Exhibit 11
THE ST. PAUL COMPANIES, INC. AND SUBSIDIARIES
Computation of Earnings Per Share
(In thousands)
Three Months Ended Nine Months Ended
September 30 September 30
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1998 1997 1998 1997
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EARNINGS (LOSS):
Basic:
Net income (loss), as reported $67,693 215,172 (11,432) 673,532
Dividends on preferred stock, net of taxes (2,126) (2,163) (6,395) (8,175)
Premium on preferred shares redeemed (820) (1,523) (3,025) (2,434)
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Net income (loss) available to common shareholders $64,747 211,486 (20,852) 662,923
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Diluted:
Net income (loss) available to common shares $64,747 211,486 (20,852) 662,923
Effect of dilutive securities: - -
Convertible preferred stock 1,562 1,504 - 4,521
Zero coupon convertible notes 826 796 2,338
Convertible monthly income preferred securities 2,018 2,018 - 6,055
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Net income (loss) available to common shareholders $69,153 215,804 (20,852) 675,837
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COMMON SHARES:
Basic:
Weighted average common shares outstanding 236,244 229,885 235,214 230,101
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Diluted:
Weighted average common shares outstanding 236,244 229,885 235,214 230,101
Effect of dilutive securities:
Stock options 2,822 4,838 - 4,627
Convertible preferred stock 7,530 7,760 - 7,818
Zero coupon convertible notes 2,914 2,923 - 2,923
Convertible monthly income preferred securities 7,017 7,017 - 7,017
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Weighted average, as adjusted 256,527 252,423 235,214 252,486
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EARNINGS (LOSS) PER COMMON SHARE:
Basic $0.27 0.92 (0.09) 2.88
Diluted $0.27 0.85 (0.09) 2.68
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 nine months ended Sept. 30,
1998. As a result, the potentially dilutive effect of those securities is not
considered in the calculation of EPS amounts for those periods.