EX-12 4 a11-2248_1ex12.htm EX-12

Exhibit 12

 

Montpelier Re Holdings Ltd.

Ratio of Earnings to Fixed Charges

($ in millions)

 

 

 

Years Ended December 31,

 

 

 

2010

 

2009

 

2008

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes and extraordinary item

 

$

210.7

 

$

464.6

 

$

—

 

$

347.8

 

$

342.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

Assumed interest component of rent expense (1/3 rent/lease)

 

$

1.5

 

$

1.4

 

$

1.3

 

$

0.9

 

$

0.7

 

Interest on Senior Notes

 

14.0

 

14.5

 

15.3

 

15.3

 

15.3

 

Interest on Trust Preferred Securities

 

8.7

 

8.7

 

8.7

 

8.7

 

8.6

 

Interest on Blue Ocean indebtedness

 

—

 

—

 

0.2

 

5.6

 

0.5

 

Total fixed charges

 

$

24.2

 

$

24.6

 

$

25.5

 

$

30.5

 

$

25.1

 

Preferred stock dividend requirements of Blue Ocean

 

—

 

—

 

0.6

 

7.0

 

10.8

 

Total combined fixed charges and preferred stock dividends

 

$

24.2

 

$

24.6

 

$

26.1

 

$

37.5

 

$

35.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes and extraordinary item plus fixed charges

 

$

234.9

 

$

489.2

 

$

25.5

 

$

378.3

 

$

367.4

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

 

9.7

 

19.9

 

1.0

 

12.4

 

14.6

 

RATIO OF EARNINGS TO COMBINED FIXED CHARGES and PREFERRED STOCK DIVIDENDS

 

9.7

 

19.9

 

—

 

10.1

 

10.2

 

 

For the year ended December 31, 2008, earnings were insufficient to cover fixed charges and combined fixed charges and preferred stock dividends by $143.5 million and $144.1 million, respectively. This was as a result of significant net realized and unrealized investment losses and a large hurricane loss incurred during that year.