Exhibit 99.2

The St. Paul Travelers Companies, Inc.
Financial Supplement - Fourth Quarter 2004

On April 1, 2004, Travelers Property Casualty Corp. (Travelers) completed its previously announced merger into The St. Paul Companies, Inc. (St. Paul), forming The St. Paul Travelers Companies, Inc. (St. Paul Travelers).  Each share of Travelers class A and class B common stock was exchanged for 0.4334 of a share of St. Paul Travelers common stock.  For accounting purposes, this transaction is being accounted for as a reverse acquisition with Travelers treated as the accounting acquirer.  Accordingly, the transaction is being accounted for as a purchase business combination, using Travelers historical financial information and applying fair value estimates to the acquired assets, liabilities and commitments of St. Paul as of April 1, 2004.

All historical information prior to April 1, 2004 included in this Financial Supplement represents the standalone results of Travelers as Travelers is treated as the accounting acquirer.

Consolidated Results
	Financial Highlights
	Reconciliation to Net Income and Earnings Per Share
	Statement of Income
	Net Income by Major Component and Combined Ratio
	Operating Income
	Selected Statistics - Property and Casualty Operations
	Written and Earned Premiums - Property and Casualty Operations
Commercial
	Operating Income
	Operating Income by Major Component and Combined Ratio
	Selected Statistics
	Net Written Premium
	Proforma Net Written Premium
Specialty
	Operating Income
	Operating Income by Major Component and Combined Ratio
	Selected Statistics
	Net Written Premium
	Proforma Net Written Premium
Personal
	Operating Income
	Operating Income by Major Component and Combined Ratio
	Selected Statistics
	Selected Statistics - Automobile
	Selected Statistics - Homeowners and Other
Supplemental Detail
	Asset Management
	Interest Expense and Other
	Consolidated Balance Sheet
	Investment Portfolio
	Investment Portfolio - Fixed Maturities Data
	Net Investment Income
	Net Realized and Unrealized Investment Gains (Losses)
	Reinsurance Recoverables
	Net Reserves for Losses and Loss Adjustment Expense
	Asbestos and Environmental Reserves
	Capitalization
	Statutory to GAAP Shareholders’ Equity Reconciliation
	Statement of Cash Flows
	Statement of Cash Flows (continued)
Glossary of Financial Measures and Description of Operating Segments

The St. Paul Travelers Companies, Inc.

Financial Highlights

($ in millions, except per share data)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Net income (loss)	$	340		$	441		$	426		$	489		$	587		$	(275	)	$	340		$	303		$	1,696		$	955
Net income (loss) per share (1):
Basic	$	0.78		$	1.02		$	0.98		$	1.13		$	1.35		$	(0.42	)	$	0.51		$	0.45		$	3.91		$	1.56
Diluted	$	0.76		$	0.99		$	0.95		$	1.09		$	1.31		$	(0.42	)	$	0.50		$	0.44		$	3.80		$	1.53
Operating income (loss)	$	339		$	431		$	442		$	463		$	614		$	(310	)	$	372		$	307		$	1,675		$	983
Operating income (loss) per share (1):
Basic	$	0.78		$	0.99		$	1.02		$	1.07		$	1.41		$	(0.47	)	$	0.56		$	0.46		$	3.86		$	1.61
Diluted	$	0.76		$	0.96		$	0.99		$	1.04		$	1.37		$	(0.47	)	$	0.54		$	0.45		$	3.75		$	1.58
Return on equity	13.1		%	16.1		%	15.0		%	16.7		%	19.0		%	(5.4		)%	6.7		%	5.8		%	15.3		%	5.1		%
Operating return on equity	14.2		%	17.4		%	17.3		%	17.4		%	21.9		%	(6.3		)%	7.5		%	6.1		%	16.6		%	5.5		%
Total assets, at period end	$	65,384		$	66,031		$	63,535		$	64,872		$	65,070		$	106,608		$	109,683		$	112,073		$	64,872		$	112,073
Total equity, at period end	$	10,561		$	11,316		$	11,472		$	11,987		$	12,674		$	19,930		$	20,889		$	21,201		$	11,987		$	21,201
Book value per share, at period end (1)	$	24.22		$	25.93		$	26.35		$	27.51		$	28.98		$	29.52		$	30.91		$	31.35		$	27.51		$	31.35
Adjusted book value per share, at period end	$	22.23		$	23.11		$	23.91		$	25.07		$	26.18		$	29.30		$	29.63		$	30.05		$	25.07		$	30.05
Weighted average number of common shares outstanding (basic) (1)	434.5			434.4			434.3			433.8			434.6			664.8			665.9			666.8			434.3			608.3
Weighted average number of common shares outstanding and common stock equivalents (diluted) (1)	453.4			453.4			453.4			452.9			453.9			664.8			707.9			708.6			453.3			628.3
Common shares outstanding at period end (1)	436.1			436.4			435.4			435.8			437.3			668.5			669.2			670.3			435.8			670.3
Common stock dividends declared	$	60.5		$	60.4		$	80.5		$	80.4		$	81.7		$	146.9		$	147.1		$	147.5		$	281.8		523.2

(1)The number of shares and per share amounts for all periods presented have been restated to reflect the equivalent number of shares resulting from the exchange of Travelers common stock for St. Paul Travelers common stock due to the merger on April 1, 2004. Upon consummation of the merger on April 1, 2004, Travelers class A and class B common stock was converted to St. Paul Travelers common stock and the Travelers treasury stock was cancelled.  Pursuant to the adoption of new accounting requirements effective in the fourth quarter of 2004, the calculations of diluted earnings per share for all periods presented have been revised to include, when dilutive, the impact resulting from inclusion of the Company’s $893 million, 4.5% contingently convertible debt.

See Glossary of Financial Measures and Description of Operating Segments on page 37

1

The St. Paul Travelers Companies, Inc.

Reconciliation to Net Income and Earnings Per Share

($ in millions, except earnings per share)

	1Q 2003		2Q 2003		3Q 2003			4Q 2003		1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003		YTD 4Q 2004
Net income (loss)
Operating income (loss)	$	339	$	431	$	442		$	463	$	614		$	(310	)	$	372		$	307		$	1,675	$	983
Net realized investment gains (losses)	1		10		(16		)	26		(27		)	35			(32		)	(4		)	21		(28		)
Net income (loss)	$	340	$	441	$	426		$	489	$	587		$	(275	)	$	340		$	303		$	1,696	$	955
Basic earnings per share (1)
Operating income (loss)	$	0.78	$	0.99	$	1.02		$	1.07	$	1.41		$	(0.47	)	$	0.56		$	0.46		$	3.86	$	1.61
Net realized investment gains (losses)	—		0.03		(0.04		)	0.06		(0.06		)	0.05			(0.05		)	(0.01		)	0.05		(0.05		)
Net income (loss)	$	0.78	$	1.02	$	0.98		$	1.13	$	1.35		$	(0.42	)	$	0.51		$	0.45		$	3.91	$	1.56
Diluted earnings per share (1)
Operating income (loss)	$	0.76	$	0.96	$	0.99		$	1.04	$	1.37		$	(0.47	)	$	0.54		$	0.45		$	3.75	$	1.58
Net realized investment gains (losses)	—		0.03		(0.04		)	0.05		(0.06		)	0.05			(0.04		)	(0.01		)	0.05		(0.05		)
Net income (loss)	$	0.76	$	0.99	$	0.95		$	1.09	$	1.31		$	(0.42	)	$	0.50		$	0.44		$	3.80	$	1.53

(1)The per share amounts for all periods presented have been restated to reflect the equivalent number of shares resulting from the exchange of Travelers common stock for St. Paul Travelers common stock due to the merger on April 1, 2004.  Upon consummation of the merger on April 1, 2004, Travelers class A and class B common stock was converted to St. Paul Travelers common stock and the Travelers treasury stock was cancelled.  Pursuant to the adoption of new accounting requirements effective in the fourth quarter of 2004, the calculations of diluted earnings per share for all periods presented have been revised to include, when dilutive, the impact resulting from inclusion of the company's $893 million, 4.5% contingently convertible debt.

See Glossary of Financial Measures and Description of Operating Segments on page 37

2

The St. Paul Travelers Companies, Inc.

Statement of Income - Consolidated

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Revenues
Premiums	$	2,979		$	3,100		$	3,149		$	3,317		$	3,339		$	5,154		$	5,269		$	5,276		$	12,545		$	19,038
Net investment income (1)	456			456			458			499			619			642			667			735			1,869			2,663
Fee income	136			134			134			156			172			171			186			177			560			706
Asset management	—			—			—			—			—			121			132			137			—			390
Net realized investment gains (losses)	7			16			(23		)	38			(42		)	55			(49		)	(3		)	38			(39		)
Other revenues	25			43			28			31			39			38			56			43			127			176
Total revenues	3,603			3,749			3,746			4,041			4,127			6,181			6,261			6,365			15,139			22,934
Claims and expenses
Claims and claim adjustment expenses	2,288			2,211			2,237			2,382			2,281			4,869			4,086			4,203			9,118			15,439
Amortization of deferred acquisition costs	462			484			512			526			526			805			820			827			1,984			2,978
General and administrative expenses	394			413			398			436			467			926			861			891			1,641			3,145
Interest expense	52			40			38			37			36			66			69			73			167			244
Total claims and expenses	3,196			3,148			3,185			3,381			3,310			6,666			5,836			5,994			12,910			21,806
Income (loss) before income taxes and minority interest	407			601			561			660			817			(485		)	425			371			2,229			1,128
Income taxes	90			155			132			160			227			(217		)	72			56			537			138
Minority interest, net of tax	(23		)	5			3			11			3			7			13			12			(4		)	35
Net income (loss)	$	340		$	441		$	426		$	489		$	587		$	(275	)	$	340		$	303		$	1,696		$	955
Other statistics:
Effective tax rate on net investment income	24.6		%	24.3		%	24.2		%	24.1		%	26.6		%	23.7		%	23.0		%	23.4		%	24.3		%	24.2		%
Net investment income (after-tax)	$	344		$	345		$	347		$	379		$	454		$	490		$	514		$	562		$	1,415		$	2,020
Catastrophes, net of reinsurance:
Pre-tax	$	67		$	111		$	128		$	46		$	20		$	24		$	612		$	116		$	352		$	772
After-tax	44			72			83			30			13			16			402			80			229			511

(1)Includes $127 million of pre-tax net investment income in 1Q 2004 resulting from the the impact of an initial public offering of a private equity investment.  Commercial, Specialty and Personal include $82 million, $3 million and $42 million of pre-tax net investment income ($54 million, $2 million and $27 million after-tax), respectively, related to this private equity investment.

