8-K

UNITED STATES
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 27, 2005

The St. Paul Travelers Companies, Inc.

(Exact name of registrant as specified in its charter)

Minnesota	001-10898	41-0518860
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)
385 Washington Street Saint Paul, Minnesota		55102
(Address of principal executive offices)		(Zip Code)

(651) 310-7911

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

On October 27, 2005, The St. Paul Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended September 30, 2005, and the availability of the Company’s third quarter financial supplement on the Company’s web site.  The press release and the financial supplement are furnished as Exhibits 99.1 and 99.2 to this Report and are hereby incorporated by reference in this Item 2.02.

As provided in General Instruction B.2 of Form 8-K, the information and exhibits contained in this Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01.  Financial Statements and Exhibits.

(c)           Exhibits.

Exhibit No.	Description
99.1	Press Release, dated October 27, 2005, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third Quarter 2005 Financial Supplement of The St. Paul Travelers Companies, Inc. (This exhibit is furnished and not filed.)

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SIGNATURES

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 hereunto duly authorized.

Date:      October 27, 2005	THE ST. PAUL TRAVELERS COMPANIES, INC.
	By:	/s/ Bruce A. Backberg
		Name: Bruce A. Backberg
		Title:   Senior Vice President

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated October 27, 2005, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third Quarter 2005 Financial Supplement of The St. Paul Travelers Companies, Inc. (This exhibit is furnished and not filed.)

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EX-99.1

Exhibit 99.1

St. Paul Travelers Companies
385 Washinton Street
St. Paul, MN 55102-1396
www.stpaultravelers.com

NEWS RELEASE

St. Paul Travelers Reports Third Quarter 2005 Results

Net Income of $162 Million or $0.23 per Diluted Share

Excluding Catastrophe Losses of $1.009 Billion, Net Income was $1.171 Billion

SAINT PAUL, Minn. (October 27, 2005) – The St. Paul Travelers Companies, Inc. (“St. Paul Travelers,” NYSE:STA) today reported net income for the current quarter of $162 million, or $0.24 per basic share and $0.23 per diluted share, compared to net income of $340 million, or $0.51 per basic and $0.50 per diluted share, in the prior year quarter.  Catastrophe losses related to Hurricanes Katrina and Rita in the current quarter were $1.009 billion after-tax ($1.524 billion pre-tax), net of reinsurance and including $88 million after-tax ($119 million pre-tax) of reinstatement premiums.  The prior year quarter included hurricane-related catastrophe losses of $402 million after-tax ($612 million pre-tax).  The current quarter also included after-tax income from discontinued operations of $87 million primarily related to the gain on disposition of St. Paul Travelers’ remaining equity stake in Nuveen Investments, Inc. (“Nuveen”).  Income from continuing operations was $75 million for the current quarter, or $0.11 per basic and diluted share, compared to $311 million, or $0.46 per basic and $0.45 per diluted share, in the prior year quarter.  Operating income for the current quarter was $50 million, or $0.07per basic and diluted share, compared to $343 million, or $0.51 per basic share and $0.50 per diluted share, in the prior year quarter.  Operating income is net income excluding the after-tax impact of net realized investment gains (losses) and discontinued operations.

Highlights

•      Operating income of $50 million for the quarter and $1.875 billion year-to-date.  Excluding catastrophe losses, operating income of $1.059 billion for the quarter and $2.912 billion year-to-date.

•      Operating return on equity (excluding FAS 115) of 0.9 percent for the quarter and 11.9 percent year-to-date. Excluding catastrophe losses, operating return on equity (excluding FAS 115) of 19.3 percent for the quarter and 18.4 percent year-to-date.

•      GAAP combined ratio of 116.2 percent for the quarter and 97.9 percent year-to-date. Excluding catastrophe losses and net favorable prior year reserve development, GAAP combined ratio of 87.9 percent for the quarter and 89.3 percent year-to-date.

•      Increases in gross and net written premiums of 2 and 1 percent, respectively, from the prior year quarter, excluding Commercial Other, the Company’s runoff operations. Excluding the impact of reinstatement premiums and Commercial Other, increase in net written premiums of 3 percent.

•      Increase in net investment income of 22 percent from the prior year quarter.

•      Strong underlying operating performance in the Commercial, Specialty and Personal segments, with GAAP combined ratios of 88.6, 90.4 and 84.7 percent, respectively, excluding the impacts of 41.1, 11.0 and 26.6 points, respectively, for both catastrophe losses and net favorable prior year reserve development.

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Catastrophe losses related to Hurricanes Katrina and Rita in the current quarter were $803 million and $206 million after-tax ($1.215 billion and $309 million pre-tax), respectively, net of reinsurance and including $88 million after-tax ($119 million pre-tax) of reinstatement premiums.  These amounts reflect gross pre-tax losses of $2.545 billion and $423 million, respectively, excluding reinstatement premiums.

The estimates recorded for Hurricanes Katrina and Rita were developed through an analysis of claims reported and anticipated to be reported, the values of properties in the affected areas, damage projections estimated by wind force and the presence of other perils, anticipated costs for demand surge and other factors requiring considerable judgment.  Due to the complexity of factors contributing to the losses, there can be no assurance that St. Paul Travelers’ costs for these hurricanes will not materially differ from its current recorded estimates.

The current quarter results included after-tax benefits of $70 million ($102 million pre-tax) for net favorable prior year reserve development primarily related to the Personal segment and $45 million ($70 million pre-tax) due to the re-estimation of the current year loss ratios for the first two quarters in the Commercial and Personal segments.  In these segments, the margins in the current year have trended better than originally estimated due to favorable claim activity.  The current quarter results also benefited from strong net investment income and a low level of non-catastrophe-related property claims in the Commercial segment.  The prior year quarter included an after-tax charge of $55 million ($83 million pre-tax) for net unfavorable prior year development, partially offset by an after-tax benefit of $23 million ($36 million pre-tax) due to the re-estimation of the current year loss ratios for the first two quarters of 2004 in the Personal Segment.

Jay Fishman, Chairman and Chief Executive Officer, said, “The earnings power of our Company was clearly demonstrated this quarter as we posted an operating profit despite more than $1 billion of after-tax catastrophe charges.

“The fundamentals of our business remain very strong with retention rates continuing at historically high levels and new business premiums showing improvement over the prior year quarter.  As a result, gross written premiums, excluding the impact of our runoff operations, were up 2 percent in the quarter.  We have continued rolling out our Quantum Auto™ product within the Personal segment, which has led to favorable new business trends in the 11 states now quoting with Quantum Auto™.

“The Company continues to focus its efforts on the individuals and businesses affected by Hurricanes Katrina, Rita and, most recently, Wilma.  We have over 1,000 claim specialists in the impacted areas of Louisiana, Mississippi, Alabama, Texas and Florida, many with wireless technology which enables them to expedite the claims-handling process.  We also have seven mobile claim vans deployed in the affected areas which allow us to make payments to policyholders on the spot.  In addition, the Company and its employees contributed over $1.3 million to the American Red Cross to show our support for the people and the communities in the affected areas.

“This quarter’s results provide further evidence that St. Paul Travelers is financially strong, and we are well-positioned to respond to future market opportunities,” concluded Mr. Fishman.

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Consolidated Third Quarter Highlights

($ in millions, except for per share amounts, and	Three Months Ended Sept 30,								Nine Months Ended Sept 30,
after-tax except for premiums)	2005			2004			Change		2005			2004			Change
Gross written premiums	$	6,030		$	6,129		(2	)%	$	17,859		$	16,281		10	%
excluding Commercial Other	6,011			5,920			2		17,722			15,480			14
Net written premiums	5,096			5,154			(1	)	15,092			13,810			9
excluding Commercial Other	5,079			5,041			1		15,013			13,383			12
Net earned premiums	4,977			5,269			(6	)	15,205			13,762			10
Underwriting gain (loss)	(555		)	(155		)	NMF		119			(784		)	NMF
Net investment income	625			514			22		1,806			1,458			24
Operating income	50			343			(85	)	1,875			620			202
per diluted share	$	0.07		$	0.50		(86	)	$	2.68		$	1.04		158
Income from continuing operations	75			311			(76	)	1,883			596			216
per diluted share	$	0.11		$	0.45		(76	)	$	2.69		$	1.00		169
Net income	162			340			(52	)	1,443			652			121
per diluted share	$	0.23		$	0.50		(54	)	$	2.07		$	1.09		90
Book value per share	$	32.14		$	30.91		4		$	32.14		$	30.91		4
Adjusted book value per share (1)	$	31.46		$	29.63		6		$	31.46		$	29.63		6
GAAP combined ratio	116.2		%	103.8		%	12.4	pts	97.9		%	108.0		%	(10.1	)pts
Operating return on equity (1)	0.9		%	6.9		%	(6.0	)pts	11.9		%	4.9		%	7.0	pts
Continuing operations return on equity	1.3		%	6.1		%	(4.8	)pts	11.6		%	4.5		%	7.1	pts
Return on equity	2.9		%	6.7		%	(3.8	)pts	8.9		%	4.9		%	4.0	pts

(1)  Excludes FAS 115

Note: The results of St. Paul Travelers for the nine months ended September 30, 2004 reflect only the accounts of Travelers for the three months ended March 31, 2004 and the consolidated accounts of St. Paul and Travelers for the six months ended September 30, 2004.

Please see Glossary of Financial Measures for definitions and the statistical supplement for additional financial data

Gross and net written premiums, excluding Commercial Other, increased 2 and 1 percent, respectively, from the prior year quarter.  Net written premiums in the current quarter were impacted negatively by $119 million of reinstatement premiums associated primarily with Hurricane Katrina.  Excluding the impact of reinstatement premiums and Commercial Other, net written premiums increased 3 percent from the prior year quarter.  Premium growth was attributable to the Personal segment and certain businesses within the Specialty segment.  Retention rates were strong, in many instances increasing from the high levels of the prior quarters.  New business premiums, excluding the impact of renewal rights transactions, increased 18 percent from the prior year quarter.

Net investment income for the current quarter was $625 million after-tax ($812 million pre-tax), a 22 percent increase over the prior year quarter.  The increase was driven by continued strong operating cash flows, the investment of proceeds received from the sale of the Company’s equity stake in Nuveen, higher short-term interest rates and favorable returns in private equity partnerships.

The current quarter GAAP combined ratio was 116.2 percent, compared to 103.8 percent in the prior year quarter.  The current quarter GAAP combined ratio was negatively impacted by 30.3 points for catastrophe losses, partially offset by benefits of 2.0 points for net favorable prior year reserve development and 1.4 points due to the re-estimation of the current year loss ratios for the first two quarters. The prior year quarter was negatively impacted by 11.6 points for catastrophe losses and 1.6 points for net unfavorable prior year reserve development.

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Year-to-Date Consolidated Results

The St. Paul Companies, Inc. (“St. Paul”) and Travelers Property Casualty Corp. (“Travelers”) merged to form St. Paul Travelers on April 1, 2004.  The results of St. Paul Travelers for the nine months ended September 30, 2004, reflect only the accounts of Travelers for the three months ended March 31, 2004, and the consolidated accounts of St. Paul and Travelers for the six months ended September 30, 2004.

For the first nine months of 2005, St. Paul Travelers reported net income of $1.443 billion, or $2.14 per basic share and $2.07 per diluted share, compared to $652 million, or $1.10 per basic and $1.09 per diluted share, in the prior year period.  Income from continuing operations for the first nine months was $1.883 billion, or $2.79 per basic share and $2.69 per diluted share, compared to $596 million, or $1.01 per basic and $1.00 per diluted share, in the prior year period.  Operating income for the first nine months was $1.875 billion, or $2.78 per basic share and $2.68 per diluted share, compared to $620 million, or $1.05 per basic and $1.04 per diluted share, in the prior year period.  Current year-to-date  results included an after-tax charge of $1.037 billion ($1.566 billion pre-tax) for catastrophe losses and an after-tax benefit of $156 million ($232 million pre-tax) for net favorable prior year reserve development, compared to after-tax charges of $431 million ($656 million pre-tax) for catastrophe losses, $1.007 billion ($1.523 billion pre-tax) for net unfavorable prior year reserve development and $26 million ($40 million pre-tax) for other items in the prior year period.

The GAAP combined ratio for the first nine months of 2005 was 97.9 percent, compared to 108.0 percent in the prior year period.  The current year GAAP combined ratio was negatively impacted by 10.2 points for catastrophe losses, partially offset by a benefit of 1.6 points for net favorable prior year reserve development.  The prior year period GAAP combined ratio was negatively impacted by 4.8 points for catastrophe losses and 11.1 points for net unfavorable prior year reserve development.

Net investment income for the first nine months of 2005 was $1.806 billion after-tax ($2.352 billion pre-tax), compared to $1.458 billion after-tax ($1.928 billion pre-tax) in the prior year period.  The prior year period did not include St. Paul’s investment results for the first quarter of 2004.  The increase was also driven by strong operating cash flows and the investment of proceeds received from the sale of the Company’s equity stake in Nuveen.

For the first nine months of 2005, operating return on equity (excluding FAS 115) was 11.9 percent, compared to 4.9 percent in the prior year period.  Catastrophe losses negatively impacted operating return on equity by 6.5 points in the current year period, compared to 3.3 points in the prior year period.  Operating return on equity in 2004 was also negatively impacted by net unfavorable prior year reserve development.

