Exhibit 99
April 24, 1994 - FIRST-QUARTER CATASTROPHES DAMPEN
ST. PAUL COMPANIES RESULTS
St. Paul, Minn. - The St. Paul Companies (NYSE:SPC) reported
1994 first-quarter operating earnings of $49.6 million, or
$1.09 per share, compared with first-quarter 1993 operating
earnings of $79.9 million, or $1.77 per share.
Net income for first-quarter 1994 was $64.4 million, or
$1.42 per share, compared with $88.0 million, or $1.95 per
share, for the first quarter of 1993. Net income included
after-tax realized gains of $14.9 million, or $0.33 per
share, for the first quarter of 1994, compared with $8.1
million, or $0.18 per share, for the first quarter of 1993.
"Catastrophe losses were the highest ever in a first
quarter for the property-liability insurance industry and
for The St. Paul. Our catastrophe losses in the first
quarter of 1994 were more than we experienced during all of
1993," said Douglas W. Leatherdale, chairman and chief
executive officer. "Still, we're in the business of paying
catastrophe claims, which by their very nature are
unpredictable and volatile. We expect quarters like this
from time to time. So, it's important to note that, aside
from the catastrophe losses, our underwriting operations
performed well in the first quarter."
First-quarter catastrophe losses totaled $89.7 million
pretax, or $1.40 per share after-tax, including $55.2
million in losses from the California earthquake; East Coast
winter storms accounted for most of the remaining losses.
That compares with pretax catastrophe losses of $46.2
million in the first quarter of 1993, or $0.68 per share
after-tax.
Underwriting Operations
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THE ST. PAUL COMPANIES
FIRST-QUARTER UNDERWRITING OPERATIONS
HIGHLIGHTS
Three months ended March 31 1994 1993
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Written premiums $804,571,000 $761,152,000
Underwriting loss ($83,057,000) ($60,216,000)
Net investment income $164,525,000 $161,830,000
Pretax operating earnings* $69,312,000 $101,473,000
Statutory combined ratio 110.2 108.8
Impact of catastrophes on loss ratio 10.6 5.8
*excluding realized investment gains
The first quarter of 1994 includes results from Economy Fire
& Casualty Company, which The St. Paul acquired in the third
quarter of 1993.
Insurance Brokerage Operations
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The Minet Group had a pretax loss of $9.0 million for
the first quarter, compared with a pretax loss of $7.8
million for first-quarter 1993.
"The first quarter is a weak period seasonally for
Minet," Leatherdale said. "We believe Minet is on track
with its recovery and expect better results in future
quarters."
Investment Banking-Asset Management Operations
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The St. Paul's investment in The John Nuveen Company
produced 1994 first-quarter pretax earnings of $17.3
million, compared with $20.4 million for first-quarter 1993.
The St. Paul owns 75 percent of Nuveen stock.
"Nuveen's largest source of revenue - investment
advisory fees from assets under management - performed well
in the first quarter, producing $47 million, up from $39
million in first-quarter 1993,"
Leatherdale said. "However, Nuveen's investment banking and
unit investment trust operations were hit hard by increasing
interest rates in the first quarter."
Consolidated Financial Position
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Consolidated assets of The St. Paul Companies as of
March 31, 1994, were $16.7 billion, compared with $17.1
billion as of Dec. 31, 1993.
Common shareholders' equity was $2.7 billion at the end
of the first quarter, compared with $3.0 billion on Dec. 31,
1993. Book value per common share on March 31, 1994, was
$64.04, compared with $70.95 on Dec. 31, 1993.
Assets and common shareholders' equity were down from
year-end due to the decrease in the value of The St. Paul's
bond portfolio. At the end of 1993, The St. Paul adopted
Statement of Financial Accounting Standards No. 115, which
results in its bond portfolio being reported at estimated
market value.
The St. Paul Companies, headquartered in Saint Paul, Minn.
is a group of companies that provides property-liability
insurance underwriting and insurance brokerage products and
services.
THE ST. PAUL COMPANIES
CONSOLIDATED FIRST-QUARTER RESULTS
1994 1993
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Revenues $1,163,775,000 $1,114,028,000
Operating Earnings $49,572,000 $79,910,000
Per Common Share (Fully Diluted) $1.09 $1.77
Realized Investment Gains,
Net of Taxes $14,865,000 $8,121,000
Per Common Share (Fully Diluted) $0.33 $0.18
Net Income $64,437,000 $88,031,000
Per Common Share (Fully Diluted)* $1.42 $1.95
* Primary net income per common share was $1.47 for the
first quarter of 1994 compared with $2.02 for the first
quarter of 1993.