See Glossary of Financial Measures and Description of Operating Segments on page 37

3

The St. Paul Travelers Companies, Inc.

Net Income by Major Component and Combined Ratio - Consolidated

($ in millions, net of tax)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Underwriting gain (loss)	$	(12	)	$	89		$	105		$	98		$	160		$	(789	)	$	(155	)	$	(263	)	$	280		$	(1,047	)
Net investment income	344			345			347			379			454			490			514			562			1,415			2,020
Asset management	—			—			—			—			—			34			37			42			—			113
Other, including interest expense (1)	7			(3		)	(10		)	(14		)	—			(45		)	(24		)	(34		)	(20		)	(103		)
Operating Income (loss)	339			431			442			463			614			(310		)	372			307			1,675			983
Net realized investment gains (losses)	1			10			(16		)	26			(27		)	35			(32		)	(4		)	21			(28		)
Net income (loss)	$	340		$	441		$	426		$	489		$	587		$	(275	)	$	340		$	303		$	1,696		$	955
GAAP Combined Ratio (2), (3)
Loss and loss adjustment expense ratio	74.7		%	69.5		%	69.1		%	69.9		%	65.8		%	93.1		%	75.8		%	78.2		%	70.7		%	79.4		%
Underwriting expense ratio	25.2		%	25.3		%	25.6		%	25.6		%	26.1		%	29.6		%	28.0		%	28.9		%	25.6		%	28.3		%
Combined ratio	99.9		%	94.8		%	94.7		%	95.5		%	91.9		%	122.7		%	103.8		%	107.1		%	96.3		%	107.7		%
Impact of catastrophes on combined ratio	2.3		%	3.6		%	4.1		%	1.4		%	0.6		%	0.5		%	11.6		%	2.1		%	2.8		%	4.0		%
Impact of prior year reserve development on combined ratio	5.5		%	0.5		%	-0.4		%	9.4		%	1.3		%	27.1		%	1.6		%	16.5		%	3.8		%	12.6		%

(1)Includes minority interests and, effective 2Q 2004, Nuveen Investments minority interest

(2)Before policyholder dividends

(3)Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other underwriting expenses. In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and other underwriting expenses as follows:

	1Q 2003			2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		4Q 2004		YTD 4Q 2003		YTD 4Q 2004
Billing and policy fees	$		22	$	22	$	22	$	22	$	23	$	26	$	26	$	26	$	88	$	101
Fee income:
Loss and loss adjustment expenses	$	59		$	47	$	56	$	68	$	76	$	82	$	87	$	87	$	230	$	332
Other underwriting expenses	77			87		78		88		96		89		99		90		330		374
Total fee income	$	136		$	134	$	134	$	156	$	172	$	171	$	186	$	177	$	560	$	706

See Glossary of Financial Measures and Description of Operating Segments on page 37

4

The St. Paul Travelers Companies, Inc.

Operating Income - Consolidated

($ in millions)

	1Q 2003			2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004			3Q 2004		4Q 2004		YTD 4Q 2003			YTD 4Q 2004
Revenues
Premiums	$	2,979		$	3,100	$	3,149	$	3,317	$	3,339	$	5,154		$	5,269	$	5,276	$	12,545		$	19,038
Net investment income	456			456		458		499		619		642			667		735		1,869			2,663
Fee income	136			134		134		156		172		171			186		177		560			706
Asset management	—			—		—		—		—		121			132		137		—			390
Other revenues	25			43		28		31		39		38			56		43		127			176
Total revenues	3,596			3,733		3,769		4,003		4,169		6,126			6,310		6,368		15,101			22,973
Claims and expenses
Claims and claim adjustment expenses	2,288			2,211		2,237		2,382		2,281		4,869			4,086		4,203		9,118			15,439
Amortization of deferred acquisition costs	462			484		512		526		526		805			820		827		1,984			2,978
General and administrative expenses	394			413		398		436		467		926			861		891		1,641			3,145
Interest expense	52			40		38		37		36		66			69		73		167			244
Total claims and expenses	3,196			3,148		3,185		3,381		3,310		6,666			5,836		5,994		12,910			21,806
Operating income (loss) before income taxes and minority interest	400			585		584		622		859		(540		)	474		374		2,191			1,167
Income taxes	86			149		139		148		242		(237		)	89		55		522			149
Minority interest, net of tax	(25		)	5		3		11		3		7			13		12		(6		)	35
Operating income (loss)	$	339		$	431	$	442	$	463	$	614	$	(310	)	$	372	$	307	$	1,675		$	983

See Glossary of Financial Measures and Description of Operating Segments on page 37

5

The St. Paul Travelers Companies, Inc.

Selected Statistics - Property and Casualty Operations

($ in millions)

	1Q 2003			2Q 2003			3Q 2003		4Q 2003			1Q 2004		2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003		YTD 4Q 2004
Statutory underwriting
Net written premiums	$	3,167		$	3,269		$	3,376	$	3,389		$	3,471	$	5,261		$	5,050		$	5,154		$	13,201	$	18,936
Net earned premiums	$	2,979		$	3,100		$	3,149	$	3,317		$	3,339	$	5,161		$	5,269		$	5,276		$	12,545	$	19,045
Losses and loss adjustment expenses	2,234			2,163			2,189		2,329			2,209		4,818			4,040			4,139			8,915		15,206
Underwriting expenses	772			827			863		870			903		1,603			1,420			1,406			3,332		5,332
Statutory underwriting gain (loss)	(27		)	110			97		118			227		(1,260		)	(191		)	(269		)	298		(1,493		)
Policyholder dividends	4			8			4		(3		)	6		(10		)	7			(9		)	13		(6		)
Statutory underwriting gain (loss) after policyholder dividends	$	(31	)	$	102		$	93	$	121		$	221	$	(1,250	)	$	(198	)	$	(260	)	$	285	$	(1,487	)
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	23,479		$	23,422		$	23,727	$	24,029		$	24,284	$	40,008		$	41,090		$	41,728		$	24,029	$	41,728
Increase (decrease) in reserves (1)	$	199		$	(57	)	$	305	$	302		$	255	$	15,724		$	1,082		$	638		$	749	$	17,699
Statutory surplus	$	7,841		$	8,122		$	8,197	$	8,444		$	8,788	$	13,955		$	14,379		$	15,112		$	8,444	$	15,112
Net written premiums/surplus (2)	1.58:1			1.55:1			1.57:1		1.56:1			1.54:1		1.51:1			1.43:1			1.36:1			1.56:1		1.36:1

(1)  Includes the acquisition of St. Paul reserves as of April 1, 2004, totaling $13,713.

(2)Quarters through 1Q 2004 based on 12 month rolling net written premiums.  2Q 2004 based on annualized current quarter net written premium.  3Q 2004 based on annualized 2Q 2004 and 3Q 2004 net written premium.  4Q 2004 based on annualized 2Q 2004, 3Q 2004 and 4Q 2004 net written premium.

See Glossary of Financial Measures and Description of Operating Segments on page 37

6

The St. Paul Travelers Companies, Inc.

Written and Earned Premiums - Property and Casualty Operations

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Written premiums
Direct	$	3,633		$	3,672		$	3,881		$	3,791		$	3,923		$	5,905		$	5,850		$	5,779		$	14,977		$	21,457
Assumed	109			114			135			140			109			293			248			166			498			816
Ceded	(575		)	(517		)	(640		)	(542		)	(561		)	(937		)	(1,048		)	(791		)	(2,274		)	(3,337		)
Net	$	3,167		$	3,269		$	3,376		$	3,389		$	3,471		$	5,261		$	5,050		$	5,154		$	13,201		$	18,936
Earned premiums
Direct	$	3,403		$	3,540		$	3,605		$	3,776		$	3,758		$	5,909		$	5,971		$	5,955		$	14,324		$	21,593
Assumed	124			123			116			134			127			337			283			278			497			1,025
Ceded	(548		)	(563		)	(572		)	(593		)	(546		)	(1,092		)	(985		)	(957		)	(2,276		)	(3,580		)
Net	$	2,979		$	3,100		$	3,149		$	3,317		$	3,339		$	5,154		$	5,269		$	5,276		$	12,545		$	19,038

See Glossary of Financial Measures and Description of Operating Segments on page 37

7

The St. Paul Travelers Companies, Inc.

Operating Income - Commercial

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003			2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Revenues
Premiums	$	1,567		$	1,618	$	1,626	$	1,741	$	1,731	$	2,358	$	2,315	$	2,263		$	6,552		$	8,667
Net investment income	318			320		326		360		423		413		417		455			1,324			1,708
Fee income	133			127		131		154		168		164		178		170			545			680
Other revenues	3			17		4		9		14		12		23		6			33			55
Total revenues	2,021			2,082		2,087		2,264		2,336		2,947		2,933		2,894			8,454			11,110
Claims and expenses
Claims and claim adjustment expenses	1,342			1,198		1,171		1,459		1,198		1,661		1,876		2,508			5,170			7,243
Amortization of deferred acquisition costs	229			237		250		255		254		350		350		335			971			1,289
General and administrative expenses	232			254		237		262		287		436		399		407			985			1,529
Interest expense	1			1		1		2		1		1		1		—			5			3
Total claims and expenses	1,804			1,690		1,659		1,978		1,740		2,448		2,626		3,250			7,131			10,064
Operating income (loss) before federal income taxes and minority interest	217			392		428		286		596		499		307		(356		)	1,323			1,046
Income taxes	35			93		97		43		163		134		42		(166		)	268			173
Minority interest, net of tax	(25		)	5		3		11		3		1		5		2			(6		)	11
Operating income (loss)	$	207		$	294	$	328	$	232	$	430	$	364	$	260	$	(192	)	$	1,061		$	862

See Glossary of Financial Measures and Description of Operating Segments on page 37

8

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - Commercial

($ in millions, net of tax)

Historical results conform with current business segment definitions.

