LIBERTY FINANCIAL COMPANIES, INC.
EXHIBIT 12 - STATEMENT RE COMPUTATION OF RATIOS
($ in millions)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
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2000 1999 2000 1999
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Earnings:
Pretax income $27.3 $37.1 $137.4 $117.1
Add fixed charges:
Interest on indebtedness 10.5 8.9 30.4 26.8
Portion of rent representing the interest factor 1.8 1.2 4.3 3.6
Accretion to face value of redeemable
convertible preferred stock - 0.2 0.2 0.6
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Sub-total of income as adjusted 39.6 47.4 172.3 148.1
Interest on fixed annuities and financial products 135.8 131.3 396.3 395.5
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Total income as adjusted $175.4 $178.7 $568.6 $543.6
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Fixed charges:
Interest on indebtedness $10.5 $8.9 $30.4 $26.8
Portion of rent representing the interest factor 1.8 1.2 4.3 3.6
Accretion to face value of redeemable
convertible preferred stock - 0.2 0.2 0.6
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Sub-total of fixed charges 12.3 10.3 34.9 31.0
Interest on fixed annuities and financial products 135.8 131.3 396.3 395.5
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Combined fixed charges 148.1 141.6 431.2 426.5
Preferred stock dividends 0.2 0.4 0.9 1.1
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Fixed charges and preferred stock dividends $148.3 $142.0 $432.1 $427.6
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Ratio of earnings to fixed charges:
Excluding interest on fixed annuities and financial
products 3.22 x 4.60 x 4.94 x 4.78 x
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Including interest on fixed annuities and financial
products 1.18 x 1.26 x 1.32 x 1.27 x
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Ratio of earnings to combined fixed charges and preferred
stock dividends:
Excluding interest on fixed annuities and financial
products 3.17 x 4.43 x 4.81 x 4.61 x
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Including interest on fixed annuities and financial
products 1.18 x 1.26 x 1.32 x 1.27 x
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