The Travelers Companies, Inc. (TRV) 8-K ST. Paul Travelers Reports

Exhibit 99.2

The St. Paul Travelers Companies, Inc.

Financial Supplement - Second Quarter 2004

On April 1, 2004, Travelers Property Casualty Corp. (Travelers) completed its previously announced merger into The St. Paul Companies, Inc. (St. Paul), forming The St. Paul Travelers Companies, Inc. (St. Paul Travelers).  Each share of Travelers class A and class B common stock was exchanged for 0.4334 of a share of St. Paul Travelers common stock.  For accounting purposes, this transaction is being accounted for as a reverse acquisition with Travelers treated as the accounting acquirer.  Accordingly, the transaction is being accounted for as a purchase business combination, using Travelers historical financial information and applying fair value estimates to the acquired assets, liabilities and commitments of St. Paul as of April 1, 2004.

All historical information prior to April 1, 2004 included in this Financial Supplement represents the standalone results of Travelers as Travelers is treated as the accounting acquirer.

Consolidated Results		Page Number
	Financial Highlights	1
	Reconciliation to Net Income and Earnings Per Share	2
	Statement of Income	3
	Net Income and Combined Ratio by Major Component	4
	Operating Income	5
	Selected Statistics - Property and Casualty Operations	6
	Written and Earned Premiums - Property and Casualty Operations	7
Commercial
	Operating Income	8
	Operating Income and Combined Ratio by Major Component	9
	Selected Statistics	10
	Net Written Premium	11
	Proforma Net Written Premium	12
Specialty
	Operating Income	13
	Operating Income and Combined Ratio by Major Component	14
	Selected Statistics	15
	Net Written Premium	16
	Proforma Net Written Premium	17
Personal
	Operating Income	18
	Operating Income and Combined Ratio by Major Component	19
	Selected Statistics	20
	Selected Statistics - Automobile	21
	Selected Statistics - Homeowners and Other	22
Supplemental Detail
	Asset Management	23
	Operating Income (Loss) - Interest Expense and Other	24
	Consolidated Balance Sheet	25
	Investment Portfolio	26
	Investment Portfolio - Fixed Maturities Data	27
	Net Investment Income	28
	Net Realized and Unrealized Investment Gains (Losses)	29
	Reinsurance Recoverables	30
	Statutory Reserves for Losses and Loss Adjustment Expense	31
	Asbestos and Environmental Reserves	32
	Capitalization	33
Glossary of Financial Measures and Description of Operating Segments		34

Index

The St. Paul Travelers Companies, Inc.

Financial Highlights

($ in millions, except per share data)

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004			YTD 2Q 2003		YTD 2Q 2004
Net income (loss)	$	340	$	441	$	426	$	489	$	587	$	(275	)	$	781	$	312
Net income (loss) per share (1):
Basic	$	0.78	$	1.02	$	0.98	$	1.13	$	1.35	$	(0.42	)	$	1.80	$	0.56
Diluted	$	0.78	$	1.01	$	0.98	$	1.12	$	1.34	$	(0.42	)	$	1.79	$	0.56
Operating income (loss)	$	339	$	431	$	443	$	463	$	614	$	(310	)	$	770	$	304
Operating income (loss) per share (1):
Basic	$	0.78	$	0.99	$	1.02	$	1.07	$	1.41	$	(0.47	)	$	1.77	$	0.55
Diluted	$	0.78	$	0.99	$	1.01	$	1.06	$	1.41	$	(0.47	)	$	1.76	$	0.54
Total assets, at period end	$	65,384	$	66,031	$	63,535	$	64,872	$	65,070	$	106,608		$	66,031	$	106,608
Total equity, at period end	$	10,561	$	11,316	$	11,472	$	11,987	$	12,674	$	19,930		$	11,316	$	19,930
Book value per share, at period end (1)	$	24.22	$	25.93	$	26.35	$	27.51	$	28.98	$	29.52		$	25.93	$	29.52
Book value per share, excluding FAS 115, at period end (1)	$	22.23	$	23.11	$	23.91	$	25.07	$	26.18	$	29.30		$	23.11	$	29.30
Weighted average number of common shares outstanding (basic) (1)	434.5		434.4		434.3		433.8		434.6		664.8			434.4		549.7
Weighted average number of common shares outstanding and common stock equivalents (diluted) (1)	436.7		436.7		436.7		436.2		437.2		664.8			436.7		562.9
Common shares outstanding at period end (1)	436.1		436.4		435.4		435.8		437.3		668.5			436.4		668.5
Common stock dividends declared	$	60.5	$	60.4	$	80.5	$	80.4	$	80.6	$	146.9		$	120.9	$	227.5

(1)The number of shares for all periods presented has been restated to reflect the equivalent number of shares resulting from the exchange of Travelers common stock for St. Paul Travelers common stock due to the merger on April 1, 2004.  Upon consummation of the merger on April 1, 2004, Travelers class A and class B common stock was converted to St. Paul Travelers common stock and the Travelers treasury stock was cancelled.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

1

The St. Paul Travelers Companies, Inc.

Reconciliation to Net Income and Earnings Per Share

($ in millions, except earnings per share)

	1Q 2003		2Q 2003		3Q 2003			4Q 2003		1Q 2004			2Q 2004			YTD 2Q 2003		YTD 2Q 2004
Net income (loss)
Operating income (loss)	$	339	$	431	$	443		$	463	$	614		$	(310	)	$	770	$	304
Net realized investment gains (losses)	1		10		(17		)	26		(27		)	35			11		8
Net income (loss)	$	340	$	441	$	426		$	489	$	587		$	(275	)	$	781	$	312
Basic earnings per share (1)
Operating income (loss)	$	0.78	$	0.99	$	1.02		$	1.07	$	1.41		$	(0.47	)	$	1.77	$	0.55
Net realized investment gains (losses)	—		0.03		(0.04		)	0.06		(0.06		)	0.05			0.03		0.01
Net income (loss)	$	0.78	$	1.02	$	0.98		$	1.13	$	1.35		$	(0.42	)	$	1.80	$	0.56
Diluted earnings per share (1)
Operating income (loss)	$	0.78	$	0.99	$	1.01		$	1.06	$	1.41		$	(0.47	)	$	1.76	$	0.54
Net realized investment gains (losses)	—		0.02		(0.03		)	0.06		(0.07		)	0.05			0.03		0.02
Net income (loss)	$	0.78	$	1.01	$	0.98		$	1.12	$	1.34		$	(0.42	)	$	1.79	$	0.56

(1)All periods have been restated to reflect the impact of the exchange of Travelers common stock for St. Paul common stock.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

2

The St. Paul Travelers Companies, Inc.

Statement of Income - Consolidated

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			YTD 2Q 2003			YTD 2Q 2004
Revenues
Premiums	$	2,979		$	3,100		$	3,149		$	3,317		$	3,339		$	5,154		$	6,079		$	8,493
Net investment income (1)	456			456			458			499			619			642			912			1,261
Fee income	136			134			134			156			172			171			270			343
Asset management	—			—			—			—			—			121			—			121
Net realized investment gains (losses)	7			16			(23		)	39			(42		)	55			23			13
Other revenues	25			43			28			31			39			38			68			77
Total revenues	3,603			3,749			3,746			4,042			4,127			6,181			7,352			10,308
Claims and expenses
Claims and claim adjustment expenses	2,288			2,211			2,237			2,383			2,281			4,869			4,499			7,150
Amortization of deferred acquisition costs	462			484			512			525			526			805			946			1,331
General and administrative expenses	394			413			398			437			467			926			807			1,393
Interest expense	52			40			38			36			36			66			92			102
Total claims and expenses	3,196			3,148			3,185			3,381			3,310			6,666			6,344			9,976
Income (loss) before income taxes and minority interest	407			601			561			661			817			(485		)	1,008			332
Income taxes	90			155			132			161			227			(217		)	245			10
Minority interest, net of tax	(23		)	5			3			11			3			7			(18		)	10
Net income (loss)	$	340		$	441		$	426		$	489		$	587		$	(275	)	$	781		$	312
Other statistics:
Effective tax rate on net investment income	24.6		%	24.3		%	24.2		%	24.1		%	26.6		%	23.7		%	24.4		%	25.1		%
Net investment income (after-tax)	$	344		$	345		$	347		$	379		$	454		$	490		$	689		$	944
Catastrophe losses, net of reinsurance (pre-tax)	$	67		$	111		$	128		$	47		$	20		$	24		$	178		$	44
Asbestos and environmental losses (pre-tax)	$	—		$	—		$	—		$	60		$	—		$	209		$	—		$	209

(1)Includes $127.4 million of pre-tax net investment income in 1Q 2004 resulting from the the impact of an initial public offering of a private equity investment.  Commercial, Specialty and Personal include $82 million, $3 million and $42 million of pre-tax net investment income ($54 million, $2 million and $27 million after-tax), respectively, related to this private equity investment.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

3

The St. Paul Travelers Companies, Inc.

