THE ST. PAUL COMPANIES, INC. AND SUBSIDIARIES Exhibit 12 Computation of Ratios (In thousands, except ratios) Three Months Ended March 31 -------------------- 1996 1995 ------ ------ EARNINGS: Income before income taxes $164,080 148,146 Add: fixed charges 17,119 17,445 ------- ------- Income, as adjusted $181,199 165,591 ======= ======= FIXED CHARGES: Interest costs $12,424 11,617 Rental expense (1) 4,695 5,828 ------- ------- Total fixed charges $17,119 17,445 ======= ======= FIXED CHARGES AND PREFERRED STOCK DIVIDENDS: Fixed charges $17,119 17,445 PSOP preferred stock dividends 4,489 4,554 Dividends on monthly income preferred securities 3,105 - ------- ------- Total fixed charges and preferred stock dividends $24,713 21,999 ======= ======= Ratio of earnings to fixed charges 10.58 9.49 ======= ======= Ratio of earnings to combined fixed charges and preferred stock dividends 7.33 7.53 ======= ======= (1) Interest portion deemed implicit in total rent expense.