American Financial (AFG) 10-K 2017 FY Annual report

Exhibit 12

AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Dollars in Millions)

	Year ended December 31,
	2017			2016			2015			2014			2013
Earnings before income taxes	$	724		$	787		$	565		$	626		$	689
Undistributed equity in earnings of investees	(4		)	(25		)	(18		)	(10		)	—
Losses of managed investment entities attributable to noncontrolling interest	—			—			—			51			26
Fixed charges:
Interest on annuities	892			800			732			648			531
Interest expense	84			76			74			73			71
Debt discount, expense and other fixed charges	1			1			1			1			1
Portion of rentals representing interest	23			23			23			22			19
EARNINGS	$	1,720		$	1,662		$	1,377		$	1,411		$	1,337
Fixed charges:
Interest on annuities	$	892		$	800		$	732		$	648		$	531
Interest expense	84			76			74			73			71
Debt discount, expense and other fixed charges	1			1			1			1			1
Portion of rentals representing interest	23			23			23			22			19
FIXED CHARGES	$	1,000		$	900		$	830		$	744		$	622
Ratio of Earnings to Fixed Charges	1.72			1.85			1.66			1.90			2.15
Earnings in Excess of Fixed Charges	$	720		$	762		$	547		$	667		$	715

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