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Underwriting gain (loss)	$	(64	)	$	42		$	78		$	(39	)	$	109		$	37		$	(74	)	$	(545	)	17			(473		)
Net investment income	243			245			249			277			314			320			323			352			1,014			1,309
Other, including minority interest	28			7			1			(6		)	7			7			11			1			30			26
Operating Income (loss)	$	207		$	294		$	328		$	232		$	430		$	364		$	260		$	(192	)	$	1,061		$	862
GAAP Combined ratio (1), (2)
Loss and loss adjustment expense ratio	81.7		%	71.1		%	68.4		%	80.1		%	64.5		%	67.8		%	77.3		%	107.2		%	75.4		%	80.0		%
Underwriting expense ratio	24.5		%	25.3		%	25.2		%	24.7		%	25.9		%	29.5		%	28.1		%	28.8		%	24.9		%	28.2		%
Combined ratio	106.2		%	96.4		%	93.6		%	104.8		%	90.4		%	97.3		%	105.4		%	136.0		%	100.3		%	108.2		%
Impact of catastrophes on combined ratio	1.9		%	2.6		%	2.2		%	-0.2		%	0.0		%	0.0		%	12.2		%	3.3		%	1.6		%	4.1		%
Impact of prior year reserve development on combined ratio	12.6		%	3.2		%	1.5		%	23.1		%	-0.3		%	5.6		%	2.1		%	44.5		%	10.3		%	13.6		%

(1)  Before policyholder dividends

(2)  Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and other underwriting expenses as follows:

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		4Q 2004		YTD 4Q 2003		YTD 4Q 2004
Billing and policy fees	$	2	$	2	$	2	$	2	$	2	$	4	$	3	$	4	$	9	$	13
Fee income:
Loss and loss adjustment expenses	$	59	$	45	$	56	$	69	$	77	$	78	$	83	$	82	$	229	$	320
Other underwriting expenses	74		82		75		85		91		86		95		88		316		360
Total fee income	$	133	$	127	$	131	$	154	$	168	$	164	$	178	$	170	$	545	$	680

See Glossary of Financial Measures and Description of Operating Segments on page 37

9

The St. Paul Travelers Companies, Inc.

Selected Statistics - Commercial

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Statutory underwriting
Net written premiums	$	1,702		$	1,626		$	1,708		$	1,826		$	1,765		$	2,230		$	2,070		$	2,148		$	6,862		$	8,213
Net earned premiums	$	1,567		$	1,618		$	1,626		$	1,741		$	1,731		$	2,358		$	2,315		$	2,263		$	6,552		$	8,667
Losses and loss adjustment expenses	1,289			1,152			1,124			1,402			1,126			1,607			1,812			2,435			4,967			6,980
Underwriting expenses	386			408			421			430			443			693			593			580			1,645			2,309
Statutory underwriting gain (loss)	(108		)	58			81			(91		)	162			58			(90		)	(752		)	(60		)	(622		)
Policyholder dividends	2			2			3			(5		)	5			(14		)	2			(1		)	2			(8		)
Statutory underwriting gain (loss) after policyholder dividends	$	(110	)	$	56		$	78		$	(86	)	$	157		$	72		$	(92	)	$	(751	)	$	(62	)	$	(614	)
Other statistics
Effective tax rate on net investment income	23.5		%	23.2		%	23.4		%	23.3		%	25.7		%	22.5		%	22.4		%	22.9		%	23.3		%	23.6		%
Net Investment Income (after-tax)	$	243		$	245		$	249		$	277		$	314		$	320		$	323		$	352		$	1,014		$	1,309
Catastrophes, net of reinsurance:
Pre-tax	$	30		$	42		$	35		$	(4	)	$	—		$	—		$	284		$	74		$	103		$	358
After-tax	20			27			23			(3		)	—			—			184			49			67			233

See Glossary of Financial Measures and Description of Operating Segments on page 37

10

The St. Paul Travelers Companies, Inc.

Net Written Premiums - Commercial

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		4Q 2004		YTD 4Q 2003		YTD 4Q 2004
Net written premiums by market
Commercial accounts	$	798	$	751	$	796	$	906	$	848	$	1,116	$	1,075	$	1,172	$	3,251	$	4,211
Select accounts	509		517		506		515		531		709		653		662		2,047		2,555
National accounts	206		169		232		224		240		237		229		234		831		940
Total core	1,513		1,437		1,534		1,645		1,619		2,062		1,957		2,068		6,129		7,706
Commercial other	189		189		174		181		146		168		113		80		733		507
Total	$	1,702	$	1,626	$	1,708	$	1,826	$	1,765	$	2,230	$	2,070	$	2,148	$	6,862	$	8,213
Net written premiums by product line
Commercial multi-peril	$	572	$	533	$	539	$	602	$	606	$	610	$	618	$	683	$	2,246	$	2,517
Workers’ compensation	319		266		329		320		350		361		391		397		1,234		1,499
Commercial automobile	320		333		333		327		326		432		405		413		1,313		1,576
Property	278		271		286		331		298		451		352		354		1,166		1,455
General liability	193		199		210		231		182		353		295		283		833		1,113
Other	20		24		11		15		3		23		9		18		70		53
Total	$	1,702	$	1,626	$	1,708	$	1,826	$	1,765	$	2,230	$	2,070	$	2,148	$	6,862	$	8,213
National Accounts
Additions to claim volume under administration (1)	$	1,097	$	702	$	682	$	809	$	1,309	$	707	$	644	$	740	$	3,290	$	3,400
Written fees	$	182	$	145	$	141	$	162	$	214	$	159	$	142	$	146	$	630	$	661

(1)  Includes new and renewal business.

11

The St. Paul Travelers Companies, Inc.

Proforma Net Written Premiums - Commercial

($ in millions)

This page displays proforma combined net written premiums of Travelers and St. Paul, prior to the merger, and reported net written premiums for St. Paul Travelers for second quarter 2004 and beyond.  Year to date 2004 reflects the sum of proforma and reported net written premiums.

	1Q 2003		2Q 2003		3Q 2003		4Q 2003			1Q 2004		2Q 2004		3Q 2004		4Q 2004		YTD 4Q 2003		YTD 4Q 2004
Net written premiums by market
Commercial accounts	$	1,192	$	1,092	$	1,227	$	1,313		$	1,262	$	1,116	$	1,075	$	1,172	$	4,824	$	4,625
Select accounts	670		691		730		698			706		709		653		662		2,789		2,730
National accounts	238		211		267		261			282		237		229		234		977		982
Total core	2,100		1,994		2,224		2,272			2,250		2,062		1,957		2,068		8,590		8,337
Commercial other	305		271		233		141			166		168		113		80		950		527
Total	2,405		2,265		2,457		2,413			2,416		$	2,230	$	2,070	$	2,148	$	9,540	$	8,864
Less: Pre-Merger St. Paul	703		639		749		587			651
Total Commercial excluding Pre-Merger St. Paul	$	1,702	$	1,626	$	1,708	$	1,826		$	1,765
Net written premiums by product line
Commercial multi-peril	$	620	$	587	$	607	$	662		$	660	$	610	$	618	$	683	$	2,476	$	2,571
Workers’ compensation	399		355		451		428			460		361		391		397		1,633		1,609
Commercial automobile	435		427		465		446			440		432		405		413		1,773		1,690
Property	468		441		495		520			494		451		352		354		1,924		1,651
General liability	373		352		370		379			339		353		295		283		1,474		1,270
Other	110		103		69		(22		)	23		23		9		18		260		73
Total	$	2,405	$	2,265	$	2,457	$	2,413		$	2,416	$	2,230	$	2,070	$	2,148	$	9,540	$	8,864
National Accounts
Additions to claim volume under administration (1)	$	1,097	$	702	$	682	$	809		$	1,309	$	707	$	644	$	740	$	3,290	$	3,400
Written fees	$	186	$	147	$	143	$	166		$	218	$	159	$	142	$	146	$	642	$	665
Less: Pre-Merger St. Paul	4		2		2		4			4
Total written fees excluding Pre-Merger St. Paul	$	182	$	145	$	141	$	162		$	214

(1)  Includes new and renewal business.

12

The St. Paul Travelers Companies, Inc.

Operating Income - Specialty

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004			2Q 2004			3Q 2004			4Q 2004		YTD 4Q 2003		YTD 4Q 2004
Revenues
Premiums	$	274	$	289	$	291	$	317	$	311		$	1,428		$	1,515		$	1,537	$	1,171	$	4,791
Net investment income	48		45		42		48		51			135			156			165		183		507
Fee income	3		7		3		2		4			7			8			7		15		26
Other revenues	—		3		3		2		2			3			7			10		8		22
Total revenues	325		344		339		369		368			1,573			1,686			1,719		1,377		5,346
Claims and expenses
Claims and claim adjustment expenses	145		155		158		155		304			2,375			1,210			1,052		613		4,941
Amortization of deferred acquisition costs	49		52		54		58		56			227			225			240		213		748
General and administrative expenses	55		55		56		56		58			268			253			249		222		828
Total claims and expenses	249		262		268		269		418			2,870			1,688			1,541		1,048		6,517
Operating income (loss) before federal income taxes	76		82		71		100		(50		)	(1,297		)	(2		)	178		329		(1,171		)
Income taxes	21		24		20		30		(22		)	(459		)	(4		)	38		95		(447		)
Operating income (loss)	$	55	$	58	$	51	$	70	$	(28	)	$	(838	)	$	2		$	140	$	234	$	(724	)

See Glossary of Financial Measures and Description of Operating Segments on page 37

13

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - Specialty

($ in millions, net of tax)

Historical results conform with current business segment definitions.

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Underwriting gain (loss)	$	18		$	21		$	17		$	32		$	(68	)	$	(939	)	$	(122	)	$	4		$	88		$		(1,125	)
Net investment income	37			34			33			36			38			99			117			127			140			381
Other	—			3			1			2			2			2			7			9			6			20
Operating Income (loss)	$	55		$	58		$	51		$	70		$	(28	)	$	(838	)	$	2		$	140		$	234		$	(724		)
GAAP Combined ratio (1), (2)
Loss and loss adjustment expense ratio	52.6		%	51.0		%	53.9		%	48.2		%	97.7		%	165.7		%	79.3		%	68.7		%	51.3		%	102.8			%
Underwriting expense ratio	37.2		%	35.2		%	36.5		%	35.2		%	35.2		%	34.5		%	31.2		%	31.6		%	36.0		%	32.6			%
Combined ratio	89.8		%	86.2		%	90.4		%	83.4		%	132.9		%	200.2		%	110.5		%	100.3		%	87.3		%	135.4			%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%	12.3		%	2.6		%	0.0		%	4.8			%
Impact of prior year reserve development on combined ratio	0.0		%	0.0		%	0.0		%	3.8		%	48.2		%	95.5		%	4.8		%	0.0		%	1.0		%	33.1			%

(1) Before policyholder dividends

(2) Fee income is allocated as a reduction of losses and loss adjustment expenses and other underwriting expenses as follows:

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004			2Q 2004		3Q 2004		4Q 2004		YTD 4Q 2003		YTD 4Q 2004
Fee income:
Loss and loss adjustment expenses	$	—	$	2	$	—	$	—	$	(1	)	$	5	$	4	$	4	$	2	$	12
Other underwriting expenses	3		5		3		2		5			2		4		3		13		14
Total fee income	$	3	$	7	$	3	$	2	$	4		$	7	$	8	$	7	$	15	$	26

See Glossary of Financial Measures and Description of Operating Segments on page 37

14

The St. Paul Travelers Companies, Inc.

