Exhibit 12
 HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
 STATEMENT OF RATIOS
(in thousands)
 Years Ended December 31,2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Gross premium to surplus
ratio:Gross written premium
    
    $
    2,510,612
    

    
    $
    2,460,498
    
    
    $
    2,243,843
    
    
    $
    2,049,116
    
    
    $
    1,992,361Policyholders surplus
    
    
    1,852,684

    
    
    

    1,744,889
    
    
    
    1,342,054
    
    
    
    1,110,268
    
    
    
    844,851Premium to surplus
ratio(1)
    
    
    135.5
    %
    
    
    141.0
    %
    
    
    167.2
    %
    
    
    184.6
    %
    
    
    235.8
    %(Gross premium to surplus
ratio =
gross written premium
divided by
policyholders surplus)Net premium to surplus
ratio:Net written premium
    
    $
    2,064,091
    


    
    $
    1,985,641
    
    
    $
    1,812,896
    
    
    $
    1,495,931
    
    
    $
    1,121,343Policyholders surplus
    
    
    1,852,684

    
    
    
    1,744,889
    
    
    
    1,342,054
    
    
    
    1,110,268
    
    
    
    844,851Premium to surplus
ratio(1)
    
    
    111.4
    %
    
    
    113.8
    %
    
    
    135.1
    %
    
    
    134.7
    %
    
    
    132.7
    %(Net premium to surplus
ratio =
net written premium
divided by
policyholders surplus)
Loss ratio:Loss ratio:Incurred loss and loss
adjustment expense
    
    $
    1,216,746
    
    



    $
    1,194,925
    
    
    $
    1,020,221
    
    
    $
    925,130
    
    
    $
    651,675Net earned premium
    
    $
    2,000,289
    

    
    
    1,971,951
    
    
    
    1,700,373
    
    
    
    1,378,100
    
    
    
    1,013,573Loss ratio(1)
    
    
    60.8
    %
    
    
    60.6
    %
    
    
    60.0
    %
    
    
    67.1
    %
    
    
    64.3
    %(Loss ratio = incurred
loss
and loss adjustment
expense
divided by net earned
premium)Expense ratio:Underwriting expense
    
    $
    501,948
    


    
    $
    473,597
    
    
    $
    435,371
    
    
    $
    381,680
    
    
    $
    299,789Net written premium
    
    $
    2,064,091

    
    
    
    1,985,641
    
    
    
    1,812,896
    
    
    
    1,495,931
    
    
    
    1,121,343Expense ratio(1)
    
    
    24.3
    %
    
    
    23.9
    %
    
    
    24.0
    %
    
    
    25.5
    %
    
    
    26.7
    %(Expense ratio = underwriting
expense divided by net
written premium)Combined ratio(1)
    
    
    85.1
    %
    
    
    84.5
    %
    
    
    84.0
    %
    
    
    92.6
    %
    
    
    91.0
    %(Combined ratio = loss ratio
plus expense ratio)
 
 (1)
    
    Calculated for our insurance companies using financial data reported
in accordance with statutory accounting principles.




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##### 



Exhibit 12
 HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
 STATEMENT OF RATIOS
(continued, in thousands)
 Years Ended December 31,2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Loss ratio:Incurred loss and loss adjustment
expense
    
    $
    1,211,873
    



    
    $
    1,183,947
    
    
    $
    1,011,856
    
    
    $
    919,697
    
    
    $
    645,230Net earned premium
    
    
    2,007,774
    


    
    
    1,985,086
    
    
    
    1,709,189
    
    
    
    1,369,988
    
    
    
    1,010,692Loss ratio(2)
    
    
    60.4
    %
    
    
    59.6
    %
    
    
    59.2
    %
    
    
    67.1
    %
    
    
    63.8
    %(Loss ratio = incurred loss and loss
adjustment expense divided by net
earned premium)Expense ratio:Underwriting expense
    
    $
    501,537
    



    
    $
    472,168
    
    
    $
    427,456
    
    
    $
    357,727
    
    
    $
    269,390Net earned premium
    
    
    2,007,774
    


    
    
    1,985,086
    
    
    
    1,709,189
    
    
    
    1,369,988
    
    
    
    1,010,692Expense ratio(2)
    
    
    25.0
    %
    
    
    23.8
    %
    
    
    25.0
    %
    
    
    26.1
    %
    
    
    26.7
    %(Expense ratio = underwriting expense
divided by net earned premium)Combined ratio(2)
    
    
    85.4
    %
    
    
    83.4
    %
    
    
    84.2
    %

    
    
    93.2
    %
    
    
    90.5
    %(Combined ratio = loss ratio plus
expense ratio)Ratio of earnings to fixed charges:Interest factor of rent expense(3)
    
    $
    4,581
    


    
    $
    4,067
    
    
    $
    3,944
    
    
    $
    3,373
    
    
    $
    3,319Interest expense
    
    
    16,288
    


    
    
    10,304
    
    
    
    11,396
    
    
    
    7,684
    
    
    
    8,374Total fixed charges
    
    $
    20,869
    


    
    $
    14,371
    
    
    $
    15,340
    
    
    $
    11,057
    
    
    $
    11,693Earnings from continuing
operations before income tax
expense
    
    $
    463,312
    

    
    $
    585,870
    
    
    $
    509,834
    
    
    $
    272,609
    
    
    $
    240,635Fixed charges
    
    
    20,869
    

    
    
    14,371
    
    
    
    15,340
    
    
    
    11,057
    
    
    
    11,693Earnings per calculation
    
    $
    484,181
    




    
    $
    600,241
    
    
    $
    525,174
    
    
    $
    283,666
    
    
    $
    252,328Ratio of earnings to fixed
charges(4)
    
    
    23.20
    %
    
    
    41.77
    
    
    
    34.24
    
    
    
    25.65
    
    
    
    21.58
 
 (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.