The Travelers Companies, Inc. (TRV) 8-K St. Paul Travelers Reports Third Quarter 2004 Net Income of

Exhibit 99.2

The St. Paul Travelers Companies, Inc.
Financial Supplement - Third 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

Commercial

Proforma Net Written Premium

Specialty

Operating Income

Operating Income by Major Component and Combined Ratio

Selected Statistics

Net Written Premium

Proforma Net Written Premium

Personal

Operating Income

Operating Income by Major Component and Combined Ratio

Selected Statistics

Selected Statistics - Automobile

Selected Statistics - Homeowners and Other

Supplemental Detail

Asset Management

Interest Expense and Other

Consolidated Balance Sheet

Investment Portfolio

Investment Portfolio - Fixed Maturities Data

Net Investment Income

Net Realized and Unrealized Investment Gains (Losses)

Reinsurance Recoverables

Net Reserves for Losses and Loss Adjustment Expense

Asbestos and Environmental Reserves

Capitalization

Statutory to GAAP Shareholders’ Equity Reconciliation

Statement of Cash Flows

Statement of Cash Flows (continued)

Glossary of Financial Measures and Description of Operating Segments

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			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Net income (loss)	$	340		$	441		$	426		$	489		$	587		$	(275	)	$	340		$	1,207		$	652
Net income (loss) per share (1):
Basic	$	0.78		$	1.02		$	0.98		$	1.13		$	1.35		$	(0.42	)	$	0.51		$	2.78		$	1.10
Diluted	$	0.78		$	1.01		$	0.98		$	1.12		$	1.34		$	(0.42	)	$	0.50		$	2.76		$	1.09
Operating income (loss)	$	339		$	431		$	442		$	463		$	614		$	(310	)	$	372		$	1,212		$	676
Operating income (loss) per share (1):
Basic	$	0.78		$	0.99		$	1.02		$	1.07		$	1.41		$	(0.47	)	$	0.56		$	2.79		$	1.14
Diluted	$	0.78		$	0.99		$	1.01		$	1.06		$	1.41		$	(0.47	)	$	0.54		$	2.78		$	1.13
Return on equity	13.1		%	16.1		%	15.0		%	16.7		%	19.0		%	(5.4		)%	6.7		%	14.8		%	4.9		%
Operating return on equity	14.2		%	17.4		%	17.3		%	17.4		%	21.9		%	(6.3		)%	7.5		%	16.3		%	5.3		%
Total assets, at period end	$	65,384		$	66,031		$	63,535		$	64,872		$	65,070		$	106,608		$	109,683		$	63,535		$	109,683
Total equity, at period end	$	10,561		$	11,316		$	11,472		$	11,987		$	12,674		$	19,930		$	20,889		$	11,472		$	20,889
Book value per share, at period end (1)	$	24.22		$	25.93		$	26.35		$	27.51		$	28.98		$	29.52		$	30.91		$	26.35		$	30.91
Adjusted book value per share, at period end	$	22.23		$	23.11		$	23.91		$	25.07		$	26.18		$	29.30		$	29.63		$	23.91		$	29.63
Weighted average number of common shares outstanding (basic) (1)	434.5			434.4			434.3			433.8			434.6			664.8			665.9			434.4			588.7
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			691.2			436.7			607.0
Common shares outstanding at period end (1)	436.1			436.4			435.4			435.8			437.3			668.5			669.2			435.4			669.2
Common stock dividends declared	$	60.5		$	60.4		$	80.5		$	80.4		$	80.6		$	146.9		$	147.1		$	201.4		$	374.6

(1)The number of shares and per share amounts for all periods presented have 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 37

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			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Net income (loss)
Operating income (loss)	$	339	$	431	$	442		$	463	$	614		$	(310	)	$	372		$	1,212		$	676
Net realized investment gains (losses)	1		10		(16		)	26		(27		)	35			(32		)	(5		)	(24		)
Net income (loss)	$	340	$	441	$	426		$	489	$	587		$	(275	)	$	340		$	1,207		$	652
Basic earnings per share (1)
Operating income (loss)	$	0.78	$	0.99	$	1.02		$	1.07	$	1.41		$	(0.47	)	$	0.56		$	2.79		$	1.14
Net realized investment gains (losses)	—		0.03		(0.04		)	0.06		(0.06		)	0.05			(0.05		)	(0.01		)	(0.04		)
Net income (loss)	$	0.78	$	1.02	$	0.98		$	1.13	$	1.35		$	(0.42	)	$	0.51		$	2.78		$	1.10
Diluted earnings per share (1)
Operating income (loss)	$	0.78	$	0.99	$	1.01		$	1.06	$	1.41		$	(0.47	)	$	0.54		$	2.78		$	1.13
Net realized investment gains (losses)	—		0.02		(0.03		)	0.06		(0.07		)	0.05			(0.04		)	(0.02		)	(0.04		)
Net income (loss)	$	0.78	$	1.01	$	0.98		$	1.12	$	1.34		$	(0.42	)	$	0.50		$	2.76		$	1.09

(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 37

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			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Revenues
Premiums	$	2,979		$	3,100		$	3,149		$	3,317		$	3,339		$	5,154		$	5,269		$	9,228		$	13,762
Net investment income (1)	456			456			458			499			619			642			667			1,370			1,928
Fee income	136			134			134			156			172			171			186			404			529
Asset management	—			—			—			—			—			121			132			—			253
Net realized investment gains (losses)	7			16			(23		)	39			(42		)	55			(49		)	—			(36		)
Other revenues	25			43			28			31			39			38			56			96			133
Total revenues	3,603			3,749			3,746			4,042			4,127			6,181			6,261			11,098			16,569
Claims and expenses
Claims and claim adjustment expenses	2,288			2,211			2,237			2,383			2,281			4,869			4,086			6,736			11,236
Amortization of deferred acquisition costs	462			484			512			525			526			805			820			1,458			2,151
General and administrative expenses	394			413			398			437			467			926			861			1,205			2,254
Interest expense	52			40			38			36			36			66			69			130			171
Total claims and expenses	3,196			3,148			3,185			3,381			3,310			6,666			5,836			9,529			15,812
Income (loss) before income taxes and minority interest	407			601			561			661			817			(485		)	425			1,569			757
Income taxes	90			155			132			161			227			(217		)	72			377			82
Minority interest, net of tax	(23		)	5			3			11			3			7			13			(15		)	23
Net income (loss)	$	340		$	441		$	426		$	489		$	587		$	(275	)	$	340		1,207			$	652
Other statistics:
Effective tax rate on net investment income	24.6		%	24.3		%	24.2		%	24.1		%	26.6		%	23.7		%	23.0		%	24.3		%	24.4		%
Net investment income (after-tax)	$	344		$	345		$	347		$	379		$	454		$	490		$	514		$	1,036		$	1,458
Catastrophe losses, net of reinsurance:
Pre-tax	$	67		$	111		$	128		$	47		$	20		$	24		$	612		$	306		$	656
After-tax	44			72			83			31			13			16			402			199			431

(1)   Includes $127 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 37

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			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Underwriting gain (loss)	$	(12	)	$	89		$	105		$	98		$	160		$	(789	)	$	(155	)	$	182		$	(784	)
Net investment income	344			345			347			379			454			490			514			1,036			1,458
Asset management	—			—			—			—			—			34			37			—			71
Other, including interest expense (1)	7			(3		)	(10		)	(14		)	—			(45		)	(24		)	(6		)	(69		)
Operating Income	339			431			442			463			614			(310		)	372			1,212			676
Net realized investment gains (losses)	1			10			(16		)	26			(27		)	35			(32		)	(5		)	(24		)
Net income (loss)	$	340		$	441		$	426		$	489		$	587		$	(275	)	$	340		$	1,207		$	652
GAAP Combined Ratio (2), (3)
Loss and loss adjustment expense ratio	74.7		%	69.5		%	69.1		%	69.9		%	65.8		%	93.1		%	75.8		%	71.0		%	79.9		%
Underwriting expense ratio	25.2		%	25.3		%	25.6		%	25.6		%	26.1		%	29.6		%	28.0		%	25.4		%	28.1		%
Combined ratio	99.9		%	94.8		%	94.7		%	95.5		%	91.9		%	122.7		%	103.8		%	96.4		%	108.0		%
Impact of catastrophes on combined ratio	2.3		%	3.6		%	4.1		%	1.4		%	0.6		%	0.5		%	11.6		%	3.3		%	4.8		%
Impact of prior year reserve development on combined ratio	5.5		%	0.5		%	-0.4		%	9.4		%	1.3		%	27.1		%	1.6		%	1.8		%	11.1		%

(1)   Includes minority interests and, effective 2Q 2004, Nuveen Investments minority interest

(2)   Before policyholder dividends

(3)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		3Q 2004		YTD 3Q 2003		YTD 3Q 2004
Billing and policy fees	$	22	$	22	$	22	$	22	$	23	$	26	$	26	$	66	$	75
Fee income:
Loss and loss adjustment expenses	$	59	$	47	$	56	$	68	$	76	$	82	$	87	$	162	$	245
Other underwriting expenses	77		87		78		88		96		89		99		242		284
Total fee income	$	136	$	134	$	134	$	156	$	172	$	171	$	186	$	404	$	529

See Glossary of Financial Measures and Description of Operating Segments on page 37

4

The St. Paul Travelers Companies, Inc.