Commercial Segment Financial Results

For the third quarter 2005, the Commercial segment reported an operating loss of $14 million compared to operating income of $224 million in the prior year quarter.  The current quarter was negatively impacted by an after-tax charge of $563 million ($867 million pre-tax) for catastrophe losses related to Hurricanes Katrina and Rita, partially offset by after-tax

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benefits of $33 million ($51 million pre-tax) due to the re-estimation of the current year loss ratios for the first two quarters and $3 million ($6 million pre-tax) for net favorable prior year reserve development.  As mentioned previously, the margins in the current year have trended better than originally estimated due to favorable claim activity.  In addition, the current quarter benefited from strong net investment income and a low level of non-catastrophe-related property claims.  The prior year quarter included after-tax charges of $185 million ($286 million pre-tax) for catastrophe losses and $78 million ($117 million pre-tax) for net unfavorable prior year reserve development.

The Commercial GAAP combined ratio was 129.7 percent in the current quarter, compared to 107.9 percent in the prior year quarter.  Catastrophe losses for the current quarter negatively impacted the GAAP combined ratio by 41.4 points, compared to 12.1 points for the prior year quarter. The current quarter GAAP combined ratio benefited by 2.5 points due to the re-estimation of the current year loss ratios for the first two quarters and 0.3 points for net favorable prior year reserve development.  The prior year quarter’s GAAP combined ratio was negatively impacted by 4.9 points for net unfavorable prior year reserve development.

Gross and net written premiums, excluding Commercial Other, decreased 1 and 2 percent, respectively, from the prior year quarter. Net written premiums were impacted by approximately $52 million of reinstatement premiums associated with Hurricane Katrina.  Excluding the impact of reinstatement premiums and Commercial Other, net written premiums were virtually unchanged from the prior year quarter.  Retention rates continued to be strong, new business premiums for Commercial and Select Accounts, excluding the impact of renewal rights transactions in 2004, increased 23 percent from the prior year quarter and renewal price changes remained generally consistent with recent quarters.

Specialty Segment Financial Results

For the third quarter 2005, the Specialty segment reported operating income of $130 million compared to $38 million in the prior year quarter. The significant improvement was primarily attributable to strong net investment income and solid current year performance and lower commission rates in certain business units.  The current quarter included an after-tax charge of $129 million ($169 million pre-tax) for catastrophe losses related to Hurricanes Katrina and Rita and a pre-tax and after-tax benefit of $13 million for net favorable prior year reserve development, compared to after-tax charges of $125 million ($184 million pre-tax) for catastrophe losses and $2 million ($3 million pre-tax) for net unfavorable prior year reserve development in the prior year quarter.

The Specialty GAAP combined ratio was 101.4 percent in the current quarter, compared to 106.7 percent in the prior year quarter.  The current quarter GAAP combined ratio was negatively impacted by 11.9 points for catastrophe losses, partially offset by 0.9 points for net favorable prior year reserve development, compared to 12.5 points for catastrophe losses and minimal prior year reserve development in the prior year quarter.

Gross and net written premiums increased 1 and 2 percent, respectively, from the prior year quarter.  Net written premiums were impacted by $46 million of reinstatement premiums associated primarily with Hurricane Katrina.  Excluding this impact, net written premiums increased 5 percent from the prior year quarter.  The increase in premiums was primarily attributable to growth in business volumes in Financial and Professional Services,

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Bond, and certain other businesses within Domestic and International Specialty.  Approximately $25 million of the Financial and Professional Services gross written premium for the current quarter were written by Gulf in the prior year quarter.

Within Domestic Specialty, retention rates were strong and higher than previous quarters, and new business premiums increased 25 percent from the prior year quarter.  Within International Specialty, excluding the Company’s Lloyd’s operations, retention rates were also strong, increasing from previous quarters, and new business premiums decreased 24 percent from the prior year quarter due primarily to a decrease in business volume in the United Kingdom.

Personal Segment Financial Results

For the third quarter 2005, the Personal segment reported an operating loss of $25 million compared to operating income of $127 million in the prior year quarter.  The current quarter was negatively impacted by an after-tax charge of $317 million ($488 million pre-tax) for catastrophe losses related to Hurricanes Katrina and Rita, partially offset by after-tax benefits of $54 million ($83 million pre-tax) for net favorable prior year reserve development and $12 million ($19 million pre-tax) due to the re-estimation of the current year loss ratio for the first two quarters.  As mentioned previously, the margins in the current year have trended better than originally estimated due to favorable claim activity. Additionally, the current quarter benefited from strong net investment income.  The prior year quarter included an after-tax charge of $92 million ($142 million pre-tax) for catastrophe losses, partially offset by after-tax benefits of $25 million ($37 million pre-tax) for net favorable prior year reserve development and $23 million ($36 million pre-tax) due to the re-estimation of the current year loss ratios for the first two quarters of 2004.

The Personal GAAP combined ratio was 111.3 percent in the current quarter, compared to 94.0 percent in the prior year quarter.  Catastrophe losses for the current quarter negatively impacted the GAAP combined ratio by 32.1 points, compared to 9.9 points for the prior year quarter. The current quarter GAAP combined ratio benefited by 5.5 points for net favorable prior year reserve development and 1.3 points due to the re-estimation of the current year loss ratios for the first two quarters, compared to 2.6 points for net favorable prior year reserve development in the prior year quarter and 2.5 points due to the re-estimation of the current year loss ratios in the first two quarters of 2004.

Gross and net written premiums increased 6 and 3 percent, respectively, from the prior year quarter.   Net written premiums were impacted by $21 million of reinstatement premiums associated with Hurricane Katrina.  Excluding this impact, net written premiums increased 5 percent from the prior year quarter.

Automobile gross and net written premiums each increased 1 percent from the prior year quarter, and policies in force increased 2 percent from the prior year quarter.  The Company continued to experience profitable growth from efforts to diversify its geographic footprint outside the Northeast, where the regulatory and competitive environment is more challenging. Retention rates were strong and consistent with previous quarters, and renewal price changes remained slightly positive.  New business premiums, excluding the impact of the Royal & SunAlliance renewal rights transaction in 2004, increased 10 percent from the prior year quarter due partially to the introduction of Quantum Auto™, the Company’s multivariate pricing system, in 11 states.

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Homeowners and Other gross and net written premiums increased 11 and 6 percent, respectively, and policies in force increased 6 percent from the prior year quarter.  Excluding the impact of reinstatement premiums, net written premiums increased 9 percent from the prior year quarter.  Retention rates remained strong and consistent with previous quarters, and renewal price changes moderated slightly from previous quarters.  New business premiums, excluding the impact of the Royal & SunAlliance renewal rights transaction in 2004, increased 14 percent from the prior year quarter.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with a financial supplement that is available on our Web site at www.stpaultravelers.com.  The management of St. Paul Travelers will discuss the contents of this release via Webcast at 9:00 a.m. Eastern (8:00 a.m. Central) on Thursday, October 27, 2005.  Prior to the Webcast, a related slide presentation will be available on the Company’s Web site.  Following the live event, an audio playback of the Webcast and the slide presentation will be available at the Company’s Web site.

To view the slides or to listen to the Webcast or the playback, visit the “Webcasts & Presentations” section of St. Paul Travelers investor relations Web site at http://investor.stpaultravelers.com/.

About St. Paul Travelers

St. Paul Travelers is a leading provider of property casualty insurance.  For more information, visit www.stpaultravelers.com.

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Glossary of Financial Measures

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

Return on equity is the ratio of net income to average equity.  Continuing operations return on equity is the ratio of income from continuing operations to average equity.  Operating return on equity is the ratio of operating income to average equity excluding net unrealized gains or losses on investment securities and discontinued operations, 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 net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses.

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.  A catastrophe may result in the payment of reinstatement premiums.  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.

Reinstatement premiums represent additional premiums payable to reinsurers to restore coverage limits for certain excess of loss reinsurance treaties.

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 percent generally indicates an underwriting profit. A GAAP combined ratio over 100 percent generally indicates an underwriting loss. The GAAP combined ratio is an operating statistic that includes GAAP measures in the numerator and the denominator.

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Gross written premiums reflect the direct and assumed contractually determined amounts charged to the policyholders for the effective period of the contract based on the terms and conditions of the insurance contract.  Gross written premiums are a measure of overall business volume.

Adjusted book value per share represents assets less liabilities and preferred shareholder’s equity excluding the after-tax impact of net unrealized investment 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 other 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 & Umbrella, among others.  International Specialty includes operations in the U.K, Ireland, Canada and the Company’s participation in Lloyd’s.

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.

Discontinued Operations (Asset Management) comprises Nuveen 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 held a 31% interest in Nuveen Investments as of June 30, 2005.  During the third quarter of 2005 the Company divested its remaining ownership interest of Nuveen Investments.

* * * * *

Segment results for periods beginning 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.  Beginning in the second quarter of 2005, the results of Discover Re are included in the Commercial segment.  Previously, Discover Re’s results were included in the Specialty segment.  All prior quarters have been restated.

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.

Forward Looking Statement

This press release may contain, and management may make, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  All statements, other than statements of historical facts, may be forward-looking statements.  Specifically, the Company may make forward-looking statements about the Company’s results of operations (including, among others, premium volume, income

9

from continuing operations, net and operating income and return on equity), financial condition and liquidity; the sufficiency of the Company’s asbestos and other reserves (including, among others, asbestos claim payment patterns); the post-merger integration (including, among others, expense savings); the availability of reinsurance coverage; and strategic initiatives.  Such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond the Company’s control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

Some of the factors that could cause actual results to differ include, but are not limited to, the following: adverse developments involving asbestos claims and related litigation; the impact of aggregate policy coverage limits for asbestos claims; the impact of bankruptcies of various asbestos producers and related businesses; the willingness of parties including the Company to settle asbestos-related litigation; the Company’s ability to fully integrate the former St. Paul and Travelers businesses in the manner or in the timeframe currently anticipated; the Company’s ability to execute announced and future strategic initiatives as planned; insufficiency of, or changes in, loss and loss adjustment expense reserves; the Company’s inability to obtain prices sought due to competition or otherwise; the occurrence of catastrophic events, both natural and man-made, including terrorist acts, with a severity or frequency exceeding the Company’s expectations; adverse developments involving catastrophe claims, in particular those arising out of Hurricanes Katrina, Rita, and Wilma, and any Company loss estimates with respect to these storms; exposure to, and adverse developments involving, environmental claims and related litigation; exposure to, and adverse developments involving, construction defect claims; the impact of claims related to exposure to potentially harmful products or substances, including, but not limited to, lead paint, silica and other potentially harmful substances; adverse changes in loss cost trends, including inflationary pressures in medical costs and auto and building repair costs; the effects of corporate bankruptcies on surety bond claims; adverse developments relating to the cost and/or availability of reinsurance, the credit quality and liquidity of reinsurers and the Company’s ability to collect reinsurance on a timely basis or at all; the ability of the Company’s subsidiaries to pay dividends to us; adverse developments in legal proceedings; judicial expansion of policy coverage and the impact of new theories of liability; the impact of legislative and other governmental actions, including, but not limited to, federal and state legislation related to asbestos liability reform, terrorism insurance and reinsurance (such as the extension of or replacement for the Terrorism Risk Insurance Act of 2002) and governmental actions regarding the compensation of brokers and agents; the impact of well-publicized governmental investigations of certain industry practices, including with respect to business practices between insurers, including the Company, and brokers and the purchase and sale by insurers, including the Company, of finite, or non-traditional, insurance products; the performance of the Company’s investment portfolios, which could be adversely impacted by adverse developments in U.S. and global financial markets, interest rates and rates of inflation; weakening U.S. and global economic conditions; larger than expected assessments for guaranty funds and mandatory pooling arrangements; a downgrade in the Company’s claims-paying and financial strength ratings; the loss or significant restriction on the Company’s ability to use credit scoring in the pricing and underwriting of Personal policies; and changes to the regulatory capital requirements.

The Company’s forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company undertakes no obligation to update its forward-looking statements.

###

10

Summary of Financial Information

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, and the Travelers treasury stock was cancelled.  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.

For accounting purposes, this transaction was accounted for as a reverse acquisition with Travelers treated as the accounting acquirer.  Accordingly, the transaction was 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.  The results of St. Paul Travelers for the nine months ended September 30, 2004 reflect only the accounts of Travelers for the three months ended March 31, 2004 and the consolidated accounts of St. Paul and Travelers for the six months ended September 30, 2004.

