EXHIBIT 12

HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

STATEMENT OF RATIOS

(in thousands, except ratios)

	Years ended December 31,
	2011			2010			2009			2008			2007
GAAP Ratios (1)
Net loss ratio
Loss and loss adjustment expense, net	$	1,399,247		$	1,213,029		$	1,215,759		$	1,211,873		$	1,183,947
Net earned premium		2,127,170			2,041,924			2,037,235			2,007,774			1,985,086
Net loss ratio		65.8	%		59.4	%		59.7	%		60.4	%		59.6	%
(Net loss ratio = incurred loss and loss adjustment expense divided by net earned premium)
Expense ratio
Segment underwriting expense (2)	$	541,163		$	525,702		$	505,991		$	496,327		$	480,386
Segment revenue (3)		2,163,077			2,084,848			2,086,126			2,008,767			2,013,532
Expense ratio		25.0	%		25.2	%		24.3	%		24.7	%		23.9	%
(Expense ratio = segment underwriting expense divided by segment revenue)
Combined ratio		90.8	%		84.6	%		84.0	%		85.1	%		83.5	%
(Combined ratio = net loss ratio plus expense ratio)
Accident year loss ratio
Loss and loss adjustment expense, net	$	1,399,247		$	1,213,029		$	1,215,759		$	1,211,873		$	1,183,947
Add: Favorable (adverse) development		(10,147	)		22,663			53,524			82,371			26,397
Accident year net loss and loss adjustment expense	$	1,389,100		$	1,235,692		$	1,269,283		$	1,294,244		$	1,210,344
Net earned premium	$	2,127,170		$	2,041,924		$	2,037,235		$	2,007,774		$	1,985,086
Add: Prior year reinstatement premium		-			3,177			-			-			-
Accident year net earned premium	$	2,127,170		$	2,045,101		$	2,037,235		$	2,007,774		$	1,985,086
Accident year net loss ratio		65.3	%		60.4	%		62.3	%		64.5	%		61.0	%
(Accident year net loss ratio = accident year net loss and loss adjustment expense divided by accident year net earned premium)

(1) Calculated for our insurance companies using financial data reported in accordance with generally accepted accounting principles.

(2) Sum of Other Expense for each of our insurance segments.

(3) Sum of Segment Revenue for each of our insurance segments.

HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

STATEMENT OF RATIOS

(in thousands, except ratios)

		000000000000		000000000000		000000000000		000000000000		000000000000
	Years ended December 31,
	2011		2010		2009		2008		2007
Ratio of earnings to fixed charges
Interest factor of rent expense (4)	$	5,390	$	5,294	$	5,277	$	4,581	$	4,067
Interest expense		23,070		21,348		16,164		20,362		16,270
Capitalized interest		382		-		51		104		-
Total fixed charges	$	28,842	$	26,642	$	21,492	$	25,047	$	20,337
Earnings before income tax expense	$	355,006	$	489,827	$	518,551	$	432,238	$	579,904
Interest factor of rent expense (4)		5,390		5,294		5,277		4,581		4,067
Interest expense		23,070		21,348		16,164		20,362		16,270
Earnings per calculation	$	383,466	$	516,469	$	539,992	$	457,181	$	600,241
Ratio of earnings to fixed charges (5)		13.30		19.39		25.13		18.25		29.51

(4) Estimated to be 33% of total net expense.

(5) Earnings per calculation divided by total fixed charges.