Net Income by Major Component and Combined Ratio - Consolidated

($ in millions, net of tax)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			YTD 2Q 2003			YTD 2Q 2004
Underwriting gain (loss)	(12		)	89			105			98			160			(789		)	77			(629		)
Net investment income	344			345			347			379			454			490			689			944
Asset management	—			—			—			—			—			34			—			34
Other, including interest expense and minority interest	7			(3		)	(9		)	(14		)	—			(45		)	4			(45		)
Operating Income (loss)	339			431			443			463			614			(310		)	770			304
Net realized investment gains (losses)	1			10			(17		)	26			(27		)	35			11			8
Net income (loss)	$	340		$	441		$	426		$	489		$	587		$	(275	)	$	781		$	312
GAAP Combined ratio (1,2)
Loss and loss adjustment expense ratio	74.7		%	69.5		%	69.1		%	69.9		%	65.8		%	93.1		%	72.1		%	82.4		%
Underwriting expense ratio	25.2		%	25.3		%	25.6		%	25.6		%	26.1		%	29.6		%	25.3		%	28.2		%
Combined ratio	99.9		%	94.8		%	94.7		%	95.5		%	91.9		%	122.7		%	97.4		%	110.6		%

(1)Before policyholder dividends.

(2)Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and other underwriting expenses as follows:

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		YTD 2Q 2003		YTD 2Q 2004
Billing and policy fees	$	22	$	22	$	22	$	22	$	23	$	26	$	44	$	49
Fee income:
Loss and loss adjustment expenses	$	59	$	47	$	56	$	68	$	76	$	82	$	106	$	158
Other underwriting expenses	77		87		78		88		96		89		164		185
Total fee income	$	136	$	134	$	134	$	156	$	172	$	171	$	270	$	343

See Glossary of Financial Measures and Description of Operating Segments on page 34.

4

The St. Paul Travelers Companies, Inc.

Operating Income - Consolidated

($ in millions)

	1Q 2003			2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004			YTD 2Q 2003			YTD 2Q 2004
Revenues
Premiums	$	2,979		$	3,100	$	3,149	$	3,317	$	3,339	$	5,154		$	6,079		$	8,493
Net investment income	456			456		458		499		619		642			912			1,261
Fee income	136			134		134		156		172		171			270			343
Asset management	—			—		—		—		—		121			—			121
Other revenues	25			43		28		31		39		38			68			77
Total revenues	3,596			3,733		3,769		4,003		4,169		6,126			7,329			10,295
Claims and expenses
Claims and claim adjustment expenses	2,288			2,211		2,237		2,383		2,281		4,869			4,499			7,150
Amortization of deferred acquisition costs	462			484		512		525		526		805			946			1,331
General and administrative expenses	394			413		398		437		467		926			807			1,393
Interest expense	52			40		38		36		36		66			92			102
Total claims and expenses	3,196			3,148		3,185		3,381		3,310		6,666			6,344			9,976
Operating income (loss) before income taxes and minority interest	400			585		584		622		859		(540		)	985			319
Income taxes	86			149		139		148		242		(237		)	235			5
Minority interest, net of tax	(25		)	5		2		11		3		7			(20		)	10
Operating income (loss)	$	339		$	431	$	443	$	463	$	614	$	(310	)	$	770		$	304

See Glossary of Financial Measures and Description of Operating Segments on page 34.

5

The St. Paul Travelers Companies, Inc.

Selected Statutory Statistics - Property and Casualty Operations

($ in millions)

	1Q 2003			2Q 2003			3Q 2003		4Q 2003			1Q 2004		2Q 2004			YTD 2Q 2003		YTD 2Q 2004
Statutory underwriting
Net written premiums	$	3,167		$	3,269		$	3,376	$	3,389		$	3,471	$	5,261		$	6,436	$	8,732
Net earned premiums	$	2,979		$	3,100		$	3,149	$	3,317		$	3,339	$	5,161		$	6,079	$	8,500
Losses and loss adjustment expenses	2,234			2,163			2,189		2,329			2,209		4,818			4,397		7,027
Underwriting expenses	772			827			863		870			903		1,603			1,599		2,506
Statutory underwriting gain (loss)	(27		)	110			97		118			227		(1,260		)	83		(1,033		)
Policyholder dividends	4			8			4		(3		)	6		(10		)	12		(4		)
Statutory underwriting gain (loss) after policyholder dividends	$	(31	)	$	102		$	93	$	121		$	221	$	(1,250	)	$	71	$	(1,029	)
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	23,479		$	23,422		$	23,727	$	24,029		$	24,284	$	40,008		$	23,422	$	40,008
Increase (decrease) in reserves (1)	$	199		$	(57	)	$	305	$	302		$	255	$	15,724		$	142	$	15,979
Statutory surplus	$	7,841		$	8,122		$	8,197	$	8,444		$	8,788	$	13,955		$	8,122	$	13,955
Net written premiums/surplus (2)	1.58:1			1.55:1			1.57:1		1.56:1			1.54:1		1.51:1			1.55:1		Not Meaningful

(1)Includes the accounting acquisition of St. Paul reserves as of April 1, 2004, totaling $13,713.

(2)Quarters through 1Q 2004 based on 12 month rolling net written premiums.  2Q 2004 based on annualized current quarter net written premium.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

6

The St. Paul Travelers Companies, Inc.

Written and Earned Premiums - - Property and Casualty Operations

($ in millions)

	1Q 2003						2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			YTD 2Q 2003			YTD 2Q 2004
Written premiums
Direct	$				3,633		$	3,672		$	3,881		$	3,791		$	3,923		$	5,905		$	7,305		$	9,828
Assumed	109						114			135			140			109			293			223			402
Ceded	(575					)	(517		)	(640		)	(542		)	(561		)	(937		)	(1,092		)	(1,498		)
Net	$			3,167			$	3,269		$	3,376		$	3,389		$	3,471		$	5,261		$	6,436		$	8,732
Earned premiums
Direct	$		3,403				$	3,540		$	3,605		$	3,776		$	3,758		$	5,909		$	6,943		$	9,667
Assumed	124						123			116			134			127			337			247			464
Ceded	(548					)	(563		)	(572		)	(593		)	(546		)	(1,092		)	(1,111		)	(1,638		)
Net	$	2,979					$	3,100		$	3,149		$	3,317		$	3,339		$	5,154		$	6,079		$	8,493

See Glossary of Financial Measures and Description of Operating Segments on page 34.

7

The St. Paul Travelers Companies, Inc.

Operating Income - Commercial

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003			2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		YTD 2Q 2003			YTD 2Q 2004
Revenues
Premiums	$	1,567		$	1,618	$	1,626	$	1,741	$	1,731	$	2,358	$	3,185		$	4,089
Net investment income	318			320		326		360		423		413		638			836
Fee income	133			127		131		154		168		164		260			332
Other revenues	3			17		4		9		14		12		20			26
Total revenues	2,021			2,082		2,087		2,264		2,336		2,947		4,103			5,283
Claims and expenses
Claims and claim adjustment expenses	1,342			1,198		1,171		1,459		1,198		1,661		2,540			2,859
Amortization of deferred acquisition costs	229			237		250		255		254		350		466			604
General and administrative expenses	232			254		237		263		287		436		486			723
Interest expense	1			1		1		1		1		1		2			2
Total claims and expenses	1,804			1,690		1,659		1,978		1,740		2,448		3,494			4,188
Operating income before federal income taxes and minority interest	217			392		428		286		596		499		609			1,095
Income taxes	35			93		97		43		163		134		128			297
Minority interest, net of tax	(25		)	5		2		11		3		1		(20		)	4
Operating income (loss)	$	207		$	294	$	329	$	232	$	430	$	364	$	501		$	794

See Glossary of Financial Measures and Description of Operating Segments on page 34.