Selected Statistics - Specialty

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Statutory underwriting
Net written premiums	$	315		$	332		$	312		$	299		$	340		$	1,473		$	1,408		$	1,573		$	1,258		$	4,794
Net earned premiums	$	274		$	289		$	291		$	317		$	311		$	1,435		$	1,515		$	1,537		$	1,171		$	4,798
Losses and loss adjustment expenses	144			153			157			159			304			2,382			1,225			1,060			613			4,971
Underwriting expenses	106			107			109			109			114			513			422			430			431			1,479
Statutory underwriting gain (loss)	24			29			25			49			(107		)	(1,460		)	(132		)	47			127			(1,652		)
Policyholder dividends	2			6			1			2			1			4			5			(8		)	11			2
Statutory underwriting gain (loss) after policyholder dividends	$	22		$	23		$	24		$	47		$	(108	)	$	(1,464	)	$	(137	)	$	55		$	116		$	(1,654	)
Other statistics
Effective tax rate on net investment income	25.8		%	24.9		%	23.8		%	24.0		%	25.2		%	26.0		%	24.8		%	24.2		%	24.6		%	25.0		%
Net Investment Income (after-tax)	$	37		$	34		$	33		$	36		$	38		$	99		$	117		$	127		$	140		$	381
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	186		$	39		$	—		$	225
After-tax	—			—			—			—			—			—			126			29			—			155

See Glossary of Financial Measures and Description of Operating Segments on page 37

15

The St. Paul Travelers Companies, Inc.

Net Written Premiums - Specialty

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		4Q 2004		YTD 4Q 2003		YTD 4Q 2004
Net written premiums by market
Construction	$	151	$	126	$	95	$	102	$	126	$	275	$	192	$	253	$	474	$	846
Bond	164		206		217		197		214		248		345		329		784		1,136
Financial & Professional Services	—		—		—		—		—		198		212		221		—		631
Other	—		—		—		—		—		411		427		449		—		1,287
Total Domestic Specialty	$	315	$	332	$	312	$	299	$	340	$	1,132	$	1,176	$	1,252	$	1,258	$	3,900
International Specialty	—		—		—		—		—		341		232		321		—		894
Total	$	315	$	332	$	312	$	299	$	340	$	1,473	$	1,408	$	1,573	$	1,258	$	4,794
Net written premiums by product line
Workers’ compensation	$	39	$	35	$	20	$	22	$	28	$	131	$	113	$	154	$	116	$	426
Commercial automobile	33		27		22		23		31		107		113		105		105		356
Property	4		4		5		5		4		96		119		106		18		325
General liability	—		—		—		—		—		197		125		116		—		438
International	—		—		—		—		—		341		232		321		—		894
Other	239		266		265		249		277		601		706		771		1,019		2,355
Total	$	315	$	332	$	312	$	299	$	340	$	1,473	$	1,408	$	1,573	$	1,258	$	4,794

16

The St. Paul Travelers Companies, Inc.

Proforma Net Written Premiums - Specialty

($ in millions)

This page displays proforma combined net written premiums of Travelers and St. Paul, prior to the merger, and reported net written premiums for St. Paul Travelers for second quarter 2004 and beyond.  Year to date 2004 reflects the sum of proforma and reported net written premiums.

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Net written premiums by market
Construction	$		390	$		320	$		241	$		281	$		324	$		275	$		192	$		253	$		1,232	$		1,044
Bond	256			354			350			299			286			248			345			329			1,259			1,208
Financial & Professional Services	124			154			177			169			157			198			212			221			624			788
Other	349			419			454			450			420			411			427			449			1,672			1,707
Total Domestic Specialty	$		1,119	$		1,247	$		1,222	$		1,199	$		1,187	$		1,132	$		1,176	$		1,252	$		4,787	$		4,747
International Specialty	468			240			289			333			310			341			232			321			1,330			1,204
Total	1,587			1,487			1,511			1,532			1,497			$		1,473	$		1,408	$		1,573	$		6,117	$		5,951
Less: Pre-Merger St. Paul	1,272			1,155			1,199			1,233			1,157
Total Specialty excluding Pre-Merger St. Paul	$		315	$		332	$		312	$		299	$		340
Net written premiums by product line (1)
Workers’ compensation	$	178		$	158		$	124		$	146		$	165		$	131		$	113		$	154		$	606		$	563
Commercial automobile	137			141			115			125			125			107			113			105			518			450
Property	78			120			134			111			97			96			119			106			443			418
General liability	152			147			137			139			147			197			125			116			575			585
International	468			240			289			333			310			341			232			321			1,330			1,204
Other	574			681			712			678			653			601			706			771			2,645			2,731
Total	$	1,587		$	1,487		$	1,511		$	1,532		$	1,497		$	1,473		$	1,408		$	1,573		$	6,117		$	5,951

(1)  Prior periods have been restated to conform to current product line definitions for the Specialty segment.

17

The St. Paul Travelers Companies, Inc.

Operating Income - Personal

($ in millions)

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		4Q 2004		YTD 4Q 2003		YTD 4Q 2004
Revenues
Premiums	$	1,138	$	1,193	$	1,232	$	1,259	$	1,297	$	1,368	$	1,439	$	1,476	$	4,822	$	5,580
Net investment income	89		91		90		91		145		93		92		112		361		442
Other revenues	22		23		20		20		23		21		22		25		85		91
Total revenues	1,249		1,307		1,342		1,370		1,465		1,482		1,553		1,613		5,268		6,113
Claims and expenses
Claims and claim adjustment expenses	801		858		908		768		779		833		1,000		643		3,335		3,255
Amortization of deferred acquisition costs	184		195		208		213		216		228		245		252		800		941
General and administrative expenses	102		100		102		116		119		132		129		156		420		536
Total claims and expenses	1,087		1,153		1,218		1,097		1,114		1,193		1,374		1,051		4,555		4,732
Operating income before federal income taxes	162		154		124		273		351		289		179		562		713		1,381
Income taxes	50		47		36		88		114		92		52		184		221		442
Operating income	$	112	$	107	$	88	$	185	$	237	$	197	$	127	$	378	$	492	$	939

See Glossary of Financial Measures and Description of Operating Segments on page 37

18

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - Personal

($ in millions, net of tax)

Historical results conform with current business segment definitions.

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Underwriting gain	$	34		$	26		$	10		$	105		$	119		$	113		$	41		$	278		175			$	551
Net investment income	64			66			65			66			102			70			72			85			261			329
Other	14			15			13			14			16			14			14			15			56			59
Operating Income	$	112		$	107		$	88		$	185		$	237		$	197		$	127		$	378		$	492		$	939
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	70.4		%	71.9		%	73.7		%	61.0		%	60.1		%	60.9		%	69.5		%	43.6		%	69.1		%	58.3		%
Underwriting expense ratio	23.3		%	23.1		%	23.6		%	24.6		%	24.2		%	24.7		%	24.5		%	26.1		%	23.7		%	24.9		%
Combined ratio	93.7		%	95.0		%	97.3		%	85.6		%	84.3		%	85.6		%	94.0		%	69.7		%	92.8		%	83.2		%
Impact of catastrophes on combined ratio	3.3		%	5.8		%	7.5		%	4.0		%	1.5		%	1.8		%	9.9		%	0.2		%	5.2		%	3.4		%
Impact of prior year reserve development on combined ratio	-3.1		%	-3.1		%	-3.1		%	-8.1		%	-7.8		%	-7.3		%	-2.6		%	-9.5		%	-4.4		%	-6.8		%

(1)   Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other underwriting expenses. Billing and policy fees are as follows:

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		4Q 2004		YTD 4Q 2003		YTD 4Q 2004
Billing and policy fees	$	20	$	20	$	20	$	20	$	21	$	22	$	23	$	22	$	80	$	88

See Glossary of Financial Measures and Description of Operating Segments on page 37

19

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Statutory underwriting
Net written premiums by product line
Automobile	$	737		$	778		$	796		$	743		$	847		$	892		$	884		$	810		$	3,054		$	3,433
Homeowners and other	413			533			560			521			519			666			688			623			2,027			2,496
Total	$	1,150		$	1,311		$	1,356		$	1,264		$	1,366		$	1,558		$	1,572		$	1,433		$	5,081		$	5,929
Net earned premiums	$	1,138		$	1,193		$	1,232		$	1,259		$	1,297		$	1,368		$	1,439		$	1,476		$	4,822		$	5,580
Losses and loss adjustment expenses	801			858			908			768			779			829			1,003			644			3,335			3,255
Underwriting expenses	280			312			333			331			346			397			405			396			1,256			1,544
Statutory underwriting gain (loss)	$	57		$	23		$	(9	)	$	160		$	172		$	142		$	31		$	436		$	231		$	781
Other statistics
Effective tax rate on net investment income	27.5		%	27.4		%	27.1		%	27.0		%	29.6		%	24.2		%	22.6		%	23.7		%	27.3		%	25.6		%
Net investment income (after-tax)	$	64		$	66		$	65		$	66		$	102		$	70		$	72		$	85		$	261		$	329
Catastrophes, net of reinsurance:
Pre-tax	$	37		$	69		$	93		$	50		$	20		$	24		$	142		$	3		$	249		$	189
After-tax	24			45			60			33			13			16			92			2			162			123
Policies in force (in thousands)
Automobile	1,995			2,016			2,045			2,069			2,157			2,234			2,260			2,264			2,069			2,264
Homeowners and other	3,201			3,247			3,319			3,380			3,493			3,650			3,787			3,879			3,380			3,879

See Glossary of Financial Measures and Description of Operating Segments on page 37

20

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal (Automobile)

