Exhibit 99.1
Media Contact: Patrick Hirigoyen
U.S. Telephone: 651.310.7598
E-mail: pat.hirigoyen@stpaul.com
Investor Contact: Laura Gagnon
U.S. Telephone: 651.310.7696
E-mail: laura.gagnon@stpaul.com
July 30, 2003
For Immediate Release
The St. Paul Companies Reports Results
- --------------------------------------
SAINT PAUL, Minn. - The St. Paul Companies (NYSE: SPC) today
announced second-quarter 2003 net income of $214 million, or
$.89 per share, up from a second-quarter 2002 net loss of $223
million, or $1.09 per share. Second-quarter 2003 operating
earnings were $172 million, or $.71 per share, up from an
operating loss of $194 million, or $.95 per share, for the
comparable period of 2002. Second-quarter 2003 net income and
operating earnings included a previously announced after-tax
surety loss of $56 million, or $0.23 per diluted share.
Second-quarter 2002 net income and operating earnings included
a $380 million after-tax loss, or $1.79 per share, related to
the Western MacArthur asbestos settlement.
Second quarter 2003 compared to the second quarter of 2002:
- Ongoing segments' net written premiums, excluding
Lloyd's, up 26.2 percent (1)
- Net written premiums, excluding Lloyd's, up 10.8 percent (1)
- Net written premiums of $1.79 billion, down 2.7 percent
The company's second-quarter annualized operating earnings
return on average adjusted equity was 13.0 percent, and
annualized net income return on average equity was 14.1
percent. The company's year-to-date annualized operating
earnings return on average adjusted equity was 14.5 percent,
and annualized net income return on average equity was 13.2
percent.
Three Months Six Months
Ended June 30 Ended June 30
-------------- --------------
($ in millions, except per 2003 2002 2003 2002
share amounts) ---- ---- ---- ----
Net income (loss) $214 $(223) $395 $(90)
Net realized investment
(gains) losses (43) 24 (18) 45
Discontinued operations 1 5 1 14
Cumulative effect of
accounting change - - - 6
---- ---- ---- ----
Operating earnings (loss) $172 $(194) $378 $(25)
==== ==== ==== ====
Net income (loss) per
diluted share $0.89 $(1.09) $1.64 $(0.47)
Operating earnings (loss)
per diluted share $0.71 $(0.95) $1.56 $(0.16)
(1) During the first quarter 2003, the company eliminated a
one-quarter reporting lag for its Lloyd's operation. As a
result, the 2003 equivalent of the seasonally high Lloyd's net
written premiums reported in the second quarter of 2002 was
reported in the first quarter of 2003 making year-over-year
comparisons not meaningful. To improve comparability, the
company has eliminated Lloyd's premiums from both periods
where noted in this release. A reconciliation is provided on
page 5 of this release.
"We continue to make substantial progress," said Jay Fishman,
chairman and chief executive officer. "We are particularly
pleased with the net written premium growth of more than 26
percent in our ongoing insurance segments excluding Lloyd's,
which we see as early evidence of the success of our strategy.
We are also off to a good start on our acquisition of the
renewal rights to a portion of Kemper's business. We are very
pleased with the agents' initial response to expanding their
business with us and with the quality of business we have
booked to date. Nuveen Investments delivered high-quality
earnings growth, with strong net asset flows, continuing to
demonstrate the stability and quality of their business and
diversified product offerings. They increased managed assets
to $88 billion."
Second Quarter Financial Highlights
- -----------------------------------
Ongoing insurance segments' net earned premiums grew 17.2
percent to $1.59 billion. The impact of eliminating the one-
quarter reporting lag at Lloyd's was immaterial to ongoing
insurance segments' net earned premium growth. Net earned
premiums in the Other segment, primarily businesses being
exited, declined from $598 million in second-quarter 2002 to
$108 million in 2003. As a result of this decline, total
earned premiums for the quarter were $1.70 billion, compared
to $1.96 billion in 2002, and total revenues were $2.17
billion, down from $2.34 billion for second-quarter 2002.
The company's ongoing insurance segments recorded second-
quarter net written premiums of $1.71 billion, or 95.2 percent
of total net written premiums. Excluding Lloyd's premiums,
ongoing insurance segments' net written premiums grew 26.2
percent in the second quarter of 2003 over the prior-year
period. Including Lloyd's, net written premiums were up 13.4
percent over the same period of 2002. In the Other segment,
net written premiums declined to $86 million from $337 million
in 2002, primarily due to the transfer of our ongoing
reinsurance operations to Platinum Underwriters Holdings, Ltd.
in November 2002. Total second-quarter net written premiums
of $1.79 billion were down 2.7 percent from the same prior-
year period. Excluding Lloyd's premiums, total net written
premiums grew 10.8 percent.
