LIBERTY FINANCIAL COMPANIES, INC. EXHIBIT 12 - STATEMENT RE COMPUTATION OF RATIOS ($ in millions) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 ------------------------- -------------------------- 2000 1999 2000 1999 ------------ ------------ ------------- ------------ (RESTATED) (RESTATED) Earnings: Pretax income $47.7 $36.0 $110.1 $80.0 Add fixed charges: Interest on indebtedness 10.1 9.1 19.9 17.9 Portion of rent representing the interest factor 1.3 1.2 2.5 2.4 Accretion to face value of redeemable convertible preferred stock - 0.2 0.2 0.4 ------------ ------------ ------------- ------------ Sub-total of income as adjusted 59.1 46.5 132.7 100.7 Interest on fixed annuities and financial products 133.2 129.4 260.5 264.2 ------------ ------------ ------------- ------------ Total income as adjusted $192.3 $175.9 $393.2 $364.9 ============ ============ ============= ============ Fixed charges: Interest on indebtedness $10.1 $9.1 $19.9 $17.9 Portion of rent representing the interest factor 1.3 1.2 2.5 2.4 Accretion to face value of redeemable convertible preferred stock - 0.2 0.2 0.4 ------------ ------------ ------------- ------------ Sub-total of fixed charges 11.4 10.5 22.6 20.7 Interest on fixed annuities and financial products 133.2 129.4 260.5 264.2 ------------ ------------ ------------- ------------ Combined fixed charges 144.6 139.9 283.1 284.9 Preferred stock dividends 0.4 0.4 0.7 0.7 ------------ ------------ ------------- ------------ Fixed charges and preferred stock dividends $145.0 $140.3 $283.8 $285.6 ============ ============ ============= ============ Ratio of earnings to fixed charges: Excluding interest on fixed annuities and financial products 5.18 x 4.43 x 5.87 x 4.86 x ============ ============ ============= ============ Including interest on fixed annuities and financial products 1.33 x 1.26 x 1.39 x 1.28 x ============ ============ ============= ============ Ratio of earnings to combined fixed charges and preferred stock dividends: Excluding interest on fixed annuities and financial products 5.01 x 4.27 x 5.70 x 4.71 x ============ ============ ============= ============ Including interest on fixed annuities and financial products 1.33 x 1.25 x 1.39 x 1.28 x ============ ============ ============= ============ 26