AMERCIAN FINANCIAL CORPORATION AND SUBSIDIARIES



EXHIBIT 12 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Dollars in Thousands)



|                                                                   | Nine Months Ended  | Year Ended       
|------------------------------------------------------------------ | ------------------ | -----------------
|                                                                   | September 30, 2003 | December 31, 2002
|                                                                   |                    |                  
|Pretax income (loss)                                               | $172,418           | $149,330         
|Minority interest in subsidiaries having fixed charges (*)         | 22,285             | 32,096           
|Less undistributed equity in (earnings) losses of investees        | (9,051)            | 13,830           
|Fixed charges:                                                     |                    |                  
|Interest on annuities                                              | 227,230            | 300,966          
|Interest expense                                                   | 27,827             | 47,513           
|Interest on subsidiary trust obligations                           | 781                | -                
|Debt discount (premium) and expense                                | 808                | 414              
|Portion of rentals representing interest                           | 12,362             | 16,483           
|                                                                   |                    |                  
|EARNINGS                                                           | $454,660           | $560,632         
|                                                                   |                    |                  
|                                                                   |                    |                  
|Fixed charges:                                                     |                    |                  
|Interest on annuities                                              | $227,230           | $300,966         
|Interest expense                                                   | 27,827             | 47,513           
|Interest on subsidiary trust obligations                           | 781                | -                
|Debt discount (premium) and expense                                | 808                | 414              
|Portion of rentals representing interest                           | 12,362             | 16,483           
|Pretax preferred dividend requirements of subsidiaries             | 9,831              | 12,960           
|                                                                   |                    |                  
|FIXED CHARGES                                                      | $278,839           | $378,336         
|                                                                   |                    |                  
|Fixed charges and preferred dividends:                             |                    |                  
|Fixed charges - per above                                          | $278,839           | $378,336         
|Preferred dividends                                                | 6,140              | 6,552            
|                                                                   |                    |                  
|FIXED CHARGES AND PREFERRED DIVIDENDS                              | $284,979           | $384,888         
|                                                                   |                    |                  
|                                                                   |                    |                  
|Ratio of Earnings to Fixed Charges                                 | 1.63               | 1.48             
|                                                                   |                    |                  
|Ratio of Earnings to Fixed Charges and Preferred Dividends         | 1.60               | 1.46             
|                                                                   |                    |                  
|Earnings in Excess of Fixed Charges                                | $175,821           | $182,296         
|                                                                   |                    |                  
|Earnings in Excess of Fixed Charges and Preferred Dividends        | $169,681           | $175,744         
|                                                                   |                    |                  
|                                                                   |                    |                  
|(*)  Amounts include accrued distributions on preferred securities
|of consolidated trusts.                                           



E-1