	Three months ended September 30,						Nine months ended September 30,
($ in millions, except per share amounts, and after-tax)	2005			2004			2005			2004
Operating income	$	50		$	343		$	1,875		$	620
Net realized investment gains (losses)	25			(32		)	8			(24		)
Income from continuing operations	75			311			1,883			596
Discontinued operations	87			29			(440		)	56
Net income	$	162		$	340		$	1,443		$	652
Basic earnings per share
Operating income	$	0.07		$	0.51		$	2.78		$	1.05
Net realized investment gains (losses)	0.04			(0.05		)	0.01			(0.04		)
Income from continuing operations	0.11			0.46			2.79			1.01
Discontinued operations	0.13			0.05			(0.65		)	0.09
Net income	$	0.24		$	0.51		$	2.14		$	1.10
Diluted earnings per share
Operating income	$	0.07		$	0.50		$	2.68		$	1.04
Net realized investment gains (losses)	0.04			(0.05		)	0.01			(0.04		)
Income from continuing operations	0.11			0.45			2.69			1.00
Discontinued operations	0.12			0.05			(0.62		)	0.09
Net income	$	0.23		$	0.50		$	2.07		$	1.09
Weighted average number of common shares outstanding (basic)	679.2			665.9			672.3			588.7
Weighted average number of common shares outstanding and common stock equivalents (diluted)	683.8		(1)	707.9			711.3			607.0
Common shares outstanding at period end	692.2			669.2			692.2			669.2
Common stock dividends declared	$	159.1		$	147.1		$	462.4		$	375.7
Operating income (loss) by segment
Commercial	$	(14	)	$	224		$	964		$	970
Specialty	130			38			524			(780		)
Personal	(25		)	127			526			561
Interest Expense and Other	(41		)	(46		)	(139		)	(131		)
	$	50		$	343		$	1,875		$	620
Operating return on equity (2)	0.9		%	6.9		%	11.9		%	4.9		%
Continuing operations return on equity	1.3		%	6.1		%	11.6		%	4.5		%
Return on equity	2.9		%	6.7		%	8.9		%	4.9		%

See Glossary of Financial Measures and the statistical supplement for additional financial data.

(1)The calculation of earnings per diluted share for the three months ended September 30, 2005 excluded the weighted average effects of the following securities convertible into the Company’s common shares because their effect was anti-dilutive: equity units (7.6 million shares); outstanding convertible preferred stock (4.1 million shares); zero coupon convertible notes (2.3 million shares); and convertible junior subordinated notes (16.7 million shares).

(2)Excludes FAS 115

11

	Three months ended September 30,						Nine months ended September 30,
($ in millions, pre-tax)	2005			2004			2005			2004
Revenues
Premiums	$	4,977		$	5,269		$	15,205		$	13,762
Net investment income	812			667			2,352			1,928
Fee income	169			186			505			529
Net realized investment gains (losses)	39			(49		)	(16		)	(36		)
Other revenues	45			56			138			133
	$	6,042		$	6,129		$	18,184		$	16,316
Revenues by segment excluding net realized investment gains (losses)
Commercial	$	2,740		$	2,989		$	8,433		$	8,331
Specialty	1,603			1,630			4,888			3,512
Personal	1,647			1,553			4,874			4,500
Interest Expense and Other	13			6			5			9
	6,003			6,178			18,200			16,352
Net realized investment gains (losses)	39			(49		)	(16		)	(36		)
	$	6,042		$	6,129		$	18,184		$	16,316
Gross written premiums
Commercial Core	$	2,625		$	2,645		$	7,739		$	7,065
Commercial Other	19			209			137			801
Total Commercial	2,644			2,854			7,876			7,866
Specialty	1,654			1,640			5,103			3,781
Personal	1,732			1,635			4,880			4,634
	$	6,030		$	6,129		$	17,859		$	16,281
Net written premiums
Commercial Core	$	1,972		$	2,018		$	6,149		$	5,703
Commercial Other	17			113			79			427
Total Commercial	1,989			2,131			6,228			6,130
Specialty	1,480			1,451			4,179			3,183
Personal	1,627			1,572			4,685			4,497
	$	5,096		$	5,154		$	15,092		$	13,810
GAAP combined ratios: (1)
Commercial (2)
Loss and loss adjustment expense ratio	98.7		%	80.4		%	74.9		%	72.9		%
Underwriting expense ratio	31.0			27.5			29.3			27.6
Combined ratio	129.7		%	107.9		%	104.2		%	100.5		%
Specialty (2)
Loss and loss adjustment expense ratio	69.7		%	74.5		%	64.5		%	115.3		%
Underwriting expense ratio	31.7			32.2			31.6			34.0
Combined ratio	101.4		%	106.7		%	96.1		%	149.3		%
Personal
Loss and loss adjustment expense ratio	84.5		%	69.5		%	64.2		%	63.6		%
Underwriting expense ratio	26.8			24.5			26.5			24.5
Combined ratio	111.3		%	94.0		%	90.7		%	88.1		%
Total Company (2)
Loss and loss adjustment expense ratio	86.3		%	75.8		%	68.8		%	79.9		%
Underwriting expense ratio	29.9			28.0			29.1			28.1
Combined ratio	116.2		%	103.8		%	97.9		%	108.0		%

(1)For purposes of computing GAAP ratios, 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.

(2)Before policyholder dividends.

See Glossary of Financial Measures and the statistical supplement for additional financial data.

12

	Three months ended September 30,						Nine months ended September 30,
($ in millions; after tax except as noted)	2005			2004			2005			2004
Reconciliation of underwriting gain (loss) to net income
Pre-tax underwriting gain (loss)	$	(828	)	$	(240	)	$	224		$	(1,193	)
Tax (expense) benefit on underwriting results	273			85			(105		)	409
Underwriting gain (loss)	(555		)	(155		)	119			(784		)
Net investment income	625			514			1,806			1,458
Other, including interest expense and minority interest	(20		)	(16		)	(50		)	(54		)
Consolidated operating income	50			343			1,875			620
Net realized investment gains (losses)	25			(32		)	8			(24		)
Discontinued operations	87			29			(440		)	56
Net income	$	162		$	340		$	1,443		$	652
Reconciliation of net income excluding catatstrophe losses to net income
Net income excluding catastrophe losses	$	1,171		$	742		$	2,480		$	1,083
Catastrophe losses	1,009			402			1,037			431
Net income	$	162		$	340		$	1,443		$	652

See Glossary of Financial Measures and the statistical supplement for additional financial data.

Contacts
Media:	Institutional Investors:	Individual Investors:
Shane Boyd	Maria Olivo	Marc Parr
651.310.3846, or	860.277.8330	860.277.0779
Marlene Ibsen
860.277.9039, or
Joan Palm
651.310.2685

###

13

EX-99.2

Exhibit 99.2

The St. Paul Travelers Companies, Inc.
Financial Supplement - Third Quarter 2005

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

Commercial

Specialty

Operating Income

Operating Income by Major Component and Combined Ratio

Selected Statistics

Net Written Premium

Proforma Gross and 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

Interest Expense and Other

Consolidated Balance Sheet

Investment Portfolio

Investment Portfolio - Fixed Maturities Data

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)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Income (loss) from continuing operations	$	587		$	(302	)	$	311		$	271		$	877		$	931		$	75		$	596		$	1,883
Income (loss) from continuing operations per share (1):
Basic	$	1.35		$	(0.46	)	$	0.46		$	0.40		$	1.31		$	1.39		$	0.11		$	1.01		$	2.79
Diluted	$	1.31		$	(0.46	)	$	0.45		$	0.39		$	1.25		$	1.33		$	0.11		$	1.00		$	2.69
Net income (loss)	$	587		$	(275	)	$	340		$	303		$	212		$	1,069		$	162		$	652		$	1,443
Net income (loss) per share (1):
Basic	$	1.35		$	(0.42	)	$	0.51		$	0.45		$	0.31		$	1.59		$	0.24		$	1.10		$	2.14
Diluted	$	1.31		$	(0.42	)	$	0.50		$	0.44		$	0.31		$	1.52		$	0.23		$	1.09		$	2.07
Operating income (loss)	$	614		$	(337	)	$	343		$	275		$	859		$	966		$	50		$	620		$	1,875
Operating income (loss) per share (1):
Basic	$	1.41		$	(0.51	)	$	0.51		$	0.41		$	1.28		$	1.44		$	0.07		$	1.05		$	2.78
Diluted	$	1.37		$	(0.51	)	$	0.50		$	0.40		$	1.23		$	1.38		$	0.07		$	1.04		$	2.68
Continuing operations return on equity	19.0		%	(6.0		)%	6.1		%	5.2		%	16.6		%	17.4		%	1.3		%	4.5		%	11.6		%
Return on equity	19.0		%	(5.4		)%	6.7		%	5.8		%	4.0		%	20.0		%	2.9		%	4.9		%	8.9		%
Operating return on equity	21.9		%	(6.9		)%	6.9		%	5.5		%	16.7		%	18.6		%	0.9		%	4.9		%	11.9		%
Total assets, at period end (2)	$	65,070		$	106,046		$	109,101		$	111,246		$	110,750		$	111,804		$	113,442		$	109,101		$	113,442
Total equity, at period end	$	12,674		$	19,930		$	20,889		$	21,201		$	20,732		$	22,369		$	22,408		$	20,889		$	22,408
Book value per share, at period end (1)	$	28.98		$	29.52		$	30.91		$	31.35		$	30.51		$	32.90		$	32.14		$	30.91		$	32.14
Adjusted book value per share, at period end	$	26.18		$	29.30		$	29.63		$	30.05		$	30.10		$	31.48		$	31.46		$	29.63		$	31.46
Weighted average number of common shares outstanding (basic) (1)	434.6			664.8			665.9			666.8			668.1			669.5			679.2			588.7			672.3
Weighted average number of common shares outstanding and common stock equivalents (diluted) (1)	453.9			664.8			707.9			708.6			709.1			710.3			683.8			607.0			711.3
Common shares outstanding at period end (1)	437.3			668.5			669.2			670.3			673.6			674.6			692.2			669.2			692.2
Common stock dividends declared	$	81.7		$	146.9		$	147.1		$	147.5		$	148.2		$	155.1		$	159.1		$	375.7		$	462.4

(1)The number of shares and per share amounts for 1Q 2004 and YTD 3Q 2004 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.

(2)As a result of a decrease in the Company’s ownership interest in Nuveen, the Company began applying the equity method of accounting for its investment in Nuveen in 2Q 2005. Accordingly, total assets for 2Q 2004 through 2Q 2005 have been reclassified. The company divested its remaining ownership interest in Nuveen in 3Q 2005.

See Glossary of Financial Measures and Description of Operating Segments on page 36.

1

The St. Paul Travelers Companies, Inc.

Reconciliation to Net Income and Earnings Per Share

($ in millions, except earnings per share)

																					YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q		3Q			3Q
	2004			2004			2004			2004			2005			2005			2005		2004			2005
Net income (loss)
Operating income (loss)	$	614		$	(337	)	$	343		$	275		$	859		$	966		$	50	$	620		$	1,875
Net realized investment gains (losses)	(27		)	35			(32		)	(4		)	18			(35		)	25		(24		)	8
Income (loss) from continuing operations	587			(302		)	311			271			877			931			75		596			1,883
Discontinued operations	—			27			29			32			(665		)	138			87		56			(440		)
Net income (loss)	$	587		$	(275	)	$	340		$	303		$	212		$	1,069		$	162	$	652		$	1,443
Basic earnings per share (1)
Operating income (loss)	$	1.41		$	(0.51	)	$	0.51		$	0.41		$	1.28		$	1.44		$	0.07	$	1.05		$	2.78
Net realized investment gains (losses)	(0.06		)	0.05			(0.05		)	(0.01		)	0.03			(0.05		)	0.04		(0.04		)	0.01
Income (loss) from continuing operations	1.35			(0.46		)	0.46			0.40			1.31			1.39			0.11		1.01			2.79
Discontinued operations	—			0.04			0.05			0.05			(1.00		)	0.20			0.13		0.09			(0.65		)
Net income (loss)	$	1.35		$	(0.42	)	$	0.51		$	0.45		$	0.31		$	1.59		$	0.24	$	1.10		$	2.14
Diluted earnings per share (1)
Operating income (loss)	$	1.37		$	(0.51	)	$	0.50		$	0.40		$	1.23		$	1.38		$	0.07	$	1.04		$	2.68
Net realized investment gains (losses)	(0.06		)	0.05			(0.05		)	(0.01		)	0.02			(0.05		)	0.04		(0.04		)	0.01
Income (loss) from continuing operations	1.31			(0.46		)	0.45			0.39			1.25			1.33			0.11		1.00			2.69
Discontinued operations	—			0.04			0.05			0.05			(0.94		)	0.19			0.12		0.09			(0.62		)
Net income (loss)	$	1.31		$	(0.42	)	$	0.50		$	0.44		$	0.31		$	1.52		$	0.23	$	1.09		$	2.07

Adjustments to income from continuing operations and weighted average shares
for income from continuing operations EPS calculation: (2)

																					YTD			YTD
	1Q		2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004		2004			2004			2004			2005			2005			2005			2004			2005
Basic
Income (loss) from continuing operations, as reported	$	587	$	(302	)	$	311		$	271		$	877		$	931		$	75		$	596		$	1,883
Preferred stock dividends, net of taxes	—		(2		)	(2		)	(2		)	(2		)	(2		)	(1		)	(4		)	(5		)
Income (loss) from continuing operations available to common shareholders - basic	$	587	$	(304	)	$	309		$	269		$	875		$	929		$	74		$	592		$	1,878
Diluted
Income (loss) from continuing operations available to common shareholders - basic	$	587	$	(304	)	$	309		$	269		$	875		$	929		$	74		$	592		$	1,878
Effect of dilutive securities:
Equity unit stock purchase contracts	N/A		—			4			4			3			3			—			8			9
Convertible preferred stock	N/A		—			1			1			2			2			—			3			4
Zero coupon convertible notes	N/A		—			1			1			1			1			—			1			3
Convertible junior subordinate notes	—		—			7			7			7			7			—			—			20
Income (loss) from continuing operations available to common shareholders - diluted	$	587	$	(304	)	$	322		$	282		$	888		$	942		$	74		$	604		$	1,914
Common Shares
Basic
Weighted average shares outstanding	435		665			666			667			668			669			679			589			672
Diluted
Weighted average shares outstanding	435		665			666			667			668			669			679			589			672
Weighted average effects of dilutive securities:
Stock options and other incentive plans	3		—			3			3			2			2			5			3			3
Equity unit stock purchase contracts	N/A		—			15			15			15			15			—			10			13
Convertible preferred stock	N/A		—			5			5			5			4			—			3			4
Zero coupon convertible notes	N/A		—			2			2			2			2			—			2			2
Convertible junior subordinate notes	17		—			17			17			17			17			—			—			17
Diluted weighted average shares outstanding	454		665			708			709			709			710			684			607			711

(1)The number of shares and per share amounts for 1Q 2004 and YTD 3Q 2004 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.