The company's statutory combined ratio for ongoing segments
for the second quarter of 2003, at 95.3, and the loss ratio at
66.9, both included 5.4 points from a previously announced
surety loss. The expense ratio improved 1.3 points, to 28.4,
from the prior-year second quarter. The ongoing segments'
combined ratio of 91.4 for the second quarter of 2002
reflected an unusually low level of weather-related losses.
Catastrophe losses in the second quarter of both 2003 and 2002
were not meaningful. The overall statutory combined ratio was
97.8, consisting of a loss ratio of 69.4 and an expense ratio
of 28.4, an improvement over 132.4 in the second quarter of
2002, which included 29.9 points attributable to the impact of
the settlement of the Western MacArthur litigation.
Nuveen Investments contributed after-tax net income and
operating earnings of $27 million in the quarter, compared to
$24 million in the prior-year period. Assets under management
grew to $88.26 billion at June 30, up 28.9 percent from a year
ago.
The company's common shareholders' equity increased to $6.21
billion from $5.68 billion at the end of last year. Reported
book value per common share at June 30, 2003, was $27.25, and
$31.27 if adjusted to include the company's investment in
Nuveen Investments at market value. Reported book value per
common share was $25.05 at year-end 2002. The company's
outstanding debt declined by $178 million compared to year-end
2002, resulting in a debt to capital ratio of 26.1 percent.
The company's capital base was $9.70 billion, up $352 million
from Dec. 31, 2002.
Property-Liability Operating Overview
-------------------------------------
The following discussion of second-quarter results relates to
items that are included in both net income and operating
earnings. Underwriting profits do not include net investment
income.
Specialty Commercial
- --------------------
Excluding Lloyd's premiums from both periods, Specialty
Commercial net written premiums grew 25.2 percent. Including
Lloyd's, net written premiums for Specialty Commercial
increased 8.2 percent to $1.21 billion. The combined ratio
of 96.6, which included 7.7 points related to the previously
announced surety loss, compared to 91.8 for the same period in
2002. This segment yielded pretax underwriting profits of $12
million in the second quarter of 2003, which included the
impact of the previously announced $86 million pretax loss in
surety. The segment reported underwriting profits of $73
million in the comparable 2002 period.
Commercial Lines
- ----------------
Net written premiums for Commercial Lines - which includes
Middle Market Commercial, Small Commercial and Property
Solutions - increased 28.6 percent to $494 million. The
combined ratio increased to 92.3 compared to 91.3 for the same
period of 2002, which benefited from abnormally low weather
losses. Second-quarter pretax underwriting profit for the
segment, at $36 million, also reflected the impact of higher
weather-related losses in 2003 vs. 2002. Underwriting
profits for the comparable period last year were $48 million.
Other
- -----
The Other segment primarily includes the businesses the
company decided to exit, as well as development on most of our
asbestos and environmental reserves. The company reported
pretax underwriting losses of $49 million in this segment in
the second quarter of 2003, compared with underwriting losses
of $712 million in the second quarter of 2002, which included
$585 million of losses related to the settlement of the
Western MacArthur litigation. In the fourth quarter of 2002,
the company revised its estimated impact of the Western
MacArthur settlement from a $585 million pretax loss to a $472
million pretax loss after an extensive analysis of the
relevant reinsurance contracts.
Investments
- -----------
Net investment income was $274 million in the quarter,
compared to $286 million in the second quarter of 2002 and
$281 million in the first quarter of 2003. The decline from
first quarter was attributable to a decline in invested asset
levels (due to a previously disclosed $747 million payment,
which included interest, that was made in mid-January 2003
related to the Western MacArthur settlement) and lower
investment yields. The average fixed maturity portfolio yield
has declined from 6.1 percent at the end of first-quarter 2003
to 6.0 percent at the end of second-quarter 2003. After-tax
realized gains of $43 million were primarily driven by venture
capital investments, and compared with after-tax realized
losses of $24 million in the year-ago period. The average
credit quality of the company's fixed income investment
portfolio remains AA+.
