Exhibit 99
July 29, 1996 - ST. PAUL COMPANIES' SECOND QUARTER EARNINGS
HURT BY SPRING STORMS IN MIDWEST
St. Paul, Minn. - The St. Paul Companies (NYSE:SPC) reported
second-quarter 1996 operating earnings of $99.0 million, or
$1.09 per share, compared with last year's second-quarter
operating earnings of $106.7 million, or $1.17 per share.
"We experienced significant catastrophe losses this
quarter as a result of spring storms in the Midwest, where
we have a heavy concentration of business," said Douglas W.
Leatherdale, chairman and chief executive officer. "In
addition, our premiums were flat, reflecting highly
competitive market conditions."
Net income for second-quarter 1996 was $130.1 million,
or $1.42 per share, compared with $113.0 million, or $1.24
per share, for the second quarter of 1995. Second-quarter
1996 net income included after-tax realized investment gains
of $31.1 million, or $0.33 per share, compared with $6.3
million, or $0.07 per share, for the second quarter of 1995.
"We were particularly pleased with the performance of our
venture capital operations, which have contributed almost
$60 million in pretax realized gains over the last six
months," Leatherdale said.
Six-months results
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For the first six months of 1996, operating earnings
were $196.6 million, or $2.15 per share, compared with
$215.2 million, or $2.38 per share, for the first six months
of 1995.
Net income for the first half of 1996 was $258.9
million, or $2.83 per share, compared with $223.6 million,
or $2.47 per share, for the first half of 1995. Net income
for the first six months of 1996 included after-tax realized
investment gains of $62.3 million, or $0.68 per share,
compared with gains of $8.4 million, or $0.09 per share, for
the first six months of 1995.
Consolidated Financial Position
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Consolidated assets of The St. Paul Companies as of
June 30, 1996, were $19.61 billion, compared with $19.66
billion as of Dec. 31, 1995.
Common shareholders' equity was $3.69 billion at the
end of the second quarter, compared with $3.72 billion on
Dec. 31, 1995. Book value per common share as of June 30,
1996, was $44.16, compared with $44.29 on Dec. 31, 1995.
THE ST. PAUL COMPANIES
CONSOLIDATED SECOND-QUARTER RESULTS
Three months ended June 30 1996 1995
- -------------------------- ---- ----
Revenues $1,451,121,000 $1,330,728,000
Pretax Operating Earnings
Underwriting $122,990,000 $137,258,000
Insurance Brokerage (4,524,000) (3,693,000)
Investment Banking-
Asset Management 21,669,000 19,532,000
Parent and Other (19,189,000) (19,190,000)
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Total pretax operating earnings $120,946,000 $133,907,000
Income Tax Expense $21,972,000 $27,191,000
Operating Earnings $98,974,000 $106,716,000
Per Common Share (Fully Diluted) $1.09 $1.17
Realized Investment Gains,
Net of Taxes $31,079,000 $6,251,000
Per Common Share (Fully Diluted) $0.33 $0.07
Net Income $130,053,000 $112,967,000
Per Common Share (Fully Diluted) $1.42 $1.24
THE ST. PAUL COMPANIES
CONSOLIDATED SIX-MONTHS RESULTS
Six months ended June 30 1996 1995
- ------------------------ ---- ----
Revenues $2,859,812,000 $2,598,187,000
Pretax Operating Earnings
Underwriting $253,929,000 $295,925,000
Insurance Brokerage (17,932,000) (18,324,000)
Investment Banking-
Asset Management 43,236,000 38,886,000
Parent and Other (42,127,000) (37,411,000)
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Total pretax operating earnings $237,106,000 $279,076,000
Income Tax Expense $40,555,000 $63,903,000
Operating Earnings $196,551,000 $215,173,000
Per Common Share (Fully Diluted) $2.15 $2.38
Realized Investment Gains,
Net of Taxes $62,323,000 $8,390,000
Per Common Share (Fully Diluted) $0.68 $0.09
Net Income $258,874,000 $223,563,000
Per Common Share (Fully Diluted) $2.83 $2.47
THE ST. PAUL COMPANIES
SECOND-QUARTER UNDERWRITING OPERATIONS
HIGHLIGHTS
Three months ended June 30 1996 1995
- -------------------------- ---- ----
Written premiums $1,077,926,000 $1,095,126,000
Net investment income $193,819,000 $180,810,000
Combined ratio 104.3 101.4
THE ST. PAUL COMPANIES
SIX-MONTHS UNDERWRITING OPERATIONS
HIGHLIGHTS
Six months ended June 30 1996 1995
- ------------------------ ---- ----
Written premiums $2,012,537,000 $2,011,489,000
Net investment income $382,722,000 $359,228,000
Combined ratio 105.2 101.7
The St. Paul Companies, headquartered in St. Paul, Minn., is
a group of companies that provides property-liability
insurance underwriting and insurance brokerage products and
services throughout the world.