AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
EXHIBIT 12 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Dollars in Thousands)
Year Ended December 31,
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2002 2001 2000 1999 1998
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Excluding Interest on Annuities
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Pretax income (loss) $130,350 ($ 12,751) ($ 77,298) $223,307 $203,489
Minority interest in subsidiaries
having fixed charges 33,839 43,187 44,961 48,780 55,646
Less undistributed equity in
losses of investees 13,830 25,462 142,230 32,156 17,997
Fixed charges:
Interest expense 60,271 60,616 67,638 64,544 58,925
Debt discount (premium) and expense 879 1,072 763 (129) (504)
One-third of rentals 16,483 16,900 13,963 12,226 11,883
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EARNINGS $255,652 $134,486 $192,257 $380,884 $347,436
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Fixed charges:
Interest expense $ 60,271 $ 60,616 $ 67,638 $ 64,544 $ 58,925
Debt discount (premium) and expense 879 1,072 763 (129) (504)
One-third of rentals 16,483 16,900 13,963 12,226 11,883
Pretax preferred dividend
requirements of subsidiaries 28,184 32,296 35,648 36,566 37,628
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FIXED CHARGES $105,817 $110,884 $118,012 $113,207 $107,932
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Ratio of Earnings to Fixed Charges 2.42 1.21 1.63 3.36 3.22
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Including Interest on Annuities
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Earnings - per above $255,652 $134,486 $192,257 $380,884 $347,436
Interest on annuities 300,966 294,654 293,171 262,632 261,666
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EARNINGS $556,618 $429,140 $485,428 $643,516 $609,102
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Fixed charges - per above $105,817 $110,884 $118,012 $113,207 $107,932
Interest on annuities 300,966 294,654 293,171 262,632 261,666
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FIXED CHARGES $406,783 $405,538 $411,183 $375,839 $369,598
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Ratio of Earnings to Fixed Charges 1.37 1.06 1.18 1.71 1.65
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Earnings in Excess of Fixed Charges $149,835 $ 23,602 $ 74,245 $267,677 $239,504
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(*) Amounts include subsidiary preferred dividends and accrued distributions on
trust preferred securities.
E-2