(2)Adjustments to income from continuing operations and weighted average shares for income from continuing operations EPS calculation can also be used for the operating income and net income EPS calculations.

See Glossary of Financial Measures and Description of Operating Segments on page 36.

2

The St. Paul Travelers Companies, Inc.

Statement of Income - Consolidated

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Revenues
Premiums	$	3,339		$	5,154		$	5,269		$	5,276		$	5,119		$	5,109		$	4,977		$	13,762		$	15,205
Net investment income (1)	619			642			667			735			765			775			812			1,928			2,352
Fee income	172			171			186			177			171			165			169			529			505
Net realized investment gains (losses)	(42		)	55			(49		)	(3		)	—			(55		)	39			(36		)	(16		)
Other revenues	39			38			56			43			50			43			45			133			138
Total revenues	4,127			6,060			6,129			6,228			6,105			6,037			6,042			16,316			18,184
Claims and expenses
Claims and claim adjustment expenses	2,281			4,869			4,086			4,203			3,223			3,101			4,361			11,236			10,685
Amortization of deferred acquisition costs	526			805			820			827			810			783			830			2,151			2,423
General and administrative expenses	467			864			792			822			813			789			789			2,123			2,391
Interest expense	36			63			67			70			71			70			70			166			211
Total claims and expenses	3,310			6,601			5,765			5,922			4,917			4,743			6,050			15,676			15,710
Income (loss) before income taxes and minority interest	817			(541		)	364			306			1,188			1,294			(8		)	640			2,474
Income taxes	227			(239		)	48			33			311			363			(83		)	36			591
Minority interest, net of tax	3			—			5			2			—			—			—			8			—
Income (loss) from continuing operations	587			(302		)	311			271			877			931			75			596			1,883
Discontinued operations:
Operating income (loss), net of taxes	—			27			29			32			(665		)	—			2			56			(663		)
Gain on disposal, net of taxes	—			—			—			—			—			138			85			—			223
Income (loss) from discontinued operations (2)	—			27			29			32			(665		)	138			87			56			(440		)
Net income (loss)	$	587		$	(275	)	$	340		$	303		$	212		$	1,069		$	162		$	652		$	1,443
Other statistics:
Effective tax rate on net investment income	26.6		%	23.7		%	23.0		%	23.4		%	23.9		%	22.8		%	23.0		%	24.4		%	23.2		%
Net investment income (after-tax)	$	454		$	490		$	514		$	562		$	583		$	598		$	625		$	1,458		$	1,806
Catastrophes, net of reinsurance:
Pre-tax	$	20		$	24		$	612		$	116		$	31		$	11		$	1,524		$	656		$	1,566
After-tax	$	13		$	16		$	402		$	80		$	20		$	8		$	1,009		$	431		$	1,037

(1)Includes $127 million of pre-tax net investment income in 1Q 2004 resulting from 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)In accordance with its plan to divest its equity ownership in Nuveen Investments, Nuveen Investments was accounted for as a discontinued operation beginning in 1Q 2005.  Additionally, due to the taxable nature of the transaction, the Company recorded a charge of $687 million in discontinued operations in 1Q 2005, reflecting the difference between the tax basis and the GAAP carrying value of its investment in Nuveen Investments.  A $138 million after-tax gain was recorded in 2Q 2005 related to the divestiture of 45.9 million shares of Nuveen Investments.  An $85 million after-tax gain was recorded in 3Q 2005 related to the divesture of the remaining 27.5 million shares of Nuveen Investments.

See Glossary of Financial Measures and Description of Operating Segments on page 36.

3

The St. Paul Travelers Companies, Inc.

Net Income by Major Component and Combined Ratio - Consolidated

($ in millions, net of tax)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Underwriting gain (loss)	$	160		$	(789	)	$	(155	)	$	(263	)	$	291		$	383		$	(555	)	$	(784	)	$	119
Net investment income	454			490			514			562			583			598			625			1,458			1,806
Other, including interest expense (1)	—			(38		)	(16		)	(24		)	(15		)	(15		)	(20		)	(54		)	(50		)
Operating income (loss)	614			(337		)	343			275			859			966			50			620			1,875
Net realized investment gains (losses)	(27		)	35			(32		)	(4		)	18			(35		)	25			(24		)	8
Discontinued operations	—			27			29			32			(665		)	138			87			56			(440		)
Net income (loss)	$	587		$	(275	)	$	340		$	303		$	212		$	1,069		$	162		$	652		$	1,443
GAAP Combined Ratio (2,3)
Loss and loss adjustment expense ratio	65.8		%	93.1		%	75.8		%	78.2		%	61.3		%	59.4		%	86.3		%	79.9		%	68.8		%
Underwriting expense ratio	26.1		%	29.6		%	28.0		%	28.9		%	29.2		%	28.2		%	29.9		%	28.1		%	29.1		%
Combined ratio	91.9		%	122.7		%	103.8		%	107.1		%	90.5		%	87.6		%	116.2		%	108.0		%	97.9		%
Impact of catastrophes on combined ratio	0.6		%	0.5		%	11.6		%	2.1		%	0.6		%	0.2		%	30.3		%	4.8		%	10.2		%
Impact of prior year reserve development on combined ratio	1.3		%	27.1		%	1.6		%	16.5		%	-1.1		%	-1.5		%	-2.0		%	11.1		%	-1.6		%

(1)Includes minority interests.

(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:

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2004		2004		2004		2004		2005		2005		2005		2004		2005
Billing and policy fees	$	23	$	26	$	26	$	26	$	29	$	26	$	26	$	75	$	81
Fee income:
Loss and loss adjustment expenses	$	76	$	82	$	87	$	87	$	76	$	63	$	72	$	245	$	211
Other underwriting expenses	96		89		99		90		95		102		97		284		294
Total fee income	$	172	$	171	$	186	$	177	$	171	$	165	$	169	$	529	$	505

See Glossary of Financial Measures and Description of Operating Segments on page 36.

4

The St. Paul Travelers Companies, Inc.

Operating Income - Consolidated

($ in millions)

																	YTD		YTD
	1Q		2Q			3Q		4Q		1Q		2Q		3Q			3Q		3Q
	2004		2004			2004		2004		2005		2005		2005			2004		2005
Revenues
Premiums	$	3,339	$	5,154		$	5,269	$	5,276	$	5,119	$	5,109	$	4,977		$	13,762	$	15,205
Net investment income	619		642			667		735		765		775		812			1,928		2,352
Fee income	172		171			186		177		171		165		169			529		505
Other revenues	39		38			56		43		50		43		45			133		138
Total revenues	4,169		6,005			6,178		6,231		6,105		6,092		6,003			16,352		18,200
Claims and expenses
Claims and claim adjustment expenses	2,281		4,869			4,086		4,203		3,223		3,101		4,361			11,236		10,685
Amortization of deferred acquisition costs	526		805			820		827		810		783		830			2,151		2,423
General and administrative expenses	467		864			792		822		813		789		789			2,123		2,391
Interest expense	36		63			67		70		71		70		70			166		211
Total claims and expenses	3,310		6,601			5,765		5,922		4,917		4,743		6,050			15,676		15,710
Operating income (loss) before income taxes and minority interest	859		(596		)	413		309		1,188		1,349		(47		)	676		2,490
Income taxes	242		(259		)	65		32		329		383		(97		)	48		615
Minority interest, net of tax	3		—			5		2		—		—		—			8		—
Operating income (loss)	$	614	$	(337	)	$	343	$	275	$	859	$	966	$	50		$	620	$	1,875

See Glossary of Financial Measures and Description of Operating Segments on page 36.

5

The St. Paul Travelers Companies, Inc.

Selected Statistics - Property and Casualty Operations

($ in millions)

																					YTD			YTD
	1Q		2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004		2004			2004			2004			2005			2005			2005			2004			2005
Statutory underwriting
Gross written premiums	$	4,010	$	6,142		$	6,129		$	5,977		$	5,920		$	5,909		$	6,030		$	16,281		$	17,859
Net written premiums	$	3,400	$	5,256		$	5,154		$	5,201		$	4,780		$	5,216		$	5,096		$	13,810		$	15,092
Net earned premiums	$	3,339	$	5,161		$	5,269		$	5,276		$	5,119		$	5,109		$	4,977		$	13,769		$	15,205
Losses and loss adjustment expenses	2,209		4,818			4,040			4,139			3,127			3,033			4,334			11,067			10,494
Underwriting expenses	903		1,603			1,420			1,406			1,435			1,461			1,437			3,926			4,333
Statutory underwriting gain (loss)	227		(1,260		)	(191		)	(269		)	557			615			(794		)	(1,224		)	378
Policyholder dividends	6		(10		)	7			(9		)	7			6			(5		)	3			8
Statutory underwriting gain (loss) after policyholder dividends	$	221	$	(1,250	)	$	(198	)	$	(260	)	$	550		$	609		$	(789	)	$	(1,227	)	$	370
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	24,284	$	40,039		$	41,090		$	41,728		$	41,637		$	41,357		$	42,733		$	41,090		$	42,733
Increase (decrease) in reserves (1)	$	255	$	15,755		$	1,051		$	638		$	(91	)	$	(280	)	$	1,376		$	17,061		$	1,005
Statutory surplus	$	8,788	$	13,955		$	14,379		$	15,112		$	15,441		$	16,137		$	17,738		$	14,379		$	17,738
Net written premiums/surplus (2)	1.54:1		1.51:1			1.45:1			1.38:1			1.32:1			1.26:1			1.14:1			1.45:1			1.14:1

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

(2)1Q 2004 based on 12 month rolling net written premiums.  2Q 2004 based on annualized current quarter net written premiums.  3Q 2004 based on annualized 2Q 2004 and 3Q 2004 net written premiums.  4Q 2004 based on annualized 2Q 2004, 3Q 2004 and 4Q 2004 net written premiums.  1Q, 2Q and 3Q 2005 based on 12 month rolling net written premiums.

See Glossary of Financial Measures and Description of Operating Segments on page 36.

6

The St. Paul Travelers Companies, Inc.

Written and Earned Premiums - Property and Casualty Operations

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
As reported	2004			2004			2004			2004			2005			2005			2005			2004			2005
Written premiums
Direct	$	3,923		$	5,905		$	5,850		$	5,735		$	5,538		$	5,814		$	5,704		$	15,678		$	17,056
Assumed	87			237			279			242			382			95			326			603			803
Gross	4,010			6,142			6,129			5,977			5,920			5,909			6,030			16,281			17,859
Ceded	(610		)	(886		)	(975		)	(776		)	(1,140		)	(693		)	(934		)	(2,471		)	(2,767		)
Net	$	3,400		$	5,256		$	5,154		$	5,201		$	4,780		$	5,216		$	5,096		$	13,810		$	15,092
Earned premiums
Direct	$	3,758		$	5,909		$	5,971		$	5,913		$	5,732		$	5,720		$	5,680		$	15,638		$	17,132
Assumed	102			332			264			309			291			235			289			698			815
Gross	3,860			6,241			6,235			6,222			6,023			5,955			5,969			16,336			17,947
Ceded	(521		)	(1,087		)	(966		)	(946		)	(904		)	(846		)	(992		)	(2,574		)	(2,742		)
Net	$	3,339		$	5,154		$	5,269		$	5,276		$	5,119		$	5,109		$	4,977		$	13,762		$	15,205

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
Proforma	2004			2004			2004			2004			2005			2005			2005			2004			2005
Written premiums
Direct	$	5,967		$	5,905		$	5,850		$	5,735		$	5,538		$	5,814		$	5,704		$	17,722		$	17,056
Assumed	287			237			279			242			382			95			326			803			803
Gross	6,254			6,142			6,129			5,977			5,920			5,909			6,030			18,525			17,859
Ceded	(1,030		)	(886		)	(975		)	(776		)	(1,140		)	(693		)	(934		)	(2,891		)	(2,767		)
Net	$	5,224		$	5,256		$	5,154		$	5,201		$	4,780		$	5,216		$	5,096		$	15,634		$	15,092
Earned premiums
Direct	$	5,848		$	5,909		$	5,971		$	5,913		$	5,732		$	5,720		$	5,680		$	17,728		$	17,132
Assumed	257			332			264			309			291			235			289			853			815
Gross	6,105			6,241			6,235			6,222			6,023			5,955			5,969			18,581			17,947
Ceded	(981		)	(1,087		)	(966		)	(946		)	(904		)	(846		)	(992		)	(3,034		)	(2,742		)
Net	$	5,124		$	5,154		$	5,269		$	5,276		$	5,119		$	5,109		$	4,977		$	15,547		$	15,205

See Glossary of Financial Measures and Description of Operating Segments on page 36.