Asset Management Operating Overview
- -----------------------------------
Nuveen contributed after-tax net income and operating earnings
of $27 million in the quarter compared to $24 million in the
prior-year period. During the second quarter, Nuveen Investments
added $2.80 billion in exchange-traded closed-end funds. Total
assets under management grew to $88.26 billion at the end
of the quarter, an increase of 28.9 percent from $68.50
billion at June 30, 2002, and up 10.7 percent from $79.72
billion at Dec. 31, 2002. Nuveen Investments' gross sales
in the second quarter were a record $5.42 billion, with
positive net asset flows of $3.09 billion.
Summary Financial Data
Consolidated Financial Summary
- ------------------------------
Three Months Six Months
Ended June 30 Ended June 30
------------- -------------
(In millions, except 2003 2002 2003 2002
per share amounts) ---- ---- ---- ----
Total Revenues $2,171 $2,344 $4,285 $4,678
===== ===== ===== =====
Property-Liability Insurance:
Underwriting Result by Segment:
Specialty Commercial $ 12 $ 73 $ 130 $ 67
Commercial Lines 36 48 74 43
----- ----- ----- -----
Subtotal - ongoing segments 48 121 204 110
Other (49) (712) (148) (712)
----- ----- ----- -----
Total Underwriting Result (1) (591) 56 (602)
Other expense (20) (12) (53) (38)
Net investment income 274 283 554 573
----- ----- ----- -----
Total Property-
Liability Insurance 253 (320) 557 (67)
Asset Management 44 39 86 77
Parent and Other (57) (51) (113) (108)
----- ----- ----- -----
Pretax Operating Earnings (Loss) 240 (332) 530 (98)
Income tax expense (benefit) 68 (138) 152 (73)
----- ----- ----- -----
Operating Earnings (Loss) 172 (194) 378 (25)
Realized investment gains
(losses), net of taxes 43 (24) 18 (45)
Cumulative effect of
accounting change, net of taxes - - - (6)
Discontinued operations,
net of taxes (1) (5) (1) (14)
----- ----- ----- -----
Net Income (Loss) $ 214 $(223) $ 395 $ (90)
===== ===== ===== =====
Weighted average common
shares outstanding 227.5 208.3 227.3 208.1
Weighted average diluted
common shares outstanding 239.6 208.3 238.6 208.1
Net Income (Loss) per
diluted share $0.89 $(1.09) $1.64 $(0.47)
Net of taxes, per
diluted share:
Realized investment
(gains) losses (0.18) 0.12 (0.08) 0.22
Cumulative effect of
accounting change - - - 0.03
Discontinued operations - 0.02 - 0.06
----- ----- ----- -----
Operating Earnings (Loss)
per diluted share $0.71 $(0.95) $1.56 $(0.16)
===== ===== ===== =====
* The increase in outstanding shares is due primarily to the
company's issuance of equity in July 2002.
Consolidated Balance Sheet Data
- -------------------------------
June 30 December 31
--------- -----------
($ in millions, except 2003 2002
per share amounts) --------- -----------
Assets:
Investments $22,307 $22,733
Reinsurance recoverables 8,452 8,300
Other receivables 3,240 3,176
Other assets 6,539 5,750
------ ------
Total Assets $40,538 $39,959
====== ======
Liabilities:
Insurance reserves* $25,497 $26,428
Debt - conventional 2,092 2,270
Debt - equity unit related 443 443
Other liabilities 5,341 4,183
------ ------
Total liabilities 33,373 33,324
------ ------
Preferred securities 890 889
------ ------
Shareholders' Equity:
Common 6,207 5,681
Preferred 68 65
------ ------
Total Shareholders' Equity 6,275 5,746
------ ------
Total Liabilities and Equity $40,538 $39,959
====== ======
Ratio of conventional debt to
total capitalization 21.6% 24.3%
Ratio of total debt obligations
to total capitalization 26.1% 29.0%
Book value per common share $27.25 $25.05
Book value per common share,
adjusted for Nuveeen at after-tax
market value $31.27 $28.82
* Reserves include loss and loss adjustment net reserves of
$6.45 billion for Other, which is primarily comprised of
our runoff businesses, with a weighted average life of 4.9
years.
