EXHIBIT 12 FOREMOST CORPORATION OF AMERICA AND SUBSIDIARIES DECEMBER 31, 1997 ($ in thousands except per share data) Return on Beginning Stockholders' Equity: Net Income ...................................... $ 50,866 -------- 22.0% Beginning Stockholder's Equity .................. $231,422 Price Earnings Ratio: Price Range Per Share of FCOA Common Stock - Low $ 17.70 -------- 10 Earnings Per Share .............................. $ 1.82 Price Range Per Share of FCOA Common Stock - High $ 23.56 -------- 13 Earnings Per Share .............................. $ 1.82 Ratio of Net Written Premiums to Statutory Policyholders' Surplus: Net Premiums Written ......................... $423,952 -------- 1.9 Statutory Policyholders' Surplus ............. $220,522 Ratio of Loss and Loss Expense Reserves to Statutory Policyholders' Surplus: Loss and Loss Expense Reserves ............... $ 82,387 -------- 0.4 Statutory Policyholders' Surplus ............. $220,522 Combined Loss and Expense Ratio - GAAP: Total Losses and Expenses ....................... $390,600 -------- 91.0% Premium Earned .................................. $429,210