8

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - Commercial

($ in millions, net of tax)

Historical results conform with current business segment definitions.

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			YTD 2Q 2003			YTD 2Q 2004
Underwriting gain (loss)	(64		)	42			78			(39		)	109			37			(22		)	146
Net investment income	243			245			249			277			314			320			488			634
Other, including minority interest	28			7			2			(6		)	7			7			35			14
Operating Income	$	207		$	294		$	329		$	232		$	430		$	364		$	501		$	794
GAAP Combined ratio (1,2)
Loss and loss adjustment expense ratio	81.7		%	71.1		%	68.4		%	80.1		%	64.5		%	67.8		%	76.4		%	66.3		%
Underwriting expense ratio	24.5		%	25.3		%	25.2		%	24.7		%	25.9		%	29.5		%	24.9		%	28.0		%
Combined ratio	106.2		%	96.4		%	93.6		%	104.8		%	90.4		%	97.3		%	101.3		%	94.3		%

(1)Before policyholder dividends.

(2)Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and other underwriting expenses as follows:

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		YTD 2Q 2003		YTD 2Q 2004
Billing and policy fees	$	2	$	2	$	2	$	2	$	2	$	4	$	4	$	6
Fee income:
Loss and loss adjustment expenses	$	59	$	45	$	56	$	69	$	77	$	78	$	104	$	155
Other underwriting expenses	74		82		75		85		91		86		156		177
Total fee income	$	133	$	127	$	131	$	154	$	168	$	164	$	260	$	332

See Glossary of Financial Measures and Description of Operating Segments on page 34.

9

The St. Paul Travelers Companies, Inc.

Selected Statistics - Commercial

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003			2Q 2003		3Q 2003		4Q 2003			1Q 2004		2Q 2004			YTD 2Q 2003			YTD 2Q 2004
Statutory underwriting
Net written premiums	$	1,702		$	1,626	$	1,708	$	1,826		$	1,765	$	2,230		$	3,328		$	3,995
Net earned premiums	$	1,567		$	1,618	$	1,626	$	1,741		$	1,731	$	2,358		$	3,185		$	4,089
Losses and loss adjustment expenses	1,289			1,152		1,124		1,402			1,126		1,607			2,441			2,733
Underwriting expenses	386			408		421		430			443		693			794			1,136
Statutory underwriting gain (loss)	(108		)	58		81		(91		)	162		58			(50		)	220
Policyholder dividends	2			2		3		(5		)	5		(14		)	4			(9		)
Statutory underwriting gain (loss) after policyholder dividends	$	(110	)	$	56	$	78	$	(86	)	$	157	$	72		$	(54	)	$	229
Other statistics
Net Investment Income (after-tax)	$	243		$	245	$	249	$	277		$	314	$	320		$	488		$	634
Catastrophe losses, net of reinsurance (pre-tax)	$	30		$	42	$	35	$	(4	)	$	—	$	—		$	72		$	—
Asbestos and environmental losses (pre-tax)	$	—		$	—	$	—	$	60		$	—	$	202		$	—		$	202

See Glossary of Financial Measures and Description of Operating Segments on page 34.

10

The St. Paul Travelers Companies, Inc.

Net Written Premiums - Commercial

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		YTD 2Q 2003		YTD 2Q 2004
Net written premiums by market
Commercial accounts	$	798	$	751	$	796	$	906	$	848	$	1,116	$	1,549	$	1,964
Select accounts	509		517		506		515		531		709		1,026		1,240
National accounts	206		169		232		224		240		237		375		477
Total Core	1,513		1,437		1,534		1,645		1,619		2,062		2,950		3,681
Commercial other	189		189		174		181		146		168		378		314
Total	$	1,702	$	1,626	$	1,708	$	1,826	$	1,765	$	2,230	$	3,328	$	3,995
Net written premiums by product line
Commercial multi-peril	$	572	$	533	$	539	$	602	$	606	$	610	$	1,105	$	1,216
Workers’ compensation	319		266		329		320		350		361		585		711
Commercial automobile	320		333		333		327		326		432		653		758
Property	278		271		286		331		298		451		549		749
General liability	193		199		210		231		182		353		392		535
Other	20		24		11		15		3		23		44		26
Total	$	1,702	$	1,626	$	1,708	$	1,826	$	1,765	$	2,230	$	3,328	$	3,995
National Accounts
Additions to claim volume under administration (1)	$	1,097	$	702	$	682	$	809	$	1,309	$	707	$	1,799	$	2,016
Written fees	$	182	$	145	$	141	$	162	$	214	$	159	$	327	$	373

(1)Includes new and renewal business.

11

The St. Paul Travelers Companies, Inc.

Proforma Net Written Premiums - Commercial

($ in millions)

This page displays proforma combined net written premiums, an operating statistic, of Travelers and St. Paul, prior to the merger and for St. Paul Travelers for second quarter 2004.

	1Q 2003		2Q 2003		3Q 2003		4Q 2003			1Q 2004		2Q 2004		YTD 2Q 2003		YTD 2Q 2004
Net written premiums by market
Commercial accounts	$	1,192	$	1,092	$	1,227	$	1,313		$	1,262	$	1,116	$	2,284	$	2,378
Select accounts	670		691		730		698			706		709		1,361		1,415
National accounts	238		211		267		261			282		237		449		519
Total Core	2,100		1,994		2,224		2,272			2,250		2,062		4,094		4,312
Commercial other	305		271		233		141			166		168		576		334
Total	2,405		2,265		2,457		2,413			2,416		$	2,230	4,670		4,646
Less: Pre-Merger St. Paul	703		639		749		587			651				1,342		651
Total Commercial excluding Pre-Merger St. Paul	$	1,702	$	1,626	$	1,708	$	1,826		$	1,765			$	3,328	$	3,995
Net written premiums by product line
Commercial multi-peril	$	620	$	587	$	607	$	662		$	660	$	610	$	1,207	$	1,270
Workers’ compensation	399		355		451		428			460		361		754		821
Commercial automobile	435		427		465		446			440		432		862		872
Property	468		441		495		520			494		451		909		945
General liability	373		352		370		379			339		353		725		692
Other	110		103		69		(22		)	23		23		213		46
Total	$	2,405	$	2,265	$	2,457	$	2,413		$	2,416	$	2,230	$	4,670	$	4,646
National Accounts
Additions to claim volume under administration (1)	$	1,097	$	702	$	682	$	809		$	1,309	$	707	$	1,799	$	2,016
Written fees	$	186	$	147	$	143	$	166		$	218	$	159	$	333	$	377

(1)Includes new and renewal business.

12

The St. Paul Travelers Companies, Inc.

Operating Income - Specialty

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004			2Q 2004			YTD 2Q 2003		YTD 2Q 2004
Revenues
Premiums	$	274	$	289	$	291	$	317	$	311		$	1,428		$	563	$	1,739
Net investment income	48		45		42		48		51			135			93		186
Fee income	3		7		3		2		4			7			10		11
Other revenues	—		3		3		2		2			3			3		5
Total revenues	325		344		339		369		368			1,573			669		1,941
Claims and expenses
Claims and claim adjustment expenses	145		155		158		156		304			2,375			300		2,679
Amortization of deferred acquisition costs	49		52		54		57		56			227			101		283
General and administrative expenses	55		55		56		56		58			268			110		326
Interest expense	—		—		—		—		—			—			—		—
Total claims and expenses	249		262		268		269		418			2,870			511		3,288
Operating income before federal income taxes and minority interest	76		82		71		100		(50		)	(1,297		)	158		(1,347		)
Income taxes	21		24		20		30		(22		)	(459		)	45		(481		)
Minority interest, net of tax	—		—		—		—		—			—			—		—
Operating income (loss)	$	55	$	58	$	51	$	70	$	(28	)	$	(838	)	$	113	$	(866	)

See Glossary of Financial Measures and Description of Operating Segments on page 34.

