EX-12 5 afcexhibit12.txt EXHIBIT 12 - EARNINGS TO FIXED CHARGE RATIO AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES EXHIBIT 12 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (Dollars in Thousands)
Year Ended December 31, ----------------------------------------------------------------------- 2002 2001 2000 1999 1998 ---- ---- ---- ---- ---- 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 -------- -------- -------- -------- -------- EARNINGS $560,632 $443,139 $495,182 $648,660 $619,466 ======== ======== ======== ======== ======== 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 -------- -------- -------- -------- -------- FIXED CHARGES $378,336 $389,796 $393,322 $358,842 $365,817 ======== ======== ======== ======== ======== 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 -------- -------- -------- -------- -------- FIXED CHARGES AND PREFERRED DIVIDENDS $384,888 $397,411 $401,283 $367,833 $375,220 ======== ======== ======== ======== ======== Ratio of Earnings to Fixed Charges 1.48 1.14 1.26 1.81 1.69 ==== ==== ==== ==== ==== Ratio of Earnings to Fixed Charges and Preferred Dividends 1.46 1.12 1.23 1.76 1.65 ==== ==== ==== ==== ==== Earnings in Excess of Fixed Charges $182,296 $ 53,343 $101,860 $289,818 $253,649 ======== ======== ======== ======== ======== Earnings in Excess of Fixed Charges and Preferred Dividends $175,744 $ 45,728 $ 93,899 $280,827 $244,246 ======== ======== ======== ======== ========
(*) Amounts include accrued distributions on trust preferred securities. E-2