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AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
EXHIBIT 12 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND FIXED
CHARGES
(DOLLARS IN THOUSANDS)
Three Months Ended
March 31, Year Ended December 31,
--------------------- -----------------------
2003 2002 2002 2001
---- ---- ---- ----
Excluding Interest on Annuities
Pre-tax income (loss) $ 29,290 $ 39,049 $130,350 $(12,751)
Minority interest in subsidiaries having fixed charges* 9,505 7,600 33,839 43,187
Less undistributed equity in (earnings) losses of investees (857) 4,205 13,830 25,462
Fixed charges:
Interest expense 13,012 14,160 60,271 60,616
Debt discount (premium) and expense 389 203 879 1,072
One-third of rentals 4,120 4,225 16,483 16,900
-------- -------- -------- --------
EARNINGS $ 55,459 $ 69,442 $255,652 $134,486
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Fixed charges:
Interest expense $ 13,012 $ 14,160 $ 60,271 $ 60,616
Debt discount (premium) and expense 389 203 879 1,072
One-third of rentals 4,120 4,225 16,483 16,900
Pretax preferred dividend requirements of subsidiaries 7,163 6,936 28,184 32,296
Capitalized interest - - - -
-------- -------- -------- --------
FIXED CHARGES $ 24,684 $ 25,524 $105,817 $110,884
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Ratio of Earnings to Fixed Charges 2.25 2.72 2.42 1.21
======== ======== ======== ========
Including Interest on Annuities
Earnings - Per Above $ 55,459 $ 69,442 $255,652 $134,486
Interest on Annuities 74,847 75,525 300,966 294,654
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EARNINGS $130,306 $144,967 $556,618 $429,140
======== ======== ======== ========
Fixed charges - Per Above $ 24,684 $ 25,524 $105,817 $110,884
Interest on Annuities 74,847 75,525 300,966 294,654
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FIXED CHARGES $ 99,531 $101,049 $406,783 $405,538
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Ratio of Earnings To Fixed Charges 1.31 1.43 1.37 1.06
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Earning in Excess of Fixed Charges $ 30,775 $ 43,918 $149,835 $ 23,602
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Year Ended December 31,
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2000 1999 1998
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Excluding Interest on Annuities
Pre-tax income (loss) $(77,298) $223,307 $203,489
Minority interest in subsidiaries having fixed charges* 44,961 48,780 55,646
Less undistributed equity in (earnings) losses of investees 142,230 32,156 17,997
Fixed charges:
Interest expense 67,638 64,544 58,925
Debt discount (premium) and expense 763 (129) (504)
One-third of rentals 13,963 12,226 11,883
-------- -------- --------
EARNINGS $192,257 $380,884 $347,436
======== ======== ========
Fixed charges:
Interest expense $ 67,638 $ 64,544 $ 58,925
Debt discount (premium) and expense 763 (129) (504)
One-third of rentals 13,963 12,226 11,883
Pretax preferred dividend requirements of subsidiaries 35,648 36,566 37,628
Capitalized interest - - -
-------- -------- --------
FIXED CHARGES $118,012 $113,207 $107,932
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Ratio of Earnings to Fixed Charges 1.63 3.36 3.22
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Including Interest on Annuities
Earnings - Per Above $192,257 $380,884 $347,436
Interest on Annuities 293,171 262,632 261,666
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EARNINGS $485,428 $643,516 $609,102
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Fixed charges - Per Above $118,012 $113,207 $107,932
Interest on Annuities 293,171 262,632 261,666
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FIXED CHARGES $411,183 $375,839 $369,598
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Ratio of Earnings To Fixed Charges 1.18 1.71 1.65
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Earning in Excess of Fixed Charges $ 74,245 $267,677 $239,504
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* Amounts include subsidiary preferred dividends and accrued distributions on
trust preferred securities.