EX-12.1 5 axs2014ex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
Exhibit 12.1
AXIS CAPITAL HOLDINGS LIMITED
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

| Year ended December 31, | 2014 |  | 2013 |  | 2012 |  | 2011 |  | 2010 |
| Earnings: income before income taxes | $ | 830,472 |  |  | $ | 734,467 |  |  | $ | 550,528 |  |  | $ | 61,538 |  |  | $ | 895,403 |  |
| Add: fixed charges | 80,809 |  |  | 67,944 |  |  | 67,898 |  |  | 66,185 |  |  | 58,010 |  |
| Add: amounts attributable from noncontrolling interests | 6,181 |  |  | — |  |  | — |  |  | — |  |  | — |  |
| Earnings for computation | $ | 917,462 |  |  | $ | 802,411 |  |  | $ | 618,426 |  |  | $ | 127,723 |  |  | $ | 953,413 |  |
| Assumed interest component of rent expense(1) | $ | 8,327 |  |  | $ | 8,866 |  |  | $ | 8,849 |  |  | $ | 7,163 |  |  | $ | 5,798 |  |
| Interest expense | 72,482 |  |  | 59,078 |  |  | 59,049 |  |  | 59,022 |  |  | 52,212 |  |
| Total fixed charges | $ | 80,809 |  |  | $ | 67,944 |  |  | $ | 67,898 |  |  | $ | 66,185 |  |  | $ | 58,010 |  |
| Ratio of earnings to fixed charges | 11.4 |  |  | 11.8 |  |  | 9.1 |  |  | 1.9 |  |  | 16.4 |  |
| Preferred share dividends(2) | $ | 40,088 |  |  | $ | 40,474 |  |  | $ | 38,228 |  |  | $ | 36,875 |  |  | $ | 36,875 |  |
| Total fixed charges and preferred share dividends | $ | 120,897 |  |  | $ | 108,414 |  |  | $ | 106,126 |  |  | $ | 103,060 |  |  | $ | 94,885 |  |
| Ratio of earnings to fixed charges and preferred |  |  |  |  |  |  |  |  |  |
| share dividends | 7.6 |  |  | 7.4 |  |  | 5.8 |  |  | 1.2 |  |  | 10.0 |  |

(1) | 33.3% represents a reasonable approximation of the interest factor.

(2) | Dividends have been tax effected at a 0% rate because it is presumed they will be funded from a Bermuda entity.