EX-12.1 4 a11-22101_1ex12d1.htm EX-12.1

Exhibit 12.1

 

Validus Holdings, Ltd.
Ratio of Earnings to Fixed Charges

(Expressed in thousands of
U.S. dollars, except share and per
share information)

 

 

 

Six Months
Ended June 30,

 

Year Ended
December 31,

 

Year Ended
December 31,

 

Year Ended
December 31,

 

Year Ended
December 31,

 

Year Ended
December 31,

 

 

 

2011(2)

 

2010

 

2009

 

2008

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax (loss) income from continuing operations

 

$

(63,968

)

$

405,690

 

$

893,648

 

$

63,899

 

$

404,501

 

$

183,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Imputed interest on operating leases

 

227

 

601

 

715

 

562

 

657

 

39

 

2006 Junior Subordinated Deferrable Debentures

 

6,816

 

14,354

 

14,354

 

14,354

 

14,398

 

7,824

 

2007 Junior Subordinated Deferrable Debentures

 

6,057

 

12,114

 

12,732

 

14,704

 

8,938

 

—

 

2010 Senior Notes due 2040

 

11,194

 

20,770

 

—

 

—

 

—

 

—

 

Credit facilities

 

3,313

 

5,492

 

2,319

 

910

 

2,332

 

965

 

AlphaCat Re 2011 arrangement fees

 

2,304

 

––

 

––

 

––

 

––

 

––

 

AlphaCat Re 2011 other interest

 

615

 

––

 

––

 

––

 

––

 

––

 

Talbot FAL Facility

 

63

 

333

 

542

 

255

 

658

 

—

 

Talbot other interest

 

—

 

—

 

—

 

(186

)

620

 

—

 

Talbot third party FAL facility

 

—

 

2,807

 

14,183

 

27,281

 

24,808

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges

 

30,589

 

56,471

 

44,845

 

57,880

 

52,411

 

8,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

(33,379

)

462,161

 

938,493

 

121,779

 

456,912

 

191,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges

 

30,589

 

56,471

 

44,845

 

57,880

 

52,411

 

8,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

––

 

8.18

 

20.93

 

2.10

 

8.72

 

21.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax (loss) income from continuing operations

 

$

(63,968

)

$

405,690

 

$

893,648

 

$

63,899

 

$

404,501

 

$

183,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Imputed interest on operating leases

 

227

 

601

 

715

 

562

 

657

 

39

 

2006 Junior Subordinated Deferrable Debentures

 

6,816

 

14,354

 

14,354

 

14,354

 

14,398

 

7,824

 

2007 Junior Subordinated Deferrable Debentures

 

6,057

 

12,114

 

12,732

 

14,704

 

8,938

 

—

 

2010 Senior Notes due 2040

 

11,194

 

20,770

 

—

 

—

 

—

 

—

 

Credit facilities

 

3,313

 

5,492

 

2,319

 

910

 

2,332

 

965

 

AlphaCat Re 2011 arrangement fees

 

2,304

 

––

 

––

 

––

 

––

 

––

 

AlphaCat Re 2011 other interest

 

615

 

––

 

––

 

––

 

––

 

––

 

Talbot other interest

 

—

 

—

 

—

 

(186

)

620

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges Excluding FAL Costs (1)

30,526

 

53,331

 

30,120

 

30,344

 

26,945

 

8,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

(33,442

)

459,021

 

923,768

 

94,243

 

431,446

 

191,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges Excluding FAL Costs (1)

 

30,526

 

53,331

 

30,120

 

30,344

 

26,945

 

8,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges Excluding FAL Costs (1)

 

––

 

8.61

 

30.67

 

3.11

 

16.01

 

21.74

 

 

(1)          FAL Costs represent both fixed and variable costs paid for financing Validus’ operations at Lloyd’s. The ratio of earnings to fixed charges excluding FAL Costs demonstrates the degree to which the ratio changes if FAL Costs are treated as variable rather than fixed costs.

 

(2)          Earnings were inadequate to cover fixed charges. $63,968 represents the amount of the coverage deficiency.