**Exhibit 12**

 

**Montpelier Re Holdings Ltd.**

**Ratio of Earnings to Fixed Charges**

**(Dollars in millions)**

 
| ** **                                                       | ** ** | **Years ended December 31,** | ** ** |
|------------------------------------------------------------------|------------|---------------------------------------------|------------|
| ** **                                                       | ** ** | **2008**                                    | ** ** | **2007** | ** ** | **2006** | ** ** | **2005** | ** ** | **2004** | ** ** |
|                                                             |       |                                        |       |   |   |   |   |   |   |   |   |
| Income  (loss) before minority interest expense and income taxes |       | $                                           | (142.5     | ) | $ | 347.8 |   | $ | 342.3 |   | $ | (752.9 | ) | $ | 240.4 |   |
|                                                             |       |                                        |       |   |   |   |   |   |   |   |   |
| Fixed  Charges:                                                  |       |                                        |       |   |   |   |   |   |   |   |   |
| Assumed  interest component of rent expense (1/3 rent/lease)     |       | $                                           | 1.3        |   | $ | 0.9 |   | $ | 0.7 |   | $ | 0.3 |   | $ | 0.3 |   |
| Interest  on $250m 6.125% Senior Notes                           |       | $                                           | 15.3       |   | $ | 15.3 |   | $ | 15.3 |   | $ | 15.3 |   | $ | 15.3 |   |
| Interest  on $100m 8.55% Junior Notes                            |       | $                                           | 8.7        |   | $ | 8.7 |   | $ | 8.6 |   | $ | — |   | $ | — |   |
| Interest  on $75m Blue Ocean Debt                                |       | $                                           | 0.2        |   | $ | 5.6 |   | $ | 0.5 |   | $ | — |   | $ | — |   |
| Preferred  share dividends - Blue Ocean                          |       | $                                           | 0.6        |   | $ | 7.0 |   | $ | 10.8 |   | $ | — |   | $ | — |   |
| Total  fixed charges                                             |       | $                                           | 26.1       |   | $ | 37.5 |   | $ | 35.9 |   | $ | 15.6 |   | $ | 15.6 |   |
|                                                             |       |                                        |       |   |   |   |   |   |   |   |   |
| Fixed  charges coverage (deficiency)                             |       | $                                           | (116.4     | ) | $ | 385.3 |   | $ | 378.2 |   | $ | (737.3 | ) | $ | 256.0 |   |
|                                                             |       |                                        |       |   |   |   |   |   |   |   |   |
| **RATIO OF EARNINGS TO FIXED CHARGES**                           | ** ** | **—**                                  | ** ** | **10.3** | ** ** | **10.5** | ** ** | **—** | ** ** | **16.4** | ** ** |
|                                                             |       |                                        |       |   |   |   |   |   |   |   |   |
| Earnings  to fixed charges deficiency                            | ** ** | **$**                                       | **(116.4** | **)** | **$** | **—** | ** ** | **$** | **—** | ** ** | **$** | **(737.3** | **)** | **$** | **—** | ** ** |

 

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