13

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - Specialty

($ in millions, net of tax)

Historical results conform with current business segment definitions.

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			YTD 2Q 2003			YTD 2Q 2004
Underwriting gain (loss)	18			21			17			32			(68		)	(939		)	39			(1,007		)
Net investment income	37			34			33			36			38			99			71			137
Other, including minority interest	—			3			1			2			2			2			3			4
Operating Income (loss)	$	55		$	58		$	51		$	70		$	(28	)	$	(838	)	$	113		$	(866	)
GAAP Combined ratio (1,2)
Loss and loss adjustment expense ratio	52.6		%	51.0		%	53.9		%	48.2		%	97.7		%	165.7		%	51.8		%	153.6		%
Underwriting expense ratio	37.2		%	35.2		%	36.5		%	35.2		%	35.2		%	34.5		%	36.2		%	34.6		%
Combined ratio	89.8		%	86.2		%	90.4		%	83.4		%	132.9		%	200.2		%	88.0		%	188.2		%

(1)Before policyholder dividends.

(2)Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and other underwriting expenses as follows:

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004			2Q 2004		YTD 2Q 2003		YTD 2Q 2004
Billing and policy fees	$	—	$	—	$	—	$	—	$	—		$	—	$	—	$	—
Fee income:
Loss and loss adjustment expenses	$	—	$	2	$	—	$	—	$	(1	)	$	5	$	2	$	4
Other underwriting expenses	3		5		3		2		5			2		8		7
Total fee income	$	3	$	7	$	3	$	2	$	4		$	7	$	10	$	11

See Glossary of Financial Measures and Description of Operating Segments on page 34.

14

The St. Paul Travelers Companies, Inc.

Selected Statistics - Specialty

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003						2Q 2003		3Q 2003		4Q 2003		1Q 2004			2Q 2004			YTD 2Q 2003		YTD 2Q 2004
Statutory underwriting
Net written premiums	$					315	$	332	$	312	$	299	$	340		$	1,473		$	647	$	1,813
Net earned premiums	$				274		$	289	$	291	$	317	$	311		$	1,435		$	563	$	1,746
Losses and loss adjustment expenses	144						153		157		159		304			2,382			297		2,686
Underwriting expenses	106						107		109		109		114			513			213		627
Statutory underwriting gain (loss)	24						29		25		49		(107		)	(1,460		)	53		(1,567		)
Policyholder dividends	2						6		1		2		1			4			8		5
Statutory underwriting gain (loss) after policyholder dividends	$			22			$	23	$	24	$	47	$	(108	)	$	(1,464	)	45		$	(1,572	)
Other statistics
Net Investment Income (after-tax)	$		37				$	34	$	33	$	36	$	38		$	99		$	71	$	137
Catastrophe losses, net of reinsurance (pre-tax)	$		—				$	—	$	—	$	—	$	—		$	—		$	—	$	—
Asbestos and environmental losses (pre-tax)	$	—					$	—	$	—	$	—	$	—		$	7		$	—	$	7

See Glossary of Financial Measures and Description of Operating Segments on page 34.

15

The St. Paul Travelers Companies, Inc.

Net Written Premiums - Specialty

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		YTD 2Q 2003		YTD 2Q 2004
Net written premiums by market
Domestic Specialty	315		332		312		299		340		1132		647		1472
International Specialty	—		—		—		—		—		341		—		341
Total	$	315	$	332	$	312	$	299	$	340	$	1,473	$	647	$	1,813
Net written premiums by product line
Workers’ compensation	$	39	$	35	$	20	$	22	$	28	$	131	$	74	$	159
Commercial automobile	33		27		22		23		31		107		60		138
Property	4		4		5		5		4		96		8		100
General liability	—		—		—		—		—		197		—		197
International	—		—		—		—		—		341		—		341
Other	239		266		265		249		277		601		505		878
Total	$	315	$	332	$	312	$	299	$	340	$	1,473	$	647	$	1,813

16

The St. Paul Travelers Companies, Inc.

Proforma Net Written Premiums - - Specialty

($ in millions)

This page displays proforma combined net written premiums, an operating statistic, of Travelers and St. Paul, prior to the merger and for St. Paul Travelers for second quarter 2004.

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		YTD 2Q 2003		YTD 2Q 2004
Net written premiums by market
Domestic Specialty	1119		1247		1222		1199		1187		1132		2366		2319
International Specialty	468		240		289		333		310		341		708		651
Total	1,587		1,487		1,511		1,532		1,497		$	1,473	3,074		2,970
Less: Pre-Merger St. Paul	1,272		1,155		1,199		1,233		1,157				2,427		1,157
Total Specialty excluding Pre-Merger St. Paul	$	315	$	332	$	312	$	299	$	340			$	647	$	1,813
Net written premiums by product line
Workers’ compensation	$	179	$	158	$	124	$	146	$	165	$	131	$	337	$	296
Commercial automobile	137		141		116		125		125		107		278		232
Property	78		121		134		111		97		96		199		193
General liability	213		192		174		180		202		225		405		427
International	468		240		289		334		310		341		708		651
Other	512		635		674		636		598		573		1,147		1,171
Total	$	1,587	$	1,487	$	1,511	$	1,532	$	1,497	$	1,473	$	3,074	$	2,970

17

The St. Paul Travelers Companies, Inc.

Operating Income - Personal

($ in millions)

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2003		2003		2003		2003		2004		2004		2003		2004
Revenues
Premiums	$	1,138	$	1,193	$	1,232	$	1,259	$	1,297	$	1,368	$	2,331	$	2,665
Net investment income	89		91		90		91		145		93		180		238
Other revenues	22		23		20		20		23		21		45		44
Total revenues	1,249		1,307		1,342		1,370		1,465		1,482		2,556		2,947
Claims and expenses
Claims and claim adjustment expenses	801		858		908		768		779		833		1,659		1,612
Amortization of deferred acquisition costs	184		195		208		213		216		228		379		444
General and administrative expenses	102		100		102		116		119		132		202		251
Total claims and expenses	1,087		1,153		1,218		1,097		1,114		1,193		2,240		2,307
Operating income before federal income taxes	162		154		124		273		351		289		316		640
Income taxes	50		47		36		88		114		92		97		206
Operating income	$	112	$	107	$	88	$	185	$	237	$	197	$	219	$	434

See Glossary of Financial Measures and Description of Operating Segments on page 34.

18

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - Personal

($ in millions, net of tax)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2003			2003			2003			2003			2004			2004			2003			2004
Underwriting gain	34			26			10			105			119			113			60			232
Net investment income	64			66			65			66			102			70			130			172
Other	14			15			13			14			16			14			29			30
Operating income	$	112		$	107		$	88		$	185		$	237		$	197		$	219		$	434
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	70.4		%	71.9		%	73.7		%	61.0		%	60.1		%	60.9		%	71.2		%	60.5		%
Underwriting expense ratio	23.3		%	23.1		%	23.6		%	24.6		%	24.2		%	24.7		%	23.2		%	24.5		%
Combined ratio	93.7		%	95.0		%	97.3		%	85.6		%	84.3		%	85.6		%	94.4		%	85.0		%

(1)Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other underwriting expenses.  Billing and policy fees are as follows:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2003		2003		2003		2003		2004		2004		2003		2004
Billing and policy fees	$	20	$	20	$	20	$	20	$	21	$	22	$	40	$	43

See Glossary of Financial Measures and Description of Operating Segments on page 34.