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Statutory underwriting
Net written premiums	$	737		$	778		$	796		$	743		$	847		$	892		$	884		$	810		$	3,054		$	3,433
Net earned premiums	$	706		$	737		$	753		$	759		$	782		$	825		$	851		$	862		$	2,955		$	3,320
Losses and loss adjustment expenses	526			551			569			564			577			596			617			468			2,210			2,258
Underwriting expenses	169			173			185			179			199			205			207			206			706			817
Statutory underwriting gain (loss)	$	11		$	13		$	(1	)	$	16		$	6		$	24		$	27		$	188		$	39		$	245
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	74.4		%	74.8		%	75.5		%	74.3		%	73.7		%	72.7		%	72.1		%	54.3		%	74.8		%	68.0		%
Underwriting expense ratio	22.2		%	21.4		%	22.3		%	22.2		%	22.7		%	22.4		%	22.3		%	24.0		%	22.0		%	22.8		%
Combined ratio	96.6		%	96.2		%	97.8		%	96.5		%	96.4		%	95.1		%	94.4		%	78.3		%	96.8		%	90.8		%
Impact of catastrophes on combined ratio	0.0		%	0.9		%	0.5		%	0.0		%	0.0		%	0.0		%	0.6		%	0.3		%	0.3		%	0.2		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	7		$	4		$	—		$	—		$	—		$	5		$	3		$	11		$	8
After-tax	—			5			2			—			—			—			3			2			7			5
Policies in force (in thousands)	1,995			2,016			2,045			2,069			2,157			2,234			2,260			2,264
Change from prior year quarter	1.8		%	2.0		%	3.0		%	4.1		%	8.1		%	10.8		%	10.5		%	9.4		%
Change from prior quarter	0.4		%	1.1		%	1.4		%	1.2		%	4.3		%	3.6		%	1.2		%	0.2		%

(1)  Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other underwriting expenses.  Billing and policy fees are as follows:

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		4Q 2004		YTD 4Q 2003		YTD 4Q 2004
Billing and policy fees	$	13	$	13	$	13	$	13	$	14	$	14	$	15	$	14	$	52	$	57

See Glossary of Financial Measures and Description of Operating Segments on page 37

21

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal (Homeowners and Other)

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Statutory underwriting
Net written premiums	$	413		$	533		$	560		$	521		$	519		$	666		$	688		$	623		$	2,027		$	2,496
Net earned premiums	$	432		$	456		$	479		$	500		$	515		$	543		$	588		$	614		$	1,867		$	2,260
Losses and loss adjustment expenses	275			307			339			204			202			233			386			176			1,125			997
Underwriting expenses	111			139			148			152			147			192			198			190			550			727
Statutory underwriting gain (loss)	$	46		$	10		$	(8	)	$	144		$	166		$	118		$	4		$	248		$	192		$	536
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	63.8		%	67.2		%	70.7		%	40.8		%	39.2		%	42.9		%	65.7		%	28.6		%	60.2		%	44.1		%
Underwriting expense ratio	25.3		%	25.8		%	25.6		%	28.3		%	26.6		%	28.2		%	27.7		%	29.0		%	26.3		%	27.9		%
Combined ratio	89.1		%	93.0		%	96.3		%	69.1		%	65.8		%	71.1		%	93.4		%	57.6		%	86.5		%	72.0		%
Impact of catastrophes on combined ratio	8.6		%	13.6		%	18.6		%	10.0		%	3.9		%	4.4		%	23.3		%	0.0		%	12.7		%	8.0		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	37		62			89			$	50		$	20		$	24		$	137		$	—		238			181
After-tax	24			40			57			33			13			16			89			—			154			118
Policies in force (in thousands)	3,201			3,247			3,319			3,380			3,493			3,650			3,787			3,879
Change from prior year quarter	1.1		%	2.6		%	4.7		%	6.3		%	9.1		%	12.4		%	14.1		%	14.8		%
Change from prior quarter	0.6		%	1.4		%	2.2		%	1.8		%	3.3		%	4.5		%	3.8		%	2.4		%

(1)   Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other underwriting expenses. Billing and policy fees are as follows:

	1Q 2003		2Q 2003		3Q 2003		4Q 2003		1Q 2004		2Q 2004		3Q 2004		4Q 2004		YTD 4Q 2003		YTD 4Q 2004
Billing and policy fees	$	7	$	7	$	7	$	7	$	7	$	8	$	8	$	8	$	28	$	31

See Glossary of Financial Measures and Description of Operating Segments on page 37

22

The St. Paul Travelers Companies, Inc.

Asset Management

($ in millions)

	2Q 2004		3Q 2004		4Q 2004		YTD 4Q 2004
Revenues
Investment advisory fees from assets under management	$	115	$	121	$	127	$	363
Underwriting and distribution of investment products	2		2		3		7
Other	4		9		7		20
Total revenues	121		132		137		390
Expenses
Employee compensation and benefits	39		45		44		128
Interest Expense	3		2		3		8
Other	23		24		25		72
Total expenses	65		71		72		208
Income before minority interest and income taxes	56		61		65		182
Income taxes	22		24		23		69
Income before minority interest	34		37		42		113
Minority interest, net of tax	7		8		10		25
Net income	$	27	$	29	$	32	$	88
Other Information
Assets under management	$	101,857	$	106,891	$	115,453
Net investment flows	$	3,108	$	2,891	$	5,226

See Glossary of Financial Measures and Description of Operating Segments on page 37

23

The St. Paul Travelers Companies, Inc.

Interest Expense and Other

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Revenues
Net investment income	$	1		$	—		$	—		$	—		$	—		$	1		$	2		$	3		$	1		$	6
Other revenues	—			—			1			—			—			2			4			2			1			8
Total revenues	1			—			1			—			—			3			6			5			2			14
Claims and expenses
Interest expense	51			39			37			35			35			62			66			70			162			233
General and administrative expenses	5			4			3			2			3			28			11			10			14			52
Total claims and expenses	56			43			40			37			38			90			77			80			176			285
Operating loss before federal income tax benefit	(55		)	(43		)	(39		)	(37		)	(38		)	(87		)	(71		)	(75		)	(174		)	(271		)
Income taxes	(20		)	(15		)	(14		)	(13		)	(13		)	(26		)	(25		)	(24		)	(62		)	(88		)
Minority Interest, net of tax	—			—			—			—			—			(1		)	—			—			—			(1		)
Operating loss	$	(35	)	$	(28	)	$	(25	)	$	(24	)	$	(25	)	$	(60	)	$	(46	)	$	(51	)	$	(112	)	$	(182	)

See Glossary of Financial Measures and Description of Operating Segments on page 37

24

The St. Paul Travelers Companies, Inc.

Consolidated Balance Sheet

($ in millions)

	December 31, 2004 (1)		December 31, 2003
Assets
Fixed maturities, available for sale at fair value (including $2,582 and $696 subject to securities lending and repurchase agreements) (amortized cost $53,004 and $31,478)	$	54,256	$	33,046
Equity securities, at fair value (cost $720 and $672)	791		733
Real estate	1,093		2
Mortgage loans	191		211
Short-term securities	5,142		2,138
Other investments	3,237		2,523
Total investments	64,710		38,653
Cash	274		352
Investment income accrued	671		362
Premiums receivable	6,201		4,090
Reinsurance recoverables	19,054		11,174
Ceded unearned premiums	1,522		939
Deferred acquisition costs	1,559		965
Deferred tax asset	2,011		678
Contractholder receivables	5,629		3,121
Goodwill	5,281		2,412
Intangible assets	1,702		422
Other assets	3,459		1,704
Total assets	$	112,073	$	64,872

	December 31, 2004 (1)			December 31, 2003
Liabilities
Claims and claim adjustment expense reserves	$	59,070		$	34,573
Unearned premium reserves	11,310			7,111
Contractholder payables	5,629			3,121
Payables for reinsurance premiums	853			403
Debt	6,624			2,675
Payables for securities lending and repurchase agreements	—			711
Other liabilities	7,386			4,291
Total liabilities	90,872			52,885
Shareholders’ equity
Preferred stock:
Stock Ownership Plan - convertible preferred stock (0.6 shares issued and outstanding)	193			—
Guaranteed obligation - Stock Ownership Plan	(5		)	—
Common stock (1,750.0 shares authorized; 670.7 and 437.8 shares issued; 670.3 and 435.8 shares outstanding) (2)	17,401			10
Additional paid-in capital				8,705
Retained earnings	2,757			2,290
Accumulated other changes in equity from nonowner sources	952			1,086
Treasury stock, at cost (0.4 and 2.0 shares)	(14		)	(74		)
Unearned compensation	(83		)	(30		)
Total shareholders’ equity	21,201			11,987
Total liabilities and shareholders’ equity	$	112,073		$	64,872

(1)Preliminary.

(2)The number of shares for all periods presented has been restated to reflect the equivalent number of shares resulting from the exchange of Travelers common stock for St. Paul Travelers common stock due to the merger on April 1, 2004.  In addition, common stock and additional paid-in capital have been restated to give effect to the difference in par value of the exchanged shares.  Upon consummation of the merger on April 1, 2004, Travelers class A and class B common stock was converted to St. Paul Travelers common stock and the Travelers treasury stock was cancelled.

25

The St. Paul Travelers Companies, Inc.

Investment Portfolio

(at carrying value,$ in millions)

	December 31, 2004		Pre-tax Book Yield (1)		December 31, 2003		Pre-tax Book Yield
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	27,673	4.78	%	$	17,655	5.54	%
Tax-exempt fixed maturities	26,583		4.14	%	15,391		4.47	%
Total fixed maturities	54,256		4.47	%	33,046		5.04	%
Non-redeemable preferred stocks	594		6.71	%	644		6.89	%
Common stocks	197		N/A		89		N/A
Total equity securities	791		N/A		733		N/A
Mortgage loans	191		8.25	%	211		7.38	%
Real estate	1,093		N/A		2		N/A
Short-term securities	5,142		2.23	%	2,138		1.08	%
Private equities	1,807		N/A		1,226		N/A
Arbitrage funds	844		N/A		983		N/A
Real estate joint ventures & other	548		N/A		257		N/A
Trading securities	38		N/A		57		N/A
Total other investments	3,237		N/A		2,523		N/A
Total investments	$	64,710	4.31	%	$	38,653	4.84	%
Net unrealized gain on investment securities, net of tax and minority interest, included in shareholders’ equity	$	868			$	1,060

(1) The reduction in pre-tax book yield reflects the purchase accounting adjustment on the St Paul investment portfolio.

26

The St. Paul Travelers Companies, Inc.

