EX-12.1 13 axs-20171231xexx121.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1
AXIS CAPITAL HOLDINGS LIMITED
COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES AND PREFERRED DIVIDENDS

 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31,
2017
 
2016
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings: income (loss) before income taxes
$
(368,109
)
 
$
521,802

 
$
644,659

 
$
830,472

 
$
734,467

 
 
Add: fixed charges
61,686

 
57,641

 
58,702

 
80,809

 
67,944

 
 
Add: amounts attributable from noncontrolling interests
—

 
—

 
—

 
6,181

 
—

 
 
Earnings (loss) for computation
$
(306,423
)
 
$
579,443

 
$
703,361

 
$
917,462

 
$
802,411

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assumed interest component of rent expense(1)
$
8,756

 
$
7,673

 
$
8,793

 
$
8,327

 
$
8,866

 
 
Interest expense
52,930

 
49,968

 
49,909

 
72,482

 
59,078

 
 
Total fixed charges
$
61,686

 
$
57,641

 
$
58,702

 
$
80,809

 
$
67,944

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges(3)
(5.0
)
 
10.1

 
12.0

 
11.4

 
11.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred share dividends(2)
$
46,810

 
$
46,597

 
$
40,069

 
$
40,088

 
$
40,474

 
 
Total fixed charges and preferred share dividends
$
108,496

 
$
104,238

 
$
98,771

 
$
120,897

 
$
108,414

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges and preferred
 
 
 
 
 
 
 
 
 
 
 
share dividends (3)
(2.8
)
 
5.6

 
7.1

 
7.6

 
7.4

 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
33.3% represents a reasonable approximation of the interest factor.
(2)
Dividends have been tax effected at a 0% rate because it is presumed they will be funded from a Bermuda entity.
(3)
For the year ended December 31, 2017, AXIS Capital required $368,109 of additional earnings to achieve a 1:1 ratio of earnings to fixed charges and $414,919 of additional earnings to achieve a 1:1 ratio of earnings to fixed charges and preferred share dividends.