19

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal

($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2003			2003			2003			2003			2004			2004			2003			2004
Statutory underwriting
Net written premiums by product line
Automobile	$	737		$	778		$	796		$	743		$	847		$	892		$	1,515		$	1,739
Homeowners and other	413			533			560			521			519			666			946			1,185
Total	$	1,150		$	1,311		$	1,356		$	1,264		$	1,366		$	1,558		$	2,461		$	2,924
Net written premiums by distribution channel
Independent agents	$	945		$	1,075		$	1,110		$	1,029		$	1,134		$	1,286		$	2,020		$	2,420
Other channels	205			236			246			235			232			272			441			504
Total	$	1,150		$	1,311		$	1,356		$	1,264		$	1,366		$	1,558		$	2,461		$	2,924
Net earned premiums	$	1,138		$	1,193		$	1,232		$	1,259		$	1,297		$	1,368		$	2,331		$	2,665
Losses and loss adjustment expenses	801			858			908			768			779			829			1,659			1,608
Underwriting expenses	280			312			333			331			346			397			592			743
Statutory underwriting gain (loss)	$	57		$	23		$	(9	)	$	160		$	172		$	142		$	80		$	314
						��
Other statistics
Effective tax rate on net investment income	27.5		%	27.4		%	27.1		%	27.0		%	29.6		%	24.2		%	27.5		%	27.4		%
Net investment income (after-tax)	$	64		$	66		$	65		$	66		$	102		$	70		$	130		$	172
Catastrophe losses, net of reinsurance (pre-tax)	$	37		$	69		$	92		$	50		$	20		$	24		$	106		$	44
Policies in force (in thousands)
Automobile	1,995			2,016			2,045			2,069			2,157			2,234			2,016			2,234
Homeowners and other	3,201			3,247			3,319			3,380			3,493			3,650			3,247			3,650

See Glossary of Financial Measures and Description of Operating Segments on page 34.

20

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal (Automobile)

($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2003			2003			2003			2003			2004			2004			2003			2004
Statutory underwriting
Net written premiums by distribution channel
Independent agents	$	630		$	667		$	687		$	634		$	733		$	772		$	1,297		$	1,505
Other channels	107			111			109			109			114			120			218			234
Total	$	737		$	778		$	796		$	743		$	847		$	892		$	1,515		$	1,739
Net earned premiums	$	706		$	737		$	753		$	759		$	782		$	825		$	1,443		$	1,607
Losses and loss adjustment expenses	526			551			569			564			577			596			1,077			1,173
Underwriting expenses	169			173			185			179			199			205			342			404
Statutory underwriting gain (loss)	$	11		$	13		$	(1	)	$	16		$	6		$	24		$	24		$	30
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	74.4		%	74.8		%	75.5		%	74.3		%	73.7		%	72.7		%	74.6		%	73.2		%
Underwriting expense ratio	22.2		%	21.4		%	22.3		%	22.2		%	22.7		%	22.4		%	21.8		%	22.5		%
Combined ratio	96.6		%	96.2		%	97.8		%	96.5		%	96.4		%	95.1		%	96.4		%	95.7		%
Catastrophe losses, net of reinsurance (pre-tax)	$	—		$	7		$	3		$	—		$	—		$	—		$	7		$	—
Policies in force (in thousands)	1,995			2,016			2,045			2,069			2,157			2,234			2,016			2,234
Change from prior year quarter	1.8		%	2.0		%	3.0		%	4.1		%	8.1		%	10.8		%
Change from prior quarter	0.4		%	1.1		%	1.4		%	1.2		%	4.3		%	3.6		%

(1)Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other underwriting expenses.  Billing and policy fees are as follows:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2003		2003		2003		2003		2004		2004		2003		2004
Billing and policy fees	$	13	$	13	$	13	$	13	$	14	$	14	$	26	$	28

See Glossary of Financial Measures and Description of Operating Segments on page 34.

21

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal (Homeowners and Other)

($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2003			2003			2003			2003			2004			2004			2003			2004
Statutory underwriting
Net written premiums by distribution channel
Independent agents	$	315		$	408		$	423		$	395		$	401		$	514		$	723		$	915
Other channels	98			125			137			126			118			152			223			270
Total	$	413		$	533		$	560		$	521		$	519		$	666		$	946		$	1,185
Net earned premiums	$	432		$	456		$	479		$	500		$	515		$	543		$	888		$	1,058
Losses and loss adjustment expenses	275			307			339			204			202			233			582			435
Underwriting expenses	111			139			148			152			147			192			250			339
Statutory underwriting gain (loss)	$	46		$	10		$	(8	)	$	144		$	166		$	118		$	56		$	284
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	63.8		%	67.2		%	70.7		%	40.8		%	39.2		%	42.9		%	65.5		%	41.1		%
Underwriting expense ratio	25.3		%	25.8		%	25.6		%	28.3		%	26.6		%	28.2		%	25.6		%	27.4		%
Combined ratio	89.1		%	93.0		%	96.3		%	69.1		%	65.8		%	71.1		%	91.1		%	68.5		%
Catastrophe losses, net of reinsurance (pre-tax)	$	37		$	62		$	89		$	50		$	20		$	24		$	99		$	44
Policies in force (in thousands)	3,201			3,247			3,319			3,380			3,493			3,650			3,247			3,650
Change from prior year quarter	1.1		%	2.6		%	4.7		%	6.3		%	9.1		%	12.4		%
Change from prior quarter	0.6		%	1.4		%	2.2		%	1.8		%	3.3		%	4.5		%

(1)Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other underwriting expenses.  Billing and policy fees are as follows:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2003		2003		2003		2003		2004		2004		2003		2004
Billing and policy fees	$	7	$	7	$	7	$	7	$	7	$	8	$	14	$	15

See Glossary of Financial Measures and Description of Operating Segments on page 34.

22

The St. Paul Travelers Companies, Inc.

Asset Management

($ in millions)

	2Q
	2004
Revenues
Investment advisory fees from assets under management	$	115
Underwriting and distribution of investment products	2
Interest	—
Other	4
Total revenues	121
Expenses
Employee compensation and benefits	39
Other	26
Total expenses	65
Income before minority interest and income taxes	56
Income taxes	22
Income before minority interest	34
Minority interest, net of tax	7
Net income	$	27
Other Information
Assets under management	$	101,857
Net investment flows	$	3,108

See Glossary of Financial Measures and Description of Operating Segments on page 34.

23

The St. Paul Travelers Companies, Inc.

Operating Income (Loss) - Interest Expense and Other

($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2003			2003			2003			2003			2004			2004			2003			2004
Revenues
Net investment income	$	1		$	—		$	—		$	—		$	—		$	1		$	1		$	1
Other revenues	—			—			1			—			—			2			—			2
Total revenues	1			—			1			—			—			3			1			3
Claims and expenses
Interest expense	51			39			37			35			35			62			90			97
General and administrative expenses	5			4			3			2			3			28			9			31
Total claims and expenses	56			43			40			37			38			90			99			128
Operating loss before federal income tax benefit	(55		)	(43		)	(39		)	(37		)	(38		)	(87		)	(98		)	(125		)
Income taxes	(20		)	(15		)	(14		)	(13		)	(13		)	(26		)	(35		)	(39		)
Minority Interest, net of tax	—			—			—			—			—			(1		)	—			(1		)
Operating loss	$	(35	)	$	(28	)	$	(25	)	$	(24	)	$	(25	)	$	(60	)	$	(63	)	$	(85	)

See Glossary of Financial Measures and Description of Operating Segments on page 34.

24

The St. Paul Travelers Companies, Inc.

