EXHIBIT 12.1



ARGONAUT GROUP, INC.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

AND PREFERRED STOCK DIVIDENDS



|                                                                    |  |                              |        |      |   |       |      |  |      |       |  |      |        |   |  |   |       |  
|------------------------------------------------------------------- |  | ---------------------------- | ------ | ---- | - | ----- | ---- |  | ---- | ----- |  | ---- | ------ | - |  | - | ----- | -
|                                                                    |  | Years Ended December 31,     |       
|                                                                    |  | 2003                         |        | 2002 |   |       | 2001 |  | 2000 |       |  | 1999 |       
|                                                                    |  | (in millions, except ratios) |       
|Earnings:                                                           |  |                              |        |      |   |       |      |  |      |       |  |      |        |   |  |   |       |  
|Income from continuing operations before provision for income taxes |  | $                            | 135.3  |      | $ | (21.1 | )    |  | $    | 3.3   |  | $    | (129.2 | ) |  | $ | (25.5 | )
|Add:                                                                |  |                              |        |      |   |       |      |  |      |       |  |      |        |   |  |   |       |  
|Fixed charges                                                       |  | $                            | 12.3   |      | $ | 2.6   |      |  | $    | 2.9   |  | $    | 2.3    |   |  | $ | 1.5   |  
|                                                                    |  |                              |        |      |   |       |      |  |      |       |  |      |        |   |  |   |       |  
|Total earnings                                                      |  | $                            | 147.6  |      | $ | (18.5 | )    |  | $    | 6.2   |  | $    | (126.9 | ) |  | $ | (24.0 | )
|                                                                    |  |                              |        |      |   |       |      |  |      |       |  |      |        |   |  |   |       |  
|Fixed charges and preferred stock dividends                         |  |                              |        |      |   |       |      |  |      |       |  |      |        |   |  |   |       |  
|Interest expense, net                                               |  | $                            | 8.4    |      | $ | 0.4   |      |  | $    | 0.2   |  | $    |       |   |  | $ |      |  
|Preferred stock dividends                                           |  | $                            | 1.8    |      | $ |      |      |  | $    |      |  | $    |       |   |  | $ |      |  
|Rental interest factor                                              |  | $                            | 2.1    |      | $ | 2.2   |      |  | $    | 2.7   |  | $    | 2.3    |   |  | $ | 1.5   |  
|                                                                    |  |                              |        |      |   |       |      |  |      |       |  |      |        |   |  |   |       |  
|Total fixed charges                                                 |  | $                            | 12.3   |      | $ | 2.6   |      |  | $    | 2.9   |  | $    | 2.3    |   |  | $ | 1.5   |  
|                                                                    |  |                              |        |      |   |       |      |  |      |       |  |      |        |   |  |   |       |  
|Ratio of earnings to fixed charges and preferred stock dividends    |  |                              | 12.0:1 |      |   | (A)   |      |  |      | 2.1:1 |  |      | (B)    |   |  |   | (C)   |  
|                                                                    |  |                              |        |      |   |       |      |  |      |       |  |      |        |   |  |   |       |  

---

|(A) | Earning were inadequate to cover fixed costs by $18.5 million
|--- | -------------------------------------------------------------

|(B) | Earning were inadequate to cover fixed costs by $126.9 million
|--- | --------------------------------------------------------------

|(C) | Earning were inadequate to cover fixed costs by $24.0 million
|--- | -------------------------------------------------------------