Exhibit 12.1
TRENWICK AMERICA CORPORATION
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands of United States dollars)
Years ended December 31,
-----------------------------------------------------------------
2002 2001 2000 1999 1998
--------- --------- --------- --------- ---------
Earnings
Net income (loss) before cumulative effect of
change in accounting principle $(223,875) $ (19,525) $ (36,972) $ (9,895) $ 25,608
Income taxes expense (benefit) 61,304 (14,628) (22,529) (12,355) 4,762
--------- --------- --------- --------- ---------
Income (loss) before income taxes and before
cumulative effect of change in accounting principle (162,571) (34,153) (59,501) (22,250) 30,370
Fixed charges (as below) 22,551 31,336 35,769 18,550 13,656
--------- --------- --------- --------- ---------
Earnings (loss) (for ratio calculation) (140,020) ` $ (2,817) $ (23,732) $ (3,700) $ 44,026
========= ========= ========= ========= =========
Fixed charges:
Interest expense $ 12,849 $ 21,634 $ 26,067 $ 8,848 $ 3,954
Dividends on capital securities of
subsidiary trust 9,702 9,702 9,702 9,702 9,702
--------- --------- --------- --------- ---------
Total fixed charges 22,551 $ 31,336 $ 35,769 $ 18,550 $ 13,656
========= ========= ========= ========= =========
Ratio of earnings of fixed charges (6.21) (0.09) (0.66) (.20) 3.2
========= ========= ========= ========= =========
Deficiency $(162,571) $ (34,153) $ (59,501) $ (22,250)
========= ========= ========= =========
For purposes of computing the consolidated ratio of earnings to fixed charges,
"earnings" represent income before income taxes and fixed charges. "Fixed
charges" include gross interest expense (other than on deposits), minority
interest and the proportion deemed representative of the interest factor of rent
expense.