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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2001 2000 2001 2000
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Earnings:
Pretax income (loss) $(75.4) $ 27.3 $(69.6) $137.4
Add fixed charges:
Interest on indebtedness 14.0 10.5 43.7 30.4
Portion of rent representing the interest factor 1.6 1.8 4.8 4.3
Accretion to face value of redeemable
convertible preferred stock -- -- -- 0.2
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Sub-total of income (loss) as adjusted (59.8) 39.6 (21.1) 172.3
Interest on fixed annuities and financial products 148.0 135.8 449.9 396.3
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Total income as adjusted $ 88.2 $175.4 $428.8 $568.6
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Fixed charges:
Interest on indebtedness $ 14.0 $ 10.5 $43.7 $30.4
Portion of rent representing the interest factor 1.6 1.8 4.8 4.3
Accretion to face value of redeemable
convertible preferred stock -- -- -- 0.2
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Sub-total of fixed charges 15.6 12.3 48.5 34.9
Interest on fixed annuities and financial products 148.0 135.8 449.9 396.3
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Combined fixed charges 163.6 148.1 498.4 431.2
Preferred stock dividends 0.6 0.2 1.1 0.9
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Fixed charges and preferred stock dividends $164.2 $148.3 $499.5 $432.1
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Ratio of earnings to fixed charges:
Excluding interest on fixed annuities and financial
products (3.83) x 3.22 x (0.44) x 4.94 x
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Including interest on fixed annuities and financial
products 0.54 x 1.18 x 0.86 x 1.32 x
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Ratio of earnings to combined fixed charges and preferred
stock dividends:
Excluding interest on fixed annuities and financial
products (3.69) x 3.17 x (0.43) x 4.81 x
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Including interest on fixed annuities and financial
products 0.54 x 1.18 x 0.86 x 1.32 x
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