EXHIBIT 12

HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

STATEMENT OF RATIOS

(in thousands, except ratios)

	Years ended December 31,
	2012			2011			2010			2009			2008
Net loss ratio
Loss and loss adjustment expense, net	$	1,305,511		$	1,399,247		$	1,213,029		$	1,215,759		$	1,211,873
Net earned premium		2,242,625			2,127,170			2,041,924			2,037,235			2,007,774
Net loss ratio (1)		58.2	%		65.8	%		59.4	%		59.7	%		60.4	%
(Net loss ratio = incurred loss and loss adjustment expense divided by net earned premium)
Expense ratio (2)
Segment underwriting expense (3)	$	565,777		$	536,238		$	519,336		$	502,256		$	492,445
Segment revenue (4)		2,231,734			2,117,882			2,030,219			2,020,088			1,939,550
Expense ratio		25.4	%		25.3	%		25.6	%		24.9	%		25.4	%
(Expense ratio = segment underwriting expense divided by segment revenue)
Combined ratio (2)		83.6	%		91.1	%		85.0	%		84.6	%		85.8	%
(Combined ratio = net loss ratio plus expense ratio)
Accident year net loss ratio
Loss and loss adjustment expense, net	$	1,305,511		$	1,399,247		$	1,213,029		$	1,215,759		$	1,211,873
Add: Favorable (adverse) development		70,011			(10,147	)		22,663			53,524			82,371
Accident year net loss and loss adjustment expense	$	1,375,522		$	1,389,100		$	1,235,692		$	1,269,283		$	1,294,244
Net earned premium	$	2,242,625		$	2,127,170		$	2,041,924		$	2,037,235		$	2,007,774
Add: (Increase) decrease related to prior year reinstatement premium		(5,083	)		-			3,177			-			-
Accident year net earned premium	$	2,237,542		$	2,127,170		$	2,045,101		$	2,037,235		$	2,007,774
Accident year net loss ratio		61.5	%		65.3	%		60.4	%		62.3	%		64.5	%
(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) The 2011 – 2008 expense ratios and combined ratios have been adjusted to reflect change in Exited Lines in 2012. See Note 12, “Segments” to the Consolidated Financial Statements.

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

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

HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

STATEMENT OF RATIOS

(in thousands, except ratios)

	Years ended December 31,
	2012			2011			2010			2009			2008
Net paid loss ratio
Losses paid, net of reinsurance	$	1,272,345		$	1,253,689		$	1,218,080		$	1,137,779		$	1,084,778
Net earned premium		2,242,625			2,127,170			2,041,924			2,037,235			2,007,774
Net paid loss ratio		56.7	%		58.9	%		59.7	%		55.8	%		54.0	%
(Net paid loss ratio = losses paid, net of reinsurance, divided by net earned premium)
Ratio of earnings to fixed charges
Interest factor of rent expense (5)	$	5,328		$	5,390		$	5,294		$	5,277		$	4,581
Interest expense		25,628			23,070			21,348			16,164			20,362
Capitalized interest		303			382			-			51			104
Total fixed charges	$	31,259		$	28,842		$	26,642		$	21,492		$	25,047
Earnings before income tax expense	$	554,427		$	355,006		$	489,827		$	518,551		$	432,238
Interest factor of rent expense (5)		5,328			5,390			5,294			5,277			4,581
Interest expense		25,628			23,070			21,348			16,164			20,362
Earnings per calculation	$	585,383		$	383,466		$	516,469		$	539,992		$	457,181
Ratio of earnings to fixed charges (6)		18.73			13.30			19.39			25.13			18.25

(5) Estimated to be 33% of total rent expense.

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