1
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
EXHIBIT 12 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in Thousands)
Year Ended December 31,
---------------------------------------------------------
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
Pretax income (loss) excluding discontinued operations $ 26,376 $257,426 ($144,854) $118,710 $ 77,450
Minority interest in subsidiaries having fixed charges(*) 8,565 34,800 37,685 44,369 15,779
Less undistributed equity in losses
(earnings) of investees 49,010 (25,067) 376,020 5,817 (28,362)
Fixed charges:
Interest expense 114,803 153,836 212,150 245,757 353,220
Debt discount and expense 1,240 5,273 4,698 6,961 9,273
One-third of rentals 5,119 5,801 16,341 45,286 74,166
-------- -------- -------- -------- --------
EARNINGS $205,113 $432,069 $502,040 $466,900 $501,526
======== ======== ======== ======== ========
Fixed charges:
Interest expense $114,803 $153,836 $212,150 $245,757 $353,220
Debt discount and expense 1,240 5,273 4,698 6,961 9,273
One-third of rentals 5,119 5,801 16,341 45,286 74,166
Pretax preferred dividend requirements of subsidiaries - - - 598 2,913
Capitalized interest - - - 5,495 8,423
-------- -------- -------- -------- --------
FIXED CHARGES $121,162 $164,910 $233,189 $304,097 $447,995
======== ======== ======== ======== ========
Fixed charges and preferred dividends:
Fixed charges - per above $121,162 $164,910 $233,189 $304,097 $447,995
Preferred dividends 25,709 26,122 26,218 24,899 24,180
-------- -------- -------- -------- --------
FIXED CHARGES AND PREFERRED DIVIDENDS $146,871 $191,032 $259,407 $328,996 $472,175
======== ======== ======== ======== ========
Ratio of Earnings to Fixed Charges 1.69 2.62 2.15 1.54 1.12
==== ==== ==== ==== ====
Earnings in excess of Fixed Charges $ 83,951 $267,159 $268,851 $162,803 $ 53,531
======== ======== ======== ======== ========
Ratio of Earnings to Fixed
Charges and Preferred Dividends 1.40 2.26 1.94 1.42 1.06
==== ==== ==== ==== ====
Earnings in excess of Fixed
Charges and Preferred Dividends $ 58,242 $241,037 $242,633 $137,904 $ 29,351
======== ======== ======== ======== ========
(*) Amounts include preferred dividends of subsidiaries.
E-2