Exhibit 12 LIBERTY FINANCIAL COMPANIES, INC. STATEMENT RE COMPUTATION OF RATIOS ($ in millions) Year Ended December 31 --------------------------------------- 1997 1996 1995 ----------- ----------- ----------- Earnings: Income before income taxes ................................ $ 192.1 $ 150.3 $ 113.8 Add fixed charges: Interest on indebtedness ................................. 21.4 19.7 16.2 Portion of rent representing the interest factor ......... 3.7 4.0 3.7 Preferred stock dividends ................................ 0.9 0.9 0.7 Accretion to face value of redeemable convertible preferred stock ........................................ 0.8 0.9 0.6 ------- ------- ------- Income as adjusted ........................................ $ 218.9 $ 175.8 $ 135.0 ======= ======= ======= Fixed charges: Interest on indebtedness .................................. $ 21.4 $ 19.7 $ 16.2 Portion of rent representing the interest factor .......... 3.7 4.0 3.7 Preferred stock dividends ................................. 0.9 0.9 0.7 Accretion to face value of redeemable convertible preferred stock ......................................... 0.8 0.9 0.6 ------- ------- ------- Total fixed charges ....................................... $ 26.8 $ 25.5 $ 21.2 ======= ======= ======= Ratio of earnings to fixed charges ......................... 8.17x 6.89x 6.39x ======= ======= =======