Exhibit 12 LIBERTY FINANCIAL COMPANIES, INC. STATEMENT RE COMPUTATION OF RATIOS ($ in millions) Year Ended December 31 ------------------ 1996 1995 -------- --------- Earnings: Income before income taxes $150.3 $113.8 Add fixed charges: Interest on indebtedness 19.7 16.2 Portion of rent representing the interest factor 4.0 3.7 Preferred stock dividends 0.9 0.7 Accretion to face value of redeemable convertible preferred stock 0.9 0.6 ------- --------- Income as adjusted $175.8 $135.0 ======= ========= Fixed charges: Interest on indebtedness $ 19.7 $ 16.2 Portion of rent representing the interest factor 4.0 3.7 Preferred stock dividends 0.9 0.7 Accretion to face value of redeemable convertible preferred stock 0.9 0.6 ------- --------- Total fixed charges $ 25.5 $ 21.2 ======= ========= Ratio of earnings to fixed charges 6.89x 6.39x ======= ========= Information prior to 1995 pertaining to the computation of ratios is not presented since the Company's redeemable convertible preferred stock was issued during 1995.