LIBERTY FINANCIAL COMPANIES, INC. EXHIBIT 12 - STATEMENT RE COMPUTATION OF RATIOS ($ in millions) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 -------------------------- --------------------------- 2001 2000 2001 2000 ------------- ------------ -------------- ------------ Earnings: Pretax income $5.0 $47.7 $5.8 $110.1 Add fixed charges: Interest on indebtedness 14.5 10.1 29.7 19.9 Portion of rent representing the interest factor 1.6 1.3 3.2 2.5 Accretion to face value of redeemable convertible preferred stock - - - 0.2 ------------- ------------ -------------- ------------ Sub-total of income as adjusted 21.1 59.1 38.7 132.7 Interest on fixed annuities and financial products 153.4 133.2 301.9 260.5 ------------- ------------ -------------- ------------ Total income as adjusted $174.5 $192.3 $340.6 $393.2 ============= ============ ============== ============ Fixed charges: Interest on indebtedness $14.5 $10.1 $29.7 $19.9 Portion of rent representing the interest factor 1.6 1.3 3.2 2.5 Accretion to face value of redeemable convertible preferred stock - - - 0.2 ------------- ------------ -------------- ------------ Sub-total of fixed charges 16.1 11.4 32.9 22.6 Interest on fixed annuities and financial products 153.4 133.2 301.9 260.5 ------------- ------------ -------------- ------------ Combined fixed charges 169.5 144.6 334.8 283.1 Preferred stock dividends 0.3 0.4 0.5 0.7 ------------- ------------ -------------- ------------ Fixed charges and preferred stock dividends $169.8 $145.0 $335.3 $283.8 ============= ============ ============== ============ Ratio of earnings to fixed charges: Excluding interest on fixed annuities and financial products 1.31 x 5.18 x 1.18 x 5.87 x ============= ============ ============== ============ Including interest on fixed annuities and financial products 1.03 x 1.33 x 1.02 x 1.39 x ============= ============ ============== ============ Ratio of earnings to combined fixed charges and preferred stock dividends: Excluding interest on fixed annuities and financial products 1.29 x 5.01 x 1.16 x 5.70 x ============= ============ ============== ============ Including interest on fixed annuities and financial products 1.03 x 1.33 x 1.02 x 1.39 x ============= ============ ============== ============