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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest
event reported): July 24, 1995
THE ST. PAUL COMPANIES, INC.
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(Exact name of Registrant as specified in its charter)
Minnesota 0-3021 41-0518860
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(State of (Commission File (I.R.S. Employer
Incorporation) Number) Identification No.)
385 Washington St., St. Paul, MN 55102
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(Address of principal (Zip Code)
executive offices)
(612) 221-7911
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(Registrant's telephone number,
including area code)
N/A
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(Former name or former address, if changed since last
report)
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Item 5. Other Events.
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Filed herewith are statements derived from a press release
dated July 24, 1995, of the registrant relating to its results
for the quarter ended June 30, 1995, which will be superseded by the
registrant's Quarterly Report on Form 10-Q for such period.
The results for an interim period are not necessarily
indicative of the results for a full year.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
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An Exhibit Index is set forth as the next page in this
report.
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
THE ST. PAUL COMPANIES, INC.
By /s/ Bruce A. Backberg
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Bruce A. Backberg
Vice President
and Corporate Secretary
Date: July 26, 1995
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EXHIBIT INDEX
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How
Exhibit Filed
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(99) Additional exhibits . . . . . . . . . . . . . . . (1)
(1) Filed electronically under the EDGAR Operational
Program.
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Exhibit 99
July 24, 1995 - THE ST. PAUL COMPANIES 2ND-QUARTER EARNINGS DIP;
SIX-MONTH EARNINGS WELL AHEAD OF LAST YEAR
St. Paul, Minn. - The St. Paul Companies (NYSE:SPC) reported
second-quarter 1995 operating earnings of $106.7 million, or
$1.17 per share, compared with last year's second-quarter
operating earnings of $117.3 million, or $1.31 per share.
Net income for second-quarter 1995 was $113.0 million,
or $1.24 per share, compared with $127.8 million, or $1.43
per share, for the second quarter of 1994. Second-quarter
1995 net income included after-tax realized investment gains
of $6.3 million, or $0.07 per share, compared with $10.5
million, or $0.12 per share, for the second quarter of 1994.
"Catastrophe losses of $55 million - compared with
virtually no catastrophe losses in the second quarter of
1994 - offset otherwise strong second-quarter 1995 results,"
said Douglas W. Leatherdale, chairman and chief executive
officer. "These losses were largely the result of spring
storms in Texas and the Midwest, where our underwriting
operations have a significant presence."
Six-months results
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"Operating earnings for the first half were up 29
percent over 1994," Leatherdale said.
For the first six months of 1995, operating earnings
were $215.2 million, or $2.38 per share, compared with
$166.9 million, or $1.85 per share, for the first six months
of 1994.
Net income for the first half of 1995 was $223.6
million, or $2.47 per share, compared with $192.2 million,
or $2.14 per share, for the first half of 1994. Net income
for the first six months of 1995 included after-tax realized
investment gains of $8.4 million, or $0.09 per share,
compared with gains of $25.3 million, or $0.29 per share,
for the first six months of 1994.
Underwriting Operations
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"Premiums increased 19 percent over second-quarter
1994, due to growth in both our domestic and international
underwriting operations, including our recent acquisition of
much of the international business of CIGNA Reinsurance-
Property & Casualty," Leatherdale said.
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"At the same time, we are encouraged by our ability to
hold our non-commission underwriting expenses nearly flat
following the reconfiguration of our underwriting operations
at year-end 1993."
THE ST. PAUL COMPANIES
SECOND-QUARTER UNDERWRITING OPERATIONS
HIGHLIGHTS
Three months ended June 30 1995 1994
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Written premiums $1,095,126,000 $921,119,000
Underwriting loss ($25,675,000) ($13,544,000)
Net investment income $180,810,000 $164,461,000
Pretax operating earnings* $137,258,000 $145,565,000
Combined ratio 101.4 100.2
*excluding realized investment gains
THE ST. PAUL COMPANIES
SIX-MONTHS UNDERWRITING OPERATIONS
HIGHLIGHTS
Six months ended June 30 1995 1994
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Written premiums $2,011,489,000 $1,725,690,000
Underwriting loss ($41,127,000) ($96,601,000)
Net investment income $359,228,000 $328,986,000
Pretax operating earnings* $295,925,000 $214,877,000
Combined ratio 101.7 105.2
*excluding realized investment gains
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Insurance Brokerage Operations
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For the second quarter of 1995, The Minet Group, The
St. Paul's London-based insurance brokerage operation, had a
pretax loss of $3.7 million, compared with a pretax loss of
$4.6 million for the same 1994 period.
For the first six months of 1995, Minet had a pretax
loss of $18.3 million, compared with a pretax loss of $13.6
million for the first half of 1994.
"Minet continues to operate in an extremely competitive
market environment, which has hampered its ability to
increase revenues," Leatherdale said.
The John Nuveen Company
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The St. Paul's portion of The John Nuveen Company's
second-quarter 1995 pretax operating earnings totaled $19.5
million, compared with pretax operating earnings of $17.9
million for the same period in 1994. The St. Paul owns 77
percent of Nuveen.
For six-months 1995, The St. Paul's portion of Nuveen's
pretax operating earnings was $38.9 million, compared with
$35.2 million for the first half of 1994.
Consolidated Financial Position
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Consolidated assets of The St. Paul Companies as of
June 30, 1995, were $18.5 billion, compared with $17.5
billion as of Dec. 31, 1994.
Common shareholders' equity was $3.3 billion at the end
of the second quarter, compared with $2.7 billion on Dec. 31,
1994. Book value per common share as of June 30, 1995,
was $39.07, compared with $32.46 on Dec. 31, 1994.
Unrealized appreciation in The St. Paul's bond
portfolio contributed to the rise in assets and
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.
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THE ST. PAUL COMPANIES
SECOND-QUARTER RESULTS
1995 1994
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Revenues $1,330,728,000 $1,165,149,000
Operating Earnings $106,716,000 $117,279,000
Per Common Share (Fully Diluted) $1.17 $1.31
Realized Investment Gains,
Net of Taxes $6,251,000 $10,483,000
Per Common Share (Fully Diluted) $0.07 $0.12
Net Income $112,967,000 $127,762,000
Per Common Share (Fully Diluted) $1.24 $1.43
THE ST. PAUL COMPANIES
SIX-MONTHS RESULTS
1995 1994
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Revenues $2,598,187,000 $2,328,924,000
Operating Earnings $215,173,000 $166,851,000
Per Common Share (Fully Diluted) $2.38 $1.85
Realized Investment Gains,
Net of Taxes $8,390,000 $25,348,000
Per Common Share (Fully Diluted) $0.09 $0.29
Net Income $223,563,000 $192,199,000
Per Common Share (Fully Diluted) $2.47 $2.14
