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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): October 29, 1996
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) 310-7911
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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 is a press release dated October 29,
1996, of the registrant relating to its results for the
quarter ended September 30, 1996, which will be superseded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: October 30, 1996
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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
Oct. 29, 1996 - ST. PAUL COMPANIES' REPORTS
THIRD-QUARTER RESULTS
St. Paul, Minn. - The St. Paul Companies (NYSE:SPC) reported
third-quarter 1996 operating earnings of $104.3 million, or
$1.15 per share, compared with last year's third-quarter
operating earnings of $125.1 million, or $1.35 per share.
"A number of significant events occurred during this
year's third quarter," said Douglas W. Leatherdale,
chairman and chief executive officer.
"Hurricane Fran on the East Coast, along with storms
and flooding in the Midwest and Southwest, caused
significant damage to our policyholders' property in those
areas," Leatherdale said. "These storms produced about $65
million in pretax catastrophe losses for the third quarter,
bringing our total catastrophe experience for the year to
about $180 million."
"We completed our purchase of Northbrook Holdings Inc.
from the Allstate Corporation in the third quarter,"
Leatherdale said. Northbrook underwrites commercial
property-liability insurance throughout the United States.
In 1995, Northbrook had annual written premiums of $587
million and total assets of $1.64 billion, including
invested assets of $1.2 billion.
Also during the third quarter, The St. Paul committed
to a plan to disinvest a significant portion of its holdings
in Minet, its London-based insurance brokerage operation.
The St. Paul estimates that this disinvestment will result
in a pretax loss of $250 million, which has been recorded in
the third quarter. Since the corporation's federal income
tax carrying value in Minet is substantially higher than its
book carrying value, The St. Paul has recognized an
estimated income tax benefit of $266 million in third-
quarter operating earnings.
"Despite the catastrophe losses in the third quarter,
we still produced good earnings," Leatherdale said. "Our
underwriting operations generally performed well. The John
Nuveen Company, of which we own 78 percent, generated good
results. Our investment income was up 9 percent over last
year's third quarter, and our investment operation continued
to generate strong realized gains."
Net income for third-quarter 1996 was $128.9 million,
or $1.42 per share, compared with $142.4 million, or $1.54
per share, for the third quarter of 1995. Third-quarter
1996 net income included after-tax realized investment gains
of $24.6 million, or $0.27 per share, compared with $17.3
million, or $0.19 per share, for the third quarter of 1995.
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Nine-months results
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For the first nine months of 1996, operating earnings
were $300.9 million, or $3.30 per share, compared with
$340.3 million, or $3.72 per share, for the first nine
months of 1995.
Net income for the first nine months of 1996 was $387.8
million, or $4.24 per share, compared with $366.0 million,
or $4.00 per share, for the first nine months of 1995. Net
income for the first nine months of 1996 included after-tax
realized investment gains of $86.9 million, or $0.94 per
share, compared with $25.7 million, or $0.28 per share, for
the first nine months of 1995.
Consolidated Financial Position
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Consolidated assets of The St. Paul Companies as of
Sept. 30, 1996, were $20.45 billion (topping the $20-billion
threshold for the first time), compared with $19.66 billion
as of Dec. 31, 1995.
Common shareholders' equity was $3.86 billion at the
end of the third quarter, compared with $3.72 billion on
Dec. 31, 1995. Book value per common share as of Sept. 30,
1996, was $46.38, compared with $44.29 on Dec. 31, 1995.
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THE ST. PAUL COMPANIES
CONSOLIDATED THIRD-QUARTER RESULTS
Three months ended Sept. 30 1996 1995
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Revenues $1,565,639,000 $1,364,866,000
Pretax Operating Earnings
Underwriting $75,013,000 $147,666,000
Insurance Brokerage (252,447,000) 4,587,000
Investment Banking-
Asset Management $23,282,000 22,216,000
Parent and Other (19,928,000) (22,100,000)
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Total Pretax Operating
Earnings (Loss) ($174,080,000) $152,369,000
Income Tax Expense (Benefit) ($278,394,000) $27,269,000
Operating Earnings $104,314,000 $125,100,000
Per Common Share (Fully Diluted) $1.15 $1.35
Realized Investment Gains,
Net of Taxes $24,620,000 $17,299,000
Per Common Share (Fully Diluted) $0.27 $0.19
Net Income $128,934,000 $142,399,000
Per Common Share (Fully Diluted) $1.42 $1.54
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THE ST. PAUL COMPANIES
CONSOLIDATED NINE-MONTHS RESULTS
Nine months ended Sept. 30 1996 1995
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Revenues $4,425,451,000 $3,963,053,000
Pretax Operating Earnings
Underwriting $328,942,000 $443,591,000
Insurance Brokerage (270,379,000) (13,737,000)
Investment Banking-
Asset Management $66,518,000 61,102,000
Parent and Other (62,055,000) (59,511,000)
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Total Pretax Operating Earnings $63,026,000 $431,445,000
Income Tax Expense (Benefit) ($237,839,000) $91,172,000
Operating Earnings $300,865,000 $340,273,000
Per Common Share (Fully Diluted) $3.30 $3.72
Realized Investment Gains,
Net of Taxes $86,943,000 $25,689,000
Per Common Share (Fully Diluted) $0.94 $0.28
Net Income $387,808,000 $365,962,000
Per Common Share (Fully Diluted) $4.24 $4.00
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THE ST. PAUL COMPANIES
THIRD-QUARTER UNDERWRITING OPERATIONS
HIGHLIGHTS
Three months ended Sept. 30 1996 1995
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Net written premiums $1,246,970,000 $1,157,628,000
Net investment income $201,914,000 $183,845,000
Combined ratio 106.6 100.4
THE ST. PAUL COMPANIES
NINE-MONTHS UNDERWRITING OPERATIONS
HIGHLIGHTS
Nine months ended Sept. 30 1996 1995
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Net written premiums $3,259,507,000 $3,169,117,000
Net investment income $584,636,000 $543,073,000
Combined ratio 105.6 101.3
The St. Paul Companies, headquartered in St. Paul, Minn., is
a group of companies providing property-liability insurance
products and services throughout the world.
