EXHIBIT 12.1



ARGONAUT GROUP, INC.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

AND PREFERRED STOCK DIVIDENDS



|                                                                           |  |                          |       |      |   |        |  |   |       |     |      |   |       |  |   |        |    
|-------------------------------------------------------------------------- |  | ------------------------ | ----- | ---- | - | ------ |  | - | ----- | --- | ---- | - | ----- |  | - | ------ | ---
|                                                                           |  | Years Ended December 31, |      
|(in millions)                                                              |  | 2004                     |       | 2003 |   | 2002   |  |   | 2001  |     | 2000 |  
|Earnings:                                                                  |  |                          |       |      |   |        |  |   |       |     |      |   |       |  |   |        |    
|Income (loss) from continuing operations before provision for income taxes |  | $                        | 60.7  |      | $ | 135.3  |  | $ | (21.1 | )   |      | $ | 3.3   |  | $ | (129.2 | )  
|Add:                                                                       |  |                          |       |      |   |        |  |   |       |     |      |   |       |  |   |        |    
|Fixed charges                                                              |  |                          | 15.6  |      |   | 12.3   |  |   | 2.6   |     |      |   | 2.9   |  |   | 2.3    |    
|                                                                           |  |                          |       |      |   |        |  |   |       |     |      |   |       |  |   |        |    
|Total earnings (loss)                                                      |  | $                        | 76.3  |      | $ | 147.6  |  | $ | (18.5 | )   |      | $ | 6.2   |  | $ | (126.9 | )  
|                                                                           |  |                          |       |      |   |        |  |   |       |     |      |   |       |  |   |        |    
|Fixed charges                                                              |  |                          |       |      |   |        |  |   |       |     |      |   |       |  |   |        |    
|Interest expense, net                                                      |  | $                        | 11.0  |      | $ | 8.4    |  | $ | 0.4   |     |      | $ | 0.2   |  | $ |       |    
|Preferred stock dividends                                                  |  |                          | 2.5   |      |   | 1.8    |  |   |      |     |      |   |      |  |   |       |    
|Rental interest factor                                                     |  |                          | 2.1   |      |   | 2.1    |  |   | 2.2   |     |      |   | 2.7   |  |   | 2.3    |    
|                                                                           |  |                          |       |      |   |        |  |   |       |     |      |   |       |  |   |        |    
|Total fixed charges                                                        |  | $                        | 15.6  |      | $ | 12.3   |  | $ | 2.6   |     |      | $ | 2.9   |  | $ | 2.3    |    
|                                                                           |  |                          |       |      |   |        |  |   |       |     |      |   |       |  |   |        |    
|Ratio of earnings to fixed charges                                         |  |                          | 4.9:1 |      |   | 12.0:1 |  |   |       | (A) |      |   | 2.1:1 |  |   |        | (B)
|                                                                           |  |                          |       |      |   |        |  |   |       |     |      |   |       |  |   |        |    

---

|(A) | Earnings were inadequate to cover fixed charges by $21.1 million
|--- | ----------------------------------------------------------------

|(B) | Earnings were inadequate to cover fixed charges by $129.2 million
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