Operating Income - Consolidated

($ in millions)

	1Q 2003			2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004			3Q 2004		YTD 3Q 2003			YTD 3Q 2004
Revenues
Premiums	$	2,979		$	3,100	$	3,149	$	3,317	$	3,339	$	5,154		$	5,269	$	9,228		$	13,762
Net investment income	456			456		458		499		619		642			667		1,370			1,928
Fee income	136			134		134		156		172		171			186		404			529
Asset management	—			—		—		—		—		121			132		—			253
Other revenues	25			43		28		31		39		38			56		96			133
Total revenues	3,596			3,733		3,769		4,003		4,169		6,126			6,310		11,098			16,605
Claims and expenses
Claims and claim adjustment expenses	2,288			2,211		2,237		2,383		2,281		4,869			4,086		6,736			11,236
Amortization of deferred acquisition costs	462			484		512		525		526		805			820		1,458			2,151
General and administrative expenses	394			413		398		437		467		926			861		1,205			2,254
Interest expense	52			40		38		36		36		66			69		130			171
Total claims and expenses	3,196			3,148		3,185		3,381		3,310		6,666			5,836		9,529			15,812
Operating income (loss) before income taxes and minority interest	400			585		584		622		859		(540		)	474		1,569			793
Income taxes	86			149		139		148		242		(237		)	89		374			94
Minority interest, net of tax	(25		)	5		3		11		3		7			13		(17		)	23
Operating income (loss)	$	339		$	431	$	442	$	463	$	614	$	(310	)	$	372	$	1,212		$	676

See Glossary of Financial Measures and Description of Operating Segments on page 37

5

The St. Paul Travelers Companies, Inc.

Selected Statistics - Property and Casualty Operations

($ in millions)

	1Q 2003			2Q 2003			3Q 2003		4Q 2003			1Q 2004		2Q 2004			3Q 2004			YTD 3Q 2003		YTD 3Q 2004
Statutory underwriting
Net written premiums	$	3,167		$	3,269		$	3,376	$	3,389		$	3,471	$	5,261		$	5,050		$	9,812	$	13,782
Net earned premiums	$	2,979		$	3,100		$	3,149	$	3,317		$	3,339	$	5,161		$	5,269		$	9,228	$	13,769
Losses and loss adjustment expenses	2,234			2,163			2,189		2,329			2,209		4,818			4,040			6,586		11,067
Underwriting expenses	772			827			863		870			903		1,603			1,420			2,462		3,926
Statutory underwriting gain (loss)	(27		)	110			97		118			227		(1,260		)	(191		)	180		(1,224		)
Policyholder dividends	4			8			4		(3		)	6		(10		)	7			16		3
Statutory underwriting gain (loss) after policyholder dividends	$	(31	)	$	102		$	93	$	121		$	221	$	(1,250	)	$	(198	)	$	164	$	(1,227	)
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	23,479		$	23,422		$	23,727	$	24,029		$	24,284	$	40,008		$	41,090		$	23,727	$	41,090
Increase (decrease) in reserves (1)	$	199		$	(57	)	$	305	$	302		$	255	$	15,724		$	1,082		$	446	$	17,061
Statutory surplus	$	7,841		$	8,122		$	8,197	$	8,444		$	8,788	$	13,955		$	14,379		$	8,197	$	14,379
Net written premiums/surplus (2)	1.58:1			1.55:1			1.57:1		1.56:1			1.54:1		1.51:1			1.43:1			1.57:1		1.43:1

(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. 3Q 2004 based on annualized 2Q 2004 and 3Q 2004 net written premium.

See Glossary of Financial Measures and Description of Operating Segments on page 37

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			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Written premiums
Direct	$	3,633		$	3,672		$	3,881		$	3,791		$	3,923		$	5,905		$	5,850		$	11,186		$	15,678
Assumed	109			114			135			140			109			293			248			358			650
Ceded	(575		)	(517		)	(640		)	(542		)	(561		)	(937		)	(1,048		)	(1,732		)	(2,546		)
Net	$	3,167		$	3,269		$	3,376		$	3,389		$	3,471		$	5,261		$	5,050		$	9,812		$	13,782
Earned premiums
Direct	$	3,403		$	3,540		$	3,605		$	3,776		$	3,758		$	5,909		$	5,971		$	10,548		$	15,638
Assumed	124			123			116			134			127			337			283			363			747
Ceded	(548		)	(563		)	(572		)	(593		)	(546		)	(1,092		)	(985		)	(1,683		)	(2,623		)
Net	$	2,979		$	3,100		$	3,149		$	3,317		$	3,339		$	5,154		$	5,269		$	9,228		$	13,762

See Glossary of Financial Measures and Description of Operating Segments on page 37

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		3Q 2004		YTD 3Q 2003			YTD 3Q 2004
Revenues
Premiums	$	1,567		$	1,618	$	1,626	$	1,741	$	1,731	$	2,358	$	2,315	$	4,811		$	6,404
Net investment income	318			320		326		360		423		413		417		964			1,253
Fee income	133			127		131		154		168		164		178		391			510
Other revenues	3			17		4		9		14		12		23		24			49
Total revenues	2,021			2,082		2,087		2,264		2,336		2,947		2,933		6,190			8,216
Claims and expenses
Claims and claim adjustment expenses	1,342			1,198		1,171		1,459		1,198		1,661		1,876		3,711			4,735
Amortization of deferred acquisition costs	229			237		250		255		254		350		350		716			954
General and administrative expenses	232			254		237		263		287		436		399		723			1,122
Interest expense	1			1		1		1		1		1		1		3			3
Total claims and expenses	1,804			1,690		1,659		1,978		1,740		2,448		2,626		5,153			6,814
Operating income before federal income taxes and minority interest	217			392		428		286		596		499		307		1,037			1,402
Income taxes	35			93		97		43		163		134		42		225			339
Minority interest, net of tax	(25		)	5		3		11		3		1		5		(17		)	9
Operating income	$	207		$	294	$	328	$	232	$	430	$	364	$	260	$	829		$	1,054

See Glossary of Financial Measures and Description of Operating Segments on page 37

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			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Underwriting gain (loss)	$	(64	)	$	42		$	78		$	(39	)	$	109		$	37		$	(74	)	$	56		$	72
Net investment income	243			245			249			277			314			320			323			737			957
Other, including minority interest	28			7			1			(6		)	7			7			11			36			25
Operating Income (loss)	$	207		$	294		$	328		$	232		$	430		$	364		$	260		$	829		$	1,054
GAAP Combined ratio (1), (2)
Loss and loss adjustment expense ratio	81.7		%	71.1		%	68.4		%	80.1		%	64.5		%	67.8		%	77.3		%	73.6		%	70.4		%
Underwriting expense ratio	24.5		%	25.3		%	25.2		%	24.7		%	25.9		%	29.5		%	28.1		%	25.0		%	28.0		%
Combined ratio	106.2		%	96.4		%	93.6		%	104.8		%	90.4		%	97.3		%	105.4		%	98.6		%	98.4		%
Impact of catastrophes on combined ratio	1.9		%	2.6		%	2.2		%	-0.2		%	0.0		%	0.0		%	12.2		%	2.2		%	4.4		%
Impact of prior year reserve development on combined ratio	12.6		%	3.2		%	1.5		%	23.1		%	-0.3		%	5.6		%	2.1		%	5.7		%	2.7		%

