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):  February 2, 2006

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	(Commission File Number)	(IRS Employer Identification
incorporation)		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 February 2, 2006, The St. Paul Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended December 31, 2005, and the availability of the Company’s fourth 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 February 2, 2006, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Fourth 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:     February 2, 2006	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 February 2, 2006, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Fourth 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 Washington Street
St. Paul MN 55102-1396
www.stpaultravelers.com

NEWS RELEASE

St. Paul Travelers Reports Fourth Quarter and Full Year
2005 Results

Fourth Quarter 2005 Net Income of $179 Million, or $0.26 per Diluted
Share, Includes Charges for Asbestos and Environmental, Hurricane
Wilma and a Revised Estimate for Third Quarter 2005 Hurricanes

Full Year 2005 Net Income of $1.622 Billion, or $2.33 per Diluted Share

SAINT PAUL, Minn. (February 2, 2006) – The St. Paul Travelers Companies, Inc. (“St. Paul Travelers,” NYSE:STA) today reported net income for the current quarter of $179 million, or $0.26 per basic and diluted share, compared to $303 million, or $0.45 per basic share and $0.44 per diluted share, in the prior year quarter. Operating income for the current quarter was $151 million, or $0.22 per basic and diluted share, compared to $275 million, or $0.41 per basic share and $0.40 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.

Full year net income was $1.622 billion, or $2.39 per basic share and $2.33 per diluted share, compared to $955 million, or $1.56 per basic share and $1.53 per diluted share, in the prior year.  Income from continuing operations for the full year was $2.061 billion, or $3.04 per basic share and $2.95 per diluted share, compared to $867 million, or $1.42 per basic share and $1.40 per diluted share, in the prior year. Operating income for the full year was $2.026 billion, or $2.99 per basic share and $2.90 per diluted share, compared to $895 million, or $1.46 per basic share and $1.44 per diluted share, in the prior year.

The current quarter included after-tax charges of $566 million ($860 million pre-tax) for asbestos and environmental reserve development and $435 million ($623 million pre-tax) for catastrophe losses, partially offset by after-tax benefits of $194 million ($303 million pre-tax) for other net favorable prior year reserve development and $45 million ($70 million pre-tax) due to the re-estimation of the current year loss ratios for the first three quarters of 2005.  The prior year quarter included after-tax charges of $673 million ($1.006 billion pre-tax) for asbestos and environmental reserve development and $80 million ($116 million pre-tax) for catastrophe losses, partially offset by after-tax benefits of $92 million ($138 million pre-tax) for other net favorable prior year reserve development and $106 million ($163 million pre-tax) due to the re-estimation of the current year loss ratios for the first three quarters of 2004.

Highlights

•Operating income of $151 million for the quarter and $2.026 billion for the full year.  Excluding catastrophe losses, operating income of $586 million for the quarter and $3.498 billion for the full year.

•Catastrophe losses, after-tax and net of reinsurance, of $435 million in the quarter, including $187 million related to Hurricane Wilma, down $33 million from the previously disclosed estimate, and $236 million related to revised loss estimates for the third quarter 2005 hurricanes, reflecting a 16 percent increase to the previously reported gross losses, before reinsurance.

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•Asbestos and environmental reserve development in the quarter of $566 million after-tax.

•Other net favorable prior year reserve development in the quarter of $194 million after-tax.

•Re-estimation of the current year loss ratios for the first three quarters of 2005 resulting in a benefit in the quarter of $45 million after-tax.

•Operating return on equity of 2.8 percent for the quarter and 9.6 percent for the full year.  Excluding catastrophe losses, operating return on equity of 10.6 percent for the quarter and 16.4 percent for the full year.

•GAAP combined ratio of 111.1 percent for the quarter and 101.3 percent for the full year.  Excluding catastrophe losses and all prior year reserve development, GAAP combined ratio of 88.1 percent for the quarter and 89.0 percent for the full year.

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

•Increase in net investment income of 12 percent from the prior year quarter to $632 million after-tax.

•Strong underlying operating performance in the Commercial, Specialty and Personal segments for the full year, with GAAP combined ratios of 90.6, 90.4 and 85.3 percent, respectively, excluding the combined impact of 22.5, 6.0 and 3.8 points, respectively, for catastrophe losses and all prior year reserve development.

Jay Fishman, Chairman and Chief Executive Officer, said, “Notwithstanding  record catastrophe losses and the fourth quarter addition to asbestos reserves, our Company posted $2 billion of operating income and a 9.6 percent operating return on equity, a testament to the Company’s earnings power.  Retention rates are at historically high levels and overall new business volumes increased from last year, resulting in a steady improvement in quarter-over-quarter premium performance.  Premium growth in our Personal segment has accelerated due in large part to the roll-out of Quantum Auto^(SM), the Company’s multivariate pricing product.

“As we move through 2006, we believe underlying margins should remain attractive.  For catastrophe-prone risks, rates are continuing to firm, terms and conditions are generally tightening and insured values are increasing.  For non-catastrophe impacted exposures, we believe rates should generally stabilize.  We are focused on the potential for greater frequency and severity of weather events threatening the Atlantic coast, which we will take into account as we manage our risk and reward profiles.

“We have largely completed all of our merger-related activities and are ahead of schedule for our savings targets.  We are well-positioned to benefit from the current market environment and look forward to building upon the strengths of our franchise,” concluded Mr. Fishman.

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Catastrophe Losses

Catastrophe losses in the current quarter included an after-tax charge of $187 million ($282 million pre-tax) related to Hurricane Wilma, which occurred in October.  This is a $33 million decrease from the Company’s previously disclosed estimate due to fewer large losses than originally projected.  This revised estimate reflects gross losses, before reinsurance, of $350 million.

The Company also recorded an after-tax charge of $236 million ($323 million pre-tax) related to the third quarter 2005 hurricanes.  The increase to the previously reported estimate was driven by higher than projected large loss claims and an increase in off-shore energy claims.  This revision reflects a 16 percent increase to the estimate for gross losses, before reinsurance, for these events.

Other catastrophe losses in the quarter were $12 million after-tax ($18 million pre-tax).  The prior year quarter included catastrophe losses of $80 million after-tax ($116 million pre-tax), primarily related to revised estimates for the third quarter 2004 hurricanes.

Asbestos and Environmental Reserve Development

The Company increased asbestos reserves by $830 million in the current quarter in connection with its annual asbestos review, resulting in a $548 million after-tax charge.  As a part of the annual review, the Company performs analyses of exposures, claim payment patterns and legal costs by policyholder category, as well as recent settlements, policyholder bankruptcies, judicial rulings and legislative actions.  The increase considered the impacts of rising defense costs due to increased trial activity for seriously impaired plaintiffs and prolonged litigation before cases are settled or dismissed.  It also considered the voiding, on procedural grounds, of the previously rendered favorable arbitration decision in the ongoing ACandS litigation.  In the prior year quarter, the Company increased asbestos reserves by $922 million, resulting in a $613 million after-tax charge.

The Company has experienced a decrease in new claim notices due to legislative and judicial efforts to prevent mass filings and filings by unimpaired plaintiffs as well as an improved litigation environment in certain jurisdictions.  While the Company supports asbestos reform efforts, the current reserve position does not contemplate any future legislative developments.

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The Company also increased environmental reserves by $30 million, resulting in an $18 million after-tax charge, compared to an increase of $84 million in the prior year quarter, resulting in a $60 million after-tax charge.

Other Net Favorable Prior Year Reserve Development

The current quarter included other net favorable prior year reserve development of $194 million after-tax ($303 million pre-tax).  Favorable development in the Commercial segment resulted from lower than expected frequency and severity for both casualty and property-related lines within Commercial Accounts and Select Accounts. Favorable development was also driven by lower than expected severity in the Specialty segment due to property-related exposures and in the Personal segment due to recent auto claim initiatives.  The prior year quarter included other net favorable prior year reserve development of $92 million after-tax ($138 million pre-tax), primarily in the Personal segment.

