EX-12.1 5 dp54865_ex1201.htm EXHIBIT 12.1
Exhibit 12.1

 
Statement Re: Computation of Ratios
 
Computation of Ratio of Earnings to Fixed Charges
 
For purposes of computing the following ratios, earnings consist of net income or loss before income tax expense plus fixed charges to the extent that these charges are included in the determination of net income or loss and exclude undistributed earnings or losses of equity method investments. Fixed charges consist of interest costs plus one-third of minimum rental payments under operating leases (estimated by management to be the interest factor of such rentals).
 
 In thousands of U.S. dollars except ratios
  
For the year ended December 31,
  
   
2014
  
2013
  
2012
  
2011
  
2010
  
Earnings - excluding undistributed equity method investments
  
$
1,052,843
  
$
659,777
  
$
1,124,560
  
$
(513,919)
  
$
839,955
  
Add:
      
  
    
  
    
  
    
  
      
Income taxes
    
239,506
  
  
48,416
  
  
204,284
  
  
68,972
  
  
128,784
  
Fixed charges:
      
  
    
  
    
  
    
  
      
Interest expense, net of applicable taxes
    
48,963
    
48,929
    
48,895
    
48,949
    
44,413
  
Interest credited to life policyholders (1)
    
5,197
  
  
7,970
  
  
8,378
  
  
11,030
  
  
8,665
  
Interest credited to retrocessionnaires on funds held on reinsurance treaties
    
237
  
  
867
  
  
304
  
  
108
  
  
962
  
One third of rental payments
    
11,140
  
  
13,263
  
  
11,881
  
  
12,216
  
  
11,636
  
Earnings (Loss) before income taxes and fixed charges
  
$
1,357,886
  
$
779,222
  
$
1,398,302
  
$
(372,644)
  
$
1,034,415
  
       
  
    
  
    
  
    
  
      
Fixed charges:
      
  
    
  
    
  
    
  
      
Interest expense, net of applicable taxes
  
$
48,963
  
  
48,929
  
  
48,895
  
$
48,949
  
$
44,413
  
Interest credited to life policyholders (1)
    
5,197
  
  
7,970
  
  
8,378
  
  
11,030
  
  
8,665
  
Interest credited to retrocessionnaires on funds held on reinsurance treaties
    
237
  
  
867
  
  
304
  
  
108
  
  
962
  
One third of rental payments
    
11,140
  
  
13,263
  
  
11,881
  
  
12,216
  
  
11,636
  
Total fixed charges
  
$
65,537
  
$
71,029
  
$
69,458
  
$
72,303
  
$
65,676
  
Preference share dividends (2)
    
56,735
  
  
57,861
  
  
61,622
  
  
47,020
  
  
34,525
  
Total fixed charges and preference share dividends
  
$
122,272
  
$
128,890
  
$
131,080
  
$
119,323
  
$
100,201
  
       
  
    
  
    
  
    
  
      
Ratio of earnings to fixed charges
    
20.72x
  
  
10.97x
  
  
20.13x
  
  
NM(3)
  
  
15.75x
  
       
  
    
  
    
  
    
  
      
Deficiency of earnings to fixed charges (4)
    
N/A
  
  
N/A
  
  
N/A
  
$
444,947
  
  
N/A
  
       
  
    
  
    
  
    
  
      
Ratio of earnings to combined fixed charges and preference share dividends
    
11.11x
  
  
6.05x
  
  
10.67x
  
  
NM(3)
  
  
10.32x
  
       
  
    
  
    
  
    
  
      
Deficiency of earnings to combined fixed charges and preference share dividends (4)
    
N/A
  
  
N/A
  
  
N/A
  
$
491,967
  
  
N/A
  
 
(1)
Represents interest credited to policyholders on certain life reinsurance treaties for which PartnerRe earns compensating interest income.

(2)
Dividends have not been tax effected because they are presumed to be paid out of a Bermuda entity whose tax rate is zero.

(3)
NM: Not meaningful. The ratio for the year ended December 31, 2011 above is not meaningful due to the net loss reported for this period which was impacted by large catastrophic losses, including the Japan earthquake and resulting tsunami, the February and June New Zealand earthquakes, the floods in Thailand, the U.S. tornadoes, the floods in Queensland, Australia and aggregate contracts covering losses in Australia and New Zealand. Further information regarding the impact of these catastrophic losses on our financial results can be found in the documents incorporated by reference in the registration statement with which this exhibit is filed.
   
(4)
Represents additional earnings that would be necessary to result in a one-to-one ratio.