Exhibit 99
July 28, 1997 - THE ST. PAUL COMPANIES REPORTS STRONG
OPERATING EARNINGS FOR SECOND-QUARTER 1997
St. Paul, Minn. - The St. Paul Companies (NYSE:SPC) reported
second-quarter 1997 operating earnings from continuing
operations of $120.8 million, or $1.31 per share, compared
with last year's second-quarter operating earnings of $104.2
million, or $1.14 per share.
Net income for second-quarter 1997 was $230.5 million,
or $2.50 per share, compared with $130.1 million, or $1.42
per share, for the second quarter of 1996. Second-quarter
1997 net income included after-tax realized investment gains
of $109.7 million, or $1.19 per share, compared with $31.1
million, or $0.34 per share, for the second quarter of 1996.
"Our underwriting results continue to be quite
acceptable, despite the significant flood-related losses we
incurred in Minnesota and North Dakota in the second
quarter," said Douglas W. Leatherdale, chairman. "I am very
pleased with our record realized investment gains in the
quarter, which were driven by the success of our venture
capital and equity investment portfolios."
Six-months results
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For the first six months of 1997, operating earnings
from continuing operations were $251.0 million, or $2.74 per
share, compared with $217.4 million, or $2.38 per share, for
the first six months of 1996.
Net income for the first half of 1997 was $355.1
million, or $3.86 per share, compared with $258.9 million,
or $2.83 per share, for the first half of 1996. Net income
for the first six months of 1997 included after-tax realized
investment gains of $171.8 million, or $1.85 per share,
compared with $62.3 million, or $0.67 per share, for the
first six months of 1996.
"Overall, I am pleased with our results through the first
half of 1997 despite the continuation of highly competitive
market conditions," Leatherdale said.
Consolidated Financial Position
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Consolidated assets of The St. Paul Companies as of
June 30, 1997, were $20.93 billion, compared with $20.68
billion as of Dec. 31, 1996.
Common shareholders' equity was $4.19 billion at the
end of the second quarter, compared with $3.99 billion on
Dec. 31, 1996. Book value per common share as of June 30,
1997, was $50.03, compared with $47.93 on Dec. 31, 1996.
THE ST. PAUL COMPANIES
CONSOLIDATED SECOND-QUARTER RESULTS
Three months ended June 30 1997 1996
- -------------------------- ---- ----
Revenues $1,620,711,000 $1,364,474,000
Pretax Operating Earnings
Underwriting $143,657,000 $122,990,000
Investment Banking-
Asset Management 21,430,000 21,669,000
Parent and Other (24,624,000) (19,189,000)
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Total pretax operating earnings $140,463,000 $125,470,000
Income Tax Expense $19,647,000 $21,254,000
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Operating Earnings from
Continuing Operations $120,816,000 $104,216,000
Per Common Share (Fully Diluted) $1.31 $1.14
Realized Investment Gains,
Net of Taxes $109,708,000 $31,079,000
Per Common Share (Fully Diluted) $1.19 $0.34
Discontinued Operations,
Net of Taxes - $(5,242,000)
Per Common Share (Fully Diluted) - $(0.06)
Net Income $230,524,000 $130,053,000
Per Common Share (Fully Diluted) $2.50 $1.42
THE ST. PAUL COMPANIES
CONSOLIDATED SIX-MONTHS RESULTS
Six months ended June 30 1997 1996
- ------------------------ ---- ----
Revenues $3,177,914,000 $2,694,365,000
Pretax Operating Earnings
Underwriting $291,716,000 $253,929,000
Investment Banking-
Asset Management 44,134,000 43,236,000
Parent and Other (45,769,000) (42,127,000)
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Total pretax operating earnings $290,081,000 $255,038,000
Income Tax Expense $39,097,000 $37,655,000
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Operating Earnings $250,984,000 $217,383,000
Per Common Share (Fully Diluted) $2.74 $2.38
Realized Investment Gains,
Net of Taxes $171,839,000 $62,323,000
Per Common Share (Fully Diluted) $1.85 $0.67
Discontinued Operations,
Net of Taxes $(67,750,000) $(20,832,000)
Per Common Share (Fully Diluted) $(0.73) $(0.22)
Net Income $355,073,000 $258,874,000
Per Common Share (Fully Diluted) $3.86 $2.83
THE ST. PAUL COMPANIES
SECOND-QUARTER UNDERWRITING OPERATIONS
HIGHLIGHTS
Three months ended June 30 1997 1996
- -------------------------- ---- ----
Written premiums $1,186,285,000 $1,077,926,000
Net investment income $216,521,000 $193,819,000
Combined ratio 105.0 104.3
THE ST. PAUL COMPANIES
SIX-MONTHS UNDERWRITING OPERATIONS
HIGHLIGHTS
Six months ended June 30 1997 1996
- ------------------------ ---- ----
Written premiums $2,215,505,000 $2,012,537,000
Net investment income $434,790,000 $382,722,000
Combined ratio 106.2 105.2
The St. Paul Companies, headquartered in St. Paul, Minn., is
a group of companies that provides property-liability
insurance and reinsurance underwriting throughout the world.