LIBERTY FINANCIAL COMPANIES, INC.
EXHIBIT 12 - Statement re Computation of Ratios
($ in millions)
Years Ended December 31
--------------------------------------
1998 1997 1996
-------- -------- --------
Earnings:
Pretax income $ 178.9 $ 192.1 $ 150.3
Add fixed charges:
Interest on indebtedness 24.1 21.4 19.7
Portion of rent representing
the interest factor 4.1 3.7 4.0
Accretion to face value of redeemable
convertible preferred stock 0.8 0.8 0.9
-------- -------- --------
Sub-total of income as adjusted 207.9 218.0 174.9
Interest on fixed annuities and financial products 562.2 594.1 572.7
-------- -------- --------
Total income as adjusted $ 770.1 $ 812.1 $ 747.6
======== ======== ========
Fixed charges:
Interest on indebtedness $ 24.1 $ 21.4 $ 19.7
Portion of rent representing
the interest factor 4.1 3.7 4.0
Accretion to face value of redeemable
convertible preferred stock 0.8 0.8 0.9
-------- -------- --------
Sub-total of fixed charges 29.0 25.9 24.6
Interest on fixed annuities and financial products 562.2 594.1 572.7
-------- -------- --------
Sub-total of fixed charges 591.2 620.0 597.3
Preferred stock dividends 1.4 1.4 1.4
-------- -------- --------
Total fixed charges $ 592.6 $ 621.4 $ 598.7
======== ======== ========
Ratio of earnings to fixed charges:
Excluding interest on fixed annuities and
financial products 7.17x 8.42x 7.11x
======== ======== ========
Including interest on fixed annuities and
financial products 1.30x 1.31x 1.25x
======== ======== ========
Ratio of earnings to combined fixed charges and
preferred stock dividends:
Excluding interest on fixed annuities and
financial products 6.84x 7.99x 6.73x
======== ======== ========
Including interest on fixed annuities and
financial products 1.30x 1.31x 1.25x
======== ======== ========