Consolidated Balance Sheet

(in millions, except shares and per share data)

	June 30,			December 31,
	2004 (1)			2003
Assets
Fixed maturities, available for sale at fair value (including $1,886 and $696 subject to securities lending and repurchase agreements) (amortized cost $49,870 and $31,478)	$	50,024		$	33,046
Equity securities, at fair value (cost $812 and $672)	852			733
Real estate	1,079			2
Mortgage loans	237			211
Short-term securities	4,370			2,138
Other investments	3,658			2,523
Total investments	60,220			38,653
Cash	207			352
Investment income accrued	629			362
Premium balances receivable	6,606			4,090
Reinsurance recoverables	18,043			11,174
Ceded unearned premiums	1,423			939
Deferred acquisition costs	1,618			965
Deferred federal income taxes	2,248			678
Contractholder receivables	5,103			3,121
Goodwill	5,311			2,412
Intangible assets	1,753			422
Other assets	3,447			1,704
Total assets	$	106,608		$	64,872
Liabilities
Claims and claim adjustment expenses	$	56,290		$	34,573
Unearned premiums	11,501			7,111
Contractholder payables	5,103			3,121
Debt	6,358			2,675
Payables for reinsurance premiums	918			403
Payables for securities lending and repurchase agreements	—			711
Other liabilities	6,508			4,291
Total liabilities	86,678			52,885
Shareholders’ equity
Preferred stock:
Stock Ownership Plan - convertible preferred stock (Shares issued and outstanding 0.7)	214			—
Guaranteed obligation - Stock Ownership Plan	(15		)	—
Common stock (Shares authorized 1,750; Shares issued 438; Shares outstanding 669 and 436) (2)	17,329			10
Additional paid-in capital	—			8,705
Retained earnings	2,393			2,290
Accumulated other changes in equity from nonowner sources	127			1,086
Treasury stock, at cost (Shares 0.1 and 2.0)	(6		)	(74		)
Unearned compensation	(112		)	(30		)
Total shareholders’ equity	19,930			11,987
Total liabilities and shareholders’ equity	$	106,608		$	64,872

(1)Preliminary.

(2)The number of shares for all periods presented has been restated to reflect the equivalent number of shares resulting from the exchange of Travelers common stock for St. Paul Travelers common stock due to the merger on April 1, 2004.  In addition, common stock and additional paid-in capital have been restated to give effect to the difference in par value of the exchanged shares.  Upon consummation of the merger on April 1, 2004, Travelers class A and class B common stock was converted to St. Paul Travelers common stock and the Travelers treasury stock was cancelled.

25

The St. Paul Travelers Companies, Inc.

Investment Portfolio

(at carrying value, in millions)

	June 30,		Pre-tax Book		December 31,		Pre-tax Book
	2004		Yield (1)		2003		Yield
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	28,433	4.89	%	$	17,655	5.54	%
Tax-exempt fixed maturities	21,591		4.16	%	15,391		4.47	%
Total fixed maturities	50,024		4.57	%	33,046		5.04	%
Non-redeemable preferred stocks	669		6.65	%	644		6.89	%
Common stocks	183		N/A		89		N/A
Total equity securities	852		N/A		733		N/A
Mortgage loans	237		16.09	%	211		10.19	%
Real estate	1,079		N/A		2		N/A
Short-term securities	4,370		1.12	%	2,138		1.08	%
Private equities	1,851		N/A		1,226		N/A
Arbitrage funds	953		N/A		983		N/A
Real Estate Joint Ventures & Other	812		N/A		257		N/A
Trading securities	42		N/A		57		N/A
Total other investments	3,658		N/A		2,523		N/A
Total investments	$	60,220	4.39	%	$	38,653	4.86	%
Net unrealized gain on investment securities, net of tax and minority interest, included in shareholders’ equity	$	141			$	1,060

(1)The reduction in pre-tax book yield reflects the purchase accounting adjustment on the St Paul investment portfolio.

26

The St. Paul Travelers Companies, Inc.

Investment Portfolio - Fixed Maturities Data

(at carrying value, in millions)

	June 30,		December 31,
	2004		2003
Fixed maturities
Mortgage-backed securities - principally obligations of U.S. Government agencies	$	9,537	$	7,738
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	2,787		1,384
Corporates (including redeemable preferreds)	14,072		8,241
Obligations of states and political subdivisions	21,819		15,427
Debt securities issued by foreign governments	1,809		256
Subtotal - Available-for-sale securities	50,024		33,046
Trading securities	22		33
Total fixed maturities	$	50,046	$	33,079

Fixed Maturities Quality Characteristics (1)

	June 30, 2004
	Amount		% of Total
Quality Ratings
Aaa	$	29,602	59.2	%
Aa	9,344		18.7
A	4,863		9.7
Baa	4,227		8.4
Total investment grade	48,036		96.0
Ba	935		1.9
B	736		1.5
Caa and lower	317		0.6
Total below investment grade	1,988		4.0
Total fixed maturities, excluding trading securities	$	50,024	100.0	%
Trading securities	$	22
Average weighted quality	AA2, AA
Average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases	4.2

(1)Rated using external rating agencies, or by St. Paul Travelers when a public rating does not exist.  Below investment grade assets refer to securities rated “Ba” or below.

27

The St. Paul Travelers Companies, Inc.

Net Investment Income

($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2003			2003			2003			2003			2004			2004			2003			2004
Gross investment income
Fixed maturities	$	391		$	371		$	372		$	393		$	412		$	555		$	762		$	967
Short-term securities	37			38			23			9			9			12			75			21
Mortgage loans	6			6			9			5			4			14			12			18
Other (1)	35			58			67			103			249			67			93			316
	469			473			471			510			674			648			942			1,322
Investment expenses (1)	13			17			13			11			55			6			30			61
Net investment income, pre-tax	456			456			458			499			619			642			912			1,261
Income taxes	112			111			111			120			165			152			223			317
Net investment income, after-tax	$	344		$	345		$	347		$	379		$	454		$	490		$	689		$	944
Effective tax rate	24.6		%	24.3		%	24.2		%	24.1		%	26.6		%	23.7		%	24.5		%	25.1		%
Average invested assets (2)	$	34,373		$	35,182		$	35,454		$	36,216		$	37,097		$	59,510		$	34,778		$	48,304
Average yield pre-tax	5.3		%	5.2		%	5.2		%	5.6		%	6.7		%	4.3		%	5.2		%	5.2		%
Average yield after-tax	4.0		%	3.9		%	3.9		%	4.2		%	4.9		%	3.3		%	4.0		%	3.9		%

(1)Includes $167 million and $39 million of gross investment income and investment expenses, respectively, in 1Q 2004 resulting from the the impact of an initial public offering of a private equity investment.  Commercial, Specialty and Personal include $82 million, $3 million and $42 million of pre-tax net investment income ($54 million, $2 million and $27 million after-tax), respectively, related to this private equity investment.

(2)Reduced by payables for securities lending and repurchase agreements and excludes net unrealized investment gains and losses, receivables for investment sales, and payables on investment purchases.

28

The St. Paul Travelers Companies, Inc.

Net Realized and Unrealized Investment Gains (Losses)

($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2003			2003			2003			2003			2004			2004			2003			2004
Net realized investment gains (losses)
Fixed maturities	$	27		$	55		$	(40	)	$	27		$	12		$	38		$	82		$	50
Equity securities	3			(1		)	4			—			1			1			2			2
Other	(23		)	(38		)	12			11			(55		)	16			(61		)	(39		)
Realized investment gains (losses) before tax and minority interest	7			16			(24		)	38			(42		)	55			23			13
Related taxes	2			6			(8		)	13			(15		)	20			8			5
Minority interest, net of tax	3			—			1			—			—			—			3			—
Net realized investment gains (losses)	$	2		$	10		$	(17	)	$	25		$	(27	)	$	35		$	12		$	8
Gross investment gains (1)	$	94		$	251		$	251		$	235		$	135		$	371		$	345		$	506
Gross investment losses before impairments (1)	(29		)	(216		)	(268		)	(191		)	(166		)	(293		)	(245		)	(459		)
Impairments	(58		)	(19		)	(7		)	(6		)	(11		)	(23		)	(77		)	(34		)
Realized investment gains (losses) before tax and minority interest	7			16			(24		)	38			(42		)	55			23			13
Related taxes	2			6			(8		)	13			(15		)	20			8			5
Minority interest, net of tax	3			—			1			—			—			—			3			—
Net realized investment gains (losses)	$	2		$	10		$	(17	)	$	25		$	(27	)	$	35		$	12		$	8

	March 31,			June 30,			September 30,			December 31,			March 31,			June 30,
	2003			2003			2003			2003			2004			2004
Net unrealized investment gains (losses), by asset type
Fixed maturities	$	1,310		$	1,819		$	1,562		$	1,567		$	1,805		$	154
Equity securities & Other	13			56			50			60			75			71
Unrealized investment gains before tax and minority interest	1,323			1,875			1,612			1,627			1,880			225
Related taxes	459			653			564			569			658			84
Minority interest, net of tax	(5		)	(2		)	(3		)	(2		)	(1		)	—
Balance, end of period	$	869		$	1,224		$	1,051		$	1,060		$	1,223		$	141

(1)Includes gross investment gains and gross investment losses of $1 million and $7 million, $123 million and $167 million, $207 million and $194 million, $175 million and $164 million, $105 million and $160 million, and $161 and $104 in 1Q 2003, 2Q 2003, 3Q 2003, 4Q 2003, 1Q 2004 and 2Q 2004, respectively, related to U.S. Treasury futures which are settled daily.  The Company entered into these arrangements as part of its strategy to shorten the duration of the fixed maturity portfolio. In a changing interest rate environment the change in the value of the futures contracts can be expected to partially offset changes in the value of the fixed maturity portfolio.