Net written premium impact of Lloyd's
- -------------------------------------
Three Months Six Months
($ in millions) Ended June 30 Ended June 30
------------------- ------------------
2003 2002 chg 2003 2002 chg
----- ----- --- ----- ----- ---
Total net written premiums $1,794 $1,843 (2.7)% $3,771 $3,961 (4.8%)
Lloyd's net written premiums 85 301 470 357
----- ----- ----- -----
Total net written
premiums x/Lloyd's $1,709 $1,542 10.8% $3,301 $3,604 (8.4)%
===== ===== ===== =====
Ongoing segments'
net written premiums $1,708 $1,506 13.4% $3,575 $2,916 22.6%
Lloyd's net written premiums 81 217 447 241
----- ----- ----- -----
Ongoing segments' net
written premiums x/Lloyd's $1,627 $1,289 26.2% $3,128 $2,675 16.9%
===== ===== ===== =====
Specialty Commercial
net written premiums $1,214 $1,122 8.2% $2,546 $2,033 25.2%
Lloyd's net written premiums 81 217 447 241
----- ----- ----- -----
Specialty Commercial net
written premiums x/Lloyd's $1,133 $ 905 25.2% $2,099 $1,792 17.1%
===== ===== ===== =====
Consolidated Financial Summary, adjusted for the Elimination
of the Reporting Lag for Lloyd's*
- --------------------------------
---------------------------- Six Months Ended June 30 ----------
Results Prior to Impact of
Elimination of Elimination of
Reporting Lag* Reporting Lag* As Reported
--------------- -------------- --------------
(In millions, except per
share amounts) 2003 2002
----- -----
Total Revenues $4,213 $ 72** $4,285 $4,678
===== ===== ===== =====
Property-Liability Insurance:
Underwriting Result by Segment:
Specialty Commercial $ 127 $ 3 $ 130 $ 67
Commercial Lines 74 - 74 43
----- ----- ----- -----
Subtotal - ongoing segments 201 3 204 110
Other (143) (5) (148) (712)
----- ----- ----- -----
Total Underwriting Result 58 (2) 56 (602)
Other expense (50) (3) (53) (38)
Net investment income 552 2 554 573
----- ----- ----- -----
Total Property-
Liability Insurance 560 (3) 557 (67)
Asset Management 86 - 86 77
Parent and Other (113) - (113) (108)
----- ----- ----- -----
Pretax Operating Earnings (Loss) 533 (3) 530 (98)
Income tax expense (benefit) 153 (1) 152 (73)
----- ----- ----- -----
Operating Earnings (Loss) 380 (2) 378 (25)
Realized investment gains
(losses), net of taxes 18 - 18 (45)
Cumulative effect of
accounting change, net of taxes - - - (6)
Discontinued operations,
net of taxes (1) - (1) (14)
----- ----- ----- -----
Net Income (Loss) $ 397 $ (2) $ 395 $ (90)
===== ===== ===== =====
Weighted average common
shares outstanding 227.3 227.3 227.3 208.1
Weighted average diluted
common shares outstanding 238.6 238.6 238.6 208.1
Net Income (Loss) and
impact per diluted share $1.65 $(0.01) $1.64 $(0.47)
Operating Earnings (Loss) and
impact per diluted share $1.57 $(0.01) $1.56 $(0.16)
* The elimination of the one-quarter reporting lag for St. Paul
at Lloyd's is also discussed in the first quarter 2003
release.
** Applicable net written premium impact of elimination of
reporting lag was $54 million.
Key terms, definitions and reconciliations
- ------------------------------------------
Book value per share adjusted for Nuveen Investments marked to
market:
(in millions except Impact of Book value
per share) Nuveen at adjusted for
Reported market Nuveen at market
-------- --------- ----------------
Common Shareholders'
Equity $6,207 $916 $7,123
Common Shares
Outstanding 227.8 - 227.8
------ ------ ------
Book Value per
Common Share $27.25 $4.02 $31.27
====== ====== ======
The company consolidates Nuveen Investments, then excludes the
minority interest. For purposes of calculating the book value
per share adjustment in the foregoing table, the pretax
difference between
the carrying value of our investment in Nuveen Investments and
the quarter-end market value of the shares of Nuveen
Investments that we own is tax-effected at the
statutory rate of 35%, and the result is divided by the
number of our common shares outstanding. Since a market price
is available for the shares of Nuveen Investments, we believe
that providing our book value per share adjusted for Nuveen
Investments at market is useful supplemental information for
investors concerning our financial condition. There can be no
assurance that we would receive a price per share similar to
the market price if we were to seek to sell our shares of
Nuveen Investments.
Capital Base: Consists of shareholders' equity, debt and
preferred securities.
($ in billions) June 30, 2003
-------------
Shareholders' equity $ 6.28
Debt 2.53
Preferred securities 0.89
-----
Capital Base $ 9.70
=====
Each of the components of our capital base (other than a
modest amount of short-term debt) supports our operations over
the longer term, and we believe that showing a combined
capital base is useful information to investors evaluating our
financial condition.