7

The St. Paul Travelers Companies, Inc.

Operating Income - Commercial

($ in millions)

																	YTD		YTD
	1Q		2Q		3Q		4Q			1Q		2Q		3Q			3Q		3Q
	2004		2004		2004		2004			2005		2005		2005			2004		2005
Revenues
Premiums	$	1,731	$	2,411	$	2,364	$	2,310		$	2,204	$	2,164	$	2,078		$	6,506	$	6,446
Net investment income	423		419		424		462			480		498		483			1,266		1,461
Fee income	168		164		178		170			163		156		160			510		479
Other revenues	14		12		23		6			15		13		19			49		47
Total revenues	2,336		3,006		2,989		2,948			2,862		2,831		2,740			8,331		8,433
Claims and expenses
Claims and claim adjustment expenses	1,198		1,789		1,986		2,551			1,522		1,397		2,112			4,973		5,031
Amortization of deferred acquisition costs	254		335		330		326			317		306		320			919		943
General and administrative expenses	287		455		419		417			419		397		419			1,161		1,235
Interest expense	1		1		1		—			—		1		—			3		1
Total claims and expenses	1,740		2,580		2,736		3,294			2,258		2,101		2,851			7,056		7,210
Operating income (loss) before federal income taxes and minority interest	596		426		253		(346		)	604		730		(111		)	1,275		1,223
Income taxes	163		109		24		(164		)	156		200		(97		)	296		259
Minority interest, net of tax	3		1		5		2			—		—		—			9		—
Operating income (loss)	$	430	$	316	$	224	$	(184	)	$	448	$	530	$	(14	)	$	970	$	964

See Glossary of Financial Measures and Description of Operating Segments on page 36.

8

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - Commercial

($ in millions, net of tax)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Underwriting gain (loss)	$	109		$	(15	)	$	(114	)	$	(542	)	$	71		$	136		$	(400	)	$	(20	)	$	(193	)
Net investment income	314			324			327			356			367			385			375			965			1,127
Other, including minority interest	7			7			11			2			10			9			11			25			30
Operating income (loss)	$	430		$	316		$	224		$	(184	)	$	448		$	530		$	(14	)	$	970		$	964
GAAP Combined ratio (1,2)
Loss and loss adjustment expense ratio	64.5		%	71.6		%	80.4		%	106.9		%	65.3		%	61.7		%	98.7		%	72.9		%	74.9		%
Underwriting expense ratio	25.9		%	29.0		%	27.5		%	28.2		%	29.1		%	27.8		%	31.0		%	27.6		%	29.3		%
Combined ratio	90.4		%	100.6		%	107.9		%	135.1		%	94.4		%	89.5		%	129.7		%	100.5		%	104.2		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	12.1		%	3.4		%	0.0		%	0.0		%	41.4		%	4.4		%	13.4		%
Impact of prior year reserve development on combined ratio	-0.3		%	8.9		%	4.9		%	44.1		%	0.3		%	-0.5		%	-0.3		%	5.0		%	-0.1		%

(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:

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2004		2004		2004		2004		2005		2005		2005		2004		2005
Billing and policy fees	$	2	$	4	$	3	$	4	$	4	$	2	$	4	$	9	$	10
Fee income:
Loss and loss adjustment expenses	$	77	$	77	$	83	$	83	$	72	$	59	$	68	$	237	$	199
Other underwriting expenses	91		87		95		87		91		97		92		273		280
Total fee income	$	168	$	164	$	178	$	170	$	163	$	156	$	160	$	510	$	479

See Glossary of Financial Measures and Description of Operating Segments on page 36.

9

The St. Paul Travelers Companies, Inc.

Selected Statistics - Commercial

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Statutory underwriting
Gross written premiums	$	2,213		$	2,799		$	2,854		$	2,770		$	2,751		$	2,481		$	2,644		$	7,866		$	7,876
Net written premiums	$	1,765		$	2,234		$	2,131		$	2,181		$	2,192		$	2,047		$	1,989		$	6,130		$	6,228
Net earned premiums	$	1,731		$	2,411		$	2,364		$	2,310		$	2,204		$	2,164		$	2,078		$	6,506		$	6,446
Losses and loss adjustment expenses	1,126			1,735			1,924			2,479			1,426			1,332			2,065			4,785			4,823
Underwriting expenses	443			696			589			573			607			565			572			1,728			1,744
Statutory underwriting gain (loss)	162			(20		)	(149		)	(742		)	171			267			(559		)	(7		)	(121		)
Policyholder dividends	5			(15		)	3			(1		)	10			4			(7		)	(7		)	7
Statutory underwriting gain (loss) after policyholder dividends	$	157		$	(5	)	$	(152	)	$	(741	)	$	161		$	263		$	(552	)	$	—		$	(128	)
Other statistics
Effective tax rate on net investment income	25.7		%	23.4		%	22.6		%	23.0		%	23.6		%	22.7		%	22.3		%	23.9		%	22.9		%
Net investment income (after-tax)	$	314		$	324		$	327		$	356		$	367		$	385		$	375		$	965		$	1,127
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	286		$	77		$	—		$	—		$	867		$	286		$	867
After-tax	$	—		$	—		$	185		$	50		$	—		$	—		$	563		$	185		$	563

See Glossary of Financial Measures and Description of Operating Segments on page 36.

10

The St. Paul Travelers Companies, Inc.

Net Written Premiums - Commercial

($ in millions)

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2004		2004		2004		2004		2005		2005		2005		2004		2005
Net written premiums by market
Commercial accounts	$	848	$	1,116	$	1,075	$	1,171	$	1,127	$	1,068	$	1,022	$	3,039	$	3,217
Select accounts	531		709		653		662		684		719		652		1,893		2,055
National accounts	240		241		290		269		341		238		298		771		877
Total core	1,619		2,066		2,018		2,102		2,152		2,025		1,972		5,703		6,149
Commercial other	146		168		113		79		40		22		17		427		79
Total	$	1,765	$	2,234	$	2,131	$	2,181	$	2,192	$	2,047	$	1,989	$	6,130	$	6,228
Net written premiums by product line
Commercial multi-peril	$	606	$	610	$	618	$	683	$	733	$	681	$	681	$	1,834	$	2,095
Workers’ compensation	350		374		403		403		464		367		378		1,127		1,209
Commercial automobile	326		441		420		422		419		423		408		1,187		1,250
Property	298		425		378		371		379		359		310		1,101		1,048
General liability	182		362		302		284		185		205		195		846		585
Other	3		22		10		18		12		12		17		35		41
Total	$	1,765	$	2,234	$	2,131	$	2,181	$	2,192	$	2,047	$	1,989	$	6,130	$	6,228
National accounts
Additions to claim volume under administration (1)	$	1,309	$	707	$	644	$	740	$	1,042	$	838	$	691	$	2,660	$	2,571
Written fees	$	214	$	159	$	142	$	146	$	173	$	148	$	130	$	515	$	451

(1)Includes new and renewal business.

See Glossary of Financial Measures and Description of Operating Segments on page 36.

11

The St. Paul Travelers Companies, Inc.

Proforma Gross and Net Written Premiums - Commercial

($ in millions)

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2004		2004		2004		2004		2005		2005		2005		2004		2005
Gross written premiums	$	3,119	$	2,799	$	2,854	$	2,770	$	2,751	$	2,481	$	2,644	$	8,772	$	7,876
Net written premiums by market
Commercial accounts	$	1,280	$	1,116	$	1,075	$	1,171	$	1,127	$	1,068	$	1,022	$	3,471	$	3,217
Select accounts	708		709		653		662		684		719		652		2,070		2,055
National accounts	352		241		290		269		341		238		298		883		877
Total core	2,340		2,066		2,018		2,102		2,152		2,025		1,972		6,424		6,149
Commercial other	166		168		113		79		40		22		17		447		79
Total	2,506		$	2,234	$	2,131	$	2,181	$	2,192	$	2,047	$	1,989	6,871		$	6,228
Less: Pre-merger St. Paul	741														741
Total Commercial excluding pre-merger St. Paul	$	1,765													$	6,130
Net written premiums by product line
Commercial multi-peril	$	669	$	610	$	618	$	683	$	733	$	681	$	681	$	1,897	$	2,095
Workers’ compensation	489		374		403		403		464		367		378		1,266		1,209
Commercial automobile	459		441		420		422		419		423		408		1,320		1,250
Property	516		425		378		371		379		359		310		1,319		1,048
General liability	350		362		302		284		185		205		195		1,014		585
Other	23		22		10		18		12		12		17		55		41
Total	$	2,506	$	2,234	$	2,131	$	2,181	$	2,192	$	2,047	$	1,989	$	6,871	$	6,228
National accounts
Additions to claim volume under administration (1)	$	1,309	$	707	$	644	$	740	$	1,042	$	838	$	691	$	2,660	$	2,571
Written fees	$	218	$	159	$	142	$	146	$	173	$	148	$	130	$	519	$	451
Less: Pre-merger St. Paul	4														4
Total written fees excluding pre-merger St. Paul	$	214													$	515

(1)Includes new and renewal business.

See Glossary of Financial Measures and Description of Operating Segments on page 36.

12

The St. Paul Travelers Companies, Inc.

Operating Income - Specialty

($ in millions)

																	YTD			YTD
	1Q			2Q			3Q		4Q		1Q		2Q		3Q		3Q			3Q
	2004			2004			2004		2004		2005		2005		2005		2004			2005
Revenues
Premiums	$	311		$	1,375		$	1,466	$	1,490	$	1,456	$	1,449	$	1,388	$	3,152		$	4,293
Net investment income	51			129			149		158		170		173		204		329			547
Fee income	4			7			8		7		8		9		9		19			26
Other revenues	2			3			7		10		12		8		2		12			22
Total revenues	368			1,514			1,630		1,665		1,646		1,639		1,603		3,512			4,888
Claims and expenses
Claims and claim adjustment expenses	304			2,247			1,100		1,009		936		875		973		3,651			2,784
Amortization of deferred acquisition costs	56			242			245		249		240		224		243		543			707
General and administrative expenses	58			249			233		239		233		230		203		540			666
Total claims and expenses	418			2,738			1,578		1,497		1,409		1,329		1,419		4,734			4,157
Operating income (loss) before federal income taxes	(50		)	(1,224		)	52		168		237		310		184		(1,222		)	731
Income taxes	(22		)	(434		)	14		36		64		89		54		(442		)	207
Operating income (loss)	$	(28	)	$	(790	)	$	38	$	132	$	173	$	221	$	130	$	(780	)	$	524

See Glossary of Financial Measures and Description of Operating Segments on page 36.

13

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - Specialty

($ in millions, net of tax)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Underwriting gain (loss)	$	(68	)	$	(887	)	$	(82	)	$	1		$	34		$	82		$	(26	)	$	(1,037	)	$	90
Net investment income	38			95			113			120			129			133			155			246			417
Other	2			2			7			11			10			6			1			11			17
Operating income (loss)	$	(28	)	$	(790	)	$	38		$	132		$	173		$	221		$	130		$	(780	)	$	524
GAAP Combined ratio (1,2)
Loss and loss adjustment expense ratio	97.7		%	162.8		%	74.5		%	67.9		%	64.3		%	59.9		%	69.7		%	115.3		%	64.5		%
Underwriting expense ratio	35.2		%	35.5		%	32.2		%	32.6		%	32.0		%	31.0		%	31.7		%	34.0		%	31.6		%
Combined ratio	132.9		%	198.3		%	106.7		%	100.5		%	96.3		%	90.9		%	101.4		%	149.3		%	96.1		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	12.5		%	2.4		%	1.3		%	0.0		%	11.9		%	5.8		%	4.3		%
Impact of prior year reserve development on combined ratio	48.2		%	93.4		%	0.2		%	-0.7		%	3.6		%	1.1		%	-0.9		%	45.7		%	1.3		%

(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:

																	YTD		YTD
	1Q			2Q		3Q		4Q		1Q		2Q		3Q			3Q		3Q
	2004			2004		2004		2004		2005		2005		2005			2004		2005
Billing and policy fees	$	—		$	—	$	—	$	—	$	2	$	1	$	(1	)	$	—	$	2
Fee income:
Loss and loss adjustment expenses	$	(1	)	$	5	$	4	$	4	$	4	$	4	$	4		$	8	$	12
Other underwriting expenses	5			2		4		3		4		5		5			11		14
Total fee income	$	4		$	7	$	8	$	7	$	8	$	9	$	9		$	19	$	26

See Glossary of Financial Measures and Description of Operating Segments on page 36.

14

The St. Paul Travelers Companies, Inc.

