THE ST. PAUL COMPANIES, INC. AND SUBSIDIARIES Exhibit 12 Computation of Ratios (In thousands, except ratios) Three Months Ended March 31 -------------------- 1997 1996 ------ ------ EARNINGS: Income before income taxes $245,210 177,488 Add: fixed charges 19,477 16,585 ------- ------- Income, as adjusted $264,687 194,073 ======= ======= FIXED CHARGES: Interest costs $12,901 12,424 Rental expense (1) 6,576 4,161 ------- ------- Total fixed charges $19,477 16,585 ======= ======= FIXED CHARGES AND PREFERRED STOCK DIVIDENDS: Fixed charges $19,477 16,585 PSOP preferred stock dividends 4,425 4,489 Dividends on monthly income preferred securities 3,105 3,105 ------- ------- Total fixed charges and preferred stock dividends $27,007 24,179 ======= ======= Ratio of earnings to fixed charges 13.59 11.70 ======= ======= Ratio of earnings to combined fixed charges and preferred stock dividends 9.80 8.03 ======= ======= (1) Interest portion deemed implicit in total rent expense.