EX-12 4 afgexh12.txt EXHIBIT 12 - EARNINGS TO FIXED CHARGES AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES EXHIBIT 12 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (Dollars in Thousands)
Year Ended December 31, ----------------------------------------------------------------------- 2002 2001 2000 1999 1998 ---- ---- ---- ---- ---- Excluding Interest on Annuities ------------------------------- 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 -------- -------- -------- -------- -------- EARNINGS $255,652 $134,486 $192,257 $380,884 $347,436 ======== ======== ======== ======== ======== 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 -------- -------- -------- -------- -------- FIXED CHARGES $105,817 $110,884 $118,012 $113,207 $107,932 ======== ======== ======== ======== ======== Ratio of Earnings to Fixed Charges 2.42 1.21 1.63 3.36 3.22 ==== ==== ==== ==== ==== Including Interest on Annuities ------------------------------- 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 -------- -------- -------- -------- -------- EARNINGS $556,618 $429,140 $485,428 $643,516 $609,102 ======== ======== ======== ======== ======== 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 -------- -------- -------- -------- -------- FIXED CHARGES $406,783 $405,538 $411,183 $375,839 $369,598 ======== ======== ======== ======== ======== Ratio of Earnings to Fixed Charges 1.37 1.06 1.18 1.71 1.65 ==== ==== ==== ==== ==== Earnings in Excess of Fixed Charges $149,835 $ 23,602 $ 74,245 $267,677 $239,504 ======== ======== ======== ======== ========
(*) Amounts include subsidiary preferred dividends and accrued distributions on trust preferred securities. E-2