AMERCIAN FINANCIAL CORPORATION AND SUBSIDIARIES
EXHIBIT 12 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Dollars in Thousands)
Six Months Ended | |||||||
June 30, | Year Ended December 31, | ||||||
2003 | 2002 | 2002 | 2001 | 2000 | 1999 | 1998 | |
Pretax income (loss) | $ 94,947 | $ 65,900 | $149,330 | $ 13,002 | ($ 46,462) | $231,447 | $209,563 |
Minority interest in | |||||||
subsidiaries having fixed | |||||||
charges (*) | 14,000 | 13,647 | 32,096 | 31,917 | 24,491 | 44,790 | 45,120 |
Less undistributed equity in | |||||||
(earnings) losses of investees | (4,574) | 7,827 | 13,830 | 25,462 | 142,230 | 32,156 | 17,997 |
Fixed charges: | |||||||
Interest on annuities | 155,707 | 146,541 | 300,966 | 294,654 | 293,171 | 262,632 | 261,666 |
Interest expense | 19,305 | 22,676 | 47,513 | 60,605 | 67,471 | 65,858 | 73,868 |
Debt discount (premium) and | |||||||
expense | 598 | 174 | 414 | 599 | 318 | (449) | (631) |
One-third of rentals | 8,241 | 8,450 | 16,483 | 16,900 | 13,963 | 12,226 | 11,883 |
EARNINGS | $288,224 | $265,215 | $560,632 | $443,139 | $495,182 | $648,660 | $619,466 |
Fixed charges: | |||||||
Interest on annuities | $155,707 | $146,541 | $300,966 | $294,654 | $293,171 | $262,632 | $261,666 |
Interest expense | 19,305 | 22,676 | 47,513 | 60,605 | 67,471 | 65,858 | 73,868 |
Debt discount (premium) and | |||||||
expense | 598 | 174 | 414 | 599 | 318 | (449) | (631) |
One-third of rentals | 8,241 | 8,450 | 16,483 | 16,900 | 13,963 | 12,226 | 11,883 |
Pretax preferred dividend | |||||||
requirements of | |||||||
subsidiaries | 6,663 | 6,480 | 12,960 | 17,038 | 18,399 | 18,575 | 19,031 |
FIXED CHARGES | $190,514 | $184,321 | $378,336 | $389,796 | $393,322 | $358,842 | $365,817 |
Fixed Charges and Preferred | |||||||
Dividends: | |||||||
Fixed Charges - per above | $190,514 | $184,321 | $378,336 | $389,796 | $393,322 | $358,842 | $365,817 |
Preferred dividends | 3,900 | 3,147 | 6,552 | 7,615 | 7,961 | 8,991 | 9,403 |
FIXED CHARGES AND | |||||||
PREFERRED DIVIDENDS | $194,414 | $187,468 | $384,888 | $397,411 | $401,283 | $367,833 | $375,220 |
Ratio of Earnings to | |||||||
Fixed Charges | 1.51 | 1.44 | 1.48 | 1.14 | 1.26 | 1.81 | 1.69 |
Ratio of Earnings to | |||||||
Fixed Charges and | |||||||
Preferred Dividends | 1.48 | 1.41 | 1.46 | 1.12 | 1.23 | 1.76 | 1.65 |
Earnings in Excess of | |||||||
Fixed Charges | $ 97,710 | $ 80,894 | $182,296 | $ 53,343 | $101,860 | $289,818 | $253,649 |
Earnings in Excess of | |||||||
Fixed Charges and | |||||||
Preferred Dividends | $ 93,810 | $ 77,747 | $175,744 | $ 45,728 | $ 93,899 | $280,827 | $244,246 |
(*) Amounts include accrued distributions on trust preferred securities. | |||||||
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