EX-12.1 6 exhibit121computationofrat.htm EXHIBIT 12.1 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12.1
Third Point Reinsurance Ltd.

Computation of Ratio of Earnings to Fixed Charges

The following table sets forth the Company’s consolidated ratio of earnings to fixed charges for the periods indicated.
 
Years ended December 31,
 
2016
 
2015
 
2014
 
2013
 
2012
Fixed charges:
($ in thousands)
Interest expense on deposit contracts and certain reinsurance contracts
$
8,387

 
$
8,614

 
$
7,395

 
$
4,922

 
$
446

Interest expense on senior notes
8,231

 
7,236

 
—

 
—

 
—

Total fixed charges
$
16,618

 
$
15,850

 
$
7,395

 
$
4,922

 
$
446

 
 
 
 
 
 
 
 
 
 
Earnings available for fixed charges:
 
 
 
 
 
 
 
 
 
Income (loss) before income tax expense (benefit)
$
28,876

 
$
(87,439
)
 
$
56,710

 
$
233,078

 
$
100,617

Add: Fixed charges
16,618

 
15,850

 
7,395

 
4,922

 
446

Less: Net (income) loss from non-controlling interests
(1,241
)
 
49

 
(6,315
)
 
(5,767
)
 
(1,216
)
Total earnings available for fixed charges
$
44,253

 
$
(71,540
)
 
$
57,790

 
$
232,233

 
$
99,847

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (1)
2.7

 
—

 
7.8

 
47.2

 
223.9

(1) Our deficiency in earnings necessary to cover fixed charges was approximately $87.4 million for the year ended December 31, 2015.

We computed the ratio of earnings to fixed charges by dividing (1) income (loss) before income tax expense (benefit) plus fixed charges minus net (income) loss from non-controlling interests by (2) our fixed charges. For the purposes of this ratio, fixed charges consist of interest expense on deposit contracts and certain of our reinsurance contracts and interest expense on senior notes.