(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		3Q 2004		YTD 3Q 2003		YTD 3Q 2004
Billing and policy fees	$		2	$	2	$	2	$	2	$	2	$	4	$	3	$	6	$	9
Fee income:
Loss and loss adjustment expenses	$	59		$	45	$	56	$	69	$	77	$	78	$	83	$	160	$	238
Other underwriting expenses	74			82		75		85		91		86		95		231		272
Total fee income	$	133		$	127	$	131	$	154	$	168	$	164	$	178	$	391	$	510

See Glossary of Financial Measures and Description of Operating Segments on page 37

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			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Statutory underwriting
Net written premiums	$	1,702		$	1,626		$	1,708		$	1,826		$	1,765		$	2,230		$	2,070		$	5,036		$	6,065
Net earned premiums	$	1,567		$	1,618		$	1,626		$	1,741		$	1,731		$	2,358		$	2,315		$	4,811		$	6,404
Losses and loss adjustment expenses	1,289			1,152			1,124			1,402			1,126			1,607			1,812			3,565			4,545
Underwriting expenses	386			408			421			430			443			693			593			1,215			1,729
Statutory underwriting gain (loss)	(108		)	58			81			(91		)	162			58			(90		)	31			130
Policyholder dividends	2			2			3			(5		)	5			(14		)	2			7			(7		)
Statutory underwriting gain (loss) after policyholder dividends	$	(110	)	$	56		$	78		$	(86	)	$	157		$	72		$	(92	)	$	24		$	137
Other statistics
Effective tax rate on net investment income	23.5		%	23.2		%	23.4		%	23.3		%	25.7		%	22.5		%	22.4		%	23.4		%	23.8		%
Net Investment Income (after-tax)	$	243		$	245		$	249		$	277		$	314		$	320		$	323		$	737		$	957
Catastrophe losses, net of reinsurance:
Pre-tax	$	30		$	42		$	35		$	(4	)	$	—		$	—		$	284		$	107		$	284
After-tax	20			27			23			(3		)	—			—			184			70			184

See Glossary of Financial Measures and Description of Operating Segments on page 37

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		3Q 2004		YTD 3Q 2003		YTD 3Q 2004
Net written premiums by market
Commercial accounts	$	798	$	751	$	796	$	906	$	848	$	1,116	$	1,075	$	2,345	$	3,039
Select accounts	509		517		506		515		531		709		653		1,532		1,893
National accounts	206		169		232		224		240		237		229		607		706
Total core	1,513		1,437		1,534		1,645		1,619		2,062		1,957		4,484		5,638
Commercial other	189		189		174		181		146		168		113		552		427
Total	$	1,702	$	1,626	$	1,708	$	1,826	$	1,765	$	2,230	$	2,070	$	5,036	$	6,065
Net written premiums by product line
Commercial multi-peril	$	572	$	533	$	539	$	602	$	606	$	610	$	618	$	1,644	$	1,834
Workers’ compensation	319		266		329		320		350		361		391		914		1,102
Commercial automobile	320		333		333		327		326		432		405		986		1,163
Property	278		271		286		331		298		451		352		835		1,101
General liability	193		199		210		231		182		353		295		602		830
Other	20		24		11		15		3		23		9		55		35
Total	$	1,702	$	1,626	$	1,708	$	1,826	$	1,765	$	2,230	$	2,070	$	5,036	$	6,065
National Accounts
Additions to claim volume under administration (1)	$	1,097	$	702	$	682	$	809	$	1,309	$	707	$	644	$	2,481	$	2,660
Written fees	$	182	$	145	$	141	$	162	$	214	$	159	$	142	$	468	$	515

(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 of Travelers and St. Paul, prior to the merger, and reported net written premiums for St. Paul Travelers for second quarter 2004 and beyond.Year to date 2004 reflects the sum of proforma and reported net written premiums.

	1Q 2003		2Q 2003		3Q 2003		4Q 2003			1Q 2004		2Q 2004		3Q 2004		YTD 3Q 2003		YTD 3Q 2004
Net written premiums by market
Commercial accounts	$	1,192	$	1,092	$	1,227	$	1,313		$	1,262	$	1,116	$	1,075	$	3,511	$	3,453
Select accounts	670		691		730		698			706		709		653		2,091		2,068
National accounts	238		211		267		261			282		237		229		716		748
Total core	2,100		1,994		2,224		2,272			2,250		2,062		1,957		6,318		6,269
Commercial other	305		271		233		141			166		168		113		809		447
Total	2,405		2,265		2,457		2,413			2,416		$	2,230	$	2,070	$	7,127	$	6,716
Less: Pre-Merger St. Paul	703		639		749		587			651
Total Commercial excluding Pre-Merger St. Paul	$	1,702	$	1,626	$	1,708	$	1,826		$	1,765
Net written premiums by product line
Commercial multi-peril	$	620	$	587	$	607	$	662		$	660	$	610	$	618	$	1,814	$	1,888
Workers’ compensation	399		355		451		428			460		361		391		1,205		1,212
Commercial automobile	435		427		465		446			440		432		405		1,327		1,277
Property	468		441		495		520			494		451		352		1,404		1,297
General liability	373		352		370		379			339		353		295		1,095		987
Other	110		103		69		(22		)	23		23		9		282		55
Total	$	2,405	$	2,265	$	2,457	$	2,413		$	2,416	$	2,230	$	2,070	$	7,127	$	6,716
National Accounts
Additions to claim volume under administration (1)	$	1,097	$	702	$	682	$	809		$	1,309	$	707	$	644	$	2,481	$	2,660
Written fees	$	186	$	147	$	143	$	166		$	218	$	159	$	142	$	476	$	519
Less: Pre-Merger St. Paul	4		2		2		4			4
Total written fees excluding Pre-Merger St. Paul	$	182	$	145	$	141	$	162		$	214

(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			3Q 2004			YTD 3Q 2003		YTD 3Q 2004
Revenues
Premiums	$	274	$	289	$	291	$	317	$	311		$	1,428		$	1,515		$	854	$	3,254
Net investment income	48		45		42		48		51			135			156			135		342
Fee income	3		7		3		2		4			7			8			13		19
Other revenues	—		3		3		2		2			3			7			6		12
Total revenues	325		344		339		369		368			1,573			1,686			1,008		3,627
Claims and expenses
Claims and claim adjustment expenses	145		155		158		156		304			2,375			1,210			458		3,889
Amortization of deferred acquisition costs	49		52		54		57		56			227			225			155		508
General and administrative expenses	55		55		56		56		58			268			253			166		579
Total claims and expenses	249		262		268		269		418			2,870			1,688			779		4,976
Operating income before federal income taxes	76		82		71		100		(50		)	(1,297		)	(2		)	229		(1,349		)
Income taxes	21		24		20		30		(22		)	(459		)	(4		)	65		(485		)
Operating income (loss)	$	55	$	58	$	51	$	70	$	(28	)	$	(838	)	$	2		$	164	$	(864	)

See Glossary of Financial Measures and Description of Operating Segments on page 37

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			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Underwriting gain (loss)	$	18		$	21		$	17		$	32		$	(68	)	$	(939	)	$	(122	)	$	56		$	(1,129	)
Net investment income	37			34			33			36			38			99			117			104			254
Other	—			3			1			2			2			2			7			4			11
Operating Income (loss)	$	55		$	58		$	51		$	70		$	(28	)	$	(838	)	$	2		$	164		$	(864	)
GAAP Combined ratio (1), (2)
Loss and loss adjustment expense ratio	52.6		%	51.0		%	53.9		%	48.2		%	97.7		%	165.7		%	79.3		%	52.5		%	119.0		%
Underwriting expense ratio	37.2		%	35.2		%	36.5		%	35.2		%	35.2		%	34.5		%	31.2		%	36.3		%	33.0		%
Combined ratio	89.8		%	86.2		%	90.4		%	83.4		%	132.9		%	200.2		%	110.5		%	88.8		%	152.0		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%	12.3		%	0.0		%	5.7		%
Impact of prior year reserve development on combined ratio	0.0		%	0.0		%	0.0		%	3.8		%	48.2		%	95.5		%	4.8		%	0.0		%	48.7		%