Consolidated Fourth Quarter and Full Year Highlights

($ in millions, except for per share amounts, and	Three Months Ended December 31,								Twelve Months Ended December 31,
after-tax except for premiums)	2005			2004			Change		2005			2004			Change
Gross written premiums	$	5,877		$	5,977		(2	)%	$	23,736		$	22,258		7	%
excluding Commercial Other	5,866			5,831			1		23,588			21,311			11
Net written premiums	5,294			5,201			2		20,386			19,011			7
excluding Commercial Other	5,282			5,122			3		20,295			18,505			10
Net earned premiums	5,136			5,276			(3	)	20,341			19,038			7
Underwriting gain (loss)	(463		)	(263		)	NMF		(344		)	(1,047		)	NMF
Net investment income	632			562			12		2,438			2,020			21
Operating income	151			275			(45	)	2,026			895			126
per diluted share	$	0.22		$	0.40		(45	)	$	2.90		$	1.44		101
Income from continuing operations	178			271			(34	)	2,061			867			138
per diluted share	$	0.26		$	0.40		(35	)	$	2.95		$	1.40		111
Net income	179			303			(41	)	1,622			955			70
per diluted share	$	0.26		$	0.44		(41	)	$	2.33		$	1.53		52
Book value per share	$	31.94		$	31.35		2		$	31.94		$	31.35		2
Adjusted book value per share	$	31.47		$	30.05		5		$	31.47		$	30.05		5
GAAP combined ratio	111.1		%	107.1		%	4.0	pts	101.3		%	107.7		%	(6.4	)pts
Operating return on equity	2.8		%	5.5		%	(2.7	)pts	9.6		%	5.0		%	4.6	pts
Continuing operations return on equity	3.2		%	5.2		%	(2.0	)pts	9.5		%	4.7		%	4.8	pts
Return on equity	3.2		%	5.8		%	(2.6	)pts	7.5		%	5.1		%	2.4	pts

Note:The results of St. Paul Travelers for the twelve months ended December 31, 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 nine months ended December 31, 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 1 and 3 percent, respectively, from the prior year quarter.  Gross and net written premium growth was primarily attributable to the Personal segment.  The increase in net written premiums was for changes in reinsurance programs for National Accounts’ Discover Re business.  Retention rates remained strong in all segments, in most instances at record high levels.  New business premiums, excluding the impact of renewal rights transactions in 2004, increased 17 percent from the prior year quarter.

Net investment income in the current quarter was $632 million after-tax ($813 million pre-tax), a 12 percent increase from the prior year quarter.  The increase was driven by strong operating cash flows during the past year, the investment of proceeds received from the

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sale of the Company’s equity stake in Nuveen Investments Inc. (“Nuveen”), higher short-term interest rates and lower investment expenses.

The GAAP combined ratio in the current quarter was 111.1 percent, compared to 107.1 percent in the prior year quarter.  The current quarter GAAP combined ratio was negatively impacted by 12.1 points for catastrophe losses and 10.9 points for prior year reserve development, partially offset by a benefit of 1.4 points due to the re-estimation of the current year loss ratios for the first three quarters of 2005. The prior year quarter was negatively impacted by 2.1 points for catastrophe losses and 16.5 points for prior year reserve development, partially offset by a benefit of 3.1 points due to the re-estimation of the current year loss ratios for the first three quarters of 2004.

Full Year 2005 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 twelve months ended December 31, 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 nine months ended December 31, 2004.

For the full year 2005, St. Paul Travelers reported net income of $1.622 billion, or $2.39 per basic share and $2.33 per diluted share, compared to $955 million, or $1.56 per basic share and $1.53 per diluted share, in the prior year.  Net income in the current year was negatively impacted by a $439 million after-tax loss in discontinued operations, primarily due to a tax charge related to the divestiture of the Company’s ownership stake in Nuveen.  Income from continuing operations for the full year was $2.061 billion, or $3.04 per basic share and $2.95 per diluted share, compared to $867 million, or $1.42 per basic share and $1.40 per diluted share, in the prior year.  Operating income for the full year was $2.026 billion, or $2.99 per basic share and $2.90 per diluted share, compared to $895 million, or $1.46 per basic share and $1.44 per diluted share, in the prior year.  Full year 2005 results included after-tax charges of $1.472 billion ($2.189 billion pre-tax) for catastrophe losses and $566 million ($860 million pre-tax) for asbestos and environmental reserve development, partially offset by an after-tax benefit of $350 million ($535 million pre-tax) for other net favorable prior year reserve development.  The prior year results included after-tax charges of $511 million ($772 million pre-tax) for catastrophe losses, $811 million ($1.218 billion pre-tax) for asbestos and environmental reserve development and $783 million ($1.182 billion pre-tax) for other net unfavorable prior year reserve development.

The GAAP combined ratio in the current year was 101.3 percent, compared to 107.7 percent in the prior year.  The current year GAAP combined ratio was negatively impacted by 10.7 points for catastrophe losses and 1.6 points for prior year reserve development.  The prior year GAAP combined ratio was negatively impacted by 4.0 points for catastrophe losses and 12.6 points for prior year reserve development.

Net investment income in the current year was $2.438 billion after-tax ($3.165 billion pre-tax), compared to $2.020 billion after-tax ($2.663 billion pre-tax) in the prior year.  The prior year did not include St. Paul’s investment results for the first quarter of 2004.  The increase was also driven by strong operating cash flows, the investment of proceeds received from the sale of the Company’s equity stake in Nuveen and lower investment expenses.

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For the full year 2005, operating return on equity was 9.6 percent, compared to 5.0 percent in the prior year.  Catastrophe losses negatively impacted operating return on equity by 6.8 points in the current year, compared to 2.9 points in the prior year.

Commercial Segment Financial Results

For the fourth quarter 2005, the Commercial segment reported an operating loss of $208 million, compared to an operating loss of $184 million in the prior year quarter.  The decline was driven by higher catastrophe losses and less favorable non-catastrophe weather, partially offset by lower asbestos and environmental reserve development, higher other net favorable reserve development and higher net investment income.

The current quarter was negatively impacted by after-tax charges of $566 million ($860 million pre-tax) for asbestos and environmental reserve development and $243 million ($373 pre-tax) for catastrophe losses, partially offset by an after-tax benefit of $98 million ($156 million pre-tax) for other net favorable prior year development resulting from the impact of lower than expected frequency and severity for both casualty and property-related lines within Commercial Accounts and Select Accounts.  The margins in the current accident year were strong and have trended better than originally estimated due to favorable claim activity, resulting in an after-tax benefit of $24 million ($37 million pre-tax) due to the re-estimation of the current year loss ratios for the first three quarters of 2005.  The prior year quarter included after-tax charges of $679 million ($1.019 billion pre-tax) for net unfavorable prior year reserve development primarily related to an increase in asbestos and environmental reserves and $50 million ($77 million pre-tax) for catastrophe losses, partially offset by an after-tax benefit of $40 million ($61 million pre-tax) due to re-estimation of current year loss ratios for the first three quarters of 2004.

The GAAP combined ratio was 140.2 percent in the current quarter, compared to 135.1 percent in the prior year quarter.  The current quarter GAAP combined ratio was negatively impacted by 33.1 points for prior year reserve development and 17.5 points for catastrophe losses, partially offset by a benefit of 1.7 points due to the re-estimation of the current year loss ratios for the first three quarters of 2005.  The prior year quarter GAAP combined ratio included 44.1 points for prior year reserve development and 3.4 points for catastrophe losses, partially offset by a benefit of 2.6 points due to the re-estimation of the current year loss ratios for the first three quarters of 2004.

Gross and net written premiums, excluding Commercial Other, decreased 3 percent and increased 4 percent, respectively, from the prior year quarter.  The decline in gross written premiums was primarily attributable to lower business volumes in National Accounts’ Discover Re business.  However, the increase in net written premiums was largely due to changes in reinsurance programs for Discover Re. In Commercial Accounts and Select Accounts, retention rates remain at record high levels, renewal price changes increased from prior quarters and new business premiums, excluding the impact of renewal rights transactions in 2004, increased 14 percent from the prior year quarter.

Specialty Segment Financial Results

For the fourth quarter 2005, the Specialty segment reported operating income of $155 million, compared to $132 million in the prior year quarter.  The improvement was driven by better current accident year loss ratios in several Domestic Specialty businesses, particularly Bond, higher net investment income, higher net favorable prior year reserve

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development in the current quarter and lower commission expenses, partially offset by higher catastrophe losses, a portion of which do not currently give rise to a tax benefit in certain international subsidiaries.

