THE ST. PAUL COMPANIES, INC. AND SUBSIDIARIES Exhibit 12
Computation of Ratios
(In thousands, except ratios)
Three Months Ended Nine Months Ended
September 30 September 30
------------------ -----------------
1998 1997 1998 1997
------ ------ ------ ------
EARNINGS:
Income (loss) before income taxes $32,013 274,551 (164,308) 974,714
Add: fixed charges 25,061 29,743 80,645 88,783
------- ------- ------- ---------
Income (loss), as adjusted $57,074 304,294 (83,663) 1,063,497
======= ======= ======= =========
FIXED CHARGES:
Interest costs $18,994 22,228 58,627 65,697
Rental expense (1) 6,067 7,515 22,018 23,086
------- ------- ------- -------
Total fixed charges $25,061 29,743 80,645 88,783
======= ======= ======= =======
FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS:
Fixed charges $25,061 29,743 80,645 88,783
PSOP preferred stock dividends 4,225 4,352 12,771 13,168
Dividends on redeemable
preferred securities 9,356 9,332 28,207 23,818
------- ------- ------- -------
Total fixed charges and
preferred stock dividends $38,642 43,427 121,623 125,769
======= ======= ======= =======
Ratio of earnings to
fixed charges (2) 2.28 10.23 - 11.98
======= ======= ======= =======
Ratio of earnings to combined
fixed charges and preferred
stock dividends (2) 1.48 7.01 - 8.46
======= ======= ======= =======
(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 year-to-date 1998 loss is inadequate to cover "fixed charges"
by $164.3 million and "combined fixed charges and preferred stock
dividends" by $205.3 million.