(1)Before policyholder dividends

(2)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		3Q 2004		YTD 3Q 2003		YTD 3Q 2004
Fee income:
Loss and loss adjustment expenses	$	—	$	2	$	—	$	—	$	(1	)	$	5	$	4	$	2	$	8
Other underwriting expenses	3		5		3		2		5			2		4		11		11
Total fee income	$	3	$	7	$	3	$	2	$	4		$	7	$	8	$	13	$	19

See Glossary of Financial Measures and Description of Operating Segments on page 37

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			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Statutory underwriting
Net written premiums	$	315		$	332		$	312		$	299		$	340		$	1,473		$	1,408		$	959		$	3,221
Net earned premiums	$	274		$	289		$	291		$	317		$	311		$	1,435		$	1,515		$	854		$	3,261
Losses and loss adjustment expenses	144			153			157			159			304			2,382			1,225			454			3,911
Underwriting expenses	106			107			109			109			114			513			422			322			1,049
Statutory underwriting gain (loss)	24			29			25			49			(107		)	(1,460		)	(132		)	78			(1,699		)
Policyholder dividends	2			6			1			2			1			4			5			9			10
Statutory underwriting gain (loss) after policyholder dividends	$	22		$	23		$	24		$	47		$	(108	)	$	(1,464	)	$	(137	)	$	69		$	(1,709	)
Other statistics
Effective tax rate on net investment income	25.8		%	24.9		%	23.8		%	24.0		%	25.2		%	26.0		%	24.8		%	24.9		%	25.4		%
Net Investment Income (after-tax)	$	37		$	34		$	33		$	36		$	38		$	99		$	117		$	104		$	254
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	186		$	—		$	186
After-tax	—			—			—			—			—			—			126			—			126

See Glossary of Financial Measures and Description of Operating Segments on page 37

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		3Q 2004		YTD 3Q 2003		YTD 3Q 2004
Net written premiums by market
Domestic Specialty	315		332		312		299		340		1,132		1,176		959		2,648
International Specialty	—		—		—		—		—		341		232		—		573
Total	$	315	$	332	$	312	$	299	$	340	$	1,473	$	1,408	$	959	$	3,221
Net written premiums by product line
Workers’ compensation	$	39	$	35	$	20	$	22	$	28	$	131	$	113	$	94	$	272
Commercial automobile	33		27		22		23		31		107		113		82		251
Property	4		4		5		5		4		96		119		13		219
General liability	—		—		—		—		—		197		125		—		322
International	—		—		—		—		—		341		232		—		573
Other	239		266		265		249		277		601		706		770		1,584
Total	$	315	$	332	$	312	$	299	$	340	$	1,473	$	1,408	$	959	$	3,221

16

The St. Paul Travelers Companies, Inc.

Proforma Net Written Premiums - Specialty

($ in millions)

This page displays proforma combined net written premiums of Travelers and St. Paul, prior to the merger, and reported net written premiums for St. Paul Travelers for second quarter 2004 and beyond. Year to date 2004 reflects the sum of proforma and reported net written premiums.

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		YTD 3Q 2003		YTD 3Q 2004
Net written premiums by market
Domestic Specialty	1,119		1,247		1,222		1,199		1,187		1,132		1,176		3,588		3,495
International Specialty	468		240		289		333		310		341		232		997		883
Total	1,587		1,487		1,511		1,532		1,497		$	1,473	$	1,408	$	4,585	$	4,378
Less: Pre-Merger St. Paul	1,272		1,155		1,199		1,233		1,157
Total Specialty excluding Pre-Merger St. Paul	$	315	$	332	$	312	$	299	$	340
Net written premiums by product line (1)
Workers’ compensation	$	178	$	158	$	124	$	146	$	165	$	131	$	113	$	460	$	409
Commercial automobile	137		141		115		125		125		107		113		393		345
Property	78		120		134		111		97		96		119		332		312
General liability	152		147		137		139		147		197		125		436		469
International	468		240		289		334		310		341		232		997		883
Other	574		681		712		677		653		601		706		1,967		1,960
Total	$	1,587	$	1,487	$	1,511	$	1,532	$	1,497	$	1,473	$	1,408	$	4,585	$	4,378

(1)   Prior periods have been restated to conform to current product line definitions for the Specialty segment.

17

The St. Paul Travelers Companies, Inc.

Operating Income - Personal

($ in millions)

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		YTD 3Q 2003		YTD 3Q 2004
Revenues
Premiums	$	1,138	$	1,193	$	1,232	$	1,259	$	1,297	$	1,368	$	1,439	$	3,563	$	4,104
Net investment income	89		91		90		91		145		93		92		270		330
Other revenues	22		23		20		20		23		21		22		65		66
Total revenues	1,249		1,307		1,342		1,370		1,465		1,482		1,553		3,898		4,500
Claims and expenses
Claims and claim adjustment expenses	801		858		908		768		779		833		1,000		2,567		2,612
Amortization of deferred acquisition costs	184		195		208		213		216		228		245		587		689
General and administrative expenses	102		100		102		116		119		132		129		304		380
Total claims and expenses	1,087		1,153		1,218		1,097		1,114		1,193		1,374		3,458		3,681
Operating income before federal income taxes	162		154		124		273		351		289		179		440		819
Income taxes	50		47		36		88		114		92		52		133		258
Operating income	$	112	$	107	$	88	$	185	$	237	$	197	$	127	$	307	$	561

See Glossary of Financial Measures and Description of Operating Segments on page 37

18

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - Personal

($ 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			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Underwriting gain	$	34		$	26		$	10		$	105		$	119		$	113		$	41		$	70		$	273
Net investment income	64			66			65			66			102			70			72			195			244
Other	14			15			13			14			16			14			14			42			44
Operating Income	$	112		$	107		$	88		$	185		$	237		$	197		$	127		$	307		$	561
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	70.4		%	71.9		%	73.7		%	61.0		%	60.1		%	60.9		%	69.5		%	72.1		%	63.6		%
Underwriting expense ratio	23.3		%	23.1		%	23.6		%	24.6		%	24.2		%	24.7		%	24.5		%	23.3		%	24.5		%
Combined ratio	93.7		%	95.0		%	97.3		%	85.6		%	84.3		%	85.6		%	94.0		%	95.4		%	88.1		%
Impact of catastrophes on combined ratio	3.3		%	5.8		%	7.5		%	4.0		%	1.5		%	1.8		%	9.9		%	5.6		%	4.5		%
Impact of prior year reserve development  on combined ratio	-3.1		%	-3.1		%	-3.1		%	-8.1		%	-7.8		%	-7.3		%	-2.6		%	-3.1		%	-5.8		%

(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:

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		YTD 3Q 2003		YTD 3Q 2004
Billing and policy fees	$	20	$	20	$	20	$	20	$	21	$	22	$	23	$	60	$	66

See Glossary of Financial Measures and Description of Operating Segments on page 37

19

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Statutory underwriting
Net written premiums by product line
Automobile	$	737		$	778		$	796		$	743		$	847		$	892		$	884		$	2,311		$	2,623
Homeowners and other	413			533			560			521			519			666			688			1,506			1,873
Total	$	1,150		$	1,311		$	1,356		$	1,264		$	1,366		$	1,558		$	1,572		$	3,817		$	4,496
Net earned premiums	$	1,138		$	1,193		$	1,232		$	1,259		$	1,297		$	1,368		$	1,439		$	3,563		$	4,104
Losses and loss adjustment expenses	801			858			908			768			779			829			1,003			2,567			2,611
Underwriting expenses	280			312			333			331			346			397			405			925			1,148
Statutory underwriting gain (loss)	$	57		$	23		$	(9	)	$	160		$	172		$	142		$	31		$	71		$	345
Other statistics
Effective tax rate on net investment income	27.5		%	27.4		%	27.1		%	27.0		%	29.6		%	24.2		%	22.6		%	27.4		%	26.2		%
Net investment income (after-tax)	$	64		$	66		$	65		$	66		$	102		$	70		$	72		$	195		$	244
Catastrophe losses, net of reinsurance:
Pre-tax	$	37		$	69		$	92		$	50		$	20		$	24		$	142		$	198		$	186
After-tax	24			45			60			33			13			16			92			129			121
Policies in force (in thousands)
Automobile	1,995			2,016			2,045			2,069			2,157			2,234			2,260			2,045			2,260
Homeowners and other	3,201			3,247			3,319			3,380			3,493			3,650			3,787			3,319			3,787

