-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TzgMm8z9XfiyjVfXOusSTs7pF5QNavdL0EtCQkehs9m/pkr0GdNO8CjJgclLISTd q5Y5/PGWMIeqDlH4hR+cCw== 0000086312-00-000001.txt : 20000207 0000086312-00-000001.hdr.sgml : 20000207 ACCESSION NUMBER: 0000086312-00-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000127 ITEM INFORMATION: FILED AS OF DATE: 20000204 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ST PAUL COMPANIES INC /MN/ CENTRAL INDEX KEY: 0000086312 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 410518860 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-10898 FILM NUMBER: 524345 BUSINESS ADDRESS: STREET 1: 385 WASHINGTON ST CITY: SAINT PAUL STATE: MN ZIP: 55102 BUSINESS PHONE: 6123107911 FORMER COMPANY: FORMER CONFORMED NAME: ST PAUL COMPANIES INC /MN/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: SAINT PAUL COMPANIES INC DATE OF NAME CHANGE: 19900730 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ----------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 --------------------------- Date of Report (Date of earliest event reported): January 27, 2000 THE ST. PAUL COMPANIES, INC. ------------------------------------------------------ (Exact name of Registrant as specified in its charter) Minnesota 0-3021 41-0518860 - ------------------- -------------------- --------------------- (State of (Commission File (I.R.S. Employer Incorporation) Number) Identification No.) 385 Washington St., St. Paul, MN 55102 - -------------------------------- --------- (Address of principal (Zip Code) executive offices) (651) 310-7911 ---------------------------------- (Registrant's telephone number, including area code) N/A - ------------------------------------------------------------ (Former name or former address, if changed since last report) Item 5. Other Events. ------------ On January 27, 2000, The St. Paul Companies, Inc. announced its financial results for the fourth quarter and twelve months ended Dec. 31, 1999. Following is a summary of those results. Earnings from continuing operations totaled $779.2 million, or $3.19 per share, in 1999, up from $199.3 million, or $0.78 per share, in 1998. Fourth-quarter 1999 earnings from continuing operations were $226.6 million, or $0.93 per share, compared with $95.4 million, or $0.38 per share, for the comparable 1998 quarter. Results of The St. Paul's nonstandard auto business were reclassified in the fourth quarter to discontinued operations, due to the previously announced agreement to sell the operation to the Prudential Insurance Company of America. Revenues for the year and fourth quarter were $7.57 billion and $1.94 billion, respectively, compared with $7.71 billion and $1.84 billion for the same periods of 1998. Pretax catastrophe losses from continuing operations totaled $257 million in 1999, compared with $267 million in 1998. The impact of catastrophe losses in 1999 was reduced significantly by an "aggregate stop-loss reinsurance" policy, which is triggered only when aggregate losses reach a certain level. The benefit of this reinsurance program enhanced pretax property-liability earnings from continuing operations by $173 million in 1999, 56.6 percent of which was allocated to the Commercial Lines Group segment, and 43.4 percent to the Reinsurance segment. In 1999, the company repurchased 11.1 million shares of St. Paul stock at an average cost of $32.01 per share, for a total of $356.3 million. In the fourth quarter, the company purchased 2.9 million shares at an average cost of $31.95 under its ongoing buyback program, for a total of $91.2 million. Net Income - ---------- 1999 net income for The St. Paul Companies was $834.4 million, or $3.41 per share, compared with net income of $89.3 million, or $0.32 per share, in 1998. 