EXHIBIT 12 - ---------- STATEMENT RE: COMPUTATION OF RATIOS FOREMOST CORPORATION OF AMERICA AND SUBSIDIARIES DECEMBER 31, 1995 ($ in thousands except per share data) Return on Beginning Shareholders' Equity: Net Income ........................................ $ 45,325 Beginning Shareholder's Equity .................... $206,626 21.9% Price Earnings Ratio: Price Range Per Share of FCOA Common Stock - Low .. $ 35.25 Earnings Per Share ................................ $ 4.43 8 Price Range Per Share of FCOA Common Stock - High.. $ 52.75 Earnings Per Share ................................ $ 4.43 12 Ratio of Net Written Premiums to Statutory Policyholders' Surplus: Net Premiums Written ........................... $419,868 Statutory Policyholders' Surplus ............... $200,458 2.1 Ratio of Loss and Loss Expense Reserves to Statutory Policyholders' Surplus: Loss and Loss Expense Reserves ................. $ 91,333 Statutory Policyholders' Surplus ............... $200,458 0.5 Combined Loss and Expense Ratio - GAAP: Total Losses and Expenses ......................... $388,071 Premium Earned .................................... $426,282 91.1%