See Glossary of Financial Measures and Description of Operating Segments on page 37

20

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal (Automobile)

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Statutory underwriting
Net written premiums	$	737		$	778		$	796		$	743		$	847		$	892		$	884		$	2,311		$	2,623
Net earned premiums	$	706		$	737		$	753		$	759		$	782		$	825		$	851		$	2,196		$	2,458
Losses and loss adjustment expenses	526			551			569			564			577			596			617			1,646			1,790
Underwriting expenses	169			173			185			179			199			205			207			527			611
Statutory underwriting gain (loss)	$	11		$	13		$	(1	)	$	16		$	6		$	24		$	27		$	23		$	57
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	74.4		%	74.8		%	75.5		%	74.3		%	73.7		%	72.7		%	72.1		%	74.9		%	72.8		%
Underwriting expense ratio	22.2		%	21.4		%	22.3		%	22.2		%	22.7		%	22.4		%	22.3		%	22.0		%	22.4		%
Combined ratio	96.6		%	96.2		%	97.8		%	96.5		%	96.4		%	95.1		%	94.4		%	96.9		%	95.2		%
Impact of catastrophes on combined ratio	0.0		%	0.9		%	0.4		%	0.0		%	0.0		%	0.0		%	0.6		%	0.5		%	0.2		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	7		$	3		$	—		$	—		$	—		$	5		$	10		$	5
After-tax	—			5			2			—			—			—			3			7			3
Policies in force (in thousands)	1,995			2,016			2,045			2,069			2,157			2,234			2,260
Change from prior year quarter	1.8		%	2.0		%	3.0		%	4.1		%	8.1		%	10.8		%	10.5		%
Change from prior quarter	0.4		%	1.1		%	1.4		%	1.2		%	4.3		%	3.6		%	1.2		%

(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:

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		YTD 3Q 2003		YTD 3Q 2004
Billing and policy fees	$	13	$	13	$	13	$	13	$	14	$	14	$	15	$	39	$	43

See Glossary of Financial Measures and Description of Operating Segments on page 37

21

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal (Homeowners and Other)

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Statutory underwriting
Net written premiums	$	413		$	533		$	560		$	521		$	519		$	666		$	688		$	1,506		$	1,873
Net earned premiums	$	432		$	456		$	479		$	500		$	515		$	543		$	588		$	1,367		$	1,646
Losses and loss adjustment expenses	275			307			339			204			202			233			386			921			821
Underwriting expenses	111			139			148			152			147			192			198			398			537
Statutory underwriting gain (loss)	$	46		$	10		$	(8	)	$	144		$	166		$	118		$	4		$	48		$	288
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	63.8		%	67.2		%	70.7		%	40.8		%	39.2		%	42.9		%	65.7		%	67.4		%	49.9		%
Underwriting expense ratio	25.3		%	25.8		%	25.6		%	28.3		%	26.6		%	28.2		%	27.7		%	25.6		%	27.6		%
Combined ratio	89.1		%	93.0		%	96.3		%	69.1		%	65.8		%	71.1		%	93.4		%	93.0		%	77.5		%
Impact of catastrophes on combined ratio	8.6		%	13.6		%	18.6		%	10.0		%	3.9		%	4.4		%	23.3		%	13.8		%	11.0		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	37		$	62		$	89		$	50		$	20		$	24		$	137		$	188		$	181
After-tax	24			40			58			33			13			16			89			122			118
Policies in force (in thousands)	3,201			3,247			3,319			3,380			3,493			3,650			3,787
Change from prior year quarter	1.1		%	2.6		%	4.7		%	6.3		%	9.1		%	12.4		%	14.1		%
Change from prior quarter	0.6		%	1.4		%	2.2		%	1.8		%	3.3		%	4.5		%	3.8		%

(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:

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		YTD 3Q 2003		YTD 3Q 2004
Billing and policy fees	$	7	$	7	$	7	$	7	$	7	$	8	$	8	$	21	$	23

See Glossary of Financial Measures and Description of Operating Segments on page 37

22

The St. Paul Travelers Companies, Inc.

Asset Management

($ in millions)

	2Q 2004		3Q 2004		YTD 3Q 2004
Revenues
Investment advisory fees from assets under management	$	115	$	121	$	236
Underwriting and distribution of investment products	2		2		4
Other	4		9		13
Total revenues	121		132		253
Expenses
Employee compensation and benefits	39		45		84
Other	26		26		52
Total expenses	65		71		136
Income before minority interest and income taxes	56		61		117
Income taxes	22		24		46
Income before minority interest	34		37		71
Minority interest, net of tax	7		8		15
Net income	$	27	$	29	$	56
Other Information
Assets under management	$	101,857	$	106,891	$	106,891
Net investment flows	$	3,108	$	2,891	$	5,999

See Glossary of Financial Measures and Description of Operating Segments on page 37

23

The St. Paul Travelers Companies, Inc.

Interest Expense and Other

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Revenues
Net investment income	$	1		$	—		$	—		$	—		$	—		$	1		$	2		$	1		$	3
Other revenues	—			—			1			—			—			2			4			1			6
Total revenues	1			—			1			—			—			3			6			2			9
Claims and expenses
Interest expense	51			39			37			35			35			62			66			127			163
General and administrative expenses	5			4			3			2			3			28			11			12			42
Total claims and expenses	56			43			40			37			38			90			77			139			205
Operating loss before federal income tax benefit	(55		)	(43		)	(39		)	(37		)	(38		)	(87		)	(71		)	(137		)	(196		)
Income taxes	(20		)	(15		)	(14		)	(13		)	(13		)	(26		)	(25		)	(49		)	(64		)
Minority Interest, net of tax	—			—			—			—			—			(1		)	—			—			(1		)
Operating loss	$	(35	)	$	(28	)	$	(25	)	$	(24	)	$	(25	)	$	(60	)	$	(46	)	$	(88	)	$	(131	)

See Glossary of Financial Measures and Description of Operating Segments on page 37

24

The St. Paul Travelers Companies, Inc.

Consolidated Balance Sheet

($ in millions, except shares and per share data)

	September 30, 2004 (1)			December 31, 2003
Assets
Fixed maturities, available for sale at fair value (including $1,993 and $696 subject to securities lending and repurchase agreements) (amortized cost $52,374 and $31,478)	$		53,642	$	33,046
Equity securities, at fair value (cost $785 and $672)	852			733
Real estate	1,091			2
Mortgage loans	200			211
Short-term securities	4,587			2,138
Other investments	3,357			2,523
Total investments	63,729			38,653
Cash	271			352
Investment income accrued	674			362
Premiums receivable	6,276			4,090
Reinsurance recoverables	18,151			11,174
Ceded unearned premiums	1,485			939
Deferred acquisition costs	1,605			965
Deferred tax asset	1,931			678
Contractholder receivables	5,071			3,121
Goodwill	5,301			2,412
Intangible assets	1,722			422
Other assets	3,467			1,704
Total assets	$	109,683		$		64,872