Investment Portfolio - Fixed Maturities Data

(at carrying value,$ in millions)

	December 31, 2004		December 31, 2003
Fixed maturities
Mortgage-backed securities - principally obligations of U.S. Government agencies	$	8,678	$	7,738
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	3,033		1,384
Corporates (including redeemable preferreds)	13,843		8,241
Obligations of states and political subdivisions	26,841		15,427
Debt securities issued by foreign governments	1,861		256
Subtotal - Available-for-sale securities	54,256		33,046
Trading securities	15		33
Total fixed maturities	$	54,271	$	33,079

Fixed Maturities

Quality Characteristics (1)

	December 31, 2004
	Amount		% of Total
Quality Ratings
Aaa	$	32,656	60.2	%
Aa	11,081		20.4
A	4,931		9.1
Baa	3,810		7.0
Total investment grade	52,478		96.7
Ba	892		1.6
B	638		1.2
Caa and lower	248		0.5
Total below investment grade	1,778		3.3
Total fixed maturities, excluding trading securities	$	54,256	100.0	%
Trading securities	$	15
Average weighted quality	AA2, AA
Average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases	4.1

(1)Rated using external rating agencies, or by St. Paul Travelers when a public rating does not exist. Below investment grade assets refer to securities rated “Ba” or below.

27

The St. Paul Travelers Companies, Inc.

Net Investment Income

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Gross investment income
Fixed maturities	$	391		$	371		$	372		$	393		$	412		$	555		$	583		$	579		$	1,527		$	2,129
Short-term securities	37			38			23			9			9			12			21			27			107			69
Mortgage loans	6			6			9			5			4			14			4			3			26			25
Other (1)	35			58			67			103			249			67			69			161			263			546
	469			473			471			510			674			648			677			770			1,923			2,769
Investment expenses (1)	13			17			13			11			55			6			10			35			54			106
Net investment income, pre-tax	456			456			458			499			619			642			667			735			1,869			2,663
Income taxes	112			111			111			120			165			152			153			173			454			643
Net investment income, after-tax	$	344		$	345		$	347		$	379		$	454		$	490		$	514		$	562		$	1,415		$	2,020
Effective tax rate	24.6		%	24.3		%	24.2		%	24.1		%	26.6		%	23.7		%	23.0		%	23.4		%	24.3		%	24.2		%
Average invested assets (2)	$	34,373		$	35,182		$	35,454		$	36,216		$	37,097		$	59,510		$	61,527		$	63,202		$	35,306		$	55,334
Average yield pre-tax	5.3		%	5.2		%	5.2		%	5.6		%	6.7		%	4.3		%	4.3		%	4.7		%	5.3		%	4.8		%
Average yield after-tax	4.0		%	3.9		%	3.9		%	4.2		%	4.9		%	3.3		%	3.3		%	3.6		%	4.0		%	3.7		%

(1)Includes $167 million and $39 million of gross investment income and investment expenses, respectively, in 1Q 2004 resulting from the the impact of an initial public offering of a private equity investment. Commercial, Specialty and Personal include $82 million, $3 million and $42 million of pre-tax net investment income ($54 million, $2 million and $27 million after-tax), respectively, related to this private equity investment.

(2)Reduced by payables for securities lending and repurchase agreements and excludes net unrealized investment gains and losses, receivables for investment sales, and payables on investment purchases.

28

The St. Paul Travelers Companies, Inc.

Net Realized and Unrealized Investment Gains (Losses)

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Net realized investment gains (losses)
Fixed maturities	$	27		$	55		$	(40	)	$	27		$	12		$	38		$	11		$	2		$	69		$	63
Equity securities	3			(1		)	4			—			1			1			8			14			6			24
Other	(23		)	(38		)	13			11			(55		)	16			(68		)	(19		)	(37		)	(126		)
Realized investment gains (losses) before tax and minority interest	7			16			(23		)	38			(42		)	55			(49		)	(3		)	38			(39		)
Related taxes	2			6			(7		)	12			(15		)	20			(17		)	1			13			(11		)
Minority interest, net of tax	4			—			—			—			—			—			—			—			4			—
Net realized investment gains (losses)	$	1		$	10		$	(16	)	$	26		$	(27	)	$	35		$	(32	)	$	(4	)	$	21		$	(28	)
Gross investment gains (1)	$	94		$	251		$	252		$	235		$	135		$	371		$	185		$	326		$	832		$	1,017
Gross investment losses before impairments (1)	(29		)	(216		)	(268		)	(191		)	(166		)	(293		)	(206		)	(311		)	(704		)	(976		)
Impairments	(58		)	(19		)	(7		)	(6		)	(11		)	(23		)	(28		)	(18		)	(90		)	(80		)
Realized investment gains (losses) before tax and minority interest	7			16			(23		)	38			(42		)	55			(49		)	(3		)	38			(39		)
Related taxes	2			6			(7		)	12			(15		)	20			(17		)	1			13			(11		)
Minority interest, net of tax	4			—			—			—			—			—			—			—			4			—
Net realized investment gains (losses)	$	1		$	10		$	(16	)	$	26		$	(27	)	$	35		$	(32	)	$	(4	)	$	21		$	(28	)

	March 31, 2003			June 30, 2003			September 30, 2003			December 31, 2003			March 31, 2004			June 30, 2004		September 30, 2004		December 31, 2004
Net unrealized investment gains (losses), by asset type
Fixed maturities	$	1,310		$	1,819		$	1,562		$	1,567		$	1,805		$	154	$	1,268	$	1,252
Equity securities & other	13			56			50			60			75			71		57		85
Unrealized investment gains before tax and minority interest	1,323			1,875			1,612			1,627			1,880			225		1,325		1,337
Related taxes	459			653			564			569			658			84		466		469
Minority interest, net of tax	(5		)	(2		)	(3		)	(2		)	(1		)	—		—		—
Balance, end of period	$	869		$	1,224		$	1,051		$	1,060		$	1,223		$	141	$	859	$	868

(1)Includes gross investment gains and gross investment losses related to U.S. Treasury futures which are settled daily.  The Company entered into these arrangements as part of its strategy to shorten the duration of the fixed maturity portfolio. In a changing interest rate environment the change in the value of the futures contracts can be expected to partially offset changes in the value of the fixed maturity portfolio:

Gross investment Treasury future gains	$	1	$	123	$	207	$	175	$	105	$	161	$	78	$	86	$	506	$	430
Gross investment Treasury future losses	$	7	$	167	$	194	$	164	$	160	$	104	$	124	$	85	$	532	$	473

29

The St. Paul Travelers Companies, Inc.

Reinsurance Recoverables

($ in millions)

	December 31, 2004			December 31, 2003
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	13,367		$	6,946
Allowance for uncollectible reinsurance	(751		)	(387		)
Net reinsurance recoverables	12,616			6,559
Mandatory pools and associations	2,497			2,204
Structured settlements	3,941			2,411
Total reinsurance recoverables	$	19,054		$	11,174

The Company’s top five reinsurers,  including retroactive reinsurance, by reinsurance recoverable at December 31, 2004 is as follows:

Reinsurer	December 31, 2004		December 31, 2003		A.M. Best Rating of Reinsurer
American Re-Insurance Company	$	1,198	$	913	A+ second highest of 16 ratings
General Reinsurance Corporation ($300.0)	826		437		A++ highest of 16 ratings
XL Reinsurance America Inc.	613		216		A+ second highest of 16 ratings
Transatlantic Reinsurance Company	604		397		A+ second highest of 16 ratings
Swiss Reinsurance America Corporation	493		301		A+ second highest of 16 ratings

* Brackets indicate retroactive balance that is included in the 12/31/04 total.

The gross reinsurance recoverable on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and unasserted claims.  The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves.  Although this total comprises recoverables due from nearly one thousand different reinsurance entities, about half is attributable to 10 reinsurer groups.

The allowance for uncollectible reinsurance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, and other relevant factors.

The mandatory pools and associations represent various involuntary assigned risk pools that the Company is required to participate in.  These pools principally involve workers’ compensation and automobile insurance, which provide various insurance coverages to insureds that otherwise are unable to purchase coverage in the open market.  The costs of these mandatory pools in most states are usually charged back to the participating members in proportion to voluntary writings of related business in that state.  In the event that a member of the pool becomes insolvent, the remaining members assume an additional pro rata share of the pool’s liabilities.

The structured settlements represent annuities that are purchased from life insurance companies to settle personal physical injury claims, with workers’ compensation claims comprising a significant proportion.  The Company retains the ultimate liability to the claimant in the event that the assigned company fails to pay, so the amount is reflected as a liability and as a recoverable for GAAP purposes.

During the first quarter of 2004, the Company entered into an agreement to settle all current and future reinsurance claims against certain underwriters at Lloyds of London reinsured by Equitas.  Under terms of this settlement, the Company received $245 million, resolving approximately $255 million of Travelers’ net claim balances from Equitas.  If federal asbestos reform legislation was enacted by the 108th U.S. Congress, Equitas could have elected to recoup $150 million from Travelers and, if Equitas made that election, the reinsurance agreements for asbestos coverage would have been reinstated. Those funds were held in trust, and the related reinsurance recoverables and reserves remained on the balance sheet until the contingency was resolved at the end of the fourth quarter when Equitas released the funds in trust to the Company.  At the end of the fourth quarter, the entire $255 million was reflected as a reduction to the reinsurance recoverable.

During the second quarter of 2004, the Company entered into an agreement with a reinsurer to settle all current and future reinsurance claims related to various treaty reinsurance programs.  This commutation agreement resolves $1.069 billion in net claim balances from this reinsurer and has been reflected as a reduction in the reinsurance recoverable.  In addition to the commutation, the Company entered into a new reinsurance agreement covering the 2000 accident year for the former St. Paul companies on an aggregate basis.

30

The St. Paul Travelers Companies, Inc.

Net Reserves for Losses and Loss Adjustment Expense

($ in millions)

Historical results conform with current business segment definitions.

