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.