Selected Statistics - Specialty

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Statutory underwriting
Gross written premiums	$	398		$	1,743		$	1,640		$	1,730		$	1,691		$	1,758		$	1,654		$	3,781		$	5,103
Net written premiums	$	269		$	1,463		$	1,451		$	1,588		$	1,154		$	1,545		$	1,480		$	3,183		$	4,179
Net earned premiums	$	311		$	1,382		$	1,466		$	1,490		$	1,456		$	1,449		$	1,388		$	3,159		$	4,293
Losses and loss adjustment expenses	304			2,254			1,113			1,016			936			872			994			3,671			2,802
Underwriting expenses	114			510			426			437			426			453			413			1,050			1,292
Statutory underwriting gain (loss)	(107		)	(1,382		)	(73		)	37			94			124			(19		)	(1,562		)	199
Policyholder dividends	1			5			4			(8		)	(3		)	2			2			10			1
Statutory underwriting gain (loss) after policyholder dividends	$	(108	)	$	(1,387	)	$	(77	)	$	45		$	97		$	122		$	(21	)	$	(1,572	)	$	198
Other statistics
Effective tax rate on net investment income	25.2		%	25.8		%	24.6		%	23.9		%	23.9		%	23.4		%	23.7		%	25.1		%	23.7		%
Net investment income (after-tax)	$	38		$	95		$	113		$	120		$	129		$	133		$	155		$	246		$	417
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	184		$	36		$	19		$	—		$	169		$	184		$	188
After-tax	$	—		$	—		$	125		$	28		$	13		$	—		$	129		$	125		$	142

See Glossary of Financial Measures and Description of Operating Segments on page 36.

15

The St. Paul Travelers Companies, Inc.

Net Written Premiums - Specialty

($ in millions)

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2004		2004		2004		2004		2005		2005		2005		2004		2005
Net written premiums by market
Construction	$	126	$	274	$	194	$	250	$	250	$	261	$	179	$	594	$	690
Bond	142		304		378		359		163		368		391		824		922
Financial & Professional Services	—		184		221		231		120		232		247		405		599
Other	—		341		416		429		357		388		440		757		1,185
Total Domestic Specialty	268		1,103		1,209		1,269		890		1,249		1,257		2,580		3,396
International Specialty	1		360		242		319		264		296		223		603		783
Total	$	269	$	1,463	$	1,451	$	1,588	$	1,154	$	1,545	$	1,480	$	3,183	$	4,179
Net written premiums by product line
Workers’ compensation	$	28	$	119	$	103	$	131	$	119	$	124	$	79	$	250	$	322
Commercial automobile	30		113		120		127		92		95		94		263		281
Property	5		88		107		96		136		141		142		200		419
General liability	71		462		466		548		375		579		575		999		1,529
Fidelity & Surety	91		241		327		290		130		296		320		659		746
Commercial multi-peril	43		80		86		77		38		14		47		209		99
International	1		360		242		319		264		296		223		603		783
Total	$	269	$	1,463	$	1,451	$	1,588	$	1,154	$	1,545	$	1,480	$	3,183	$	4,179

See Glossary of Financial Measures and Description of Operating Segments on page 36.

16

The St. Paul Travelers Companies, Inc.

Proforma Gross and Net Written Premiums - Specialty

($ in millions)

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2004		2004		2004		2004		2005		2005		2005		2004		2005
Gross written premiums	$	1,736	$	1,743	$	1,640	$	1,730	$	1,691	$	1,758	$	1,654	$	5,119	$	5,103
Net written premiums by market
Construction	$	325	$	274	$	194	$	250	$	250	$	261	$	179	$	793	$	690
Bond	167		304		378		359		163		368		391		849		922
Financial & Professional Services	163		184		221		231		120		232		247		568		599
Other	402		341		416		429		357		388		440		1,159		1,185
Total Domestic Specialty	1,057		1,103		1,209		1,269		890		1,249		1,257		3,369		3,396
International Specialty	295		360		242		319		264		296		223		897		783
Total	1,352		$	1,463	$	1,451	$	1,588	$	1,154	$	1,545	$	1,480	4,266		$	4,179
Less: Pre-merger St. Paul	1,083														1,083
Total Specialty excluding pre-merger St. Paul	$	269													$	3,183
Net written premiums by product line
Workers’ compensation	$	141	$	119	$	103	$	130	$	119	$	124	$	79	$	363	$	322
Commercial automobile	146		113		120		126		92		95		94		379		281
Property	101		88		107		96		136		141		142		296		419
General liability	450		462		466		550		375		579		575		1,378		1,529
Fidelity & Surety	132		241		327		290		130		296		320		700		746
Commercial multi-peril	87		80		86		77		38		14		47		253		99
International	295		360		242		319		264		296		223		897		783
Total	$	1,352	$	1,463	$	1,451	$	1,588	$	1,154	$	1,545	$	1,480	$	4,266	$	4,179

See Glossary of Financial Measures and Description of Operating Segments on page 36.

17

The St. Paul Travelers Companies, Inc.

Operating Income - Personal

($ in millions)

																YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q			3Q		3Q
	2004		2004		2004		2004		2005		2005		2005			2004		2005
Revenues
Premiums	$	1,297	$	1,368	$	1,439	$	1,476	$	1,459	$	1,496	$	1,511		$	4,104	$	4,466
Net investment income	145		93		92		112		109		116		112			330		337
Other revenues	23		21		22		25		24		23		24			66		71
Total revenues	1,465		1,482		1,553		1,613		1,592		1,635		1,647			4,500		4,874
Claims and expenses
Claims and claim adjustment expenses	779		833		1,000		643		765		829		1,276			2,612		2,870
Amortization of deferred acquisition costs	216		228		245		252		253		253		267			689		773
General and administrative expenses	119		132		129		156		154		162		162			380		478
Total claims and expenses	1,114		1,193		1,374		1,051		1,172		1,244		1,705			3,681		4,121
Operating income before federal income taxes	351		289		179		562		420		391		(58		)	819		753
Income taxes	114		92		52		184		135		125		(33		)	258		227
Operating income	$	237	$	197	$	127	$	378	$	285	$	266	$	(25	)	$	561	$	526

See Glossary of Financial Measures and Description of Operating Segments on page 36.

18

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - Personal

($ in millions, net of tax)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Underwriting gain	$	119		$	113		$	41		$	278		$	186		$	164		$	(127	)	$	273		$	223
Net investment income	102			70			72			85			83			88			86			244			257
Other	16			14			14			15			16			14			16			44			46
Operating income	$	237		$	197		$	127		$	378		$	285		$	266		$	(25	)	$	561		$	526
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	60.1		%	60.9		%	69.5		%	43.6		%	52.4		%	55.4		%	84.5		%	63.6		%	64.2		%
Underwriting expense ratio	24.2		%	24.7		%	24.5		%	26.1		%	26.3		%	26.2		%	26.8		%	24.5		%	26.5		%
Combined ratio	84.3		%	85.6		%	94.0		%	69.7		%	78.7		%	81.6		%	111.3		%	88.1		%	90.7		%
Impact of catastrophes on combined ratio	1.5		%	1.8		%	9.9		%	0.2		%	0.8		%	0.7		%	32.1		%	4.5		%	11.4		%
Impact of prior year reserve development on combined ratio	-7.8		%	-7.3		%	-2.6		%	-9.5		%	-7.8		%	-5.4		%	-5.5		%	-5.8		%	-6.3		%

(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:

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2004		2004		2004		2004		2005		2005		2005		2004		2005
Billing and policy fees	$	21	$	22	$	23	$	22	$	23	$	23	$	23	$	66	$	69

See Glossary of Financial Measures and Description of Operating Segments on page 36.

19

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Statutory underwriting
Gross written premiums	$	1,399		$	1,600		$	1,635		$	1,477		$	1,478		$	1,670		$	1,732		$	4,634		$	4,880
Net written premiums	$	1,366		$	1,559		$	1,572		$	1,432		$	1,434		$	1,624		$	1,627		$	4,497		$	4,685
Net earned premiums	$	1,297		$	1,368		$	1,439		$	1,476		$	1,459		$	1,496		$	1,511		$	4,104		$	4,466
Losses and loss adjustment expenses	779			829			1,003			644			765			829			1,275			2,611			2,869
Underwriting expenses	346			397			405			396			402			443			452			1,148			1,297
Statutory underwriting gain (loss)	$	172		$	142		$	31		$	436		$	292		$	224		$	(216	)	$	345		$	300
Other statistics
Effective tax rate on net investment income	29.6		%	24.2		%	22.6		%	23.7		%	24.2		%	24.0		%	22.9		%	26.2		%	23.7		%
Net investment income (after-tax)	$	102		$	70		$	72		$	85		$	83		$	88		$	86		$	244		$	257
Catastrophes, net of reinsurance:
Pre-tax	$	20		$	24		$	142		$	3		$	12		$	11		$	488		$	186		$	511
After-tax	$	13		$	16		$	92		$	2		$	7		$	8		$	317		$	121		$	332
Policies in force (in thousands)
Automobile	2,157			2,234			2,260			2,264			2,270			2,281			2,307			2,260			2,307
Homeowners and other	3,617			3,776			3,916			4,011			4,038			4,090			4,150			3,916			4,150

See Glossary of Financial Measures and Description of Operating Segments on page 36.

20

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal (Automobile)

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Statutory underwriting
Gross written premiums	$	854		$	900		$	897		$	819		$	870		$	888		$	910		$	2,651		$	2,668
Net written premiums	$	847		$	893		$	884		$	809		$	854		$	878		$	897		$	2,624		$	2,629
Net earned premiums	$	782		$	825		$	851		$	862		$	840		$	851		$	864		$	2,458		$	2,555
Losses and loss adjustment expenses	577			596			617			468			505			542			525			1,790			1,572
Underwriting expenses	199			205			207			206			213			222			224			611			659
Statutory underwriting gain (loss)	$	6		$	24		$	27		$	188		$	122		$	87		$	115		$	57		$	324
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	73.7		%	72.7		%	72.1		%	54.3		%	60.1		%	63.6		%	60.9		%	72.8		%	61.6		%
Underwriting expense ratio	22.7		%	22.4		%	22.3		%	24.0		%	23.5		%	24.0		%	23.9		%	22.4		%	23.8		%
Combined ratio	96.4		%	95.1		%	94.4		%	78.3		%	83.6		%	87.6		%	84.8		%	95.2		%	85.4		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	0.6		%	0.3		%	0.0		%	0.0		%	1.2		%	0.2		%	0.4		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	—		$	5		$	3		$	—		$	—		$	11		$	5		$	11
After-tax	$	—		$	—		$	3		$	2		$	—		$	—		$	7		$	3		$	7
Policies in force (in thousands)	2,157			2,234			2,260			2,264			2,270			2,281			2,307			2,260			2,307
Change from prior year quarter	8.1		%	10.8		%	10.5		%	9.4		%	5.2		%	2.1		%	2.1		%
Change from prior quarter	4.3		%	3.6		%	1.2		%	0.2		%	0.3		%	0.5		%	1.1		%

(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:

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2004		2004		2004		2004		2005		2005		2005		2004		2005
Billing and policy fees	$	14	$	14	$	15	$	14	$	15	$	14	$	15	$	43	$	44

See Glossary of Financial Measures and Description of Operating Segments on page 36.

21

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal (Homeowners and Other)

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Statutory underwriting
Gross written premiums	$	545		$	700		$	738		$	658		$	608		$	782		$	822		$	1,983		$	2,212
Net written premiums	$	519		$	666		$	688		$	623		$	580		$	746		$	730		$	1,873		$	2,056
Net earned premiums	$	515		$	543		$	588		$	614		$	619		$	645		$	647		$	1,646		$	1,911
Losses and loss adjustment expenses	202			233			386			176			260			287			750			821			1,297
Underwriting expenses	147			192			198			190			189			221			228			537			638
Statutory underwriting gain (loss)	$	166		$	118		$	4		$	248		$	170		$	137		$	(331	)	$	288		$	(24	)
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	39.2		%	42.9		%	65.7		%	28.6		%	42.0		%	44.5		%	115.8		%	49.9		%	67.9		%
Underwriting expense ratio	26.6		%	28.2		%	27.7		%	29.0		%	30.1		%	29.2		%	30.8		%	27.6		%	30.0		%
Combined ratio	65.8		%	71.1		%	93.4		%	57.6		%	72.1		%	73.7		%	146.6		%	77.5		%	97.9		%
Impact of catastrophes on combined ratio	3.9		%	4.4		%	23.3		%	0.0		%	1.9		%	1.7		%	73.8		%	11.0		%	26.2		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	20		$	24		$	137		$	—		$	12		$	11		$	477		$	181		$	500
After-tax	$	13		$	16		$	89		$	—		$	7		$	8		$	310		$	118		$	325
Policies in force (in thousands)	3,617			3,776			3,916			4,011			4,038			4,090			4,150			3,916			4,150
Change from prior year quarter	9.4		%	12.3		%	14.2		%	14.9		%	11.6		%	8.3		%	6.0		%
Change from prior quarter	3.6		%	4.4		%	3.7		%	2.4		%	0.7		%	1.3		%	1.5		%

(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:

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2004		2004		2004		2004		2005		2005		2005		2004		2005
Billing and policy fees	$	7	$	8	$	8	$	8	$	8	$	9	$	8	$	23	$	25

See Glossary of Financial Measures and Description of Operating Segments on page 36.

22

The St. Paul Travelers Companies, Inc.

