AIHC and subsidiaries EXHIBIT 12 Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements For the nine months ended September 30, 1994 (in millions, except ratio) 1994 ------ Earnings: Income before taxes on income and equity loss $ 283.3 Fixed charges 21.4 Proportionate share of income of 50%-owned persons (11.7) Amortization of capitalized interest 4.0 ------- Total earnings $ 297.0 ======= Fixed Charges: Interest expense: Consolidated $ 12.4 Proportionate share of 50%-owned persons 5.1 ------- 17.5 ------- Amount representative of the interest factor in rents: Consolidated 3.9 Proportionate share of 50%-owned persons - ------- 3.9 ------- Fixed charges added to earnings 21.4 ------- Preferred stock dividend requirements 10.4 ------- Total fixed charges $ 31.8 ======= Ratio 9.34 =======