Catastrophe Losses: Effective Jan. 1, 2003, the company
changed its disclosure in that it no longer classifies all
losses defined as catastrophes by the Insurance Services
Office (ISO) as "catastrophe losses." The company revised its
definition of losses reported as "catastrophes" to include
only those events that generate losses beyond a level normally
expected in its business. This revised definition has no
impact on recorded results. Prior periods have been
reclassified to conform to this definition.
Debt to Capital Ratio reconciliation: The company shows
conventional debt obligations to total capitalization, which
excludes debt associated with equity unit securities from the
numerator. In August 2005 the holders of equity units, of
which this debt is a part, are obligated to purchase for an
amount equal to the principal amount of the debt a number of
shares of our common stock determined pursuant to a settlement
formula specified in the forward contracts that are part of
the equity unit. In light of the special characteristics of
the equity units, the company believes that the conventional
debt to capital ratio presents useful supplemental information
to investors concerning its financial strength.
June 30 December 31
2003 2002
------- -----------
Conventional debt to capital ratio 21.6% 24.3%
Impact of debt associated with equity
units on debt to capital ratio 4.5% 4.7%
------ ------
Debt to capital ratio 26.1% 29.0%
====== ======
Statutory Ratios:
Expense Ratio: The company uses the statutory definition of
expenses in calculating expense ratios disclosed. Expenses
are divided by net written premiums to arrive at the expense
ratio. "Statutory" expenses differ from "GAAP" expenses
primarily with regard to policy acquisition costs, which are
not deferred and amortized for statutory purposes, but rather
recognized as incurred.
Loss Ratio: The company uses the statutory definition of loss
ratio. This ratio is calculated by dividing the sum of
losses and loss adjustment expenses incurred by net earned
premiums. Net earned premiums, and losses and loss adjustment
expenses, are also GAAP measures.
Combined Ratio: The sum of the statutory expense ratio and the
loss ratio.
Written and Earned Premiums: Net written premiums are a
statutory measure of premium volume that differs from the net
earned premiums reported in our GAAP statement of operations.
Written premiums for a period can be reconciled to earned
premiums by adding or subtracting the change in unearned
premium reserves in the period.
Operating Earnings: The company uses operating earnings, a
non-GAAP financial measure, to evaluate The St. Paul's
performance. "Operating earnings" shows net income exclusive
of certain items that are volatile and that we believe may
distort the analysis of trends in our business. Operating
earnings consist of net income excluding after-tax realized
gains and losses, after-tax income (or loss) from discontinued
operations, and the after-tax cumulative effect of accounting
changes, each of which may be highly variable from period to
period. Although the investment of premiums to generate
investment income and realized capital gains (or losses) is an
integral part of the company's insurance operations, the
determination to realize capital gains or losses is
independent of the insurance underwriting process. Moreover,
under applicable GAAP accounting requirements, losses can
result from other than temporary declines in value without
actual realization. We believe that the level of realized
gains or losses for any particular period is not indicative of
the performance of our ongoing underlying business operations
in a particular period. Results of discontinued operations
are not relevant to an assessment of our ongoing operations,
and changes in accounting principles have nothing to do with
our underlying operations. Providing only a GAAP presentation
of net income makes it more difficult for users of our
financial information to evaluate the company's success or
failure in our basic business, and may lead to incorrect or
misleading assumptions and conclusions. We understand that
the equity analysts who follow the company focus on operating
earnings in their analyses for the same reasons discussed
above. The excluded items may be material in a period. The
company provides Operating Earnings to investors so that they
have what management believes to be a useful supplement to
GAAP information concerning the company's performance.
Operating Return on Equity: In calculating operating return
on equity, the company uses operating earnings as defined
above less preferred dividends and excludes from average
equity the average unrealized appreciation or depreciation on
fixed income securities, net of tax. Preferred dividends are
excluded so that the returns represent only returns available
to common shareholders. Unrealized appreciation
(depreciation) is primarily the result of interest rate
movements and the resultant valuation impact on fixed income
securities generally held to maturity. Such appreciation
(depreciation) is not related to management actions or
operational performance, nor is it likely to be realized.
