AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES EXHIBIT 12 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND FIXED CHARGES AND PREFERRED DIVIDENDS (Dollars in Thousands) Year Ended December 31, 1997 1996 1995 1994 1993 Pretax income $322,563 $304,651 $253,449 $ 26,376 $257,426 Minority interest in subsidiaries having fixed charges(*) 45,098 52,838 27,076 8,565 34,800 Less undistributed equity in (earnings) losses of investees 10,363 31,353 (1,559) 49,010 (25,067) Fixed charges: Interest expense 88,402 88,144 124,633 114,803 153,836 Debt discount (premium) and expense (701) (1,174) (1,023) 1,240 5,273 One-third of rentals 10,152 9,279 9,471 5,119 5,801 EARNINGS $475,877 $485,091 $412,047 $205,113 $432,069 Fixed charges: Interest expense $ 88,402 $ 88,144 $124,633 $114,803 $153,836 Debt discount (premium) and expense (701) (1,174) (1,023) 1,240 5,273 One-third of rentals 10,152 9,279 9,471 5,119 5,801 Accrued distributions on subsidiary trust preferred securities 15,499 1,031 - - - FIXED CHARGES $113,352 $ 97,280 $133,081 $121,162 $164,910 Fixed charges and preferred dividends: Fixed charges - per above $113,352 $ 97,280 $133,081 $121,162 $164,910 Preferred dividends 21,967 25,190 25,376 25,709 26,122 FIXED CHARGES AND PREFERRED DIVIDENDS $135,319 $122,470 $158,457 $146,871 $191,032 Ratio of Earnings to Fixed Charges 4.20 4.99 3.10 1.69 2.62 Earnings in Excess of Fixed Charges $362,525 $387,811 $278,966 $ 83,951 $267,159 Ratio of Earnings to Fixed Charges and Preferred Dividends 3.52 3.96 2.60 1.40 2.26 Earnings in Excess of Fixed Charges and Preferred Dividends $340,558 $362,621 $253,590 $ 58,242 $241,037 (*) Amounts include accrued distributions on trust preferred securities. E-2