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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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 on annuities 300,966 294,654 293,171 262,632 261,666
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 $560,632 $443,139 $495,182 $648,660 $619,466
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Fixed charges:
Interest on annuities $300,966 $294,654 $293,171 $262,632 $261,666
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 $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.
E-2