EX-12 4 ex12302.txt EXHIBIT 12 EXHIBIT 12 THE ST. PAUL COMPANIES, INC. AND SUBSIDIARIES COMPUTATION OF RATIOS Three Months and Nine Months Ended September 30, 2002 and 2001 (In millions, except ratios) Three Months Ended Nine Months Ended September 30 September 30 ------------------ ----------------- (in millions) 2002 2001 2002 2001 ----------- ------ ------ ------ ------ EARNINGS Income (loss) from continuing operations, before income taxes $ 95 $(877) $ (73) $(446) Add: fixed charges 56 45 160 131 ------ ------ ------ ------ Income (loss), as adjusted $ 151 $(832) $ 87 $(315) ====== ====== ====== ====== FIXED CHARGES AND PREFERRED DIVIDENDS Fixed charges: Interest expense and amortization $ 30 $ 30 $ 84 $ 88 Distributions on redeemable preferred securities 17 7 53 21 Rental expense (1) 9 8 23 22 ------ ------ ------ ------ Total fixed charges 56 45 160 131 Preferred stock dividend requirements 4 4 10 10 ------ ------ ------ ------ Total fixed charges and preferred stock dividend requirements $ 60 $ 49 $ 170 $ 141 ====== ====== ====== ====== Ratio of earnings to fixed charges (2) 2.68 - 0.54 - ====== ====== ====== ====== Ratio of earnings to combined fixed charges and preferred stock dividend requirements (2) 2.53 - 0.51 - ====== ====== ====== ====== (1) Interest portion deemed implicit in total rent expense. (2) The year-to-date 2002 loss was inadequate to cover "fixed charges" by $73 million and "combined fixed charges and preferred stock dividends" by $83 million. The third-quarter 2001 loss was inadequate to cover "fixed charges" by $877 million and "combined fixed charges and preferred stock dividends" by $881 million. The year-to-date 2001 loss was inadequate to cover "fixed charges" by $446 million and "combined fixed charges and preferred stock dividends" by $456 million.