	September 30, 2004 (1)				December 31, 2003
Liabilities
Claims and claim adjustment expenses/-reserves	$		57,380		$	34,573
Unearned premiums/-reserves	11,341				7,111
Contractholder payables	5,071				3,121
Payables for reinsurance premiums	989				403
Debt	6,467				2,675
Payables for securities lending and repurchase agreements	—				711
Other liabilities	7,546				4,291
Total liabilities	88,794				52,885
Shareholders’ equity
Preferred stock:
Stock Ownership Plan - convertible preferred stock (shares issued and outstanding 0.6)	209				—
Guaranteed obligation - Stock Ownership Plan	(5			)	—
Common stock (shares authorized 1,750.0, shares issued 437.8; shares outstanding 669.2 and 435.8) (2)	17,356				10
Additional paid-in capital	—				8,705
Retained earnings	2,595				2,290
Accumulated other changes in equity from nonowner sources	846				1,086
Treasury stock, at cost (shares 0.3 and 2.0)	(12			)	(74			)
Unearned compensation	(100			)	(30			)
Total shareholders’ equity	20,889				11,987
Total liabilities and shareholders’ equity	$	109,683			$		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)

	September 30, 2004		Pre-tax Book Yield (1)		December 31, 2003		Pre-tax Book Yield
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	28,666	4.76	%	$	17,655	5.54	%
Tax-exempt fixed maturities	24,976		4.15	%	15,391		4.47	%
Total fixed maturities	53,642		4.48	%	33,046		5.04	%
Non-redeemable preferred stocks	660		6.67	%	644		6.89	%
Common stocks	192		N/A		89		N/A
Total equity securities	852		N/A		733		N/A
Mortgage loans	200		6.83	%	211		7.38	%
Real estate	1,091		N/A		2		N/A
Short-term securities	4,587		1.65	%	2,138		1.08	%
Private equities	1,749		N/A		1,226		N/A
Arbitrage funds	886		N/A		983		N/A
Real estate joint ventures & other	684		N/A		257		N/A
Trading securities	38		N/A		57		N/A
Total other investments	3,357		N/A		2,523		N/A
Total investments	$	63,729	4.31	%	$	38,653	4.84	%
Net unrealized gain on investment securities, net of tax and minority interest, included in shareholders’ equity	$	859			$	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)

	September 30, 2004		December 31, 2003
Fixed maturities
Mortgage-backed securities - principally obligations of U.S. Government agencies	$	9,301	$	7,738
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	2,999		1,384
Corporates (including redeemable preferreds)	14,250		8,241
Obligations of states and political subdivisions	25,253		15,427
Debt securities issued by foreign governments	1,839		256
Subtotal - Available-for-sale securities	53,642		33,046
Trading securities	17		33
Total fixed maturities	$	53,659	$	33,079
Fixed Maturities Quality Characteristics (1)
	September 30, 2004
	Amount		% of Total
Quality Ratings
Aaa	$	31,982	59.6		%
Aa	10,767		20.1
A	5,101		9.5
Baa	4,017		7.5
Total investment grade	51,867		96.7
Ba	861		1.6
B	672		1.3
Caa and lower	242		0.4
Total below investment grade	1,775		3.3
Total fixed maturities, excluding trading securities	$	53,642	100.0		%
Trading securities	$	17
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)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004				YTD 3Q 2003			YTD 3Q 2004
Gross investment income
Fixed maturities	$	391		$	371		$	372		$	393		$	412		$	555		$		583		$	1,134		$	1,550
Short-term securities	37			38			23			9			9			12			21				98			42
Mortgage loans	6			6			9			5			4			14			4				21			22
Other (1)	35			58			67			103			249			67			69				160			385
	469			473			471			510			674			648			677				1,413			1,999
Investment expenses (1)	13			17			13			11			55			6			10				43			71
Net investment income, pre-tax	456			456			458			499			619			642			667				1,370			1,928
Income taxes	112			111			111			120			165			152			153				334			470
Net investment income, after-tax	$	344		$	345		$	347		$	379		$	454		$	490		$		514		$	1,036		$	1,458
Effective tax rate	24.6		%	24.3		%	24.2		%	24.1		%	26.6		%	23.7		%	23.0			%	24.3		%	24.4		%
Average invested assets (2)	$	34,373		$	35,182		$	35,454		$	36,216		$	37,097		$	59,510		$	61,527			$	35,003		$	52,711
Average yield pre-tax	5.3		%	5.2		%	5.2		%	5.6		%	6.7		%	4.3		%	4.3			%	5.2		%	4.9		%
Average yield after-tax	4.0		%	3.9		%	3.9		%	4.2		%	4.9		%	3.3		%	3.3			%	3.9		%	3.7		%

(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)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Net realized investment gains (losses)
Fixed maturities	$	27		$	55		$	(40	)	$	27		$	12		$	38		$	11		$	42		$	61
Equity securities	3			(1		)	4			—			1			1			8			6			10
Other	(23		)	(38		)	13			12			(55		)	16			(68		)	(48		)	(107		)
Realized investment gains (losses) before tax and minority interest	7			16			(23		)	39			(42		)	55			(49		)	—			(36		)
Related taxes	2			6			(7		)	13			(15		)	20			(17		)	1			(12		)
Minority interest, net of tax	4			—			—			—			—			—			—			4			—
Net realized investment gains (losses)	$	1		$	10		$	(16	)	$	26		$	(27	)	$	35		$	(32	)	$	(5	)	$	(24	)
Gross investment gains (1)	$	94		$	251		$	252		$	236		$	135		$	371		$	185		$	597		$	691
Gross investment losses before impairments (1)	(29		)	(216		)	(268		)	(191		)	(166		)	(293		)	(206		)	(513		)	(665		)
Impairments	(58		)	(19		)	(7		)	(6		)	(11		)	(23		)	(28		)	(84		)	(62		)
Realized investment gains (losses) before tax and minority interest	7			16			(23		)	39			(42		)	55			(49		)	0			(36		)
Related taxes	2			6			(7		)	13			(15		)	20			(17		)	1			(12		)
Minority interest, net of tax	4			—			—			—			—			—			—			4			—
Net realized investment gains (losses)	$	1		$	10		$	(16	)	$	26		$	(27	)	$	35		$	(32	)	(5		)	$	(24	)

	March 31, 2003			June 30, 2003			September 30, 2003			December 31, 2003			March 31, 2004			June 30, 2004		September 30, 2004
Net unrealized investment gains (losses), by asset type
Fixed maturities	$	1,310		$	1,819		$	1,562		$	1,567		$	1,805		$	154	$	1,268
Equity securities & other	13			56			50			60			75			71		57
Unrealized investment gains before tax and minority interest	1,323			1,875			1,612			1,627			1,880			225		1,325
Related taxes	459			653			564			569			658			84		466
Minority interest, net of tax	(5		)	(2		)	(3		)	(2		)	(1		)	—		—
Balance, end of period	$	869		$	1,224		$	1,051		$	1,060		$	1,223		$	141	$	859

(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, $161 and $104, and $78 and $124 in 1Q 2003, 2Q 2003, 3Q 2003, 4Q 2003, 1Q 2004, 2Q 2004, and 3Q 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) 

	September 30, 2004			December 31, 2003
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	12,430		$	6,946
Allowance for uncollectible reinsurance	(727		)	(387		)
Net reinsurance recoverables	11,703			6,559
Mandatory pools and associations	2,486			2,204
Structured settlements	3,961			2,411
Total reinsurance recoverables	$	18,151		$	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 unasserted claims.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 thousand different 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, and other 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’ compensation and 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 in most 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 becomes insolvent, 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 significant proportion.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.Under terms 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 the 108th 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 the remaining $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 resolves $1.069 billion in net claim balances from this reinsurer and has been reflected as a reduction in 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.

