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 $(410,527) 390,920 (160,200) 700,163
Add: fixed charges 40,216 31,561 71,652 63,382
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Income (loss), as adjusted $(370,311) 422,481 (88,548) 763,545
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FIXED CHARGES:
Interest costs $20,841 24,566 44,318 47,811
Rental expense (1) 19,375 6,995 27,334 15,571
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Total fixed charges $40,216 31,561 71,652 63,382
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FIXED CHARGES AND PREFERRED STOCK DIVIDENDS:
Fixed charges $40,216 31,561 71,652 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 $53,896 43,333 99,049 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. Amounts for both
periods of 1998 include an $11.4 million provision representative of interest
included in 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
$410.5 million and "combined fixed charges and preferred stock dividends" by
$424.2 million. The year-to-date 1998 loss is inadequate to cover "fixed
charges" by $160.2 million and "combined fixed charges and preferred stock
dividends" by $187.6 million.