EX-12 4 ex12203.txt EXHIBIT 12 EXHIBIT 12 THE ST. PAUL COMPANIES, INC. AND SUBSIDIARIES COMPUTATION OF RATIOS Three Months and Six Months Ended June 30, 2003 and 2002 (In millions, except ratios) Three Months Ended Six Months Ended June 30 June 30 ------------------ ---------------- (in millions) 2003 2002 2003 2002 ----------- ----- ----- ----- ----- EARNINGS Income (loss) from continuing operations, before income taxes $ 308 $ (364) $ 559 $ (168) Add: fixed charges 56 53 111 103 ----- ----- ----- ----- Income (loss), as adjusted $ 364 $ (311) $ 670 $ (65) ===== ===== ===== ===== FIXED CHARGES AND PREFERRED DIVIDENDS Fixed charges: Interest expense and amortization $ 30 $ 29 $ 60 $ 55 Distributions on redeemable preferred securities 18 17 35 35 Rental expense (1) 8 7 16 13 ----- ----- ----- ----- Total fixed charges 56 53 111 103 Preferred stock dividend requirements 3 3 6 7 ----- ----- ----- ----- Total fixed charges and preferred stock dividend requirements $ 59 $ 56 $ 117 $ 110 ===== ===== ===== ===== Ratio of earnings to fixed charges (2) 6.53 - 6.05 - ===== ===== ===== ===== Ratio of earnings to combined fixed charges and preferred stock dividend requirements (2) 6.18 - 5.72 - ===== ===== ===== ===== (1) Interest portion deemed implicit in total rent expense. (2) The second-quarter 2002 loss was 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 was inadequate to cover "fixed charges" by $168 million and "combined fixed charges and preferred stock dividends" by $175 million.