Interest Expense and Other

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Revenues
Net investment income	$	—		$	1		$	2		$	3		$	6		$	(12	)	$	13		$	3		$	7
Other revenues	—			2			4			2			(1		)	(1		)	—			6			(2		)
Total revenues	—			3			6			5			5			(13		)	13			9			5
Claims and expenses
Interest expense	35			62			66			70			71			69			70			163			210
General and administrative expenses	3			28			11			10			7			—			5			42			12
Total claims and expenses	38			90			77			80			78			69			75			205			222
Operating loss before federal income tax benefit	(38		)	(87		)	(71		)	(75		)	(73		)	(82		)	(62		)	(196		)	(217		)
Income taxes	(13		)	(26		)	(25		)	(24		)	(26		)	(31		)	(21		)	(64		)	(78		)
Minority Interest, net of tax	—			(1		)	—			—			—			—			—			(1		)	—
Operating loss	$	(25	)	$	(60	)	$	(46	)	$	(51	)	$	(47	)	$	(51	)	$	(41	)	$	(131	)	$	(139	)

See Glossary of Financial Measures and Description of Operating Segments on page 36.

23

The St. Paul Travelers Companies, Inc.

Consolidated Balance Sheet (1)

($ in millions)

	September 30,		December 31,
	2005 (1)		2004
Assets
Fixed maturities, available for sale at fair value (including $2,536 and $2,603 subject to securities lending and repurchase agreements) (amortized cost $57,707 and $53,017)	$	58,294	$	54,269
Equity securities, at fair value (cost $620 and $687)	675		759
Real estate	738		773
Mortgage loans	147		191
Short-term securities	5,975		4,944
Other investments	2,988		3,432
Total investments	68,817		64,368
Cash	442		262
Investment income accrued	743		671
Premiums receivable	6,149		6,201
Reinsurance recoverables	19,452		19,054
Ceded unearned premiums	1,561		1,565
Deferred acquisition costs	1,558		1,559
Deferred tax asset	1,985		2,198
Contractholder receivables	5,658		5,629
Goodwill	3,452		3,564
Intangible assets	957		1,062
Net assets of discontinued operations (2)	—		2,041
Other assets	2,668		3,072
Total assets	$	113,442	$	111,246

	September 30,			December 31,
	2005 (1)			2004
Liabilities
Claims and claim adjustment expense reserves	$	60,586		$	59,070
Unearned premium reserves	11,164			11,310
Contractholder payables	5,658			5,629
Payables for reinsurance premiums	908			896
Debt	5,753			6,313
Other liabilities	6,965			6,827
Total liabilities	91,034			90,045
Shareholders’ equity
Preferred stock:
Stock Ownership Plan - convertible preferred stock (0.5 and 0.6 shares issued and outstanding)	160			193
Guaranteed obligation - Stock Ownership Plan	—			(5		)
Common stock (1,750.0 shares authorized; 693.2 and 670.7 shares issued; 692.2 and 670.3 shares outstanding)	18,119			17,414
Retained earnings	3,733			2,744
Accumulated other changes in equity from nonowner sources	538			952
Treasury stock, at cost (1.0 and 0.4 shares)	(41		)	(14		)
Unearned compensation	(101		)	(83		)
Total shareholders’ equity	22,408			21,201
Total liabilities and shareholders’ equity	$	113,442		$	111,246

(1)Preliminary.

(2)As a result of a decrease in the Company’s ownership interest in Nuveen, the Company began applying the equity method of accounting for its investment in Nuveen in 2Q 2005.  Accordingly, the assets and liabilities of Nuveen were reclassified to net assets of discontinued operations.  The Company divested its remaining ownership interest in Nuveen in 3Q 2005.

24

The St. Paul Travelers Companies, Inc.

Investment Portfolio

(at carrying value, $ in millions)

	September 30,		Pre-tax Book		December 31,		Pre-tax Book
	2005		Yield		2004		Yield
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	27,817	4.77	%	$	27,686	4.78	%
Tax-exempt fixed maturities	30,477		4.14	%	26,583		4.14	%
Total fixed maturities	58,294		4.45	%	54,269		4.47	%
Non-redeemable preferred stocks	507		6.46	%	581		6.71	%
Common stocks	168		N/A		178		N/A
Total equity securities	675		N/A		759		N/A
Mortgage loans	147		5.87	%	191		8.25	%
Real estate	738		N/A		773		N/A
Short-term securities	5,975		3.75	%	4,944		2.23	%
Private equities	1,474		N/A		1,707		N/A
Arbitrage funds	758		N/A		944		N/A
Real estate joint ventures & other	725		N/A		743		N/A
Trading securities	31		N/A		38		N/A
Total other investments	2,988		N/A		3,432		N/A
Total investments	$	68,817	4.40	%	$	64,368	4.31	%
Net unrealized gain on investment securities, net of tax, included in shareholders’ equity	$	472			$	866

25

The St. Paul Travelers Companies, Inc.

Investment Portfolio - Fixed Maturities Data

(at carrying value, $ in millions)

	September 30,		December 31,
	2005		2004
Fixed maturities
Mortgage-backed securities - principally obligations of U.S. Government agencies	$	7,495	$	8,678
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	3,632		3,033
Corporates (including redeemable preferreds)	14,573		13,856
Obligations of states and political subdivisions	30,882		26,841
Debt securities issued by foreign governments	1,712		1,861
Subtotal - Available-for-sale securities	58,294		54,269
Trading securities	5		15
Total fixed maturities	$	58,299	$	54,284
Fixed Maturities Quality Characteristics (1)
	September 30, 2005
	Amount		% of Total
Quality Ratings
Aaa	$	37,393	64.1		%
Aa	11,084		19.0
A	4,578		7.9
Baa	3,401		5.8
Total investment grade	56,456		96.8
Ba	864		1.5
B	625		1.1
Caa and lower	349		0.6
Total below investment grade	1,838		3.2
Total fixed maturities, excluding trading securities	$	58,294	100.0		%
Trading securities	$	5
Average weighted quality	AA1, 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	3.9

(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.

26

The St. Paul Travelers Companies, Inc.

Investment Income

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Gross investment income
Fixed maturities	$	412		$	555		$	583		$	579		$	609		$	615		$	636		$	1,550		$	1,860
Short-term securities	9			12			21			27			30			37			56			42			123
Mortgage loans	4			14			4			3			4			4			14			22			22
Other (1)	249			67			69			161			139			145			125			385			409
	674			648			677			770			782			801			831			1,999			2,414
Investment expenses (1)	55			6			10			35			17			26			19			71			62
Net investment income, pre-tax	619			642			667			735			765			775			812			1,928			2,352
Income taxes	165			152			153			173			182			177			187			470			546
Net investment income, after-tax	$	454		$	490		$	514		$	562		$	583		$	598		$	625		$	1,458		$	1,806
Effective tax rate	26.6		%	23.7		%	23.0		%	23.4		%	23.9		%	22.8		%	23.0		%	24.4		%	23.2		%
Average invested assets (2)	$	37,097		$	59,292		$	61,274		$	62,892		$	64,218		$	65,765		$	67,630		$	52,711		$	65,926
Average yield pre-tax	6.7		%	4.3		%	4.4		%	4.7		%	4.8		%	4.7		%	4.8		%	4.9		%	4.8		%
Average yield after-tax	4.9		%	3.3		%	3.4		%	3.6		%	3.6		%	3.6		%	3.7		%	3.7		%	3.7		%

(1)Includes $166 million and $39 million of gross investment income and investment expenses, respectively, in 1Q 2004 resulting from 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.

27

The St. Paul Travelers Companies, Inc.

Net Realized and Unrealized Investment Gains (Losses)

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Net realized investment gains (losses)
Fixed maturities	$	12		$	38		$	11		$	2		$	4		$	(41	)	$	(4	)	$	61		$	(41	)
Equity securities	1			1			8			14			4			4			14			10			22
Other	(55		)	16			(68		)	(19		)	(8		)	(18		)	29			(107		)	3
Realized investment gains (losses) before tax	(42		)	55			(49		)	(3		)	—			(55		)	39			(36		)	(16		)
Related taxes	(15		)	20			(17		)	1			(18		)	(20		)	14			(12		)	(24		)
Net realized investment gains (losses)	$	(27	)	$	35		$	(32	)	$	(4	)	$	18		$	(35	)	$	25		$	(24	)	$	8
Gross investment gains (1)	$	135		$	371		$	185		$	326		$	203		$	212		$	196		$	691		$	611
Gross investment losses before impairments (1)	(166		)	(293		)	(206		)	(311		)	(194		)	(225		)	(123		)	(665		)	(542		)
Impairments	(11		)	(23		)	(28		)	(18		)	(9		)	(42		)	(34		)	(62		)	(85		)
Realized investment gains (losses) before tax	(42		)	55			(49		)	(3		)	—			(55		)	39			(36		)	(16		)
Related taxes	(15		)	20			(17		)	1			(18		)	(20		)	14			(12		)	(24		)
Net realized investment gains (losses)	$	(27	)	$	35		$	(32	)	$	(4	)	$	18		$	(35	)	$	25		$	(24	)	$	8

	March 31,			June 30,		September 30,		December 31,		March 31,		June 30,		September 30,
	2004			2004		2004		2004		2005		2005		2005
Net unrealized investment gains (losses), by asset type
Fixed maturities	$	1,805		$	154	$	1,268	$	1,252	$	429	$	1,420	$	587
Equity securities & other	75			71		57		83		21		65		117
Unrealized investment gains before tax and minority interest	1,880			225		1,325		1,335		450		1,485		704
Related taxes	658			84		466		469		173		523		232
Minority interest, net of tax	(1		)	—		—		—		—		—		—
Balance, end of period	$	1,223		$	141	$	859	$	866	$	277	$	962	$	472

(1)Includes the following gross investment gains and gross investment losses related to U.S. Treasury futures, which are settled daily:

Gross investment Treasury future gains	$	105	$	161	$	78	$	86	$	85	$	78	$	114	$	344	$	277
Gross investment Treasury future losses	$	160	$	104	$	124	$	85	$	66	$	123	$	81	$	388	$	270

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.

28

The St. Paul Travelers Companies, Inc.

Reinsurance Recoverables

($ in millions)

	September 30,			December 31,
	2005			2004
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	14,308		$	13,367
Allowance for uncollectible reinsurance	(796		)	(751		)
Net reinsurance recoverables	13,512			12,616
Mandatory pools and associations	2,047			2,497
Structured settlements	3,893			3,941
Total reinsurance recoverables	$	19,452		$	19,054

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

	December 31,
Reinsurer	2004		A.M. Best Rating of Reinsurer
American Re-Insurance Company	$	1,198	A third highest of 16 ratings
General Reinsurance Corporation	826		A++ highest of 16 ratings
XL Reinsurance America Inc.	613		A+ second highest of 16 ratings
Transatlantic Reinsurance Company	604		A+ second highest of 16 ratings
Swiss Reinsurance America Corporation	493		A+ second highest of 16 ratings

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.

29

The St. Paul Travelers Companies, Inc.

Net Reserves for Losses and Loss Adjustment Expense

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Commercial
Beginning of period	$	18,791		$	18,847		$	27,981		$	28,408		$	29,021		$	28,772		$	28,352		$	18,791		$	29,021
Incurred	1,126			1,735			1,924			2,479			1,426			1,332			2,065			4,785			4,823
Paid	(1,070		)	(1,430		)	(1,498		)	(1,931		)	(1,705		)	(1,725		)	(1,484		)	(3,998		)	(4,914		)
Acquired reserves, foreign exchange and other (1)	—			8,829			1			65			30			(27		)	(22		)	8,830			(19		)
End of period	$	18,847		$	27,981		$	28,408		$	29,021		$	28,772		$	28,352		$	28,911		$	28,408		$	28,911
Specialty
Beginning of period	$	2,020		$	2,204		$	8,723		$	9,129		$	9,373		$	9,582		$	9,686		$	2,020		$	9,373
Incurred	304			2,254			1,113			1,016			936			872			994			3,671			2,802
Paid	(120		)	(564		)	(644		)	(894		)	(694		)	(710		)	(642		)	(1,328		)	(2,046		)
Acquired reserves, foreign exchange and other (1)	—			4,829			(63		)	122			(33		)	(58		)	31			4,766			(60		)
End of period	$	2,204		$	8,723		$	9,129		$	9,373		$	9,582		$	9,686		$	10,069		$	9,129		$	10,069
Personal
Beginning of period	$	3,218		$	3,233		$	3,335		$	3,553		$	3,334		$	3,283		$	3,319		$	3,218		$	3,334
Incurred	779			829			1,003			644			765			829			1,275			2,611			2,869
Paid	(764		)	(752		)	(785		)	(863		)	(816		)	(793		)	(841		)	(2,301		)	(2,450		)
Acquired reserves, foreign exchange and other (1)	—			25			—			—			—			—			—			25			—
End of period	$	3,233		$	3,335		$	3,553		$	3,334		$	3,283		$	3,319		$	3,753		$	3,553		$	3,753
Total
Beginning of period	$	24,029		$	24,284		$	40,039		$	41,090		$	41,728		$	41,637		$	41,357		$	24,029		$	41,728
Incurred	2,209			4,818			4,040			4,139			3,127			3,033			4,334			11,067			10,494
Paid	(1,954		)	(2,746		)	(2,927		)	(3,688		)	(3,215		)	(3,228		)	(2,967		)	(7,627		)	(9,410		)
Acquired reserves, foreign exchange and other (1)	—			13,683			(62		)	187			(3		)	(85		)	9			13,621			(79		)
End of period	$	24,284		$	40,039		$	41,090		$	41,728		$	41,637		$	41,357		$	42,733		$	41,090		$	42,733
Prior Year Reserve Development:
Commercial
Asbestos	$	—		$	5		$	—		$	922		$	—		$	—		$	—		$	5		$	—
Environmental	—			197			5			84			—			—			—			202			—
All other	(6		)	11			112			13			6			(10		)	(6		)	117			(10		)
Accretion of discount	16			17			15			25			13			14			13			48			40
Total Commercial	10			230			132			1,044			19			4			7			372			30
Specialty
Asbestos	—			—			1			—			—			—			—			1			—
Environmental	—			7			(3		)	—			—			—			—			4			—
All other	150			1,277			5			(11		)	53			16			(13		)	1,432			56
Accretion of discount	—			1			1			—			2			—			1			2			3
Total Specialty	150			1,285			4			(11		)	55			16			(12		)	1,439			59
Personal	(101		)	(100		)	(37		)	(140		)	(114		)	(81		)	(83		)	(238		)	(278		)
Total (2)	$	59		$	1,415		$	99		$	893		$	(40	)	$	(61	)	$	(88	)	$	1,573		$	(189	)

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

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

See Glossary of Financial Measures and Description of Operating Segments on page 36.

