THE ST. PAUL COMPANIES, INC. AND SUBSIDIARIES
Exhibit 12
Computation of Ratios
(In thousands, except ratios)
Three Months Ended Six Months Ended
June 30 June 30
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1998 1997 1998 1997
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EARNINGS:
Income (loss) before
income taxes (446,648) 390,920 (196,321) 700,163
Add: fixed charges 28,833 31,561 60,269 63,382
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Income (loss), as adjusted $(417,815) 422,481 (136,052) 763,545
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FIXED CHARGES:
Interest costs $20,841 24,566 44,318 47,811
Rental expense (1) 7,992 6,995 15,951 15,571
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Total fixed charges $28,833 31,561 60,269 63,382
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FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS:
Fixed charges $28,833 31,561 60,269 63,382
PSOP preferred stock dividends 4,255 4,391 8,546 8,815
Dividends on redeemable
preferred securities 9,425 7,381 18,851 14,486
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Total fixed charges and
preferred stock dividends $42,513 43,333 87,666 86,683
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Ratio of earnings
to fixed charges (2) - 13.39 - 12.05
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Ratio of earnings to
combined fixed charges and
preferred stock dividends (2) - 9.75 - 8.81
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(1) Interest portion deemed implicit in total rent expense. Excludes
one-time charge for future lease buy-outs recorded in the second quarter
of 1998 as a result of The St. Paul's merger with USF&G Corporation.
(2) The second quarter 1998 loss is inadequate to cover "fixed
charges" by $446.6 million and "combined fixed charges and preferred
stock dividends" by $460.3 million. The year to date 1998 loss is
inadequate to cover "fixed charges" by $196.3 million and "combined
fixed charges and preferred stock dividends" by $223.7 million.