Net Reserves for Losses and Loss Adjustment Expense

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Commercial
Beginning of period	$	18,359		$	18,535		$	18,376		$	18,497		$	18,791		$	18,847		$	27,442		$	18,359		$	18,791
Incurred (1)	1,289			1,152			1,124			1,402			1,126			1,607			1,812			3,565			4,545
Paid	(1,113		)	(1,311		)	(1,003		)	(1,108		)	(1,070		)	(1,448		)	(1,460		)	(3,427		)	(3,978		)
Acquired reserves, foreign exchange and other (2)	—			—			—			—			—			8,436			1			—			8,437
End of period	$	18,535		$	18,376		$	18,497		$	18,791		$	18,847		$	27,442		$	27,795		$	18,497		$	27,795
Specialty
Beginning of period	$	1,963		$	1,916		$	1,940		$	1,971		$	2,020		$	2,204		$	9,231		$	1,963		$	2,020
Incurred (1)	144			153			157			159			304			2,382			1,225			454			3,911
Paid	(191		)	(129		)	(126		)	(110		)	(120		)	(607		)	(682		)	(446		)	(1,409		)
Acquired reserves, foreign exchange and other (2)	—			—			—			—			—			5,252			(32		)	—			5,220
End of period	$	1,916		$	1,940		$	1,971		$	2,020		$	2,204		$	9,231		$	9,742		$	1,971		$	9,742
Personal
Beginning of period	$	2,959		$	3,028		$	3,106		$	3,259		$	3,218		$	3,233		$	3,335		$	2,959		$	3,218
Incurred (1)	801			858			908			768			779			829			1,003			2,567			2,611
Paid	(732		)	(780		)	(755		)	(809		)	(764		)	(752		)	(785		)	(2,267		)	(2,301		)
Acquired reserves, foreign exchange and other (2)	—			—			—			—			—			25			—			—			25
End of period	$	3,028		$	3,106		$	3,259		$	3,218		$	3,233		$	3,335		$	3,553		$	3,259		$	3,553
Total
Beginning of period	$	23,281		$	23,479		$	23,422		$	23,727		$	24,029		$	24,284		$	40,008		$	23,281		$	24,029
Incurred (1)	2,234			2,163			2,189			2,329			2,209			4,818			4,040			6,586			11,067
Paid	(2,036		)	(2,220		)	(1,884		)	(2,027		)	(1,954		)	(2,807		)	(2,927		)	(6,140		)	(7,688		)
Acquired reserves, foreign exchange and other	—			—			—			—			—			13,713			(31		)	—			13,682
End of period	$	23,479		$	23,422		$	23,727		$	24,029		$	24,284		$	40,008		$	41,090		$	23,727		$	41,090

(1) Includes prior year reserve development (benefit)/charge and accretion of discount.

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

Commercial
Prior year reserve development:
Asbestos	$	—		$	—		$	—		$	—		$	—		$	5		$	—		$	—		$	5
Environmental	—			—			—			60			—			197			5			—			202
All other	198			51			24			343			(6		)	(69		)	43			273			(32		)
Accretion of discount	20			15			17			18			16			17			15			52			48
Total Commercial	218			66			41			421			10			150			63			325			223
Specialty
Prior year reserve development:
Asbestos	—			—			—			—			—			—			1			—			1
Environmental	—			—			—			—			—			7			(3		)	—			4
All other	—			—			—			12			150			1,357			74			—			1,581
Accretion of discount	1			—			1			—			—			1			1			2			2
Total Specialty	1			—			1			12			150			1,365			73			2			1,588
Personal	(35		)	(37		)	(38		)	(102		)	(101		)	(100		)	(37		)	(110		)	(238		)
Total (3)	$	184		$	29		$	4		$	331		$	59		$	1,415		$	99		$	217		$	1,573

(3) Prior year reserve development within incurred losses does not include the benefit (detriment) of retroactive reinsurance which totals $(15) million and $5 million for 2Q 2004 and 3Q 2004, respectively.

See Glossary of Financial Measures and Description of Operating Segments on page 37

31

The St. Paul Travelers Companies, Inc.

Asbestos and Environmental Reserves

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Asbestos reserves
Beginning reserves:
Direct	$	4,287		$	4,083		$	3,958		$	3,885		$	3,782		$	3,688		$	4,052		$	4,287		$	3,782
Ceded	(883		)	(861		)	(847		)	(819		)	(805		)	(799		)	(999		)	(883		)	(805		)
Net	3,404			3,222			3,111			3,066			2,977			2,889			3,053			3,404			2,977
Acquired reserves:
Direct	—			—			—			—			—			502			—			—			502
Ceded	—			—			—			—			—			(191		)	—			—			(191		)
Incurred losses and loss expenses:
Direct	—			—			—			—			—			7			2			—			9
Ceded	—			—			—			—			—			(2		)	(1		)	—			(3		)
Accretion of discount:
Direct	8			5			6			6			5			5			3			19			13
Ceded	—			—			—			—			—			—			—			—			—
Losses paid:
Direct	212			130			79			109			99			150			81			421			330
Ceded	(22		)	(14		)	(28		)	(14		)	(6		)	7			(132		)	(64		)	(131		)
Ending reserves:
Direct	4,083			3,958			3,885			3,782			3,688			4,052			3,976			3,885			3,976
Ceded	(861		)	(847		)	(819		)	(805		)	(799		)	(999		)	(868		)	(819		)	(868		)
Net	$	3,222		$	3,111		$	3,066		$	2,977		$	2,889		$	3,053		$	3,108		$	3,066		$	3,108
Environmental reserves
Beginning reserves:
Direct	$	448		$	438		$	338		$	299		$	331		$	287		$	764		$	448		$	331
Ceded	(62		)	(54		)	(31		)	(34		)	(41		)	(39		)	(108		)	(62		)	(41		)
Net	386			384			307			265			290			248			656			386			290
Acquired reserves:
Direct	—			—			—			—			—			271			—			—			271
Ceded	—			—			—			—			—			(58		)	—			—			(58		)
Incurred losses and loss expenses:
Direct	—			—			—			60			—			242			1			—			243
Ceded	—			—			—			—			—			(38		)	1			—			(37		)
Losses paid:
Direct	10			100			39			28			44			36			64			149			144
Ceded	(8		)	(23		)	3			7			(2		)	(27		)	(9		)	(28		)	(38		)
Ending reserves:
Direct	438			338			299			331			287			764			701			299			701
Ceded	(54		)	(31		)	(34		)	(41		)	(39		)	(108		)	(98		)	(34		)	(98		)
Net	$	384		$	307		$	265		$	290		$	248		$	656		$	603		$	265		$	603

See Glossary of Financial Measures and Description of Operating Segments on page 37

32

The St. Paul Travelers Companies, Inc.

Capitalization

($ in millions)

	September 30, 2004			December 31, 2003
Debt
Commercial paper	$	325		$	—
Nuveen investments’ third party debt	305			—
Convertible notes
4.5% Convertible Junior Subordinated Notes due April 15, 2032	893			893
Zero coupon convertible notes	117			—
6.00% Convertible notes payable due December 31, 2032	—			50
	1,010			943
Debt issuance costs	23			24
	987			919
Long-term debt
Medium-term notes with various due dates from 2004 to 2010	397			—
7.875% Notes due April 15, 2005	238			—
7.125% Notes due June 1, 2005	79			—
6.75% Notes due November 15, 2006	150			150
5.75% Notes due March 15, 2007	500			—
5.25% Notes due August 16, 2007	442			—
3.75% Notes due March 15, 2008	400			400
8.125% Notes due April 15, 2010	250			—
7.81% Notes with various due dates from September 16, 2004 - September 16, 2011	20			24
5.00% Notes due March 15, 2013	500			500
7.75% Notes due April 15, 2026	200			200
7.625% Subordinated debentures due December 15, 2027	125			—
8.47% Subordinated debentures due January 10, 2027	81			—
6.375% Notes due March 15, 2033	500			500
8.50% Subordinated debentures due December 15, 2045	56			—
8.312% Subordinated debentures due July 1, 2046	73			—
7.60% Subordinated debentures due October 15, 2050	593			—
Total long-term debt	4,604			1,774
Unamortized fair value premium	263			—
Debt issuance costs	(17		)	(18		)
	4,850			1,756
Total debt	6,467			2,675
Minority interest	113			105
Preferred equity	204			—
Common equity (excluding SFAS 115)	19,827			10,926
Total capital	$	26,611		$	13,706
Total debt to capital	24.3		%	19.5		%

33

The St. Paul Travelers Companies, Inc.

Statutory to GAAP Shareholders’ Equity Reconciliation

(in millions)

	September 30, 2004			December 31, 2003
Statutory capital and surplus	$	14,379		$	8,444
GAAP adjustments
Goodwill and intangible assets	4,410			2,607
Investments	2,493			1,645
Noninsurance companies	(2,930		)	(2,049		)
Deferred acquisition costs	1,603			963
Deferred federal income tax	222			(71		)
Reinsurance recoverables	414			152
Furniture, equipment & software	203			147
Employee benefits	126			102
Agents balances	77			28
Asset Management	(156		)	—
Other	48			19
Total GAAP adjustments	6,510			3,543
GAAP shareholders’ equity	$	20,889		$	11,987

34

The St. Paul Travelers Companies, Inc.

