AMERICAN FINANCIAL CORPORATION 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) $149,330 $ 13,002 ($ 46,462) $231,447 $209,563
Minority interest in subsidiaries
having fixed charges(*) 32,096 31,917 24,491 44,790 45,120
Less undistributed equity in
losses of investees 13,830 25,462 142,230 32,156 17,997
Fixed charges:
Interest expense 47,513 60,605 67,471 65,858 73,868
Debt discount (premium) and expense 414 599 318 (449) (631)
One-third of rentals 16,483 16,900 13,963 12,226 11,883
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EARNINGS $259,666 $148,485 $202,011 $386,028 $357,800
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Fixed charges:
Interest expense $ 47,513 $ 60,605 $ 67,471 $ 65,858 $ 73,868
Debt discount (premium) and expense 414 599 318 (449) (631)
One-third of rentals 16,483 16,900 13,963 12,226 11,883
Pretax preferred dividend
requirements of subsidiaries 12,960 17,038 18,399 18,575 19,031
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FIXED CHARGES $ 77,370 $ 95,142 $100,151 $ 96,210 $104,151
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Fixed charges and preferred dividends:
Fixed charges - per above $ 77,370 $ 95,142 $100,151 $ 96,210 $104,151
Preferred dividends 6,552 7,615 7,961 8,991 9,403
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FIXED CHARGES AND PREFERRED
DIVIDENDS $ 83,922 $102,757 $108,112 $105,201 $113,554
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Ratio of Earnings to Fixed Charges 3.36 1.56 2.02 4.01 3.44
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Ratio of Earnings to Fixed Charges and
Preferred Dividends 3.09 1.45 1.87 3.67 3.15
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INCLUDING INTEREST ON ANNUITIES
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Earnings - per above $259,666 $148,485 $202,011 $386,028 $357,800
Interest on annuities 300,966 294,654 293,171 262,632 261,666
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EARNINGS $560,632 $443,139 $495,182 $648,660 $619,466
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Fixed charges - per above $ 77,370 $ 95,142 $100,151 $ 96,210 $104,151
Interest on annuities 300,966 294,654 293,171 262,632 261,666
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FIXED CHARGES $378,336 $389,796 $393,322 $358,842 $365,817
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Fixed charges and preferred dividends:
Fixed charges - per above $378,336 $389,796 $393,322 $358,842 $365,817
Preferred dividends 6,552 7,615 7,961 8,991 9,403
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FIXED CHARGES AND PREFERRED
DIVIDENDS $384,888 $397,411 $401,283 $367,833 $375,220
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Ratio of Earnings to Fixed Charges 1.48 1.14 1.26 1.81 1.69
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Ratio of Earnings to Fixed Charges and
Preferred Dividends 1.46 1.12 1.23 1.76 1.65
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Earnings in Excess of Fixed Charges $182,296 $ 53,343 $101,860 $289,818 $253,649
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Earnings in Excess of Fixed Charges and
Preferred Dividends $175,744 $ 45,728 $ 93,899 $280,827 $244,246
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(*) Amounts include accrued distributions on trust preferred securities.
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