29

The St. Paul Travelers Companies, Inc.

Reinsurance Recoverables

($ in millions)

	June 30,			December 31,
	2004			2003
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	12,401		$	6,946
Allowance for uncollectible reinsurance	(739		)	(387		)
Net reinsurance recoverables	11,662			6,559
Mandatory pools and associations	2,432			2,204
Structured settlements	3,949			2,411
Total reinsurance recoverables	$	18,043		$	11,174

The gross reinsurance recoverable on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and unassertedclaims.  The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves.  Although this total comprises recoverables due from nearly one thousanddifferent reinsurance entities, about half is attributable to 10 reinsurer groups.

The allowance for uncollectible reinsurance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, andother relevant factors.

The mandatory pools and associations represent various involuntary assigned risk pools that the Company is required to participate in.  These pools principally involve workers’ compensationand automobile insurance, which provide various insurance coverages to insureds that otherwise are unable to purchase coverage in the open market.  The costs of these mandatory pools inmost states are usually charged back to the participating members in proportion to voluntary writings of related business in that state.  In the event that a member of the pool becomesinsolvent, the remaining members assume an additional pro rata share of the pool’s liabilities.

The structured settlements represent annuities that are purchased from life insurance companies to settle personal physical injury claims, with workers’ compensation claims comprising a significantproportion.  The Company retains the ultimate liability to the claimant in the event that the assigned company fails to pay, so the amount is reflected as a liability and as a recoverable for GAAP purposes.

During the first quarter of 2004, the Company entered into an agreement to settle all current and future reinsurance claims against certain underwriters at Lloyds of London reinsured by Equitas.  Underterms of this settlement, the Company received $245 million, resolving approximately $255 million of Travelers’ net claim balances from Equitas.  If federal asbestos reform legislation is enacted by the108th U.S. Congress, Equitas may elect to recoup $150 million from Travelers and, if Equitas makes that election, the reinsurance agreements for asbestos coverage will be reinstated.  As a result,these funds are being held in trust, and the related reinsurance recoverables and reserves will remain on the balance sheet until the contingency is resolved.  There are no contingencies related to theremaining $95 million, which has been reflected as a reduction to the reinsurance recoverable.

During the second quarter of 2004, the Company entered into an agreement with a reinsurer to settle all current and future reinsurance claims related to various treaty reinsurance programs.  This commutation agreement settles $1.069 billion in net claim balances from this reinsurer and has been reflected as a reduction to the reinsurance recoverable.  In addition to the commutation, the Company entered into a new reinsurance agreement covering the 2000 accident year for the former St. Paul companies on an aggregate basis.

30

The St. Paul Travelers Companies, Inc.

Statutory Reserves for Losses and Loss Adjustment Expense

($ in millions)

Historical results conform with current business segment definitions.

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2003			2003			2003			2003			2004			2004			2003			2004
Commercial
Beginning of period	$	18,359		$	18,535		$	18,376		$	18,497		$	18,791		$	18,847		$	18,359		$	18,791
Incurred*	1,289			1,152			1,124			1,402			1,126			1,607			2,441			2,733
Paid	(1,113		)	(1,311		)	(1,003		)	(1,108		)	(1,070		)	(1,448		)	(2,424		)	(2,518		)
Acquired reserves, foreign exchange and other	—			—			—			—			—			8,436			—			8,436
End of period	$	18,535		$	18,376		$	18,497		$	18,791		$	18,847		$	27,442		$	18,376		$	27,442
Specialty
Beginning of period	$	1,963		$	1,916		$	1,940		$	1,971		$	2,020		$	2,204		$	1,963		$	2,020
Incurred*	144			153			157			159			304			2,382			297			2,686
Paid	(191		)	(129		)	(126		)	(110		)	(120		)	(607		)	(320		)	(727		)
Acquired reserves, foreign exchange and other	—			—			—			—			—			5,252			—			5,252
End of period	$	1,916		$	1,940		$	1,971		$	2,020		$	2,204		$	9,231		$	1,940		$	9,231
Personal
Beginning of period	$	2,959		$	3,028		$	3,106		$	3,259		$	3,218		$	3,233		$	2,959		$	3,218
Incurred*	801			858			908			768			779			829			1,659			1,608
Paid	(732		)	(780		)	(755		)	(809		)	(764		)	(752		)	(1,512		)	(1,516		)
Acquired reserves, foreign exchange and other	—			—			—			—			—			25			—			25
End of period	$	3,028		$	3,106		$	3,259		$	3,218		$	3,233		$	3,335		$	3,106		$	3,335
Total
Beginning of period	$	23,281		$	23,479		$	23,422		$	23,727		$	24,029		$	24,284		$	23,281		$	24,029
Incurred*	2,234			2,163			2,189			2,329			2,209			4,818			4,397			7,027
Paid	(2,036		)	(2,220		)	(1,884		)	(2,027		)	(1,954		)	(2,807		)	(4,256		)	(4,761		)
Acquired reserves, foreign exchange and other	—			—			—			—			—			13,713			—			13,713
End of period	$	23,479		$	23,422		$	23,727		$	24,029		$	24,284		$	40,008		$	23,422		$	40,008

* Includes prior year reserve development (benefit)/charge and accretion of discount:

Commercial
Prior year reserve development:
Asbestos	$	—		$	—		$	—		$	—		$	—		$	5		$	—		$	5
Environmental	—			—			—			60			—			197			—			197
All other	198			51			24			343			(6		)	(69		)	249			(75		)
Accretion of discount	20			15			17			18			16			17			35			33
Total Commercial	$	218		$	66		$	41		$	421		$	10		$	150		$	284		$	160
Specialty
Prior year reserve development:
Asbestos	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Environmental	—			—			—			—			—			7			—			7
All other	—			—			—			12			150			1,357			—			1,507
Accretion of discount	1			—			1			—			—			1			1			1
Total Specialty	$	1		$	—		$	1		$	12		$	150		$	1,365		$	1		$	1,515
Personal
Prior year reserve development:	$	(35	)	$	(37	)	$	(38	)	$	(102	)	$	(101	)	$	(100	)	$	(72	)	$	(201	)
Total	$	184		$	29		$	4		$	331		$	59		$	1,415		$	213		$	1,474

Note: All St Paul 1Q 2004 ending reserve balances are shown as acquired reserves during 2Q 2004.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

31

The St. Paul Travelers Companies, Inc.

