LIBERTY FINANCIAL COMPANIES, INC. EXHIBIT 12 - Statement re Computation of Ratios ($ in millions) Years Ended December 31 ------------------------------ 2000 1999 1998 -------- --------- -------- Earnings: Pretax income $ 188.6 $ 154.4 $ 178.9 Add fixed charges: Interest on indebtedness 45.4 36.6 24.1 Portion of rent representing the interest factor 5.7 4.9 4.1 Accretion to face value of redeemable convertible preferred stock 0.2 0.8 0.8 -------- --------- -------- Sub-total of income as adjusted 239.9 196.7 207.9 Interest on fixed annuities and financial products 539.6 526.6 562.2 -------- --------- -------- Total income as adjusted $ 779.5 $ 723.3 $ 770.1 ======== ========= ======== Fixed charges: Interest on indebtedness $ 45.4 $ 36.6 $ 24.1 Portion of rent representing the interest factor 5.7 4.9 4.1 Accretion to face value of redeemable convertible preferred stock 0.2 0.8 0.8 -------- --------- -------- Sub-total of fixed charges 51.3 42.3 29.0 Interest on fixed annuities and financial products 539.6 526.6 562.2 -------- --------- -------- Sub-total of fixed charges 590.9 568.9 591.2 Preferred stock dividends 1.2 1.4 1.4 -------- --------- -------- Total fixed charges $ 592.1 $ 570.3 $ 592.6 ======== ========= ======== Ratio of earnings to fixed charges: Excluding interest on fixed annuities and financial products 4.68x 4.65x 7.17x ======== ========= ======== Including interest on fixed annuities and financial products 1.32x 1.27x 1.30x ======== ========= ======== Ratio of earnings to combined fixed charges and preferred stock dividends: Excluding interest on fixed annuities and financial products 4.57x 4.50x 6.84x ======== ========= ======== Including interest on fixed annuities and financial products 1.32x 1.27x 1.30x ======== ========= ========