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
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1998 1997 1998 1997
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EARNINGS:
Income (loss) before income taxes $37,998 274,551 (122,202) 974,714
Add: fixed charges 25,061 29,743 92,028 88,783
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Income (loss), as adjusted $63,059 304,294 (30,174) 1,063,497
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FIXED CHARGES:
Interest costs $18,994 22,228 58,627 65,697
Rental expense (1) 6,067 7,515 33,401 23,086
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Total fixed charges $25,061 29,743 92,028 88,783
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FIXED CHARGES AND PREFERRED STOCK DIVIDENDS:
Fixed charges $25,061 29,743 92,028 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
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Total fixed charges and preferred
stock dividends $38,642 43,427 133,006 125,769
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Ratio of earnings to fixed charges (2) 2.52 10.23 - 11.98
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Ratio of earnings to combined fixed charges
and preferred stock dividends (2) 1.63 7.01 - 8.46
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(1) Interest portion deemed implicit in total rent expense. Total for nine
months ended Sept. 30, 1998 includes 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 USS&G Corporation.
(2) The year-to-date 1998 loss is inadequate to cover "fixed charges" by $122.2
million and "combined fixed charges and preferred stock dividends" by $163.2
million.