LIBERTY FINANCIAL COMPANIES, INC. EXHIBIT 12 - Statement re Computation of Ratios ($ in millions) Three Months Ended March 31 ------------------- 1998 1997 ------- ------- Earnings: Pretax income $45.4 $51.8 Add fixed charges: Interest on indebtedness 5.2 5.5 Portion of rent representing the interest factor 1.0 1.1 Preferred stock dividends 0.2 0.2 Accretion to face value of redeemable convertible preferred stock 0.2 0.2 ------- ------- Income as adjusted $52.0 $58.8 ======= ======= Fixed charges: Interest on indebtedness $5.2 $5.5 Portion of rent representing the interest factor 1.0 1.1 Preferred stock dividends 0.2 0.2 Accretion to face value of redeemable convertible preferred stock 0.2 0.2 ------- ------- Total fixed charges $6.6 $7.0 ======= ======= Ratio of earnings to fixed charges 7.88x 8.40x ======= =======