Liberty Financial Companies, Inc. Exhibit 12 - Statement re Computation of Ratios ($ in millions) Three Months Ended Nine Months Ended September 30 September 30 ------------------- ------------------- 1999 1998 1999 1998 --------- --------- --------- --------- Earnings: Pretax income $37.1 $ 49.4 $117.1 $138.3 Add fixed charges: Interest on indebtedness 8.9 5.2 26.8 15.4 Portion of rent representing the interest factor 1.2 1.1 3.6 3.2 Accretion to face value of redeemable converible preferred stock 0.2 0.2 0.6 0.6 --------- --------- --------- --------- Sub-total of income as adjusted 47.4 55.9 148.1 157.5 Interest on fixed annuities and financial products 131.3 143.3 395.5 425.6 --------- --------- --------- --------- Total income as adjusted $178.7 $199.2 $543.6 $583.1 ========= ========= ========= ========= Fixed charges: Interest on indebtedness $ 8.9 $ 5.2 $26.8 $15.4 Portion of rent representing the interest factor 1.2 1.1 3.6 3.2 Accretion to face value of redeemable convertible preferred stock 0.2 0.2 0.6 0.6 --------- --------- --------- --------- Sub-total of fixed charges 10.3 6.5 31.0 19.2 Interest on fixed annuities and financial products 131.3 143.3 395.5 425.6 --------- --------- --------- --------- Combined fixed charges 141.6 149.8 426.5 444.8 Preferred stock dividends 0.4 0.4 1.1 1.1 --------- --------- --------- --------- Fixed charges and preferred $142.0 $150.2 $427.6 $445.9 stock dividends ========= ========= ========= ========= Ratio of earnings to fixed charges: Excluding interest on fixed annuities and financial products 4.60 x 8.60 x 4.78 x 8.20 x ========= ========= ========= ========= Including interest on fixed annuities and financial products 1.26 x 1.33 x 1.27 x 1.31 x ========= ========= ========= ========= Ratio of earnings to combined fixed charges and preferred stock dividends: Excluding interest on fixed annuities and financial products 4.43 x 8.10 x 4.61 x 7.76 x ========= ========= ========= ========= Including interest on fixed annuities and financial products 1.26 x 1.33 x 1.27 x 1.31 x ========= ========= ========= =========