-----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, WmL2aKi8Xg46hgBL5y42CsjVRQVcGdaYwDGaEcL88y2034m/jayElOQlP9JWfx8h AtBu6aMcRooHsD0Pdl4zUA== 0000086312-97-000001.txt : 19970130 0000086312-97-000001.hdr.sgml : 19970130 ACCESSION NUMBER: 0000086312-97-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970127 ITEM INFORMATION: Other events FILED AS OF DATE: 19970129 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: 97513296 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 27, 1997 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dated January 27, 1997, of the registrant relating to its results for the year ended December 31, 1996, which will be superseded by the registrant's Annual Report on Form 10-K for such period.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: January 29, 1997 EXHIBIT INDEX ------------- How Exhibit Filed - ------- ----- (99) Additional exhibits . . . . . . . . . . . . . . . (1) (1) Filed electronically under the EDGAR Operational Program. EX-99 2 Exhibit 99 January 27, 1997 -ST. PAUL OPERATING EARNINGS DOWN IN WAKE OF SECOND-WORST STORM YEAR IN COMPANY HISTORY St. Paul, Minn. - The St. Paul Companies (NYSE:SPC) today reported operating earnings from continuing operations of $414.8 million, or $4.55 per share, for 1996, compared with $481.5 million, or $5.25 per share, for 1995. "Our operating earnings were adversely impacted by 1996 catastrophe losses of $207 million - second only to 1992, when Hurricane Andrew devastated the southeastern coast," said Douglas W. Leatherdale, chairman and chief executive officer. "However, our results were aided by the excellent performance of our investment portfolio. Pretax investment income exceeded $800 million for the year. We also generated record after-tax gains of $143 million from the sale of investments." Net income for 1996 was $450.1 million, or $4.93 per share, compared with net income of $521.2 million, or $5.68 per share, for 1995. 1996 net income included after-tax realized investment gains of $143.1 million, or $1.55 per share, compared with $56.3 million, or $0.61 per share, in 1995. The St. Paul's insurance brokerage segment, The Minet Group, was reclassified to discontinued operations in the fourth quarter after The St. Paul's decision to exit the brokerage business. Thus, 1996 net income also includes an after-tax loss of $107.8 million, or ($1.17) per share, compared with the previous year's loss of $16.6 million, or ($0.18) per share, from discontinued operations. "The insurance industry marketplace remains highly competitive," Leatherdale said. "Still, our domestic underwriting operation's performance was satisfactory, in light of unusually severe catastrophe losses. Our reinsurance and international underwriting operations also generated acceptable returns in 1996." The St. Paul Companies' 78% share of The John Nuveen Company's pretax earnings was a record $92 million. "Our shareholders' equity grew to $4 billion - a new high. Book value at year-end stood at $47.93, up from $44.29 a year ago," Leatherdale said. Fourth-quarter results - ---------------------- For the fourth quarter of 1996, operating earnings from continuing operations were $107.2 million, or $1.18 per share, compared with operating earnings of $124.3 million, or $1.34 per share, for the fourth quarter of 1995. Net income for the fourth quarter of 1996 was $62.3 million, or $0.69 per share, compared with net income of $155.2 million, or $1.67 per share, for the fourth quarter of 1995. Net income for the fourth quarter of 1996 included after-tax realized investment gains of $56.2 million, or $0.61 per share, compared with $30.7 million, or $0.33 per share, in 1995. Net income for the fourth quarter also included an after-tax loss of $101.1 million, or ($1.10) per share, from discontinued operations, compared with earnings of $232,000 in 1995. THE ST. PAUL COMPANIES CONSOLIDATED 1996 RESULTS 1996 1995 ---- ---- Revenues $5,734,156,000 $5,056,199,000 Pretax Operating Earnings Underwriting $477,535,000 $577,509,000 Investment banking-asset management 91,697,000 88,197,000 Parent and Other (88,621,000) (80,953,000) -------------- -------------- Total Pretax Operating Earnings 480,611,000 584,753,000 Income Tax Expense 65,856,000 103,262,000 -------------- -------------- Operating Earnings from Continuing Operations $414,755,000 $481,491,000 Per Common Share (Fully Diluted) $4.55 $5.25 Realized Investment Gains, Net of Taxes $143,103,000 $56,357,000 Per Common Share (Fully Diluted) $1.55 $0.61 Discontinued Operations, Net of Taxes ($107,759,000) ($16,639,000) Per Common Share (Fully Diluted) ($1.17) ($0.18) Net Income $450,099,000 $521,209,000 Per Common Share (Fully Diluted) $4.93 $5.68 Common Shareholders' Equity $3,987,757,000 $3,719,249,000 Per Common Share $47.93 $44.29 THE ST. PAUL COMPANIES CONSOLIDATED FOURTH-QUARTER RESULTS 1996 1995 ---- ---- Revenues $1,563,633,000 $1,348,910,000 Pretax Operating Earnings Underwriting $148,593,000 $133,918,000 Investment banking-asset management 25,179,000 27,095,000 Parent and Other (26,566,000) (21,442,000) -------------- -------------- Total Pretax Operating Earnings 147,206,000 139,571,000 Income Tax Expense 40,037,000 15,224,000 -------------- -------------- Operating Earnings from Continuing Operations $107,169,000 $124,347,000 Per Common Share (Fully Diluted) $1.18 $1.34 Realized Investment Gains, Net of Taxes $56,160,000 $30,668,000 Per Common Share (Fully Diluted) $0.61 $0.33 Discontinued Operations, Net of Taxes ($101,038,000) 232,000 Per Common Share (Fully Diluted) ($1.10) - Net Income $62,291,000 $155,247,000 Per Common Share (Fully Diluted) $0.69 $1.67 THE ST. PAUL COMPANIES TWELVE-MONTHS UNDERWRITING OPERATIONS HIGHLIGHTS Twelve months ended Dec. 31 1996 1995 - --------------------------- ---- ---- Written premiums $4,396,122,000 $4,243,213,000 Net investment income $794,901,000 $731,096,000 Combined ratio 105.5 101.8 THE ST. PAUL COMPANIES FOURTH-QUARTER UNDERWRITING OPERATIONS HIGHLIGHTS Three months ended Dec. 31 1996 1995 - -------------------------- ---- ---- Written premiums $1,136,615,000 $1,074,096,000 Net investment income $210,265,000 $188,023,000 Combined ratio 105.2 103.3 The St. Paul Companies, headquartered in Saint Paul, Minn. is a group of companies providing property-liability insurance products and services throughout the world. -----END PRIVACY-ENHANCED MESSAGE-----