-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, hT3Yb84rLcYpUG1CLZ82t7IGT5UAy2i2BgE5o+SCQePlO1/7zsMR/3Yjd9C6X9BV 2ndA3AWTUU69DNr1wI6Ltw== 0000086312-95-000001.txt : 19950203 0000086312-95-000001.hdr.sgml : 19950203 ACCESSION NUMBER: 0000086312-95-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950126 ITEM INFORMATION: Other events FILED AS OF DATE: 19950202 SROS: NYSE 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: 1934 Act SEC FILE NUMBER: 001-10898 FILM NUMBER: 95504723 BUSINESS ADDRESS: STREET 1: 385 WASHINGTON ST CITY: SAINT PAUL STATE: MN ZIP: 55102 BUSINESS PHONE: 6122217911 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 26, 1995 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) (612) 221-7911 ---------------------------------- (Registrant's telephone number, including area code) N/A - ------------------------------------------------------------ (Former name or former address, if changed since last report) Item 5. Other Events. ------------ Filed herewith is a press release dated January 26, 1995, of the registrant relating to its results for the year ended December 31, 1994, which will be superseded by the registrant's Annual Report on Form 10-K for such period. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. --------------------------------------------------------- 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 --------------------- Bruce A. Backberg Vice President and Corporate Secretary Date: February 2, 1995 EXHIBIT INDEX ------------- How Exhibit Filed - ------- ----- (99) Additional exhibits . . . . . . . . . . . . . . . (1) (1) Filed electronically under the EDGAR Operational Program. EX-99 2 Exhibit 99 January 26, 1995 - THE ST. PAUL COMPANIES REPORTS RECORD EARNINGS St. Paul, Minn. - The St. Paul Companies (NYSE:SPC) reported record operating earnings of $413.9 million, or $4.60 per share, for 1994, compared with operating earnings of $386.6 million, or $4.28 per share, in 1993. Operating earnings were 7 percent higher than 1993's earnings. Net income for 1994 was $442.8 million, or $4.93 per share, compared with net income of $427.6 million, or $4.73 per share, for 1993. 1994 net income included after-tax realized investment gains of $28.9 million, or $0.33 per share, compared with $41.0 million, or $0.45 per share, in 1993. Per-share figures reflect a two-for-one common stock split in June 1994. "We were able to achieve record earnings in a highly competitive insurance market in 1994," said Douglas W. Leatherdale, chairman and chief executive officer. "And we produced those results despite severe first-quarter U.S. catastrophe losses, which resulted from the California earthquake and East Coast winter storms. "Our U.S. insurance underwriting operation, St. Paul Fire and Marine, and our worldwide reinsurance operation, St. Paul Re, both produced strong results accompanied by solid growth. "Our acquisition of Economy Fire & Casualty in late 1993, along with growth in our commercial insurance and reinsurance operations, were the chief factors behind a 14 percent increase in premium volume over 1993," Leatherdale said. "In addition, our organizational efforts to improve efficiency, along with the restructuring of our domestic underwriting operations, have increased productivity and resulted in a continued improvement in overall expense levels. "A significant business development in the fourth quarter of 1994 was our purchase from the CIGNA Companies of the right to renew most of the international business written by CIGNA Reinsurance-Property & Casualty. This transaction will allow us to further expand the international operations of St. Paul Re," Leatherdale said. Fourth-quarter results - ---------------------- For the fourth quarter of 1994, operating earnings were $126.5 million, or $1.41 per share, compared with operating earnings of $79.8 million, or $0.88 per share, for the fourth quarter of 