LIBERTY FINANCIAL COMPANIES, INC. EXHIBIT 12 - Statement re Computation of Ratios ($ in thousands) Three Months Ended Six Months Ended June 30 June 30 ------- ------- 1996 1995 1996 1995 Earnings: Income before income taxes $34,054 $32,349 $70,328 $50,555 Add fixed charges: Interest on indebtness 5,036 5,266 10,056 6,769 Portion of rent representing the interest factor 1,079 1,024 2,146 1,680 Preferred stock dividends 235 236 471 254 Accretion to face value of redeemable convertible preferred stock 195 197 392 197 ------- ------- ------- ------- Income as adjusted $40,599 $39,072 $83,393 $59,455 ======= ======= ======= ======= Fixed charges: Interest on indebtedness $5,036 $5,266 $10,056 $6,769 Portion of rent representing the interest factor 1,079 1,024 2,146 1,680 Preferred stock dividends 235 236 471 254 Accretion to face value of redeemable convertible preferred stock 195 197 392 197 ------- ------ ------- ------ Total fixed charges $6,545 $6,723 $13,065 $8,900 ======= ====== ======= ====== Ratio of earnings to fixed charges 6.20x 5.81x 6.38x 6.68x ======= ====== ======= ======