30

The St. Paul Travelers Companies, Inc.

Asbestos and Environmental Reserves

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Asbestos reserves
Beginning reserves:
Direct	$	3,782		$	3,688		$	4,052		$	3,976		$	4,775		$	4,675		$	4,527		$	3,782		$	4,775
Ceded	(805		)	(799		)	(999		)	(868		)	(843		)	(818		)	(785		)	(805		)	(843		)
Net	2,977			2,889			3,053			3,108			3,932			3,857			3,742			2,977			3,932
Acquired reserves:
Direct	—			502			—			—			—			—			—			502			—
Ceded	—			(191		)	—			—			—			—			—			(191		)	—
Incurred losses and loss expenses:
Direct	—			7			2			932			—			—			—			9			—
Ceded	—			(2		)	(1		)	(10		)	—			—			—			(3		)	—
Accretion of discount:
Direct	5			5			3			4			—			1			—			13			1
Ceded	—			—			—			—			—			—			—			—			—
Losses paid:
Direct	99			150			81			137			100			149			115			330			364
Ceded	(6		)	7			(132		)	(35		)	(25		)	(33		)	(42		)	(131		)	(100		)
Ending reserves:
Direct	3,688			4,052			3,976			4,775			4,675			4,527			4,412			3,976			4,412
Ceded	(799		)	(999		)	(868		)	(843		)	(818		)	(785		)	(743		)	(868		)	(743		)
Net	$	2,889		$	3,053		$	3,108		$	3,932		$	3,857		$	3,742		$	3,669		$	3,108		$	3,669
Environmental reserves
Beginning reserves:
Direct	$	331		$	287		$	764		$	701		$	725		$	624		$	547		$	331		$	725
Ceded	(41		)	(39		)	(108		)	(98		)	(84		)	(85		)	(79		)	(41		)	(84		)
Net	290			248			656			603			641			539			468			290			641
Acquired reserves:
Direct	—			271			—			—			—			—			—			271			—
Ceded	—			(58		)	—			—			—			—			—			(58		)	—
Incurred losses and loss expenses:
Direct	—			242			1			80			—			—			—			243			—
Ceded	—			(38		)	1			4			—			—			—			(37		)	—
Losses paid:
Direct	44			36			64			56			101			77			30			144			208
Ceded	(2		)	(27		)	(9		)	(10		)	1			(6		)	1			(38		)	(4		)
Ending reserves:
Direct	287			764			701			725			624			547			517			701			517
Ceded	(39		)	(108		)	(98		)	(84		)	(85		)	(79		)	(80		)	(98		)	(80		)
Net	$	248		$	656		$	603		$	641		$	539		$	468		$	437		$	603		$	437

See Glossary of Financial Measures and Description of Operating Segments on page 36.

31

The St. Paul Travelers Companies, Inc.

Capitalization

($ in millions)

	September 30,			December 31,
	2005			2004
Debt
Short-term debt
Commercial paper	$	397		$	499
7.875% Senior notes due April 15, 2005	—			238
7.125% Senior notes due June 1, 2005	—			79
Medium-term notes maturing in 2005	—			99
Total short-term debt	397			915
Long-term debt
Medium-term notes with various maturities from 2006 to 2010	298			298
6.75% Senior notes due November 15, 2006	150			150
5.75% Senior notes due March 15, 2007	500			500
5.25% Senior notes due August 16, 2007 (1)	—			442
5.01% Senior notes due August 16, 2007 (1)	442			—
3.75% Senior notes due March 15, 2008	400			400
4.50% Zero coupon convertible notes due 2009	121			117
8.125% Senior notes due April 15, 2010	250			250
7.81% Private placement notes due on various dates through 2011	16			20
5.00% Senior notes due March 15, 2013	500			500
7.75% Senior notes due April 15, 2026	200			200
7.625% Subordinated debentures due December 15, 2027	125			125
8.47% Subordinated debentures due January 10, 2027	81			81
4.50% Convertible junior subordinated notes due April 15, 2032	893			893
6.375% Senior notes due March 15, 2033	500			500
8.50% Subordinated debentures due December 15, 2045	56			56
8.312% Subordinated debentures due July 1, 2046	73			73
7.60% Subordinated debentures due October 15, 2050	593			593
Total long-term debt	5,198			5,198
Unamortized fair value adjustment	195			239
Unamortized debt issuance costs	(37		)	(39		)
	5,356			5,398
Total debt	5,753			6,313
Minority interest	2			20
Preferred equity	160			188
Common equity (excluding SFAS 115)	21,776			20,145
Total capital	$	27,691		$	26,666
Total debt to capital	20.8		%	23.7		%

(1)These senior notes bore an interest rate of 5.25% at December 31, 2004.  The interest rate was reset to 5.01% in May 2005 pursuant to the remarketing of these notes.

32

The St. Paul Travelers Companies, Inc.

Statutory to GAAP Shareholders’ Equity Reconciliation

($ in millions)

	September 30,			December 31,
	2005			2004
Statutory capital and surplus	$	17,738		$	15,112
GAAP adjustments
Goodwill and intangible assets	4,160			4,373
Investments	1,342			2,129
Noninsurance companies	(3,775		)	(3,238		)
Deferred acquisition costs	1,558			1,557
Deferred federal income tax	433			338
Reinsurance recoverables	555			461
Furniture, equipment & software	190			200
Employee benefits	133			83
Agents balances	108			139
Other	(34		)	47
Total GAAP adjustments	4,670			6,089
GAAP shareholders’ equity	$	22,408		$	21,201

33

The St. Paul Travelers Companies, Inc.

Statement of Cash Flows - Preliminary

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Cash flows from operating activities
Net income (loss)	$	587		$	(275	)	$	340		$	303		$	212		$	1,069		$	162		$	652		$	1,443
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
(Income) loss from discontinued operations, net of tax	—			(27		)	(29		)	(32		)	665			(138		)	(87		)	(56		)	440
Net realized investment (gains) losses	42			(55		)	49			3			—			55			(39		)	36			16
Depreciation and amortization	25			71			252			174			150			236			113			348			499
Deferred federal income taxes (benefit)	(17		)	(98		)	(63		)	(100		)	110			625			(218		)	(178		)	517
Amortization of deferred policy acquisition costs	526			805			820			828			810			783			830			2,151			2,423
Premium balances receivable	(12		)	(90		)	320			102			92			(187		)	147			218			52
Reinsurance recoverables	239			(24		)	(126		)	495			228			433			(1,059		)	89			(398		)
Deferred acquisition costs	(549		)	(819		)	(810		)	(770		)	(808		)	(793		)	(821		)	(2,178		)	(2,422		)
Claim and claim adjustment expense reserves	96			2,140			1,081			156			(433		)	(523		)	2,484			3,317			1,528
Unearned premium reserves	151			(4		)	(84		)	(105		)	(148		)	(41		)	43			63			(146		)
Trading account activities	2			13			4			1			—			6			—			19			6
Other	(309		)	(218		)	99			(42		)	150			(822		)	(174		)	(428		)	(846		)
Net cash provided by operating activities	781			1,419			1,853			1,013			1,028			703			1,381			4,053			3,112
Cash flows from investing activities
Proceeds from maturities of investments
Fixed maturities	865			1,822			1,332			1,602			1,073			1,348			1,393			4,019			3,814
Mortgage loans	4			46			18			8			5			1			43			68			49
Proceeds from sales of investments
Fixed maturities	2,158			1,855			950			2,982			1,052			1,659			722			4,963			3,433
Equity securities	68			39			46			112			39			73			169			153			281
Mortgage loans	29			12			20			—			—			—			—			61			—
Real estate	—			21			8			—			—			—			39			29			39
Purchase of investments
Fixed maturities	(3,676		)	(2,980		)	(4,890		)	(4,976		)	(4,175		)	(4,391		)	(3,597		)	(11,546		)	(12,163		)
Equity securities	(28		)	(20		)	(11		)	(35		)	(21		)	(1		)	(15		)	(59		)	(37		)
Mortgage loans	(2		)	(53		)	—			—			—			(9		)	9			(55		)	—
Real estate	—			(10		)	(22		)	10			(8		)	(14		)	(7		)	(32		)	(29		)
Short-term securities, (purchases) sales, net	224			(1,476		)	(159		)	(502		)	980			(855		)	(1,155		)	(1,411		)	(1,030		)
Other investments, net	107			302			172			301			228			224			178			581			630
Securities transactions in course of settlement	(681		)	(563		)	712			(576		)	195			268			(260		)	(532		)	203
Net cash acquired in merger	—			151			—			—			—			—			—			151			—
Other	—			11			40			(54		)	—			(48		)	(25		)	51			(73		)
Net cash used by investing activities	(932		)	(843		)	(1,784		)	(1,128		)	(632		)	(1,745		)	(2,506		)	(3,559		)	(4,883		)

34

The St. Paul Travelers Companies, Inc.

Statement of Cash Flows - Preliminary (Continued)

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2004			2004			2004			2004			2005			2005			2005			2004			2005
Cash flows from financing activities
Issuance of debt	—			—			128			174			—			—			—			128			—
Payment of debt	—			(224		)	(3		)	—			(2		)	(479		)	(41		)	(227		)	(522		)
Treasury stock acquired - net employee stock-based compensation	(9		)	(11		)	—			(3		)	(8		)	(6		)	(13		)	(20		)	(27		)
Issuance of common stock - employee stock options	29			39			12			31			32			29			68			80			129
Issuance of common stock - maturity of equity unit forward contracts	—			—			—			—			—			—			442			—			442
Dividends to shareholders	(81		)	(263		)	(149		)	(149		)	(150		)	(157		)	(160		)	(493		)	(467		)
Repurchase of minority interest	—			(76		)	—			—			—			—			—			(76		)	—
Other	—			11			11			57			13			(13		)	—			22			—
Net cash provided (used) by financing activities	(61		)	(524		)	(1		)	110			(115		)	(626		)	296			(586		)	(445		)
Effect of exchange rate changes on cash	—			—			(2		)	9			(2		)	(2		)	1			(2		)	(3		)
Net proceeds from the sale of discontinued operations	—			—			—			—			—			1,867			532			—			2,399
Net increase (decrease) in cash	(212		)	52			66			4			279			197			(296		)	(94		)	180
Cash at beginning of period	352			140			192			258			262			541			738			352			262
Cash at end of period	$	140		$	192		$	258		$	262		$	541		$	738		$	442		$	258		$	442
Income taxes (received) paid	$	108		$	438		$	—		$	(18	)	$	13		$	357		$	151		$	546		$	521
Interest paid	$	47		$	72		$	83		$	79		$	87		$	86		$	88		$	202		$	261

35

The St. Paul Travelers Companies, Inc.

Financial Supplement - Third Quarter 2005

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

Return on equity is the ratio of net income to average equity.  Continuing operations return on equity is the ratio of income from continuing operations 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 and discontinued operations, 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 net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses.

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.  A catastrophe may result in the payment of reinstatement premiums.  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.

Reinstatement premiums represent additional premiums payable to reinsurers to restore coverage limits for certain excess of loss reinsurance treaties.

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.

Gross written premiums reflect the direct and assumed contractually determined amounts charged to the policyholders for the effective period of the contract based on the terms and conditions of the insurance contract.  Gross written premiums are a measure of overall business volume.

Proforma combined gross and net written premiums reflect the addition of gross and net written premiums, respectively, of The St. Paul and Travelers for periods prior to the merger on April 1, 2004. The proforma combined gross and net written premium amounts are not affected by purchase accounting adjustments. Gross and net written premiums are a measure of business volume before and after reinsurance.  The proforma information presented is not necessarily indicative of what would have occurred had the acquisition and related transactions been made at the beginning of the applicable period, or of future results of the company.

Adjusted book value per share represents assets less liabilities and preferred shareholders’ equity excluding the after-tax impact of net unrealized investment 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.

Discontinued Operations (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 held a 31% interest in Nuveen Investments as of June 30, 2005.  During the third quarter of 2005 the Company divested its remaining ownership interest of Nuveen Investments.

* * * * *

Segment results for periods beginning 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.  Beginning in the second quarter of 2005, the results of Discover Re are now included in the Commercial segment.  Previously, Discover Re’s results were included in the Specialty segment.  All prior quarters have been restated to conform with the second quarter 2005 presentation.

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.

36