LIBERTY FINANCIAL COMPANIES, INC. EXHIBIT 12 - STATEMENT RE COMPUTATION OF RATIOS ($ in millions) THREE MONTHS ENDED MARCH 31 ------------------------- 2001 2000 ----------- ------------- Earnings: Pretax income $ 0.8 $ 62.4 Add fixed charges: Interest on indebtedness 15.2 9.8 Portion of rent representing the interest factor 1.6 1.2 Accretion to face value of redeemable convertible preferred stock -- 0.2 ------ ------ Sub-total of income as adjusted 17.6 73.6 Interest on fixed annuities and financial products 148.5 127.3 ------ ------ Total income as adjusted $166.1 $200.9 ====== ====== Fixed charges: Interest on indebtedness $15.2 $9.8 Portion of rent representing the interest factor 1.6 1.2 Accretion to face value of redeemable convertible preferred stock -- 0.2 ------ ------ Sub-total of fixed charges 16.8 11.2 Interest on fixed annuities and financial products 148.5 127.3 ------ ------ Combined fixed charges 165.3 138.5 Preferred stock dividends 0.2 0.3 ------ ------ Fixed charges and preferred stock dividends $165.5 $138.8 ====== ====== Ratio of earnings to fixed charges: Excluding interest on fixed annuities and financial products 1.05 x 6.57 x ====== ====== Including interest on fixed annuities and financial products 1.00 x 1.45 x ====== ====== Ratio of earnings to combined fixed charges and preferred stock dividends: Excluding interest on fixed annuities and financial products 1.04 x 6.40 x ====== ====== Including interest on fixed annuities and financial products 1.00 x 1.45 x ====== ======