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Commercial
Beginning of period	$	18,359		$	18,535		$	18,376		$	18,497		$	18,791		$	18,847		$	27,442		$	27,795		$	18,359		$	18,791
Incurred (1)	1,289			1,152			1,124			1,402			1,126			1,607			1,812			2,435			4,967			6,980
Paid	(1,113		)	(1,311		)	(1,003		)	(1,108		)	(1,070		)	(1,448		)	(1,460		)	(1,881		)	(4,535		)	(5,859		)
Acquired reserves, foreign exchange and other (2)	—			—			—			—			—			8,436			1			64			—			8,501
End of period	$	18,535		$	18,376		$	18,497		$	18,791		$	18,847		$	27,442		$	27,795		$	28,413		$	18,791		$	28,413
Specialty
Beginning of period	$	1,963		$	1,916		$	1,940		$	1,971		$	2,020		$	2,204		$	9,231		$	9,742		$	1,963		$	2,020
Incurred (1)	144			153			157			159			304			2,382			1,225			1,060			613			4,971
Paid	(191		)	(129		)	(126		)	(110		)	(120		)	(607		)	(682		)	(944		)	(556		)	(2,353		)
Acquired reserves, foreign exchange and other (2)	—			—			—			—			—			5,252			(32		)	123			—			5,343
End of period	$	1,916		$	1,940		$	1,971		$	2,020		$	2,204		$	9,231		$	9,742		$	9,981		$	2,020		$	9,981
Personal
Beginning of period	$	2,959		$	3,028		$	3,106		$	3,259		$	3,218		$	3,233		$	3,335		$	3,553		$	2,959		$	3,218
Incurred (1)	801			858			908			768			779			829			1,003			643			3,335			3,254
Paid	(732		)	(780		)	(755		)	(809		)	(764		)	(752		)	(785		)	(862		)	(3,076		)	(3,163		)
Acquired reserves, foreign exchange and other (2)	—			—			—			—			—			25			—			—			—			25
End of period	$	3,028		$	3,106		$	3,259		$	3,218		$	3,233		$	3,335		$	3,553		$	3,334		$	3,218		$	3,334
Total
Beginning of period	$	23,281		$	23,479		$	23,422		$	23,727		$	24,029		$	24,284		$	40,008		$	41,090		$	23,281		$	24,029
Incurred (1)	2,234			2,163			2,189			2,329			2,209			4,818			4,040			4,138			8,915			15,205
Paid	(2,036		)	(2,220		)	(1,884		)	(2,027		)	(1,954		)	(2,807		)	(2,927		)	(3,687		)	(8,167		)	(11,375		)
Acquired reserves, foreign exchange and other (2)	—			—			—			—			—			13,713			(31		)	187			—			13,869
End of period	$	23,479		$	23,422		$	23,727		$	24,029		$	24,284		$	40,008		$	41,090		$	41,728		$	24,029		$	41,728

(1) Includes prior year reserve development (benefit)/charge and accretion of discount.

(2) All St Paul 1Q 2004 ending reserve balances are shown as acquired reserves during 2Q 2004.

Commercial
Prior year reserve development:
Asbestos	$	—		$	—		$	—		$	—		$	—		$	5		$	—		$	922		$	—		$	927
Environmental	—			—			—			60			—			197			5			84			60			286
All other	198			51			24			343			(6		)	(69		)	43			2			616			(30		)
Accretion of discount	20			15			17			18			16			17			15			25			70			73
Total Commercial	218			66			41			421			10			150			63			1,033			746			1,256
Specialty
Prior year reserve development:
Asbestos	—			—			—			—			—			—			1			—			—			1
Environmental	—			—			—			—			—			7			(3		)	—			—			4
All other	—			—			—			12			150			1,357			74			—			12			1,581
Accretion of discount	1			—			1			—			—			1			1			—			2			2
Total Specialty	1			—			1			12			150			1,365			73			—			14			1,588
Personal	(35		)	(37		)	(38		)	(102		)	(101		)	(100		)	(37		)	(140		)	(212		)	(378		)
Total (3)	$	184		$	29		$	4		$	331		$	59		$	1,415		$	99		$	893		$	548		$	2,466

(3)Prior year reserve development within incurred losses does not include the benefit (detriment) of retroactive reinsurance which totals $(15) million; $5 million for 2Q 2004, $0 for 3Q 2004 and 4Q 2004, respectively.

See Glossary of Financial Measures and Description of Operating Segments on page 37

31

The St. Paul Travelers Companies, Inc.

Asbestos and Environmental Reserves

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Asbestos reserves
Beginning reserves:
Direct	$	4,287		$	4,083		$	3,958		$	3,885		$	3,782		$	3,688		$	4,052		$	3,976		$	4,287		$	3,782
Ceded	(883		)	(861		)	(847		)	(819		)	(805		)	(799		)	(999		)	(868		)	(883		)	(805		)
Net	3,404			3,222			3,111			3,066			2,977			2,889			3,053			3,108			3,404			2,977
Acquired reserves:
Direct	—			—			—			—			—			502			—			—			—			502
Ceded	—			—			—			—			—			(191		)	—			—			—			(191		)
Incurred losses and loss expenses:
Direct	—			—			—			—			—			7			2			932			—			941
Ceded	—			—			—			—			—			(2		)	(1		)	(10		)	—			(13		)
Accretion of discount:
Direct	8			5			6			6			5			5			3			4			25			17
Ceded	—			—			—			—			—			—			—			—			—			—
Losses paid:																						—			—			—
Direct	212			130			79			109			99			150			81			137			530			467
Ceded	(22		)	(14		)	(28		)	(14		)	(6		)	7			(132		)	(35		)	(78		)	(166		)
Ending reserves:																						—
Direct	4,083			3,958			3,885			3,782			3,688			4,052			3,976			4,790			3,782			4,790
Ceded	(861		)	(847		)	(819		)	(805		)	(799		)	(999		)	(868		)	(858		)	(805		)	(858		)
Net	$	3,222		$	3,111		$	3,066		$	2,977		$	2,889		$	3,053		$	3,108		$	3,932		$	2,977		$	3,932
Environmental reserves
Beginning reserves:
Direct	$	448		$	438		$	338		$	299		$	331		$	287		$	764		$	701		$	448		$	331
Ceded	(62		)	(54		)	(31		)	(34		)	(41		)	(39		)	(108		)	(98		)	(62		)	(41		)
Net	386			384			307			265			290			248			656			603			386			290
Acquired reserves:
Direct	—			—			—			—			—			271			—			—			—			271
Ceded	—			—			—			—			—			(58		)	—			—			—			(58		)
Incurred losses and loss expenses:
Direct	—			—			—			60			—			242			1			80			60			323
Ceded	—			—			—			—			—			(38		)	1			4			—			(33		)
Losses paid:
Direct	10			100			39			27			44			36			64			56			176			200
Ceded	(8		)	(23		)	3			7			(2		)	(27		)	(9		)	(10		)	(21		)	(48		)
Ending reserves:
Direct	438			338			299			331			287			764			701			725			332			725
Ceded	(54		)	(31		)	(34		)	(41		)	(39		)	(108		)	(98		)	(84		)	(41		)	(84		)
Net	$	384		$	307		$	265		$	290		$	248		$	656		$	603		$	641		$	291		$	641

See Glossary of Financial Measures and Description of Operating Segments on page 37

32

The St. Paul Travelers Companies, Inc.

Capitalization

($ in millions)

	December 31, 2004			December 31, 2003
Debt
Commercial paper	$	499		$	—
Nuveen investments’ third party debt	305			—
Convertible notes
4.5% Convertible Junior Subordinated Notes due April 15, 2032	893			893
Zero coupon convertible notes	117			—
6.00% Convertible notes payable due December 31, 2032	—			50
	1,010			943
Debt issuance costs	(23		)	(24		)
	987			919
Long-term debt
Medium-term notes with various due dates from 2004 to 2010	397			—
7.875% Notes due April 15, 2005	238			—
7.125% Notes due June 1, 2005	79			—
6.75% Notes due November 15, 2006	150			150
5.75% Notes due March 15, 2007	500			—
5.25% Notes due August 16, 2007	442			—
3.75% Notes due March 15, 2008	400			400
8.125% Notes due April 15, 2010	250			—
7.81% Notes with various due dates from September 16, 2004 - September 16, 2011	20			24
5.00% Notes due March 15, 2013	500			500
7.75% Notes due April 15, 2026	200			200
7.625% Subordinated debentures due December 15, 2027	125			—
8.47% Subordinated debentures due January 10, 2027	81			—
6.375% Notes due March 15, 2033	500			500
8.50% Subordinated debentures due December 15, 2045	56			—
8.312% Subordinated debentures due July 1, 2046	73			—
7.60% Subordinated debentures due October 15, 2050	593			—
Total long-term debt	4,604			1,774
Unamortized fair value premium	245			—
Debt issuance costs	(16		)	(18		)
	4,833			1,756
Total debt	6,624			2,675
Minority interest	117			105
Preferred equity	188			—
Common equity (excluding SFAS 115)	20,145			10,926
Total capital	$	27,074		$	13,706
Total debt to capital	24.5		%	19.5		%

33

The St. Paul Travelers Companies, Inc.

Statutory to GAAP Shareholders’ Equity Reconciliation

(in millions)

	December 31, 2004			December 31, 2003
Statutory capital and surplus	$	15,112		$	8,444
GAAP adjustments
Goodwill and intangible assets	4,373			2,607
Investments	2,129			1,645
Noninsurance companies	(2,999		)	(2,049		)
Deferred acquisition costs	1,557			963
Deferred federal income tax	338			(71		)
Reinsurance recoverables	461			152
Furniture, equipment & software	200			147
Employee benefits	83			102
Agents balances	139			28
Asset Management	(239		)	—
Other	47			19
Total GAAP adjustments	6,089			3,543
GAAP shareholders’ equity	$	21,201		$	11,987

34

The St. Paul Travelers Companies, Inc.