1999 net income included: - After-tax income from discontinued operations of $85.1 million, or $0.34 per share, comprising an after-tax gain of $176.5 million related to the sale of The St. Paul's standard personal insurance operations to Metropolitan Property and Casualty Insurance Company, an after-tax loss of $82.6 million on the sale of The St. Paul's nonstandard auto operations to Prudential, and combined 1999 after-tax operating losses totaling $8.8 million for these operations prior to our committing to their disposal - An after-tax charge of $29.9 million, or $0.12 per share, representing the cumulative effect of adopting a new accounting standard for insurance-related assessments. Fourth-quarter 1999 net income was $138.9 million, or $0.57 per share, compared with $100.8 million, or $0.40 per share, for the fourth quarter of 1998. Fourth quarter 1999 net income includes a loss from discontinued operations of $87.7 million, or $0.36 per share, primarily representing the anticipated loss on the sale of The St. Paul's nonstandard auto operations to Prudential. Consolidated Financial Position of The St. Paul Companies as of December 31 - --------------------------------------------------------------------------- Consolidated assets of The St. Paul Companies as of Dec. 31, 1999, were $38.9 billion, compared with $37.9 billion as of Dec. 31, 1998. Common shareholders' equity was $6.4 billion at the end of 1999, compared with $6.6 billion at the end of 1998. Book value per common share on Dec. 31, 1999, was $28.68, compared with $28.32 as of Dec. 31, 1998. THE ST. PAUL COMPANIES CONSOLIDATED FOURTH-QUARTER RESULTS ($ in millions except per-share amounts) Three months ended December 31 1999 1998 ------------------------------ ----- ----- Revenues $1,942.0 $1,842.6 Pretax Earnings (Loss) Property-Liability Insurance $270.6 $69.6 Life Insurance $17.6 $12.1 Asset Management $33.3 $29.4 Parent and Other ($25.9) ($43.4) ------ ------ Total Pretax Earnings $295.6 $67.7 Income Tax Expense (Benefit) $69.0 ($27.7) ------ ------ Earnings from Continuing Operations $226.6 $95.4 Per Common Share (Basic) $0.98 $0.39 Per Common Share (Diluted) $0.93 $0.38 Discontinued Operations, Net of Taxes ($87.7) $5.4 Per Common Share (Basic) ($0.38) $0.02 Per Common Share (Diluted) ($0.36) $0.02 ------ ------ Net Income $138.9 $100.8 Per Common Share (Basic) $0.60 $0.41 Per Common Share (Diluted) $0.57 $0.40 THE ST. PAUL COMPANIES 1999 CONSOLIDATED RESULTS ($ in millions except per-share amounts) Twelve months ended December 31 1999 1998 ------------------------------- ----- ----- Revenues $7,569.0 $7,707.7 Pretax Earnings (Loss) Property-Liability Insurance $971.4 $298.2 Life Insurance $65.9 $20.7 Asset Management $122.7 $104.0 Parent and Other ($143.0) ($302.4) ------ ------ Total Pretax Earnings $1,017.0 $120.5 Income Tax Expense (Benefit) $237.8 ($78.8) ------ ------ Earnings from Continuing Operations Before Cumulative Effect of Accounting Change $779.2 $199.3 Per Common Share (Basic) $3.37 $0.79 Per Common Share (Diluted) $3.19 $0.78 Cumulative Effect of Accounting Change, Net of Taxes ($29.9) - Per Common Share (Basic) ($0.13) - Per Common Share (Diluted) ($0.12) - Discontinued Operations, Net of Taxes $85.1 ($110.0) Per Common Share (Basic) $0.37 ($0.46) Per Common Share (Diluted) $0.34 ($0.46) ------ ------ Net Income $834.4 $89.3 Per Common Share (Basic) $3.61 $0.33 Per Common Share (Diluted) $3.41 $0.32 Common Shareholders' Equity $6,447.9 $6,620.8 Per Common Share $28.68 $28.32 THE ST. PAUL COMPANIES, INC. FOURTH-QUARTER PROPERTY-LIABILITY UNDERWRITING OPERATIONS HIGHLIGHTS ($ in millions) Three months ended December 31 1999 1998 ------------------------------ ----- ----- Net written premiums $1,163.4 $1,226.1 Net investment income (pretax) $304.5 $317.8 Statutory combined ratio 108.4 114.9 THE ST. PAUL COMPANIES, INC. PROPERTY-LIABILITY UNDERWRITING OPERATIONS HIGHLIGHTS ($ in millions) Twelve months ended December 31 1999 1998 ------------------------------- ----- ----- Net written premiums $5,111.8 $5,275.6 Net investment income (pretax) $1,255.9 $1,292.7 Statutory combined ratio 107.9 117.4 The St. Paul Companies, headquartered in Saint Paul, Minn., is a group of companies providing insurance products and services worldwide. 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 --------------------- Bruce A. Backberg Senior Vice President - Legal Services Date: February 4, 2000 -----END PRIVACY-ENHANCED MESSAGE-----