The current quarter was negatively impacted by an after-tax charge of $139 million ($168 million pre-tax) for catastrophe losses, partially offset by after-tax benefits of $43 million ($65 million pre-tax) for net favorable prior year reserve development primarily due to lower than expected severity in property-related exposures and $9 million ($14 million pre-tax) due to the re-estimation of the current year loss ratios for the first three quarters of 2005.  The prior year quarter included after-tax charges of $28 million ($36 million pre-tax) for catastrophe losses and $12 million ($18 million pre-tax) due to the re-estimation of the current year loss ratios for the second and third quarters of 2004.

The GAAP combined ratio was 97.1 percent in the current quarter, compared to 100.5 percent in the prior year quarter.  The current quarter GAAP combined ratio was negatively impacted by 11.6 points for catastrophe losses, partially offset by benefits of 4.4 points for net favorable prior year reserve development and 1.0 point due to the re-estimation of the current year loss ratios for the first three quarters of 2005.  The prior year quarter GAAP combined ratio was negatively impacted by 2.4 points for catastrophe losses and 1.2 points due to the re-estimation of the current year loss ratios for the second and third quarters of 2004.

Gross written premiums were flat and net written premiums decreased 2 percent, from the prior year quarter.  Gross written premiums benefited from increased business volumes in Oil and Gas and Financial and Professional Services and the inclusion of an extra reporting month for the Company’s Lloyd’s operations, eliminating a one-month reporting lag, offset by lower business volumes in Construction and the sale of certain credit-related personal lines classes previously written through the Company’s Lloyd’s operations.  The decrease in net written premiums was primarily due to changes in reinsurance programs.

Within Domestic Specialty, retention rates were strong, increasing from previous quarters, renewal price change remained consistent with the previous quarter and new business premiums increased slightly from the prior year quarter.  Within International Specialty, excluding the Company’s Lloyd’s operations, retention rates were also strong, renewal price change declined from previous quarters and new business premiums decreased slightly from the prior year quarter.

Personal Segment Financial Results

For the fourth quarter 2005, the Personal segment reported operating income of $249 million, compared to $378 million in the prior year quarter.  The decline was driven by higher catastrophe losses, a smaller benefit from the re-estimation of current year loss ratios, lower favorable prior year reserve development and higher expenditures on strategic initiatives, partially offset by increased rates and business volumes.

The current quarter included after-tax benefits of $53 million ($82 million pre-tax) for net favorable prior year reserve development, primarily due to lower than expected severity resulting from recent auto claim initiatives and $12 million ($19 million pre-tax) due to the re-estimation of the current year loss ratios for the first three quarters of 2005, partially offset by an after-tax charge of $53 million ($82 million pre-tax) for catastrophe losses, primarily related to Hurricane Wilma.  The prior year quarter included after-tax benefits of

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$91 million ($140 million pre-tax) for net favorable prior year reserve development and $78 million ($120 million pre-tax) due to the re-estimation of the current year loss ratios for the first three quarters of 2004.  There was minimal impact from catastrophe losses in the prior year quarter.

The GAAP combined ratio was 84.5 percent in the current quarter, compared to 69.7 percent in the prior year quarter.  The current quarter GAAP combined ratio benefited by 5.3 points for net favorable prior year reserve development and 1.2 points due to the re-estimation of the current year loss ratios for the first three quarters of 2005, partially offset by a negative impact of 5.2 points for catastrophe losses.  The prior year quarter GAAP combined ratio benefited by 9.5 points for net favorable prior year reserve development and 8.1 points due to the re-estimation of the current year loss ratios in the first three quarters of 2004.

Gross and net written premiums each increased 8 percent from the prior year quarter due to product and segmentation initiatives, including Quantum Auto^(SM).  These initiatives have aided geographic diversification efforts and enabled the Company to be more competitive.

Automobile gross and net written premiums each increased 5 percent and policies in force increased 4 percent, from the prior year quarter.  Retention rates were strong, consistent with previous quarters, and renewal price change remained slightly positive.  New business premiums, excluding the impact of the Royal & SunAlliance renewal rights transaction in 2004, increased 47 percent from the prior year quarter due mainly to the introduction of Quantum Auto^(SM) in 17 states by year end.

Homeowners and Other gross and net written premiums each increased 12 percent and policies in force increased 5 percent, from the prior year quarter.  Retention rates were strong, increasing from previous quarters, and renewal price change moderated from previous quarters.  New business premiums, excluding the impact of the Royal & SunAlliance renewal rights transaction in 2004, increased 24 percent from the prior year quarter due to strategic product initiatives and cross-selling efforts with Quantum Auto^(SM).

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 8:45 a.m. Eastern (7:45 a.m. Central) on Thursday, February 2, 2006.  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 investment gains and losses 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 (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 also result in the payment of reinstatement premiums and assessments from various pools.  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 that have been exhausted as a result of losses 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 premiums. 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.

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.

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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.  During the third quarter of 2005 the Company completed the divesture of its ownership interest in 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 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 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

10

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 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 Extension Act of 2005) 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.

###

11

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 twelve months ended December 31, 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 nine months ended December 31, 2004.

	Three months ended December 31,						Twelve months ended December 31,
($ in millions, except per share amounts, and after-tax)	2005			2004			2005			2004
Operating income	$	151		$	275		$	2,026		$	895
Net realized investment gains (losses)	27			(4		)	35			(28		)
Income from continuing operations	178			271			2,061			867
Discontinued operations	1			32			(439		)	88
Net income	$	179		$	303		$	1,622		$	955
Basic earnings per share
Operating income	$	0.22		$	0.41		$	2.99		$	1.46
Net realized investment gains (losses)	0.04			(0.01		)	0.05			(0.04		)
Income from continuing operations	0.26			0.40			3.04			1.42
Discontinued operations	—			0.05			(0.65		)	0.14
Net income	$	0.26		$	0.45		$	2.39		$	1.56
Diluted earnings per share
Operating income	$	0.22		$	0.40		$	2.90		$	1.44
Net realized investment gains (losses)	0.04			—			0.05			(0.04		)
Income from continuing operations	0.26			0.40			2.95			1.40
Discontinued operations	—			0.04			(0.62		)	0.13
Net income	$	0.26		$	0.44		$	2.33		$	1.53
Weighted average number of common shares outstanding (basic)	688.3			666.8			676.3			608.3
Weighted average number of common shares outstanding and common stock equivalents (diluted)	694.1		(1)	708.6			712.8			628.3
Common shares outstanding at period end	693.4			670.3			693.4			670.3
Common stock dividends declared	$	159.4		$	147.5		$	621.8		$	523.2
Operating income (loss) by segment
Commercial	$	(208	)	$	(184	)	$	756		$	786
Specialty	155			132			679			(648		)
Personal	249			378			775			939
Interest Expense and Other	(45		)	(51		)	(184		)	(182		)
	$	151		$	275		$	2,026		$	895
Operating return on equity	2.8		%	5.5		%	9.6		%	5.0		%
Continuing operations return on equity	3.2		%	5.2		%	9.5		%	4.7		%
Return on equity	3.2		%	5.8		%	7.5		%	5.1		%

(1)The calculation of earnings per diluted share for the three months ended December 31, 2005 excluded the weighted average effects of the following securities convertible into the Company’s common shares because their effect was anti-dilutive: outstanding convertible preferred stock (3.8 million shares); zero coupon convertible notes (2.3 million shares); and convertible junior subordinated stock (16.7 million shares).