1993. Net income for the fourth quarter of 1994 was $120.8 million, or $1.35 per share, compared with net income of $89.7 million, or $0.99 per share, for the fourth quarter of 1993. Net income for the fourth quarter of 1994 included after-tax realized investment losses of $5.7 million, or $0.06 per share, compared with after-tax investment gains of $9.9 million, or $0.11 per share, for the fourth quarter of 1993. Underwriting Operations - ----------------------- THE ST. PAUL COMPANIES TWELVE-MONTHS UNDERWRITING OPERATIONS HIGHLIGHTS Twelve months ended Dec. 31 1994 1993 - --------------------------- ---- ---- Written premiums $3,623,026,000 $3,178,545,000 Underwriting loss ($113,008,000) ($150,255,000) Net investment income $674,818,000 $646,396,000 Pretax operating earnings* $524,742,000 $457,752,000 Combined ratio 102.3 104.5 *excluding realized investment gains THE ST. PAUL COMPANIES FOURTH-QUARTER UNDERWRITING OPERATIONS HIGHLIGHTS Three months ended Dec. 31 1994 1993 - -------------------------- ---- ---- Written premiums $888,520,000 $842,991,000 Underwriting profit (loss) $3,658,000 ($33,397,000) Net investment income $176,449,000 $156,518,000 Pretax operating earnings* $162,904,000 $98,422,000 Combined ratio 99.4 104.2 *excluding realized investment gains and losses Insurance Brokerage Operations - ------------------------------ The Minet Group, The St. Paul's London-based insurance brokerage operation, had a pretax loss of $9.9 million in 1994, compared with a pretax loss of $12.6 million in 1993. For the fourth quarter of 1994, Minet had pretax income of $1.2 million, compared with pretax income of $395,000 in the fourth quarter of 1993. "Minet continues to make progress on its road back to profitability," Leatherdale said. The John Nuveen Company - ----------------------- The St. Paul's portion of The John Nuveen Company's 1994 pretax earnings totaled $71.9 million, compared with pretax earnings of $82.6 million for 1993. The St. Paul now owns 77 percent of Nuveen. For fourth-quarter 1994, The St. Paul's portion of Nuveen's pretax earnings was $17.7 million, compared with $20.5 million for fourth-quarter 1993. "Nuveen's earnings decline was the result of a difficult municipal bond market environment, which limited Nuveen's opportunity to sell new products," Leatherdale said. Consolidated Financial Position - ------------------------------- Consolidated assets of The St. Paul Companies as of Dec. 31, 1994, were $17.5 billion, compared with $17.1 billion as of Dec. 31, 1993. Common shareholders' equity was $2.7 billion on Dec. 31, 1994, compared with $3.0 billion on Dec. 31, 1993. Book value per common share on Dec. 31, 1994, was $32.46, compared with $35.47 on Dec. 31, 1993. Shareholders' equity and book value were down from 1993 due to the decrease in the carrying value of The St. Paul's bond portfolio. At the end of 1993, The St. Paul adopted Statement of Financial Accounting Standards No. 115 and began recording its bond portfolio at estimated market value. Rising interest rates in 1994 eroded the market value of that portfolio. THE ST. PAUL COMPANIES CONSOLIDATED 1994 RESULTS 1994 1993 ---- ---- Revenues $4,701,285,000 $4,460,172,000 Operating Earnings $413,866,000 $386,628,000 Per Common Share (Fully Diluted)* $4.60 $4.28 Realized Investment Gains, Net of Taxes $28,962,000 $40,981,000 Per Common Share (Fully Diluted) $0.33 $0.45 Net Income $442,828,000 $427,609,000 Per Common Share (Fully Diluted)* $4.93 $4.73 THE ST. PAUL COMPANIES CONSOLIDATED FOURTH-QUARTER RESULTS 1994 1993 ---- ---- Revenues $1,173,293,000 $1,171,831,000 Operating Earnings $126,527,000 $79,816,000 Per Common Share (Fully Diluted)* $1.41 $0.88 Realized Investment Gains (Losses), Net of Taxes ($5,706,000) $9,877,000 Per Common Share (Fully Diluted) ($0.06) $0.11 Net Income $120,821,000 $89,693,000 Per Common Share (Fully Diluted)* $1.35 $0.99 -----END PRIVACY-ENHANCED MESSAGE-----