EX-12 5 ex12602.txt EXHIBIT 12 - COMPUTATION OF RATIOS EXHIBIT 12 THE ST. PAUL COMPANIES, INC. AND SUBSIDIARIES COMPUTATION OF RATIOS Three Months and Six Months Ended June 30, 2002 and 2001 (In millions, except ratios) Three Months Ended Six Months Ended June 30 June 30 ------------------ ---------------- (in millions) 2002 2001 2002 2001 ----------- ----- ----- ----- ----- EARNINGS Income (loss) from continuing operations, before income taxes $ (364) $ 133 $ (168) $ 431 Add: fixed charges 53 42 103 86 ----- ----- ----- ----- Income (loss), as adjusted $ (311) $ 175 $ (65) $ 517 ===== ===== ===== ===== FIXED CHARGES AND PREFERRED DIVIDENDS Fixed charges: Interest expense and amortization $ 29 $ 28 $ 55 $ 58 Distributions on redeemable preferred securities 17 7 35 14 Rental expense (1) 7 7 13 14 ----- ----- ----- ----- Total fixed charges 53 42 103 86 Preferred stock dividend requirements 3 3 7 7 ----- ----- ----- ----- Total fixed charges and preferred stock dividend requirements $ 56 $ 45 $ 110 $ 93 ===== ===== ===== ===== Ratio of earnings to fixed charges (2) - 4.22 - 6.03 ===== ===== ===== ===== Ratio of earnings to combined fixed charges and preferred stock dividend requirements (2) - 3.89 - 5.57 ===== ===== ===== ===== (1) Interest portion deemed implicit in total rent expense. (2) The second-quarter 2002 loss is inadequate to cover "fixed charges" by $364 million and "combined fixed charges and preferred stock dividends" by $367 million. The year-to-date 2002 loss is inadequate to cover "fixed charges" by $168 million and "combined fixed charges and preferred stock dividends" by $175 million.