Exhibit 11 THE ST. PAUL COMPANIES, INC. AND SUBSIDIARIES Computation of Earnings Per Share (In thousands) Twelve Months Ended December 31 ----------------------------------------- 1997 1996 1995 ------ ------ ------ EARNINGS: Basic: Net income as reported $929,292 732,702 751,392 Dividends on preferred stock, net of taxes (10,304) (28,893) (36,560) Premium on preferred shares redeemed (4,441) (1,033) (823) -------------- -------------- -------------- Net income available to common shares $914,547 702,776 714,009 -------------- -------------- -------------- -------------- -------------- -------------- Diluted: Net income as reported $929,292 732,702 751,392 Dividends on preferred stock, net of taxes (1,659) (16,400) (16,400) Premium on preferred shares redeemed (4,441) (1,033) (823) Dividends on convertible monthly income preferred securities, net of taxes 8,073 8,073 5,046 Additional expense due to assumed conversion of PSOP preferred stock, net of taxes (2,647) (3,015) (3,477) Interest expense on zero coupon bonds, net of taxes 3,143 5,133 6,164 -------------- -------------- -------------- Net income available to common shares $931,761 725,460 741,902 -------------- -------------- -------------- -------------- -------------- -------------- SHARES: Basic: Weighted average common shares outstanding 230,158 233,340 231,664 -------------- -------------- -------------- -------------- -------------- -------------- Diluted: Weighted average common shares outstanding 230,158 233,340 231,664 Additional dilutive effect of: Assumed conversion of preferred stock 7,788 9,152 13,657 Assumed conversion of monthly income preferred securities 7,017 7,017 4,422 Assumed exercise of stock options outstanding 4,399 3,089 2,836 Assumed conversion of zero coupon bonds 2,923 3,263 4,077 -------------- -------------- -------------- Weighted average, as adjusted 252,285 255,861 256,656 -------------- -------------- -------------- -------------- -------------- -------------- EARNINGS PER COMMON SHARE: Basic $3.97 3.01 3.08 Diluted $3.69 2.84 2.89 82