Asbestos and Environmental Reserves

($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2003			2003			2003			2003			2004			2004			2003			2004
Asbestos reserves
Beginning reserves:
Direct	$	4,287		$	4,083		$	3,958		$	3,885		$	3,782		$	3,688		$	4,287		$	3,782
Ceded	(883		)	(861		)	(847		)	(819		)	(805		)	(799		)	(883		)	(805		)
Net	3,404			3,222			3,111			3,066			2,977			2,889			3,404			2,977
Acquired reserves:
Direct	—			—			—			—			—			502			—			502
Ceded	—			—			—			—			—			(191		)	—			(191		)
Incurred losses and loss expenses:
Direct	—			—			—			—			—			7			—			7
Ceded	—			—			—			—			—			(2		)	—			(2		)
Accretion of discount:
Direct	8			5			6			6			5			5			13			10
Ceded	(0		)	(0		)	(0		)	(0		)	(0		)	(0		)	(0		)	(0		)
Losses paid:
Direct	212			130			79			109			99			150			342			249
Ceded	(22		)	(14		)	(28		)	(14		)	(6		)	7			(36		)	1
Ending reserves:
Direct	4,083			3,958			3,885			3,782			3,688			4,052			3,958			4,052
Ceded	(861		)	(847		)	(819		)	(805		)	(799		)	(999		)	(847		)	(999		)
Net	$	3,222		$	3,111		$	3,066		$	2,977		$	2,889		$	3,053		$	3,111		$	3,053
Environmental reserves
Beginning reserves:
Direct	$	448		$	438		$	338		$	299		$	331		$	287		$	448		$	331
Ceded	(62		)	(54		)	(31		)	(34		)	(41		)	(39		)	(62		)	(41		)
Net	386			384			307			265			290			248			386			290
Acquired reserves:
Direct	—			—			—			—			—			271			—			271
Ceded	—			—			—			—			—			(58		)	—			(58		)
Incurred losses and loss expenses:
Direct	—			—			—			60			—			242			—			242
Ceded	—			—			—			—			—			(38		)	—			(38		)
Losses paid:
Direct	10			100			39			28			44			36			110			80
Ceded	(8		)	(23		)	3			7			(2		)	(27		)	(31		)	(29		)
Ending reserves:
Direct	438			338			299			331			287			764			338			764
Ceded	(54		)	(31		)	(34		)	(41		)	(39		)	(108		)	(31		)	(108		)
Net	$	384		$	307		$	265		$	290		$	248		$	656		$	307		$	656

See Glossary of Financial Measures and Description of Operating Segments on page 34.

32

The St. Paul Travelers Companies, Inc.

Capitalization

($ in millions)

	June 30,			December 31,
	2004			2003
Debt
Commercial paper	$	197		$	—
Nuveen investments’ third party debt	304			—
Convertible notes
4.5% Convertible Junior Subordinated Notes due April 15, 2032	893			893
Zero coupon convertible notes	114			—
6.00% Convertible notes payable due 2032	—			50
	1,007			943
Debt issuance costs	23			24
	984			919
Long-term debt
Medium-term notes with various due dates from 2004 to 2010	397			—
7.875% Notes due April 2005	238			—
7.125% Notes due 6/1/2005	79			—
6.75% Notes due 11/15/2006	150			150
5.75% Notes due March 2007	500			—
5.25% Notes due 2007	442			—
3.75% Notes due 3/15/2008	400			400
8.125% Notes due April 2010	250			—
7.81% Notes with various due dates from 9/16/2004 - 9/16/2011	24			24
5.00% Notes due 3/15/2013	500			500
7.75% Notes due 4/15/2026	200			200
7.625% Subordinated debentures due 2027	125			—
8.47% Subordinated debentures due 2027	81			—
6.375% Notes due 3/15/2033	500			500
8.50% Subordinated debentures due 2045	56			—
8.312% Subordinated debentures due 2046	73			—
7.60% Subordinated debentures due 2050	593			—
Total long-term debt	4,608			1,774
Unamortized fair value premium	282			—
Debt issuance costs	(17		)	(18		)
	4,873			1,756
Total debt	$	6,358		$	2,675
Minority interest	$	111		$	105
Preferred equity	$	199		$	—
Common equity (1)	$	19,590		$	10,926
Total Capital - Including equity, debt, and minority interest	$	26,258		$	13,706
Total debt to capital (1)	24.2		%	19.5		%

(1)  Excludes SFAS 115.

33

The St. Paul Travelers Companies, Inc.

Glossary of Financial Measures

All historical information through the first quarter of 2004 included in this Financial Supplement presents only results of Travelers as Travelers is being treated as the accounting acquirer.  Where applicable, historical results conform with current business segment definitions.

The following measures are used by the Company’s management to evaluate financial performance against historical results and establish targets on a consolidated basis.  These measures are components of net income but, in some cases, are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated statement of income, and in some cases, require inclusion or exclusion of certain items not ordinarily included or excluded in a GAAP financial measure.  In the opinion of the Company’s management, a discussion of these measures provides investors with a better understanding of the significant factors that comprise the Company’s periodic results of operations.

Operating income and operating income per share:  Net income excluding the after-tax impact of net realized investment gains (losses).

Return on equity is the ratio of net income to average equity.  Operating return on equity is the ratio of operating income to average equity excluding net unrealized gains and losses on investment securities, net of tax.

In the opinion of the Company’s management, operating income, operating income per share and operating return on equity are meaningful indicators of underwriting and operating results.  These measures exclude net realized investment gains or losses which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.  Internally the Company’s management uses operating income, operating income per share and operating return on equity to evaluate performance against historical results and established financial targets on a consolidated basis.

Underwriting gain or loss:  The profit or loss experienced by a property casualty insurance company after deducting claims and claim adjustment expenses and insurance related expenses from net earned premiums and fee income.  This profit or loss calculation includes reinsurance assumed and ceded but excludes net investment income. 

A catastrophe is a severe loss, resulting from natural and manmade events, including risks such as fire, earthquake, windstorm, explosion, terrorism and other similar events.  Each catastrophe has unique characteristics.  Catastrophes are not predictable as to timing or amount in advance, and therefore their effects are not included in earnings or claims and claim adjustment expense reserves prior to occurrence.  In the opinion of the Company’s management, a discussion of the impact of catastrophes is meaningful for investors to understand the variability in periodic earnings.

GAAP combined ratio is the sum of the claims and claim adjustment expense ratio, the underwriting expense ratio and, where applicable, the ratio of dividends to policyholders to net premiums earned. A GAAP combined ratio under 100% generally indicates an underwriting profit. A GAAP combined ratio over 100% generally indicates an underwriting loss. The GAAP combined ratio is an operating statistic that includes GAAP measures in the numerator and the denominator.

St. Paul Travelers has organized its businesses into the following operating and reporting segments, beginning with the second quarter 2004:

Commercial: Commercial – Core offers a broad array of property and casualty insurance and insurance-related services and is organized into the following three marketing and underwriting groups focusing on a particular client base or product grouping to provide products and services that specifically address clients’ needs: Commercial Accounts, Select Accounts and National Accounts. Commercial - Other includes policies written by Gulf, primarily management and professional liability coverages (prior to the integration of these products into Specialty), the Special Liability Group and runoff operations.

Specialty provides dedicated underwriting, claim and risk control services that require specialized expertise, domestically and internationally. Domestic specialty includes FPS, Bond, Construction, Other Domestic Specialties (including Technology, Ocean Marine, Oil and Gas, Public Sector, Excess and Umbrella, and others) and International Specialties based in the U.K., Ireland and Canada, as well as Lloyds.

Personal writes virtually all types of property and casualty insurance covering personal risks.  The primary coverages in this segment are personal automobile and homeowners insurance sold to individuals.

Asset Management comprisesNuveen Investments, whose core businesses are asset management and related research, as well as the development, marketing and distribution of investment products and services for the affluent, high net worth and institutional market segments.  The Company holds a 79% interest in Nuveen Investments.

* * * * *

Prior quarter segments have been restated from the historical presentation of Travelers to conform to the new St. Paul Travelers segment arrangement where practicable.  As a result, prior quarter Bond and Construction results were disaggregated from historical Travelers Commercial Lines segment to create a historical Specialty segment and to restate Commercial into the new format. 

Invested and other assets and net investment income (NII) of historical Travelers had been specifically identified by reporting segment prior to the merger.  Beginning in the second quarter 2004, the Company developed a methodology to allocate NII and invested assets across the new segments.  It is not practicable to apply the new methodology to historical businesses and as such, actual NII is included in revenues and operating income of the restated segments of quarters of periods prior to the merger.  It is also not practicable to present total assets for restated Specialty and Commercial segments for periods prior to the merger.  The Company believes that the differences, if any, are not significant to a comparison with the new segment presentation.

34