AMERCIAN FINANCIAL CORPORATION AND SUBSIDIARIES



EXHIBIT 12 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Dollars in Thousands)



|                                                                          |                  |                         |          |          |            |         
|------------------------------------------------------------------------- | ---------------- | ----------------------- | -------- | -------- | ---------- | --------
|                                                                          | Six Months Ended |                         |          |          |            |         
|                                                                          | June 30,         | Year Ended December 31,
|                                                                          | 2003             | 2002                    | 2002     | 2001     | 2000       | 1999    
|                                                                          |                  |                         |          |          |            |         
|Pretax income (loss)                                                      | $ 94,947         | $ 65,900                | $149,330 | $ 13,002 | ($ 46,462) | $231,447
|Minority interest in                                                      |                  |                         |          |          |            |         
|subsidiaries having fixed                                                 |                  |                         |          |          |            |         
|charges (*)                                                               | 14,000           | 13,647                  | 32,096   | 31,917   | 24,491     | 44,790  
|Less undistributed equity in                                              |                  |                         |          |          |            |         
|(earnings) losses of investees                                            | (4,574)          | 7,827                   | 13,830   | 25,462   | 142,230    | 32,156  
|Fixed charges:                                                            |                  |                         |          |          |            |         
|Interest on annuities                                                     | 155,707          | 146,541                 | 300,966  | 294,654  | 293,171    | 262,632 
|Interest expense                                                          | 19,305           | 22,676                  | 47,513   | 60,605   | 67,471     | 65,858  
|Debt discount (premium) and                                               |                  |                         |          |          |            |         
|expense                                                                   | 598              | 174                     | 414      | 599      | 318        | (449)   
|One-third of rentals                                                      | 8,241            | 8,450                   | 16,483   | 16,900   | 13,963     | 12,226  
|                                                                          |                  |                         |          |          |            |         
|EARNINGS                                                                  | $288,224         | $265,215                | $560,632 | $443,139 | $495,182   | $648,660
|                                                                          |                  |                         |          |          |            |         
|                                                                          |                  |                         |          |          |            |         
|Fixed charges:                                                            |                  |                         |          |          |            |         
|Interest on annuities                                                     | $155,707         | $146,541                | $300,966 | $294,654 | $293,171   | $262,632
|Interest expense                                                          | 19,305           | 22,676                  | 47,513   | 60,605   | 67,471     | 65,858  
|Debt discount (premium) and                                               |                  |                         |          |          |            |         
|expense                                                                   | 598              | 174                     | 414      | 599      | 318        | (449)   
|One-third of rentals                                                      | 8,241            | 8,450                   | 16,483   | 16,900   | 13,963     | 12,226  
|Pretax preferred dividend                                                 |                  |                         |          |          |            |         
|requirements of                                                           |                  |                         |          |          |            |         
|subsidiaries                                                              | 6,663            | 6,480                   | 12,960   | 17,038   | 18,399     | 18,575  
|                                                                          |                  |                         |          |          |            |         
|FIXED CHARGES                                                             | $190,514         | $184,321                | $378,336 | $389,796 | $393,322   | $358,842
|                                                                          |                  |                         |          |          |            |         
|Fixed Charges and Preferred                                               |                  |                         |          |          |            |         
|Dividends:                                                                |                  |                         |          |          |            |         
|Fixed Charges - per above                                                 | $190,514         | $184,321                | $378,336 | $389,796 | $393,322   | $358,842
|Preferred dividends                                                       | 3,900            | 3,147                   | 6,552    | 7,615    | 7,961      | 8,991   
|FIXED CHARGES AND                                                         |                  |                         |          |          |            |         
|PREFERRED DIVIDENDS                                                       | $194,414         | $187,468                | $384,888 | $397,411 | $401,283   | $367,833
|                                                                          |                  |                         |          |          |            |         
|Ratio of Earnings to                                                      |                  |                         |          |          |            |         
|Fixed Charges                                                             | 1.51             | 1.44                    | 1.48     | 1.14     | 1.26       | 1.81    
|                                                                          |                  |                         |          |          |            |         
|Ratio of Earnings to                                                      |                  |                         |          |          |            |         
|Fixed Charges and                                                         |                  |                         |          |          |            |         
|Preferred Dividends                                                       | 1.48             | 1.41                    | 1.46     | 1.12     | 1.23       | 1.76    
|                                                                          |                  |                         |          |          |            |         
|Earnings in Excess of                                                     |                  |                         |          |          |            |         
|Fixed Charges                                                             | $ 97,710         | $ 80,894                | $182,296 | $ 53,343 | $101,860   | $289,818
|                                                                          |                  |                         |          |          |            |         
|Earnings in Excess of                                                     |                  |                         |          |          |            |         
|Fixed Charges and                                                         |                  |                         |          |          |            |         
|Preferred Dividends                                                       | $ 93,810         | $ 77,747                | $175,744 | $ 45,728 | $ 93,899   | $280,827
|                                                                          |                  |                         |          |          |            |         
|                                                                          |                  |                         |          |          |            |         
|(*)  Amounts include accrued distributions on trust preferred securities.
|                                                                         



E-1