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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 27, 1997
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 27,
1997, of the registrant relating to its results for the
quarter ended September 30, 1997, which will be superseded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 28, 1997
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EXHIBIT INDEX
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How
Exhibit Filed
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(99) Additional exhibits . . . . . . . . . . . . . . . (1)
(1) Filed electronically.
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Exhibit 99
Oct. 27, 1997 - THE ST. PAUL COMPANIES REPORTS STRONG
THIRD QUARTER RESULTS
ST. PAUL, Minn. - The St. Paul Companies (NYSE:SPC) reported
third-quarter 1997 operating earnings from continuing
operations of $132.6 million, or $1.43 per share, an
increase of 44 percent, compared with last year's third-
quarter operating earnings of $90.2 million, or $0.99 per
share.
"Our underwriting operations achieved good results
despite the highly competitive insurance marketplace;
catastrophe losses were down significantly from last year;
and our investment portfolios performed well," said Douglas
W. Leatherdale, chairman and chief executive officer.
Net income for third-quarter 1997 was $163.4 million,
or $1.76 per share, compared with $128.9 million, or $1.42
per share, for the third quarter of 1996. Third-quarter
1997 net income included after-tax realized investment gains
of $30.8 million, or $0.33 per share, compared with $24.6
million, or $0.27 per share, for the third quarter of 1996.
Nine-months results
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For the first nine months of 1997, operating earnings
from continuing operations were $383.6 million, or $4.16 per
share, compared with $307.6 million, or $3.37 per share, for
the first nine months of 1996.
Net income for the first nine months of 1997 was $518.5
million, or $5.62 per share, compared with $387.8 million,
or $4.24 per share, for the first nine months of 1996. Net
income for the first nine months of 1997 included after-tax
realized investment gains of $202.7 million, or $2.19 per
share, compared with $86.9 million, or $0.94 per share, for
the first nine months of 1996.
Consolidated Financial Position
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Consolidated assets of The St. Paul Companies as of
Sept. 30, 1997, were $21.46 billion, compared with $20.68
billion as of Dec. 31, 1996.
Common shareholders' equity was $4.43 billion at the
end of the third quarter, compared with $3.99 billion on
Dec. 31, 1996. Book value per common share as of Sept. 30,
1997, was $53.00, compared with $47.93 on Dec. 31, 1996.
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THE ST. PAUL COMPANIES
CONSOLIDATED THIRD-QUARTER RESULTS
Three months ended Sept. 30 1997 1996
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Revenues $1,497,048,000 $1,476,158,000
Pretax Operating Earnings
Underwriting $157,975,000 $75,013,000
Investment Banking-
Asset Management 23,149,000 23,282,000
Parent and Other (25,866,000) (19,928,000)
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Total pretax operating earnings $155,258,000 $78,367,000
Income Tax Expense (Benefit) $22,666,000 ($11,836,000)
Operating Earnings from
Continuing Operations $132,592,000 $90,203,000
Per Common Share (Fully Diluted) $1.43 $0.99
Realized Investment Gains,
Net of Taxes $30,812,000 $24,620,000
Per Common Share (Fully Diluted) $0.33 $0.27
Discontinued Operations,
Net of Taxes - $14,111,000
Per Common Share (Fully Diluted) - $0.16
Net Income $163,404,000 $128,934,000
Per Common Share (Fully Diluted) $1.76 $1.42
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THE ST. PAUL COMPANIES
CONSOLIDATED NINE-MONTHS RESULTS
Nine months ended Sept. 30 1997 1996
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Revenues $4,674,962,000 $4,170,523,000
Pretax Operating Earnings
Underwriting $449,691,000 $328,942,000
Investment Banking-
Asset Management 67,283,000 66,518,000
Parent and Other (71,635,000) (62,055,000)
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Total pretax operating earnings $445,339,000 $333,405,000
Income Tax Expense $61,763,000 $25,819,000
Operating Earnings $383,576,000 $307,586,000
Per Common Share (Fully Diluted) $4.16 $3.37
Realized Investment Gains,
Net of Taxes $202,651,000 $86,943,000
Per Common Share (Fully Diluted) $2.19 $0.94
Discontinued Operations,
Net of Taxes $(67,750,000) $(6,721,000)
Per Common Share (Fully Diluted) $(0.73) $(0.07)
Net Income $518,477,000 $387,808,000
Per Common Share (Fully Diluted) $5.62 $4.24
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THIRD-QUARTER
UNDERWRITING OPERATIONS HIGHLIGHTS
Three months ended Sept. 30 1997 1996
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Written premiums $1,182,837,000 $1,246,970,000
Net investment income $220,400,000 $201,914,000
Combined ratio 102.5 106.6
NINE-MONTHS
UNDERWRITING OPERATIONS HIGHLIGHTS
Nine months ended Sept. 30 1997 1996
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Written premiums $3,398,342,000 $3,259,507,000
Net investment income $655,190,000 $584,636,000
Combined ratio 105.0 105.6
The St. Paul Companies, headquartered in St. Paul, Minn., is
a group of companies providing property-liability insurance
products and services throughout the world.