Therefore, the company believes excluding this unrealized
appreciation (depreciation) provides a more consistent and
useful measurement of operating performance, which supplements
GAAP information. Average equity is calculated using
beginning plus ending values for the period, and dividing by
two. We believe that operating return on equity is useful to
investors evaluating our performance because it is a measure
of return that is calculated based on operating earnings
(which exclude volatile items that can distort trends as
discussed earlier) and common shareholders' equity adjusted to
eliminate increases and decreases that primarily result from
interest rate changes that are beyond management's control.
Operating Return on Equity Reconciliation
- -----------------------------------------
($ in millions) Three months Six months
ended ended
June 30, June 30,
2003 2003
------------ ----------
Net income $ 214 $ 395
Realized gains 43 18
Discontinued operations (1) (1)
Preferred dividends 2 4
----- -----
Operating earnings available to
common shareholders $ 170 $ 374
===== =====
Annualized operating earnings
available to common shareholders $ 680 $ 748
Operating return on equity 13.0% 14.5%
Average adjusted equity $ 5,230 $ 5,161
Average unrealized appreciation 788 783
----- -----
Average common equity $ 6,018 $ 5,944
===== =====
Underwriting Results: The company calculates underwriting
results using statutory financial information, adjusting for
certain items (such as the amortization of deferred policy
acquisition costs) to arrive at an underwriting result as
calculated with GAAP measures. Our reported underwriting
result is calculated by subtracting incurred losses and loss
adjustment expenses and underwriting expenses (as adjusted for
items such as the impact of deferred policy acquisition costs)
from net earned premiums. This represents our best measure of
profitability for our property-liability underwriting
segments. A reconciliation of statutory underwriting results
to the company's reported underwriting results can be found in
the statistical supplement available on the company's web
site.
The St. Paul Companies is headquartered in Saint Paul,
Minnesota, and provides commercial property-liability
insurance and asset management services. The St. Paul
reported 2002 revenue from continuing operations of $8.92
billion and total assets of $39.96 billion, and ranks No. 207
on the Fortune 500 list of largest U.S. companies. For
additional information about The St. Paul's quarterly results,
go to the Investor Relations section of The St. Paul's Web
site: www.stpaul.com.
Certain statements made by the company in this release may
constitute forward-looking statements. Actual results may
differ materially from those projected in the forward-looking
statements. These forward-looking statements involve risks and
uncertainties including, but not limited to, the following:
competitive considerations, including the ability to implement
price increases; the frequency and severity of catastrophic
events, including the risk of large losses from man-made
catastrophes such as terrorist attacks; our achievement of
planned expense savings; the timing and impact of our exiting
of certain types of business; changes in the demand for,
pricing of, or supply of reinsurance or insurance;
uncertainties relating to reinsurance recoverables; increased
competitive pressure; the loss of significant customers; worse
than anticipated loss developments from business written in
prior years; losses due to foreign currency exchange rate
fluctuations and losses in our investment portfolio; the risk
that losses related to credit-sensitive products, including
surety bonds, could be material in the event of a sustained
economic downturn; changes in our estimate of insurance
industry losses resulting from the Sept. 11, 2001, terrorist
attack; the potential impact of the global war on terrorism
and Federal solutions to make available insurance coverage for
acts of terrorism; regulatory developments; general economic
conditions, including changing interest rates, rates of
inflation and the performance of the financial markets;
judicial decisions and rulings; risks relating to the approval
by the bankruptcy court of the settlement of the Western
MacArthur matter; changes in domestic and foreign laws,
regulations and taxes, including risks relating to possible
Federal legislation regarding asbestos related claims; effects
of acquisitions and divestitures; and various other factors.
We undertake no obligation to release publicly the results of
any future revisions we may make to forward-looking statements
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
COMMENT ON REGULATION G
Throughout this press release, the company presents its
operations in the way it believes will be most meaningful and
useful, as well as most transparent, to the investing public
and others who use this financial information in evaluating
our performance. In addition to the GAAP presentations of net
income and certain statutory reporting information we show
certain non-GAAP measures, including operating earnings and
operating return on equity. All non-GAAP terms are defined in
this press release, together with an explanation of why we
believe such measures may provide useful information to
investors regarding our financial condition or results of
operations and a statement, to the extent material, of any
additional purposes our management uses the non-GAAP financial
measure. Reconciliations of non-GAAP measures (other than the
statutory information) to the most comparable GAAP figures are
included in accordance with the requirements of Regulation G
under the Securities Exchange Act of 1934. Non-GAAP measures
are often not comparable among issuers, and are not a
substitute for GAAP information.
All financial results herein are unaudited as of the date of
this release.
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