**Exhibit 12** **HCC    INSURANCE HOLDINGS, INC. AND SUBSIDIARIES** **STATEMENT OF RATIOS**                        **Years Ended December 31,**   **2007**  **2006**  **2005**  **2004**  **2003**   **(in thousands)**      Gross premium to surplus ratio:                        Gross written premium     $    2,460,498      $    2,243,843      $    2,049,116      $    1,992,361      $    1,746,413     Policyholders’ surplus      1,744,889       1,342,054       1,110,268       844,851       591,889     Premium to surplus ratio(1)      141.0    %      167.2    %      184.6    %      235.8    %      295.1    %    (Gross premium to surplus ratio = gross written premium divided    by policyholders’ surplus)    Net premium to surplus ratio:                        Net written premium     $    1,985,641      $    1,812,896      $    1,495,931      $    1,121,343      $    867,795     Policyholders’ surplus      1,744,889       1,342,054       1,110,268       844,851       591,889     Premium to surplus ratio(1)      113.8    %      135.1    %      134.7    %      132.7    %      146.6    %    (Net premium to surplus ratio = net written premium divided by    policyholders’ surplus) Loss ratio:    Loss ratio:                        Incurred loss and loss adjustment expense     $    1,194,925      $    1,020,221      $    925,130      $    651,675      $    494,024     Net earned premium      1,971,951       1,700,373       1,378,100       1,013,573       739,376     Loss ratio(1)      60.6    %      60.0    %      67.1    %      64.3    %      66.8    %    (Loss ratio = incurred loss and loss adjustment expense divided    by net earned premium)    Expense ratio:                        Underwriting expense     $    473,597      $    435,371      $    381,680      $    299,789      $    199,927     Net written premium      1,985,641       1,812,896       1,495,931       1,121,343       867,795     Expense ratio(1)      23.9    %      24.0    %      25.5    %      26.7    %      23.0    %    (Expense ratio = underwriting expense divided by net written    premium)    Combined ratio(1)      84.5    %      84.0    %      92.6    %      91.0    %      89.8    %    (Combined ratio = loss ratio plus expense ratio)      (1)     Calculated for our insurance companies using financial data    reported in accordance with statutory accounting principles.

 
**Exhibit 12** **HCC    INSURANCE HOLDINGS, INC. AND SUBSIDIARIES** **STATEMENT OF RATIOS****(continued)**                        **Years Ended December 31,**   **2007**  **2006**  **2005**  **2004**  **2003**   **(in thousands)**      Loss ratio:                        Incurred loss and loss adjustment expense     $    1,183,947      $    1,011,856      $    919,697      $    645,230      $    488,000     Net earned premium      1,985,086       1,709,189       1,369,988       1,010,692       738,272     Loss ratio(2)      59.6    %      59.2    %      67.1    %      63.8    %      66.1    %    (Loss ratio = incurred loss and loss adjustment expense divided    by net earned premium)    Expense ratio:                        Underwriting expense     $    472,168      $    427,456      $    357,727      $    269,390      $    181,637     Net earned premium      1,985,086       1,709,189       1,369,988       1,010,692       738,272     Expense ratio(2)      23.8    %      25.0    %      26.1    %      26.7    %      24.6    %    (Expense ratio = underwriting expense divided by net earned    premium)    Combined ratio(2)      83.4    %      84.2    %      93.2    %      90.5    %      90.7    %    (Combined ratio = loss ratio plus expense ratio)    Ratio of earnings to fixed charges:                        Interest factor of rent expense(3)     $    4,067      $    3,944      $    3,373      $    3,319      $    3,067     Interest expense      10,304       11,396       7,684       8,374       7,453                          Total fixed charges     $    14,371      $    15,340      $    11,057      $    11,693      $    10,520                          Earnings from continuing operations before income tax expense     $    585,870      $    509,834      $    272,609      $    240,635      $    164,725     Fixed charges      14,371       15,340       11,057       11,693       10,520                          Earnings per calculation     $    600,241      $    525,174      $    283,666      $    252,328      $    175,245                          Ratio of earnings to fixed charges(4)      41.77       34.24       25.65       21.58       16.66                            (2)     Calculated for our insurance companies using financial data    reported in accordance with generally accepted accounting    principles.     (3)     Estimated to be 33% of total rent expense.     (4)     Earnings per calculation divided by total fixed charges.