Exhibit 99
July 25, 1994 - THE ST. PAUL COMPANIES REPORTS
STRONG SECOND-QUARTER EARNINGS
St. Paul, Minn. - The St. Paul Companies (NYSE:SPC) reported
second-quarter 1994 operating earnings of $117.3 million, or
$1.31 per share, compared with last year's second-quarter
operating earnings of $91.9 million, or $1.02 per share.
Net income for second-quarter 1994 was $127.8 million,
or $1.43 per share, compared with $108.5 million, or $1.21
per share, for the second quarter of 1993. Second-quarter
1994 net income included after-tax realized investment gains
of $10.5 million, or $0.12 per share, compared with $16.6
million, or $0.19 per share, for the second quarter of 1993.
Per share figures reflect a two-for-one common stock
split on June 6, 1994.
"We had a very good second quarter," said Douglas W.
Leatherdale, chairman and chief executive officer. "Our
underwriting operations performed well, in part because
there were few catastrophes in the quarter, a welcome
respite from record first-quarter catastrophe losses.
"Our reinsurance operation performed especially well,
aided by the lack of catastrophes and fundamental
improvement in its business."
Six-months results
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For the first six months of 1994, operating earnings
were $166.9 million, or $1.85 per share, compared with
$171.8 million, or $1.91 per share, for the first six months
of 1993.
Net income for the first half of 1994 was $192.2
million, or $2.14 per share, compared with $196.5 million,
or $2.18 per share for the first half of 1993. Net income
for the first six months of 1994 included after-tax realized
investment gains of $25.3 million, or $0.29 per share,
compared with $24.7 million, or $0.27 per share, for the
first six months of 1993.
Underwriting Operations
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"Second-quarter premium volume was 21 percent higher
than last year's second quarter due to the inclusion of
results from Economy Fire & Casualty Company, which we
acquired last year in the third quarter, and growth in our
reinsurance operation," Leatherdale said.
THE ST. PAUL COMPANIES
SECOND-QUARTER UNDERWRITING OPERATIONS
HIGHLIGHTS
Three months ended June 30 1994 1993
- -------------------------- ---- ----
Written premiums $921,119,000 $759,597,000
Underwriting loss ($13,544,000) ($41,636,000)
Net investment income $164,461,000 $163,474,000
Pretax operating earnings* $145,565,000 $118,996,000
Combined ratio 100.2 103.7
*excluding realized investment gains
THE ST. PAUL COMPANIES
SIX-MONTHS UNDERWRITING OPERATIONS
HIGHLIGHTS
Six months ended June 30 1994 1993
- ------------------------ ---- ----
Written premiums $1,725,690,000 $1,520,749,000
Underwriting loss ($96,601,000) ($101,852,000)
Net investment income $328,986,000 $325,304,000
Pretax operating earnings* $214,877,000 $220,469,000
Combined ratio 105.2 106.4
*excluding realized investment gains
Insurance Brokerage Operations
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For the second quarter of 1994, The Minet Group, The
St. Paul's London-based insurance brokerage operation, had a
pretax loss of $4.6 million, compared with a pretax loss of
$9.3 million for the same 1993 period.
For the first six months of 1994, Minet had a pretax
loss of $13.6 million, compared with a pretax loss of $17.1
million for the first half of 1993.
"Minet's revenues grew 13 percent over last year's
second quarter, indicating that new initiatives instituted
over the last year are beginning to take hold," Leatherdale
said.
The John Nuveen Company
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The St. Paul's portion of The John Nuveen Company's
second-quarter 1994 pretax operating earnings totaled $17.9
million, compared with pretax operating earnings of $20.7
million for the same period in 1993. The St. Paul owns 76
percent of Nuveen.
For six-months 1994, The St. Paul's portion of Nuveen's
pretax operating earnings was $35.2 million, compared with
$41.1 million for the first half of 1993.
"Nuveen's earnings, while not as strong as last year's,
were very good, given the turmoil in the municipal bond
market," Leatherdale said.
Consolidated Financial Position
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Consolidated assets of The St. Paul Companies as of
June 30, 1994, were $16.96 billion, compared with $17.15
billion as of Dec. 31, 1993.
Common shareholders' equity was $2.68 billion at the
end of the second quarter, compared with $3.0 billion on
Dec. 31, 1993. Book value per common share on June 30,
1994, was $31.88, compared with $35.47 on Dec. 31, 1993.
Assets and common shareholders' equity were down from
year-end due to the decrease in the market 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, with the corresponding unrealized appreciation
(net of taxes) recorded in common shareholders' equity.
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 throughout the world.
THE ST. PAUL COMPANIES
SECOND-QUARTER RESULTS
1994 1993
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Revenues $1,165,149,000 $1,069,338,000
Operating Earnings $117,279,000 $91,929,000
Per Common Share (Fully Diluted)* $1.31 $1.02
Realized Investment Gains,
Net of Taxes $10,483,000 $16,568,000
Per Common Share (Fully Diluted) $0.12 $0.19
Net Income $127,762,000 $108,497,000
Per Common Share (Fully Diluted)* $1.43 $1.21
THE ST. PAUL COMPANIES
SIX-MONTHS RESULTS
1994 1993
---- ----
Revenues $2,328,924,000 $2,183,366,000
Operating Earnings $166,851,000 $171,839,000
Per Common Share (Fully Diluted)* $1.85 $1.91
Realized Investment Gains,
Net of Taxes $25,348,000 $24,689,000
Per Common Share (Fully Diluted) $0.29 $0.27
Net Income $192,199,000 $196,528,000
Per Common Share (Fully Diluted)* $2.14 $2.18
* The per-share figures above are fully diluted. Primary
earnings per common share are:
Second Quarter Six Months
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1994 1993 1994 1993
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Primary operating earnings
per common share $1.36 $1.06 $1.92 $1.97
Primary net income per
common share $1.49 $1.25 $2.22 $2.26