Exhibit 11
THE ST. PAUL COMPANIES, INC. AND SUBSIDIARIES
Computation of Earnings Per Share
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
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1998 1997 1998 1997
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EARNINGS:
Basic:
Net income (loss), as reported $(273,803) 288,942 (79,125) 458,360
Dividends on preferred stock, net of taxes (2,120) (2,168) (4,269) (6,012)
Premium on preferred shares redeemed (1,361) (651) (2,205) (911)
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Net income (loss) available to common shares $(277,284) 286,123 (85,599) 451,437
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Diluted:
Net income (loss), available to common shares $(277,284) 286,123 (85,599) 451,437
Effect of dilutive securities:
Convertible preferred stock - 1,502 - 3,017
Zero coupon convertible notes - 779 - 1,542
Convertible monthly income preferred securities - 2,019 - 4,037
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Net income (loss) available to common shares $(277,284) 290,423 (85,599) 460,033
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COMMON SHARES:
Basic:
Weighted average common shares outstanding 235,160 229,611 234,670 230,211
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Diluted:
Weighted average common shares outstanding 235,160 229,611 234,670 230,211
Effect of dilutive securities::
Stock options - 4,786 - 4,702
Convertible preferred stock - 8,025 - 7,848
Zero coupon convertible notes - 2,923 - 2,923
Convertible monthly income preferred securities - 7,017 - 7,017
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Weighted average, as adjusted 235,160 252,362 234,670 252,701
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EARNINGS (LOSS) PER COMMON SHARE:
Basic $(1.18) 1.25 (0.36) 1.96
Diluted $(1.18) 1.15 (0.36) 1.82
The assumed exercise of stock options, and the assumed conversion of preferred
stock, zero coupon notes and monthly income preferred securities are each
anti-dilutive to The St. Paul's net income for the three months and six months
ended June 30, 1998. As a result, the potentially dilutive effect of those
securities is not considered in the calculation of EPS amounts for those
periods.