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

12

	Three months ended December 31,						Twelve months ended December 31,
($ in millions, pre-tax)	2005			2004			2005			2004
Revenues
Premiums	$	5,136		$	5,276		$	20,341		$	19,038
Net investment income	813			735			3,165			2,663
Fee income	159			177			664			706
Net realized investment gains (losses)	33			(3		)	17			(39		)
Other revenues	40			43			178			176
	$	6,181		$	6,228		$	24,365		$	22,544
Revenues by segment excluding net realized investment gains (losses)
Commercial	$	2,769		$	2,948		$	11,202		$	11,279
Specialty	1,672			1,665			6,560			5,177
Personal	1,707			1,613			6,581			6,113
Interest Expense and Other	—			5			5			14
	6,148			6,231			24,348			22,583
Net realized investment gains (losses)	33			(3		)	17			(39		)
	$	6,181		$	6,228		$	24,365		$	22,544
Gross written premiums
Commercial Core	$	2,539		$	2,624		$	10,278		$	9,689
Commercial Other	11			146			148			947
Total Commercial	2,550			2,770			10,426			10,636
Specialty	1,733			1,730			6,836			5,511
Personal	1,594			1,477			6,474			6,111
	$	5,877		$	5,977		$	23,736		$	22,258
Net written premiums
Commercial Core	$	2,189		$	2,102		$	8,338		$	7,805
Commercial Other	12			79			91			506
Total Commercial	2,201			2,181			8,429			8,311
Specialty	1,550			1,588			5,729			4,771
Personal	1,543			1,432			6,228			5,929
	$	5,294		$	5,201		$	20,386		$	19,011
GAAP combined ratios: (1)
Commercial (2)
Loss and loss adjustment expense ratio	110.2		%	106.9		%	83.6		%	81.8		%
Underwriting expense ratio	30.0			28.2			29.5			27.8
Combined ratio	140.2		%	135.1		%	113.1		%	109.6		%
Specialty (2)
Loss and loss adjustment expense ratio	64.7		%	67.9		%	64.6		%	100.1		%
Underwriting expense ratio	32.4			32.6			31.8			33.5
Combined ratio	97.1		%	100.5		%	96.4		%	133.6		%
Personal
Loss and loss adjustment expense ratio	56.4		%	43.6		%	62.2		%	58.3		%
Underwriting expense ratio	28.1			26.1			26.9			24.9
Combined ratio	84.5		%	69.7		%	89.1		%	83.2		%
Total Company (2)
Loss and loss adjustment expense ratio	81.0		%	78.2		%	71.9		%	79.4		%
Underwriting expense ratio	30.1			28.9			29.4			28.3
Combined ratio	111.1		%	107.1		%	101.3		%	107.7		%

(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.

13

	Three months ended December 31,						Twelve months ended December 31,
($ in millions; after tax except as noted)	2005			2004			2005			2004
Reconciliation of underwriting gain (loss) to net income
Pre-tax underwriting gain (loss)	$	(612	)	$	(393	)	$	(389	)	$	(1,586	)
Tax (expense) benefit on underwriting results	149			130			45			539
Underwriting gain (loss)	(463		)	(263		)	(344		)	(1,047		)
Net investment income	632			562			2,438			2,020
Other, including interest expense and minority interest	(18		)	(24		)	(68		)	(78		)
Consolidated operating income	151			275			2,026			895
Net realized investment gains (losses)	27			(4		)	35			(28		)
Income from continuing operations	178			271			2,061			867
Discontinued operations	1			32			(439		)	88
Net income	$	179		$	303		$	1,622		$	955

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

Contacts

Media:	Institutional Investors:	Individual Investors:
Shane Boyd	Michael Connelly	Marc Parr
651.310.3846, or	860.277.1507, or	860.277.0779
Marlene Ibsen	David Schlosberg
860.277.9039, or	212.588.8412
Joan Palm
651.310.2685

###

14

EX-99.2

Exhibit 99.2

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

	Page Number
Consolidated Results
Financial Highlights	1
Reconciliation to Net Income and Earnings Per Share	2
Statement of Income	3
Net Income by Major Component and Combined Ratio	4
Operating Income	5
Selected Statistics - Property and Casualty Operations	6
Written and Earned Premiums - Property and Casualty Operations	7
Commercial
Operating Income	8
Operating Income by Major Component and Combined Ratio	9
Selected Statistics	10
Net Written Premium	11
Proforma Gross and Net Written Premium	12
Specialty
Operating Income	13
Operating Income by Major Component and Combined Ratio	14
Selected Statistics	15
Net Written Premium	16
Proforma Gross and Net Written Premium	17
Personal
Operating Income	18
Operating Income by Major Component and Combined Ratio	19
Selected Statistics	20
Selected Statistics - Automobile	21
Selected Statistics - Homeowners and Other	22
Supplemental Detail
Interest Expense and Other	23
Consolidated Balance Sheet	24
Investment Portfolio	25
Investment Portfolio - Fixed Maturities Data	26
Investment Income	27
Net Realized and Unrealized Investment Gains (Losses)	28
Reinsurance Recoverables	29
Net Reserves for Losses and Loss Adjustment Expense	30
Asbestos and Environmental Reserves	31
Capitalization	32
Statutory to GAAP Shareholders’ Equity Reconciliation	33
Statement of Cash Flows	34
Statement of Cash Flows (continued)	35
Glossary of Financial Measures and Description of Operating Segments	36

The St. Paul Travelers Companies, Inc.

Financial Highlights

($ in millions, except per share data)

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Income (loss) from continuing operations	$	587		$	(302	)	$	311		$	271		$	877		$	931		$	75		$	178		$	867		$	2,061
Income (loss) from continuing operations per share(1):
Basic	$	1.35		$	(0.46	)	$	0.46		$	0.40		$	1.31		$	1.39		$	0.11		$	0.26		$	1.42		$	3.04
Diluted	$	1.31		$	(0.46	)	$	0.45		$	0.40		$	1.25		$	1.33		$	0.11		$	0.26		$	1.40		$	2.95
Net income (loss)	$	587		$	(275	)	$	340		$	303		$	212		$	1,069		$	162		$	179		$	955		$	1,622
Net income (loss) per share (1):
Basic	$	1.35		$	(0.42	)	$	0.51		$	0.45		$	0.31		$	1.59		$	0.24		$	0.26		$	1.56		$	2.39
Diluted	$	1.31		$	(0.42	)	$	0.50		$	0.44		$	0.31		$	1.52		$	0.23		$	0.26		$	1.53		$	2.33
Operating income (loss)	$	614		$	(337	)	$	343		$	275		$	859		$	966		$	50		$	151		$	895		$	2,026
Operating income (loss) per share (1):
Basic	$	1.41		$	(0.51	)	$	0.51		$	0.41		$	1.28		$	1.44		$	0.07		$	0.22		$	1.46		$	2.99
Diluted	$	1.37		$	(0.51	)	$	0.50		$	0.40		$	1.23		$	1.38		$	0.07		$	0.22		$	1.44		$	2.90
Continuing operations return on equity	19.0		%	(6.0		)%	6.1		%	5.2		%	16.6		%	17.4		%	1.3		%	3.2		%	4.7		%	9.5		%
Return on equity	19.0		%	(5.4		)%	6.7		%	5.8		%	4.0		%	20.0		%	2.9		%	3.2		%	5.1		%	7.5		%
Operating return on equity	21.9		%	(6.9		)%	6.9		%	5.5		%	16.7		%	18.6		%	0.9		%	2.8		%	5.0		%	9.6		%
Total assets, at period end (2)	$	65,070		$	106,046		$	109,101		$	111,246		$	110,750		$	111,804		$	113,442		$	113,187		$	111,246		$	113,187
Total equity, at period end	$	12,674		$	19,930		$	20,889		$	21,201		$	20,732		$	22,369		$	22,408		$	22,303		$	21,201		$	22,303
Book value per share, at period end (1)	$	28.98		$	29.52		$	30.91		$	31.35		$	30.51		$	32.90		$	32.14		$	31.94		$	31.35		$	31.94
Adjusted book value per share, at period end	$	26.18		$	29.30		$	29.63		$	30.05		$	30.10		$	31.48		$	31.46		$	31.47		$	30.05		$	31.47
Weighted average number of common shares outstanding (basic) (1)	434.6			664.8			665.9			666.8			668.1			669.5			679.2			688.3			608.3			676.3
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			694.1			628.3			712.8
Common shares outstanding at period end (1)	437.3			668.5			669.2			670.3			673.6			674.6			692.2			693.4			670.3			693.4
Common stock dividends declared	$	81.7		$	146.9		$	147.1		$	147.5		$	148.2		$	155.1		$	159.1		$	159.4		$	523.2		$	621.8

