-----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, Mp5t9byCE3WYimz4z88AkkDHC8uR6YLMItxuiSNRwvaHXsI6ZrINE2x26iMvFcjO aXT41l+q7gptPObtZWBuZw== 0000086312-96-000014.txt : 19961031 0000086312-96-000014.hdr.sgml : 19961031 ACCESSION NUMBER: 0000086312-96-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961029 ITEM INFORMATION: Other events FILED AS OF DATE: 19961030 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: 96649903 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): October 29, 1996 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) 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. ------------ 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October 29, 1996, of the registrant relating to its results for the quarter ended September 30, 1996, which will be superseded by the registrant's Quarterly Report on Form 10-Q for such period.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. ----------------------------------------------------- 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: October 30, 1996 EXHIBIT INDEX ------------- How Exhibit Filed - ------- ----- (99) Additional exhibits . . . . . . . . . . . . . . . (1) (1) Filed electronically under the EDGAR Operational Program. EX-99 2 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. Nine-months results - ------------------- 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 - ------------------------------- 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. THE ST. PAUL COMPANIES CONSOLIDATED THIRD-QUARTER RESULTS Three months ended Sept. 30 1996 1995 - --------------------------- ---- ---- 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) ------------- ------------ 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 THE ST. PAUL COMPANIES CONSOLIDATED NINE-MONTHS RESULTS Nine months ended Sept. 30 1996 1995 - -------------------------- ---- ---- 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) ------------- ------------ 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 THE ST. PAUL COMPANIES THIRD-QUARTER UNDERWRITING OPERATIONS HIGHLIGHTS Three months ended Sept. 30 1996 1995 - --------------------------- ---- ---- 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 - -------------------------- ---- ---- 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. -----END PRIVACY-ENHANCED MESSAGE-----