component of rent expenses 1,622 1,551 1,311 1,235 1,099 -------- -------- -------- -------- -------- Total fixed charges 23,338 23,286 23,633 16,883 15,553 -------- -------- -------- -------- -------- Adjusted earnings $141,220 $146,116 $112,669 $ 95,704 $ 57,843 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 6.1 to 1 6.3 to 1 4.8 to 1 5.7 to 1 3.7 to 1 ======== ======== ======== ======== ========