(1)The number of shares and per share amounts for 1Q 2004 and YTD 4Q 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		4Q		4Q			4Q
	2004			2004			2004			2004			2005			2005			2005		2005		2004			2005
Net income (loss)
Operating income (loss)	$	614		$	(337	)	$	343		$	275		$	859		$	966		$	50	$	151	$	895		$	2,026
Net realized investment gains (losses)	(27		)	35			(32		)	(4		)	18			(35		)	25		27		(28		)	35
Income (loss) from continuing operations	587			(302		)	311			271			877			931			75		178		867			2,061
Discontinued operations	—			27			29			32			(665		)	138			87		1		88			(439		)
Net income (loss)	$	587		$	(275	)	$	340		$	303		$	212		$	1,069		$	162	$	179	$	955		$	1,622
Basic earnings per share (1)
Operating income (loss)	$	1.41		$	(0.51	)	$	0.51		$	0.41		$	1.28		$	1.44		$	0.07	$	0.22	$	1.46		$	2.99
Net realized investment gains (losses)	(0.06		)	0.05			(0.05		)	(0.01		)	0.03			(0.05		)	0.04		0.04		(0.04		)	0.05
Income (loss) from continuing operations	1.35			(0.46		)	0.46			0.40			1.31			1.39			0.11		0.26		1.42			3.04
Discontinued operations	—			0.04			0.05			0.05			(1.00		)	0.20			0.13		—		0.14			(0.65		)
Net income (loss)	$	1.35		$	(0.42	)	$	0.51		$	0.45		$	0.31		$	1.59		$	0.24	$	0.26	$	1.56		$	2.39
Diluted earnings per share (1)
Operating income (loss)	$	1.37		$	(0.51	)	$	0.50		$	0.40		$	1.23		$	1.38		$	0.07	$	0.22	$	1.44		$	2.90
Net realized investment gains (losses)	(0.06		)	0.05			(0.05		)	—			0.02			(0.05		)	0.04		0.04		(0.04		)	0.05
Income (loss) from continuing operations	1.31			(0.46		)	0.45			0.40			1.25			1.33			0.11		0.26		1.40			2.95
Discontinued operations	—			0.04			0.05			0.04			(0.94		)	0.19			0.12		—		0.13			(0.62		)
Net income (loss)	$	1.31		$	(0.42	)	$	0.50		$	0.44		$	0.31		$	1.52		$	0.23	$	0.26	$	1.53		$	2.33

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			4Q			4Q			4Q
	2004		2004			2004			2004			2005			2005			2005			2005			2004			2005
Basic
Income (loss) from continuing operations, as reported	$	587	$	(302	)	$	311		$	271		$	877		$	931		$	75		$	178		$	867		$	2,061
Preferred stock dividends, net of taxes	—		(2		)	(2		)	(2		)	(2		)	(2		)	(1		)	(1		)	(6		)	(6		)
Income (loss) from continuing operations available to common shareholders - basic	$	587	$	(304	)	$	309		$	269		$	875		$	929		$	74		$	177		$	861		$	2,055
Diluted
Income (loss) from continuing operations available to common shareholders - basic	$	587	$	(304	)	$	309		$	269		$	875		$	929		$	74		$	177		$	861		$	2,055
Effect of dilutive securities:
Equity unit stock purchase contracts	N/A		—			4			4			3			3			—			—			12			9
Convertible preferred stock	N/A		—			1			1			2			2			—			—			4			6
Zero coupon convertible notes	N/A		—			1			1			1			1			—			—			2			4
Convertible junior subordinate notes	—		—			7			7			7			7			—			—			—			26
Income (loss) from continuing operations available to common shareholders - diluted	$	587	$	(304	)	$	322		$	282		$	888		$	942		$	74		$	177		$	879		$	2,100
Common Shares
Basic
Weighted average shares outstanding	435		665			666			667			668			669			679			688			608			676
Diluted
Weighted average shares outstanding	435		665			666			667			668			669			679			688			608			676
Weighted average effects of dilutive securities:
Stock options and other incentive plans	3		—			3			3			2			2			5			6			3			4
Equity unit stock purchase contracts	N/A		—			15			15			15			15			—			—			11			10
Convertible preferred stock	N/A		—			5			5			5			4			—			—			4			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			694			628			713

(1)The number of shares and per share amounts for 1Q 2004 and YTD 4Q 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			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Revenues
Premiums	$	3,339		$	5,154		$	5,269		$	5,276		$	5,119		$	5,109		$	4,977		$	5,136		$	19,038		$	20,341
Net investment income (1)	619			642			667			735			765			775			812			813			2,663			3,165
Fee income	172			171			186			177			171			165			169			159			706			664
Net realized investment gains (losses)	(42		)	55			(49		)	(3		)	—			(55		)	39			33			(39		)	17
Other revenues	39			38			56			43			50			43			45			40			176			178
Total revenues	4,127			6,060			6,129			6,228			6,105			6,037			6,042			6,181			22,544			24,365
Claims and expenses
Claims and claim adjustment expenses	2,281			4,869			4,086			4,203			3,223			3,101			4,361			4,242			15,439			14,927
Amortization of deferred acquisition costs	526			805			820			827			810			783			830			829			2,978			3,252
General and administrative expenses	467			864			792			822			813			789			789			838			2,945			3,229
Interest expense	36			63			67			70			71			70			70			75			236			286
Total claims and expenses	3,310			6,601			5,765			5,922			4,917			4,743			6,050			5,984			21,598			21,694
Income (loss) before income taxes and minority interest	817			(541		)	364			306			1,188			1,294			(8		)	197			946			2,671
Income taxes	227			(239		)	48			33			311			363			(83		)	19			69			610
Minority interest, net of tax	3			—			5			2			—			—			—			—			10			—
Income (loss) from continuing operations	587			(302		)	311			271			877			931			75			178			867			2,061
Discontinued operations:
Operating income (loss), net of taxes	—			27			29			32			(665		)	—			2			—			88			(663		)
Gain on disposal, net of taxes	—			—			—			—			—			138			85			1			—			224
Income (loss) from discontinued operations (2)	—			27			29			32			(665		)	138			87			1			88			(439		)
Net income (loss)	$	587		$	(275	)	$	340		$	303		$	212		$	1,069		$	162		$	179		$	955		$	1,622
Other statistics:
Effective tax rate on net investment income	26.6		%	23.7		%	23.0		%	23.4		%	23.9		%	22.8		%	23.0		%	22.3		%	24.2		%	23.0		%
Net investment income (after-tax)	$	454		$	490		$	514		$	562		$	583		$	598		$	625		$	632		$	2,020		$	2,438
Catastrophes, net of reinsurance:
Pre-tax	$	20		$	24		$	612		$	116		$	31		$	11		$	1,524		$	623		$	772		$	2,189
After-tax	$	13		$	16		$	402		$	80		$	20		$	8		$	1,009		$	435		$	511		$	1,472

(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			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Underwriting gain (loss)	$	160		$	(789	)	$	(155	)	$	(263	)	$	291		$	383		$	(555	)	$	(463	)	$	(1,047	)	$	(344	)
Net investment income	454			490			514			562			583			598			625			632			2,020			2,438
Other, including interest expense (1)	—			(38		)	(16		)	(24		)	(15		)	(15		)	(20		)	(18		)	(78		)	(68		)
Operating income (loss)	614			(337		)	343			275			859			966			50			151			895			2,026
Net realized investment gains (losses)	(27		)	35			(32		)	(4		)	18			(35		)	25			27			(28		)	35
Discontinued operations	—			27			29			32			(665		)	138			87			1			88			(439		)
Net income (loss)	$	587		$	(275	)	$	340		$	303		$	212		$	1,069		$	162		$	179		$	955		$	1,622
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		%	81.0		%	79.4		%	71.9		%
Underwriting expense ratio	26.1		%	29.6		%	28.0		%	28.9		%	29.2		%	28.2		%	29.9		%	30.1		%	28.3		%	29.4		%
Combined ratio	91.9		%	122.7		%	103.8		%	107.1		%	90.5		%	87.6		%	116.2		%	111.1		%	107.7		%	101.3		%
Impact of catastrophes on combined ratio	0.6		%	0.5		%	11.6		%	2.1		%	0.6		%	0.2		%	30.3		%	12.1		%	4.0		%	10.7		%
Impact of prior year reserve development on combined ratio	1.3		%	27.1		%	1.6		%	16.5		%	-1.1		%	-1.5		%	-2.0		%	10.9		%	12.6		%	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		4Q		4Q		4Q
	2004		2004		2004		2004		2005		2005		2005		2005		2004		2005
Billing and policy fees	$	23	$	26	$	26	$	26	$	29	$	26	$	26	$	25	$	101	$	106
Fee income:
Loss and loss adjustment expenses	$	76	$	82	$	87	$	87	$	76	$	63	$	72	$	66	$	332	$	277
Other underwriting expenses	96		89		99		90		95		102		97		93		374		387
Total fee income	$	172	$	171	$	186	$	177	$	171	$	165	$	169	$	159	$	706	$	664

