EXHIBIT 12 STATEMENT RE: COMPUTATION OF RATIOS FOREMOST CORPORATION OF AMERICA AND SUBSIDIARIES DECEMBER 31, 1996 ($ in thousands except per share data) Return on Beginning Shareholders' Equity: Net Income ........................................... $ 23,529 -------- Beginning Shareholder's Equity ....................... $244,197 9.6% Price Earnings Ratio: Price Range Per Share of FCOA Common Stock - Low ..... $ 50.75 -------- Earnings Per Share ................................... $ 2.39 21 Price Range Per Share of FCOA Common Stock - High .... $ 60.50 -------- Earnings Per Share ................................... $ 2.39 25 Ratio of Net Written Premiums to Statutory Policyholders' Surplus: Net Premiums Written .............................. $421,100 -------- Statutory Policyholders' Surplus .................. $201,320 2.1 Ratio of Loss and Loss Expense Reserves to Statutory Policyholders' Surplus: Loss and Loss Expense Reserves .................... $ 92,670 -------- Statutory Policyholders' Surplus .................. $201,320 0.5 Combined Loss and Expense Ratio - GAAP: Total Losses and Expenses ............................ $422,107 -------- Premium Earned ....................................... $427,565 98.7%