LIBERTY FINANCIAL COMPANIES, INC. EXHIBIT 12 - STATEMENT RE COMPUTATION OF RATIOS ($ IN MILLIONS) Years Ended December 31 ------------------------------------------------- 1999 1998 1997 --------------- --------------- -------------- Earnings: Pretax income $ 154.4 $ 178.9 $ 192.1 Add fixed charges: Interest on indebtedness 36.6 24.1 21.4 Portion of rent representing the interest factor 4.9 4.1 3.7 Accretion to face value of redeemable convertible preferred stock 0.8 0.8 0.8 --------------- --------------- -------------- Sub-total of income as adjusted 196.7 207.9 218.0 Interest on fixed annuities and financial products 526.6 562.2 594.1 =============== =============== ============== Total income as adjusted $723.3 $ 770.1 $ 812.1 --------------- --------------- -------------- Fixed charges: Interest on indebtedness $ 36.6 $ 24.1 $ 21.4 Portion of rent representing the interest factor 4.9 4.1 3.7 Accretion to face value of redeemable convertible preferred stock 0.8 0.8 0.8 --------------- --------------- -------------- Sub-total of fixed charges 42.3 29.0 25.9 Interest on fixed annuities and financial products 526.6 562.2 594.1 --------------- --------------- -------------- Sub-total of fixed charges 568.9 591.2 620.0 Preferred stock dividends 1.4 1.4 1.4 --------------- --------------- -------------- Total fixed charges $570.3 $592.6 $621.4 =============== =============== ============== Ratio of earnings to fixed charges: Excluding interest on fixed annuities and financial products 4.65 x 7.17 x 8.42 x =============== =============== ============== Including interest on fixed annuities and financial products 1.27 x 1.30 x 1.31 x =============== =============== ============== Ratio of earnings to combined fixed charges and preferred stock dividends: Excluding interest on fixed annuities and financial products 4.50 x 6.84 x 7.99 x =============== =============== ============== Including interest on fixed annuities and financial products 1.27 x 1.30 x 1.31 x =============== =============== ==============