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			4Q		4Q		4Q
	2004		2004			2004		2004		2005		2005		2005			2005		2004		2005
Revenues
Premiums	$	3,339	$	5,154		$	5,269	$	5,276	$	5,119	$	5,109	$	4,977		$	5,136	$	19,038	$	20,341
Net investment income	619		642			667		735		765		775		812			813		2,663		3,165
Fee income	172		171			186		177		171		165		169			159		706		664
Other revenues	39		38			56		43		50		43		45			40		176		178
Total revenues	4,169		6,005			6,178		6,231		6,105		6,092		6,003			6,148		22,583		24,348
Claims and expenses
Claims and claim adjustment expenses	2,281		4,869			4,086		4,203		3,223		3,101		4,361			4,242		15,439		14,927
Amortization of deferred acquisition costs	526		805			820		827		810		783		830			829		2,978		3,252
General and administrative expenses	467		864			792		822		813		789		789			838		2,945		3,229
Interest expense	36		63			67		70		71		70		70			75		236		286
Total claims and expenses	3,310		6,601			5,765		5,922		4,917		4,743		6,050			5,984		21,598		21,694
Operating income (loss) before income taxes and minority interest	859		(596		)	413		309		1,188		1,349		(47		)	164		985		2,654
Income taxes	242		(259		)	65		32		329		383		(97		)	13		80		628
Minority interest, net of tax	3		—			5		2		—		—		—			—		10		—
Operating income (loss)	$	614	$	(337	)	$	343	$	275	$	859	$	966	$	50		$	151	$	895	$	2,026

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			4Q			4Q			4Q
	2004		2004			2004			2004			2005			2005			2005			2005			2004			2005
Statutory underwriting
Gross written premiums	$	4,010	$	6,142		$	6,129		$	5,977		$	5,920		$	5,909		$	6,030		$	5,877		$	22,258		$	23,736
Net written premiums	$	3,400	$	5,256		$	5,154		$	5,201		$	4,780		$	5,216		$	5,096		$	5,294		$	19,011		$	20,386
Net earned premiums	$	3,339	$	5,161		$	5,269		$	5,276		$	5,119		$	5,109		$	4,977		$	5,136		$	19,045		$	20,341
Losses and loss adjustment expenses	2,209		4,818			4,040			4,139			3,127			3,033			4,334			4,288			15,206			14,782
Underwriting expenses	903		1,603			1,420			1,406			1,435			1,461			1,437			1,507			5,332			5,840
Statutory underwriting gain (loss)	227		(1,260		)	(191		)	(269		)	557			615			(794		)	(659		)	(1,493		)	(281		)
Policyholder dividends	6		(10		)	7			(9		)	7			6			(5		)	14			(6		)	22
Statutory underwriting gain (loss) after policyholder dividends	$	221	$	(1,250	)	$	(198	)	$	(260	)	$	550		$	609		$	(789	)	$	(673	)	$	(1,487	)	$	(303	)
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	24,284	$	40,039		$	41,090		$	41,728		$	41,637		$	41,357		$	42,733		$	43,191		$	41,728		$	43,191
Increase (decrease) in reserves (1)	$	255	$	15,755		$	1,051		$	638		$	(91	)	$	(280	)	$	1,376		$	458		$	17,699		$	1,463
Statutory surplus	$	8,788	$	13,955		$	14,379		$	15,112		$	15,441		$	16,137		$	17,738		$	18,002		$	15,112		$	18,002
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			1.13:1			1.38:1			1.13:1

(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, 3Q and 4Q 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			4Q			4Q			4Q
As reported	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Written premiums
Direct	$	3,923		$	5,905		$	5,850		$	5,735		$	5,538		$	5,814		$	5,704		$	5,685		$	21,413		$	22,741
Assumed	87			237			279			242			382			95			326			192			845			995
Gross	4,010			6,142			6,129			5,977			5,920			5,909			6,030			5,877			22,258			23,736
Ceded	(610		)	(886		)	(975		)	(776		)	(1,140		)	(693		)	(934		)	(583		)	(3,247		)	(3,350		)
Net	$	3,400		$	5,256		$	5,154		$	5,201		$	4,780		$	5,216		$	5,096		$	5,294		$	19,011		$	20,386
Earned premiums
Direct	$	3,758		$	5,909		$	5,971		$	5,913		$	5,732		$	5,720		$	5,680		$	5,661		$	21,551		$	22,793
Assumed	102			332			264			309			291			235			289			264			1,007			1,079
Gross	3,860			6,241			6,235			6,222			6,023			5,955			5,969			5,925			22,558			23,872
Ceded	(521		)	(1,087		)	(966		)	(946		)	(904		)	(846		)	(992		)	(789		)	(3,520		)	(3,531		)
Net	$	3,339		$	5,154		$	5,269		$	5,276		$	5,119		$	5,109		$	4,977		$	5,136		$	19,038		$	20,341

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
Proforma	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Written premiums
Direct	$	5,967		$	5,905		$	5,850		$	5,735		$	5,538		$	5,814		$	5,704		$	5,685		$	23,457		$	22,741
Assumed	287			237			279			242			382			95			326			192			1,045			995
Gross	6,254			6,142			6,129			5,977			5,920			5,909			6,030			5,877			24,502			23,736
Ceded	(1,030		)	(886		)	(975		)	(776		)	(1,140		)	(693		)	(934		)	(583		)	(3,667		)	(3,350		)
Net	$	5,224		$	5,256		$	5,154		$	5,201		$	4,780		$	5,216		$	5,096		$	5,294		$	20,835		$	20,386
Earned premiums
Direct	$	5,848		$	5,909		$	5,971		$	5,913		$	5,732		$	5,720		$	5,680		$	5,661		$	23,641		$	22,793
Assumed	257			332			264			309			291			235			289			264			1,162			1,079
Gross	6,105			6,241			6,235			6,222			6,023			5,955			5,969			5,925			24,803			23,872
Ceded	(981		)	(1,087		)	(966		)	(946		)	(904		)	(846		)	(992		)	(789		)	(3,980		)	(3,531		)
Net	$	5,124		$	5,154		$	5,269		$	5,276		$	5,119		$	5,109		$	4,977		$	5,136		$	20,823		$	20,341

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			4Q			4Q		4Q
	2004		2004		2004		2004			2005		2005		2005			2005			2004		2005
Revenues
Premiums	$	1,731	$	2,411	$	2,364	$	2,310		$	2,204	$	2,164	$	2,078		$	2,128		$	8,816	$	8,574
Net investment income	423		419		424		462			480		498		483			483			1,728		1,944
Fee income	168		164		178		170			163		156		160			150			680		629
Other revenues	14		12		23		6			15		13		19			8			55		55
Total revenues	2,336		3,006		2,989		2,948			2,862		2,831		2,740			2,769			11,279		11,202
Claims and expenses
Claims and claim adjustment expenses	1,198		1,789		1,986		2,551			1,522		1,397		2,112			2,417			7,524		7,448
Amortization of deferred acquisition costs	254		335		330		326			317		306		320			309			1,245		1,252
General and administrative expenses	287		455		419		417			419		397		419			419			1,578		1,654
Interest expense	1		1		1		—			—		1		—			1			3		2
Total claims and expenses	1,740		2,580		2,736		3,294			2,258		2,101		2,851			3,146			10,350		10,356
Operating income (loss) before federal income taxes and minority interest	596		426		253		(346		)	604		730		(111		)	(377		)	929		846
Income taxes	163		109		24		(164		)	156		200		(97		)	(169		)	132		90
Minority interest, net of tax	3		1		5		2			—		—		—			—			11		—
Operating income (loss)	$	430	$	316	$	224	$	(184	)	$	448	$	530	$	(14	)	$	(208	)	$	786	$	756

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			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Underwriting gain (loss)	$	109		$	(15	)	$	(114	)	$	(542	)	$	71		$	137		$	(401	)	$	(592	)	$	(562	)	$	(785	)
Net investment income	314			324			327			356			367			385			375			378			1,321			1,505
Other, including minority interest	7			7			11			2			10			8			12			6			27			36
Operating income (loss)	$	430		$	316		$	224		$	(184	)	$	448		$	530		$	(14	)	$	(208	)	$	786		$	756
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		%	110.2		%	81.8		%	83.6		%
Underwriting expense ratio	25.9		%	29.0		%	27.5		%	28.2		%	29.1		%	27.8		%	31.0		%	30.0		%	27.8		%	29.5		%
Combined ratio	90.4		%	100.6		%	107.9		%	135.1		%	94.4		%	89.5		%	129.7		%	140.2		%	109.6		%	113.1		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	12.1		%	3.4		%	0.0		%	0.0		%	41.4		%	17.5		%	4.1		%	14.4		%
Impact of prior year reserve development on combined ratio	-0.3		%	8.9		%	4.9		%	44.1		%	0.3		%	-0.5		%	-0.3		%	33.1		%	15.3		%	8.1		%