Statement of Cash Flows — Preliminary

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Cash flows from operating activities
Net Income	$	340		$	441		$	426		$	489		$	587		$	(275	)	$	340		$	1,207		$	652
Adjustments to reconcile net income to net cash provided by operating activities
Net realized investment (gains) losses	(7		)	(16		)	23			(39		)	42			(55		)	49			—			36
Depreciation and amortization	10			9			36			29			25			185			150			55			360
Deferred federal income taxes (benefit)	454			(13		)	70			29			(17		)	(99		)	(62		)	511			(178		)
Amortization of deferred policy acquisition costs	463			483			512			525			526			805			820			1,458			2,151
Premium balances receivable	(87		)	(147		)	56			(50		)	(12		)	(90		)	320			(178		)	218
Reinsurance recoverables	24			(91		)	138			(268		)	239			(24		)	(126		)	71			89
Deferred acquisition costs	(480		)	(516		)	(547		)	(533		)	(549		)	(819		)	(810		)	(1,543		)	(2,178		)
Claim and claim adjustment expense reserves	65			(150		)	203			719			96			2,140			1,081			118			3,317
Unearned premium reserves	216			143			231			61			151			(4		)	(84		)	590			63
Trading account activities	(2		)	(1		)	(5		)	(8		)	2			13			4			(8		)	19
Recoveries from former affiliate	361			—			—			—			—			—			—			361			—
Other	(464		)	796			(89		)	(6		)	(309		)	(314		)	226			243			(397		)
Net cash provided by operating activities	893			938			1,054			948			781			1,463			1,908			2,885			4,152
Cash flows from investing activities
Proceeds from maturities of investments
Fixed maturities	915			1,139			1,430			977			865			1,822			1,332			3,484			4,019
Mortgage loans	4			10			34			11			4			46			18			48			68
Proceeds from sales of investments
Fixed maturities	2,077			2,054			3,043			1,169			2,158			1,855			950			7,174			4,963
Equity securities	70			79			60			46			68			39			46			209			153
Mortgage loans	—			—			—			—			29			12			20			—			61
Real estate	—			11			—			—			—			21			8			11			29
Purchase of investments																—
Fixed maturities	(3,610		)	(3,589		)	(5,038		)	(3,318		)	(3,676		)	(2,980		)	(4,890		)	(12,237		)	(11,546		)
Equity securities	(3		)	(37		)	(16		)	(5		)	(28		)	(20		)	(11		)	(56		)	(59		)
Mortgage loans	(5		)	(3		)	(4		)	—			(2		)	(53		)	—			(12		)	(55		)
Real estate	—			—			—			—			—			(10		)	(22		)	—			(32		)
Short-term securities, (purchases) sales, net	(210		)	(13		)	2,817			316			224			(1,492		)	(189		)	2,594			(1,457		)
Other investments, net	45			174			(156		)	(3		)	107			299			162			63			568
Securities transactions in course of settlement	(646		)	276			(2,652		)	76			(681		)	(563		)	712			(3,022		)	(532		)
Net cash acquired in merger	—			—			—			—			—			169			—			—			169
Other	—			—			—			—			—			11			14			—			25
Net cash provided by (used in) investing activities	(1,363		)	101			(482		)	(731		)	(932		)	(844		)	(1,850		)	(1,744		)	(3,626		)

35

The St. Paul Travelers Companies, Inc.

Statement of Cash Flows — Preliminary (Continued)

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			YTD 3Q 2003			YTD 3Q 2004
Cash flows from financing activities
Issuance of debt	1,932			—			—			—			—			—			128			1,932			128
Payment of debt	(625		)	(24		)	(454		)	—			—			(224		)	(3		)	(1,103		)	(227		)
Payment of note payables to former affiliates	(700		)	—			—			—			—			—			—			(700		)	—
Redemption of mandatorily redeemable preferred stock	—			(900		)	—			—			—			—			—			(900		)	—
Treasury stock acquired:
Purchased	—			—			(40		)	—			—			—			—			(40		)	—
Net employee stock-based compensation	(2		)	(4		)	(7		)	(5		)	(9		)	(26		)	(9		)	(13		)	(44		)
Issuance of common stock - employee stock options	8			10			10			13			29			42			18			28			89
Dividends to shareholders	(61		)	(60		)	(80		)	(80		)	(81		)	(263		)	(149		)	(201		)	(493		)
Payment of dividend on subsidiary's stock	(1		)	(2		)	(1		)	(2		)	—			(3		)	(4		)	(4		)	(7		)
Transfer of employee benefit obligations to former affiliates	(22		)	(1		)	—			—			—			—			—			(23		)	—
Repurchase of Minority Interest	—			—			—			—			—			(76		)	—			—			(76		)
Other	—			—			—			—			—			(2		)	27			—			25
Net cash provided by (used in) financing activities	529			(981		)	(572		)	(74		)	(61		)	(552		)	8			(1,024		)	(605		)
Effect of exchange rate changes on cash																			(2		)				(2		)
Net increase (decrease) in cash	59			58			—			143			(212		)	67			64			117			(81		)
Cash at beginning of period	92			151			209			209			352			140			207			92			352
Cash at end of period	$	151		$	209		$	209		$	352		$	140		$	207		$	271		$	209		$	271
Supplemental disclosure of cash flow information
Income taxes (received) paid	$	37		$	(525	)	$	128		$	296		$	108		$	470		$	24		$	(360	)	$	602
Interest paid	$	42		$	26		$	49		$	23		$	47		$	72		$	83		$	117		$	202

36

The St. Paul Travelers Companies, Inc.

Financial Supplement - Third Quarter 2004

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 or required to be disclosed in the notes to financial statements, 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 and how management evaluates the Company’s financial performance.

Operating income and operating income per share is net income excluding the after-tax impact of net realized investment gains (losses) and on a per share basis.

Return on equity is the ratio of net income to average equity. Operating return on adjusted 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 is the profit or loss experienced by a property casualty 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.

Loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims.  Loss reserve development may be related to prior year or current year development.  In the opinion of the Company's management, discussion of prior year loss reserve development is useful to investors as it allows them to assess the impact between prior year and current year development on current earnings and changes in claims and claim adjustment expense reserve levels from period to period.

GAAP combined ratio is the sum of the loss and loss adjustment expense ratio (loss and LAE ratio), the underwriting expense ratio and, where applicable, the ratio of dividends to policyholders to net premiums earned. For GAAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses reduced by an allocation of fee income to net earned premiums. The underwriting expense ratio is the ratio of underwriting expenses incurred reduced by an allocation of fee income to net earned premium. 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.

Pro forma combined net written premium reflects the addition of net written premiums of the St. Paul and Travelers for periods prior to the merger. The pro forma combined net written premium amounts are not affected by purchase accounting adjustments. Net written premiums are a measure of business volume. The pro forma information presented is not necessarily indicative of what would have occurred had the acquisition and related transactions been made on the dates indicated, or of future results of the Company.

Adjusted book value per share represents assets less liabilities excluding the after-tax impact of net unrealized gains and losses, divided by the number of shares outstanding.  In the opinion of the Company’s management, adjusted book value is useful in an analysis of a preperty-casualty company’s book value on a nominal basis as it removes the effect of changing prices on invested assets, which do not have an equivalent impact on unpaid claims and claim adjustment expense reserves.

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 in April 2004), 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 Financial Professional Services, Bond, Construction, Technology, Ocean Marine, Oil and Gas, Public Sector, and Excess and Umbrella among others.  International Specialty includes operations in the U.K., Ireland, Canada, and the company’s participation in 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 to the identified segments. This methodology allocates pretax NII based upon an investable funds concept, which takes into account liabilities (net of non-invested assets) and appropriate capital considerations for each segment. It is not practicable to apply the methodology to historical businesses and as such, actual (versus allocated) NII is included in revenues and operating income of the restated segments for 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.

37