Liberty Financial Companies, Inc.
Exhibit 12 - Statement re Computation of Ratios
($ in millions)
Three Months Ended Six Months Ended
June 30 June 30
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1999 1998 1999 1998
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Earnings:
Pretax income $ 36.0 $ 43.5 $ 80.0 $ 88.9
Add fixed charges:
Interest on indebtedness 9.1 5.0 17.9 10.2
Portion of rent representing
the interest factor 1.2 1.1 2.4 2.1
Accretion to face value of redeemable
convertible preferred stock 0.2 0.2 0.4 0.4
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Sub-total of income as adjusted 46.5 49.8 100.7 101.6
Interest on fixed annuities
and financial products 129.4 140.2 264.2 282.3
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Total income as adjusted $175.9 $190.0 $364.9 $383.9
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Fixed charges:
Interest on indebtedness $ 9.1 $ 5.0 $ 17.9 $ 10.2
Portion of rent representing the
interest factor 1.2 1.1 2.4 2.1
Accretion to face value of redeemable
convertible preferred stock 0.2 0.2 0.4 0.4
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Sub-total of fixed charges 10.5 6.3 20.7 12.7
Interest on fixed annuities and
financial products 129.4 140.2 264.2 282.3
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Combined fixed charges 139.9 146.5 284.9 295.0
Preferred stock dividends 0.4 0.4 0.7 0.7
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Fixed charges and preferred
stock dividends $140.3 $146.9 $285.6 $295.7
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Ratio of earnings to fixed charges:
Excluding interest on fixed annuities
and financial products 4.43 x 7.90 x 4.86 x 8.00 x
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Including interest on fixed annuities
and financial products 1.26 x 1.30 x 1.28 x 1.30 x
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Ratio of earnings to combined fixed
charges and preferred stock dividends:
Excluding interest on fixed annuities
and financial products 4.27 x 7.43 x 4.71 x 7.58 x
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Including interest on fixed annuities
and financial products 1.25 x 1.29 x 1.28 x 1.30 x
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