(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		4Q		4Q		4Q
	2004		2004		2004		2004		2005		2005		2005		2005		2004		2005
Billing and policy fees	$	2	$	4	$	3	$	4	$	4	$	2	$	4	$	2	$	13	$	12
Fee income:
Loss and loss adjustment expenses	$	77	$	77	$	83	$	83	$	72	$	59	$	68	$	62	$	320	$	261
Other underwriting expenses	91		87		95		87		91		97		92		88		360		368
Total fee income	$	168	$	164	$	178	$	170	$	163	$	156	$	160	$	150	$	680	$	629

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			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Statutory underwriting
Gross written premiums	$	2,213		$	2,799		$	2,854		$	2,770		$	2,751		$	2,481		$	2,644		$	2,550		$	10,636		$	10,426
Net written premiums	$	1,765		$	2,234		$	2,131		$	2,181		$	2,192		$	2,047		$	1,989		$	2,201		$	8,311		$	8,429
Net earned premiums	$	1,731		$	2,411		$	2,364		$	2,310		$	2,204		$	2,164		$	2,078		$	2,128		$	8,816		$	8,574
Losses and loss adjustment expenses	1,126			1,735			1,924			2,479			1,426			1,332			2,065			2,430			7,264			7,253
Underwriting expenses	443			696			589			573			607			565			572			624			2,301			2,368
Statutory underwriting gain (loss)	162			(20		)	(149		)	(742		)	171			267			(559		)	(926		)	(749		)	(1,047		)
Policyholder dividends	5			(15		)	3			(1		)	10			4			(7		)	10			(8		)	17
Statutory underwriting gain (loss) after policyholder dividends	$	157		$	(5	)	$	(152	)	$	(741	)	$	161		$	263		$	(552	)	$	(936	)	$	(741	)	$	(1,064	)
Other statistics
Effective tax rate on net investment income	25.7		%	23.4		%	22.6		%	23.0		%	23.6		%	22.7		%	22.3		%	21.8		%	23.7		%	22.6		%
Net investment income (after-tax)	$	314		$	324		$	327		$	356		$	367		$	385		$	375		$	378		$	1,321		$	1,505
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	286		$	77		$	—		$	—		$	867		$	373		$	363		$	1,240
After-tax	$	—		$	—		$	185		$	50		$	—		$	—		$	563		$	243		$	235		$	806

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		4Q		4Q		4Q
	2004		2004		2004		2004		2005		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	$	1,169	$	4,210	$	4,386
Select accounts	531		709		653		662		684		719		652		667		2,555		2,722
National accounts	240		241		290		269		341		238		298		353		1,040		1,230
Total core	1,619		2,066		2,018		2,102		2,152		2,025		1,972		2,189		7,805		8,338
Commercial other	146		168		113		79		40		22		17		12		506		91
Total	$	1,765	$	2,234	$	2,131	$	2,181	$	2,192	$	2,047	$	1,989	$	2,201	$	8,311	$	8,429
Net written premiums by product line
Commercial multi-peril	$	606	$	610	$	618	$	683	$	733	$	681	$	681	$	795	$	2,517	$	2,890
Workers’ compensation	350		374		403		403		464		367		378		451		1,530		1,660
Commercial automobile	326		441		420		422		419		423		408		410		1,609		1,660
Property	298		425		378		371		379		359		310		351		1,472		1,399
General liability	182		362		302		284		185		205		195		189		1,130		774
Other	3		22		10		18		12		12		17		5		53		46
Total	$	1,765	$	2,234	$	2,131	$	2,181	$	2,192	$	2,047	$	1,989	$	2,201	$	8,311	$	8,429
National accounts
Additions to claim volume under administration (1)	$	1,309	$	707	$	644	$	740	$	1,042	$	838	$	691	$	683	$	3,400	$	3,254
Written fees	$	214	$	159	$	142	$	146	$	173	$	148	$	130	$	123	$	661	$	574

(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		4Q		4Q		4Q
	2004		2004		2004		2004		2005		2005		2005		2005		2004		2005
Gross written premiums	$	3,119	$	2,799	$	2,854	$	2,770	$	2,751	$	2,481	$	2,644	$	2,550	$	11,542	$	10,426
Net written premiums by market
Commercial accounts	$	1,280	$	1,116	$	1,075	$	1,171	$	1,127	$	1,068	$	1,022	$	1,169	$	4,642	$	4,386
Select accounts	708		709		653		662		684		719		652		667		2,732		2,722
National accounts	352		241		290		269		341		238		298		353		1,152		1,230
Total core	2,340		2,066		2,018		2,102		2,152		2,025		1,972		2,189		8,526		8,338
Commercial other	166		168		113		79		40		22		17		12		526		91
Total	2,506		$	2,234	$	2,131	$	2,181	$	2,192	$	2,047	$	1,989	$	2,201	9,052		$	8,429
Less: Pre-merger St. Paul	741																741
Total Commercial excluding pre-merger St. Paul	$	1,765															$	8,311
Net written premiums by product line
Commercial multi-peril	$	669	$	610	$	618	$	683	$	733	$	681	$	681	$	795	$	2,580	$	2,890
Workers’ compensation	489		374		403		403		464		367		378		451		1,669		1,660
Commercial automobile	459		441		420		422		419		423		408		410		1,742		1,660
Property	516		425		378		371		379		359		310		351		1,690		1,399
General liability	350		362		302		284		185		205		195		189		1,298		774
Other	23		22		10		18		12		12		17		5		73		46
Total	$	2,506	$	2,234	$	2,131	$	2,181	$	2,192	$	2,047	$	1,989	$	2,201	$	9,052	$	8,429
National accounts
Additions to claim volume under administration (1)	$	1,309	$	707	$	644	$	740	$	1,042	$	838	$	691	$	683	$	3,400	$	3,254
Written fees	$	218	$	159	$	142	$	146	$	173	$	148	$	130	$	123	$	665	$	574
Less: Pre-merger St. Paul	4																4
Total written fees excluding pre-merger St. Paul	$	214															$	661

(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		4Q		4Q			4Q
	2004			2004			2004		2004		2005		2005		2005		2005		2004			2005
Revenues
Premiums	$	311		$	1,375		$	1,466	$	1,490	$	1,456	$	1,449	$	1,388	$	1,446	$	4,642		$	5,739
Net investment income	51			129			149		158		170		173		204		210		487			757
Fee income	4			7			8		7		8		9		9		9		26			35
Other revenues	2			3			7		10		12		8		2		7		22			29
Total revenues	368			1,514			1,630		1,665		1,646		1,639		1,603		1,672		5,177			6,560
Claims and expenses
Claims and claim adjustment expenses	304			2,247			1,100		1,009		936		875		973		944		4,660			3,728
Amortization of deferred acquisition costs	56			242			245		249		240		224		243		245		792			952
General and administrative expenses	58			249			233		239		233		230		203		227		779			893
Total claims and expenses	418			2,738			1,578		1,497		1,409		1,329		1,419		1,416		6,231			5,573
Operating income (loss) before federal income taxes	(50		)	(1,224		)	52		168		237		310		184		256		(1,054		)	987
Income taxes	(22		)	(434		)	14		36		64		89		54		101		(406		)	308
Operating income (loss)	$	(28	)	$	(790	)	$	38	$	132	$	173	$	221	$	130	$	155	$	(648	)	$	679