Statement of Cash Flows - Preliminary

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003			YTD 4Q 2004
Cash flows from operating activities
Net Income (Loss)	$	340		$	441		$	426		$	489		$	587		$	(275	)	$	340		$	303		$	1,696		$	955
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Net realized investment (gains) losses	(7		)	(16		)	23			(39		)	42			(55		)	49			3			(39		)	39
Depreciation and amortization	10			9			36			29			25			185			150			181			84			541
Deferred federal income taxes (benefit)	454			(13		)	70			29			(17		)	(99		)	(62		)	(95		)	540			(273		)
Amortization of deferred policy acquisition costs	463			483			512			525			526			805			820			828			1,983			2,979
Premium balances receivable	(87		)	(147		)	56			(50		)	(12		)	(90		)	320			102			(228		)	320
Reinsurance recoverables	24			(91		)	138			(268		)	239			(24		)	(126		)	(827		)	(197		)	(738		)
Deferred acquisition costs	(480		)	(516		)	(547		)	(533		)	(549		)	(819		)	(810		)	(770		)	(2,076		)	(2,948		)
Claim and claim adjustment expense reserves	65			(150		)	203			719			96			2,140			1,081			1,478			837			4,795
Unearned premium reserves	216			143			231			61			151			(4		)	(84		)	(105		)	651			(42		)
Trading account activities	(2		)	(1		)	(5		)	(8		)	2			13			4			1			(16		)	20
Recoveries from former affiliate	361			—			—			—			—			—			—			—			361			—
Other	(464		)	796			(89		)	(6		)	(309		)	(314		)	226			(3		)	237			(400		)
Net cash provided by operating activities	893			938			1,054			948			781			1,463			1,908			1,096			3,833			5,248
Cash flows from investing activities
Proceeds from maturities of investments
Fixed maturities	915			1,139			1,430			977			865			1,822			1,332			1,602			4,461			5,621
Mortgage loans	4			10			34			11			4			46			18			8			59			76
Proceeds from sales of investments
Fixed maturities	2,077			2,054			3,043			1,169			2,158			1,855			950			2,982			8,343			7,945
Equity securities	70			79			60			46			68			39			46			111			255			264
Mortgage loans	—			—			—			—			29			12			20			—			—			61
Real estate	—			11			—			—			—			21			8			—			11			29
Purchase of investments
Fixed maturities	(3,610		)	(3,589		)	(5,038		)	(3,318		)	(3,676		)	(2,980		)	(4,890		)	(4,976		)	(15,555		)	(16,522		)
Equity securities	(3		)	(37		)	(16		)	(5		)	(28		)	(20		)	(11		)	(35		)	(61		)	(94		)
Mortgage loans	(5		)	(3		)	(4		)	—			(2		)	(53		)	—			—			(12		)	(55		)
Real estate	—			—			—			—			—			(10		)	(22		)	(22		)	—			(54		)
Short-term securities, (purchases) sales, net	(210		)	(13		)	2,817			316			224			(1,492		)	(189		)	(517		)	2,910			(1,974		)
Other investments, net	45			174			(156		)	(3		)	107			299			162			261			60			829
Securities transactions in course of settlement	(646		)	276			(2,652		)	76			(681		)	(563		)	712			(576		)	(2,946		)	(1,108		)
Net cash acquired in merger	—			—			—			—			—			169			—			(3		)	—			166
Other	—			—			—			—			—			11			14			4			—			29
Net cash provided by (used in) investing activities	(1,363		)	101			(482		)	(731		)	(932		)	(844		)	(1,850		)	(1,161		)	(2,475		)	(4,787		)

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The St. Paul Travelers Companies, Inc.

Statement of Cash Flows - Preliminary (Continued)

($ in millions)

	1Q 2003			2Q 2003			3Q 2003			4Q 2003			1Q 2004			2Q 2004			3Q 2004			4Q 2004			YTD 4Q 2003		YTD 4Q 2004
Cash flows from financing activities
Issuance of debt	1,932			—			—			—			—			—			128			174			1,932		302
Payment of debt	(625		)	(24		)	(454		)	—			—			(224		)	(3		)	—			(1,103	)	(227	)
Payment of note payables to former affiliate	(700		)	—			—			—			—			—			—			—			(700	)	—
Redemption of mandatorily redeemable preferred stock	—			(900		)	—			—			—			—			—			—			(900	)	—
Treasury stock acquired:
Purchased	—			—			(40		)	—			—			—			—			—			(40	)	—
Net employee stock-based compensation	(2		)	(4		)	(7		)	(5		)	(9		)	(26		)	(9		)	(13		)	(18	)	(57	)
Issuance of common stock - employee stock options	8			10			10			13			29			42			18			34			41		123
Dividends to shareholders	(61		)	(60		)	(80		)	(80		)	(81		)	(263		)	(149		)	(149		)	(281	)	(642	)
Payment of dividend on subsidiary’s stock	(1		)	(2		)	(1		)	(2		)	—			(3		)	(4		)	(3		)	(6	)	(10	)
Transfer of employee benefit obligations to former affiliates	(22		)	(1		)	—			—			—			—			—			—			(23	)	—
Repurchase of Minority Interest	—			—			—			—			—			(76		)	—			—			—		(76	)
Other	—			—			—			—			—			(2		)	27			16			—		41
Net cash provided by (used in) financing activities	529			(981		)	(572		)	(74		)	(61		)	(552		)	8			59			(1,098	)	(546	)
Effect of exchange rate changes on cash	—			—			—			—			—			—			(2		)	9			—		7
Net increase (decrease) in cash	59			58			—			143			(212		)	67			64			3			260		(78	)
Cash at beginning of period	92			151			209			209			352			140			207			271			92		352
Cash at end of period	$	151		$	209		$	209		$	352		$	140		$	207		$	271		$	274		352		274
Supplemental disclosure of cash flow information
Income taxes (received) paid	$	37		$	(525	)	$	128		$	296		$	108		$	470		$	24		$	4		(64	)	606
Interest paid	$	42		$	26		$	49		$	23		$	47		$	72		$	83		$	84		140		286

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The St. Paul Travelers Companies, Inc.

Financial Supplement - Fourth Quarter 2004

All historical information through the first quarter of 2004 included in this Financial Supplement presents only results of Travelers as Travelers is being treated as the accounting acquirer.  Where applicable, historical results conform with current business segment definitions.

The following measures are used by the Company’s management to evaluate financial performance against historical results and establish targets on a consolidated basis.  In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated statement of income or required to be disclosed in the notes to financial statements, and in some cases, include or exclude of certain items not ordinarily included or excluded in the most comparable GAAP financial measure. In the opinion of the Company’s management, a discussion of these measures provides investors with a better understanding of the significant factors that comprise the Company’s periodic results of operations and how management evaluates the Company’s financial performance.

Operating income and operating income per share is net income excluding the after-tax impact of net realized investment gains (losses) and on a per share basis.

Return on equity is the ratio of net income to average equity.  Operating return on equity is the ratio of operating income to average equity excluding net unrealized gains and losses on investment securities, net of tax.

In the opinion of the Company’s management, operating income, operating income per share and operating return on equity are meaningful indicators of underwriting and operating results.  These measures exclude net realized investment gains or losses which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.  Internally, the Company’s management uses operating income, operating income per share and operating return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis.

Underwriting gain or loss is the net earned premiums and the fee income less claims and claim adjustment expenses and insurance-related expenses.  This profit or loss calculation includes reinsurance assumed and ceded but excludes net investment income.

A catastrophe is a severe loss, resulting from natural and manmade events, including risks such as fire, earthquake, windstorm, explosion, terrorism and other similar events.  Each catastrophe has unique characteristics.  Catastrophes are not predictable as to timing or amount in advance, and therefore their effects are not included in earnings or claims and claim adjustment expense reserves prior to occurrence.  In the opinion of the Company’s management, a discussion of the impact of catastrophes is meaningful for investors to understand the variability in periodic earnings.

Loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims.  Loss reserve development may be related to prior year or current year development.  In the opinion of the Company’s management, discussion of prior year loss reserve development is useful to investors as it allows them to assess the impact between prior year and current year development on current earnings and changes in claims and claim adjustment expense reserve levels from period to period.

GAAP combined ratio is the sum of the loss and loss adjustment expense ratio (loss and LAE ratio), the underwriting expense ratio and, where applicable, the ratio of dividends to policyholders to net premiums earned.  For GAAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses reduced by an allocation of fee income to net earned premiums.  The underwriting expense ratio is the ratio of underwriting expenses incurred reduced by an allocation of fee income, billing and policy fees to net earned premium. A GAAP combined ratio under 100% generally indicates an underwriting profit. A GAAP combined ratio over 100% generally indicates an underwriting loss. The GAAP combined ratio is an operating statistic that includes GAAP measures in the numerator and the denominator.

Pro forma combined net written premiums reflects the addition of net written premiums of The St. Paul and Travelers for periods prior to the merger on April 1, 2004. The pro forma combined net written premium amounts are not affected by purchase accounting adjustments. Net written premiums are a measure of business volume.  The pro forma information presented is not necessarily indicative of what would have occurred had the acquisition and related transactions been made on the beginning of the applicable period, or of future results of the Company.

Adjusted book value per share represents assets less liabilities excluding the after-tax impact of net unrealized gains and losses, divided by the number of shares outstanding.  In the opinion of the Company’s management, adjusted book value is useful in an analysis of a property-casualty company’s book value on a nominal basis as it removes the effect of changing prices on invested assets, which do not have an equivalent impact on unpaid claims and claim adjustment expense reserves.

St. Paul Travelers has organized its businesses into the following operating and reporting segments, beginning with the second quarter 2004:

Commercial: Commercial – Core offers a broad array of property and casualty insurance and insurance-related services and is organized into the following three marketing and underwriting groups focusing on a particular client base or product grouping to provide products and services that specifically address clients’ needs: Commercial Accounts, Select Accounts and National Accounts. Commercial - Other  includes policies written by Gulf, primarily management and professional liability coverages (prior to the integration of these products into Specialty in April 2004), the Special Liability Group and runoff operations.

Specialty provides dedicated underwriting, claim and risk control services that require specialized expertise, domestically and internationally. Domestic Specialty includes Financial and Professional Services, Bond, Construction, Technology, Ocean Marine, Oil and Gas, Public Sector, and Excess and Umbrella, among others.  International Specialty includes operations in the U.K., Ireland, Canada, and the company’s participation in Lloyds.

Personal writes virtually all types of property and casualty insurance covering personal risks.  The primary coverages in this segment are personal automobile and homeowners insurance sold to individuals.

Asset Management comprisesNuveen Investments, whose core businesses are asset management and related research, as well as the development, marketing and distribution of investment products and services for the affluent, high net worth and institutional market segments.  The Company holds a 79% interest in Nuveen Investments.

* * * * *

Segment results for periods beginnig prior to April 1, 2004 have been restated from the historical presentation of  Travelers to conform to the new St. Paul Travelers segment arrangement where practicable.  As a result, prior quarter Bond and Construction results were disaggregated from historical Travelers Commercial Lines segment to create a historical Specialty segment and to restate Commercial into the new format. 

Invested and other assets and net investment income (NII) of historical Travelers had been specifically identified by reporting segment prior to the merger.  Beginning in the second quarter 2004, the Company developed a methodology to allocate NII and invested assets to the identified  segments.  This methodology allocates pretax NII based upon an investable funds concept, which takes into account liabilities (net of non-invested assets) and appropriate capital considerations for each segment.  It is not practicable to apply the methodology to historical businesses and as such, actual (versus allocated) NII is included in revenues and operating income of the restated segments for periods prior to the merger.  It is also not practicable to present total assets for restated Specialty and Commercial segments for periods prior to the merger.  The Company believes that the differences, if any, are not significant to a comparison with the new segment presentation.

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