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			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Underwriting gain (loss)	$	(68	)	$	(887	)	$	(82	)	$	1		$	34		$	82		$	(26	)	$	(11	)	$	(1,036	)	$	79
Net investment income	38			95			113			120			129			133			155			161			366			578
Other	2			2			7			11			10			6			1			5			22			22
Operating income (loss)	$	(28	)	$	(790	)	$	38		$	132		$	173		$	221		$	130		$	155		$	(648	)	$	679
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		%	64.7		%	100.1		%	64.6		%
Underwriting expense ratio	35.2		%	35.5		%	32.2		%	32.6		%	32.0		%	31.0		%	31.7		%	32.4		%	33.5		%	31.8		%
Combined ratio	132.9		%	198.3		%	106.7		%	100.5		%	96.3		%	90.9		%	101.4		%	97.1		%	133.6		%	96.4		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	12.5		%	2.4		%	1.3		%	0.0		%	11.9		%	11.6		%	4.7		%	6.1		%
Impact of prior year reserve development on combined ratio	48.2		%	93.4		%	0.2		%	–0.7		%	3.6		%	1.1		%	–0.9		%	–4.4		%	30.8		%	–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			4Q		4Q		4Q
	2004			2004		2004		2004		2005		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		$	4	$	12	$	16
Other underwriting expenses	5			2		4		3		4		5		5			5		14		19
Total fee income	$	4		$	7	$	8	$	7	$	8	$	9	$	9		$	9	$	26	$	35

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			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Statutory underwriting
Gross written premiums	$	398		$	1,743		$	1,640		$	1,730		$	1,691		$	1,758		$	1,654		$	1,733		$	5,511		$	6,836
Net written premiums	$	269		$	1,463		$	1,451		$	1,588		$	1,154		$	1,545		$	1,480		$	1,550		$	4,771		$	5,729
Net earned premiums	$	311		$	1,382		$	1,466		$	1,490		$	1,456		$	1,449		$	1,388		$	1,446		$	4,649		$	5,739
Losses and loss adjustment expenses	304			2,254			1,113			1,016			936			872			994			976			4,687			3,778
Underwriting expenses	114			510			426			437			426			453			413			428			1,487			1,720
Statutory underwriting gain (loss)	(107		)	(1,382		)	(73		)	37			94			124			(19		)	42			(1,525		)	241
Policyholder dividends	1			5			4			(8		)	(3		)	2			2			4			2			5
Statutory underwriting gain (loss) after policyholder dividends	$	(108	)	$	(1,387	)	$	(77	)	$	45		$	97		$	122		$	(21	)	$	38		$	(1,527	)	$	236
Other statistics
Effective tax rate on net investment income	25.2		%	25.8		%	24.6		%	23.9		%	23.9		%	23.4		%	23.7		%	23.3		%	24.8		%	23.6		%
Net investment income (after-tax)	$	38		$	95		$	113		$	120		$	129		$	133		$	155		$	161		$	366		$	578
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	184		$	36		$	19		$	—		$	169		$	168		$	220		$	356
After-tax	$	—		$	—		$	125		$	28		$	13		$	—		$	129		$	139		$	153		$	281

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		4Q		4Q		4Q
	2004		2004		2004		2004		2005		2005		2005		2005		2004		2005
Net written premiums by market
Construction	$	126	$	274	$	194	$	250	$	250	$	261	$	179	$	226	$	844	$	916
Bond	142		304		378		359		163		368		391		345		1,183		1,267
Financial & Professional Services	—		184		221		231		120		232		247		251		636		850
Other	—		341		416		429		357		388		440		420		1,186		1,605
Total Domestic Specialty	268		1,103		1,209		1,269		890		1,249		1,257		1,242		3,849		4,638
International Specialty	1		360		242		319		264		296		223		308		922		1,091
Total	$	269	$	1,463	$	1,451	$	1,588	$	1,154	$	1,545	$	1,480	$	1,550	$	4,771	$	5,729
Net written premiums by product line
Workers’ compensation	$	28	$	119	$	103	$	124	$	119	$	124	$	79	$	117	$	374	$	439
Commercial automobile	30		113		120		125		92		95		94		91		388		372
Property	5		88		107		101		136		141		142		158		301		577
General liability	71		462		466		536		375		579		575		575		1,535		2,104
Fidelity & Surety	91		241		327		308		130		296		320		280		967		1,026
Commercial multi-peril	43		80		86		75		38		14		47		21		284		120
International	1		360		242		319		264		296		223		308		922		1,091
Total	$	269	$	1,463	$	1,451	$	1,588	$	1,154	$	1,545	$	1,480	$	1,550	$	4,771	$	5,729

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		4Q		4Q		4Q
	2004		2004		2004		2004		2005		2005		2005		2005		2004		2005
Gross written premiums	$	1,736	$	1,743	$	1,640	$	1,730	$	1,691	$	1,758	$	1,654	$	1,733	$	6,849	$	6,836
Net written premiums by market
Construction	$	325	$	274	$	194	$	250	$	250	$	261	$	179	$	226	$	1,043	$	916
Bond	167		304		378		359		163		368		391		345		1,208		1,267
Financial & Professional Services	163		184		221		231		120		232		247		251		799		850
Other	402		341		416		429		357		388		440		420		1,588		1,605
Total Domestic Specialty	1,057		1,103		1,209		1,269		890		1,249		1,257		1,242		4,638		4,638
International Specialty	295		360		242		319		264		296		223		308		1,216		1,091
Total	1,352		$	1,463	$	1,451	$	1,588	$	1,154	$	1,545	$	1,480	$	1,550	5,854		$	5,729
Less: Pre-merger St. Paul	1,083																1,083
Total Specialty excluding pre-merger St. Paul	$	269															$	4,771
Net written premiums by product line
Workers’ compensation	$	141	$	119	$	103	$	124	$	119	$	124	$	79	$	117	$	487	$	439
Commercial automobile	146		113		120		125		92		95		94		91		504		372
Property	101		88		107		101		136		141		142		158		397		577
General liability	450		462		466		536		375		579		575		575		1,914		2,104
Fidelity & Surety	132		241		327		308		130		296		320		280		1,008		1,026
Commercial multi-peril	87		80		86		75		38		14		47		21		328		120
International	295		360		242		319		264		296		223		308		1,216		1,091
Total	$	1,352	$	1,463	$	1,451	$	1,588	$	1,154	$	1,545	$	1,480	$	1,550	$	5,854	$	5,729

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			4Q		4Q		4Q
	2004		2004		2004		2004		2005		2005		2005			2005		2004		2005
Revenues
Premiums	$	1,297	$	1,368	$	1,439	$	1,476	$	1,459	$	1,496	$	1,511		$	1,562	$	5,580	$	6,028
Net investment income	145		93		92		112		109		116		112			120		442		457
Other revenues	23		21		22		25		24		23		24			25		91		96
Total revenues	1,465		1,482		1,553		1,613		1,592		1,635		1,647			1,707		6,113		6,581
Claims and expenses
Claims and claim adjustment expenses	779		833		1,000		643		765		829		1,276			881		3,255		3,751
Amortization of deferred acquisition costs	216		228		245		252		253		253		267			275		941		1,048
General and administrative expenses	119		132		129		156		154		162		162			187		536		665
Total claims and expenses	1,114		1,193		1,374		1,051		1,172		1,244		1,705			1,343		4,732		5,464
Operating income before federal income taxes	351		289		179		562		420		391		(58		)	364		1,381		1,117
Income taxes	114		92		52		184		135		125		(33		)	115		442		342
Operating income	$	237	$	197	$	127	$	378	$	285	$	266	$	(25	)	$	249	$	939	$	775

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			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Underwriting gain	$	119		$	113		$	41		$	278		$	186		$	164		$	(127	)	$	140		$	551		$	363
Net investment income	102			70			72			85			83			88			86			92			329			349
Other	16			14			14			15			16			14			16			17			59			63
Operating income	$	237		$	197		$	127		$	378		$	285		$	266		$	(25	)	$	249		$	939		$	775
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	60.1		%	60.9		%	69.5		%	43.6		%	52.4		%	55.4		%	84.5		%	56.4		%	58.3		%	62.2		%
Underwriting expense ratio	24.2		%	24.7		%	24.5		%	26.1		%	26.3		%	26.2		%	26.8		%	28.1		%	24.9		%	26.9		%
Combined ratio	84.3		%	85.6		%	94.0		%	69.7		%	78.7		%	81.6		%	111.3		%	84.5		%	83.2		%	89.1		%
Impact of catastrophes on combined ratio	1.5		%	1.8		%	9.9		%	0.2		%	0.8		%	0.7		%	32.1		%	5.2		%	3.4		%	9.8		%
Impact of prior year reserve development on combined ratio	-7.8		%	-7.3		%	-2.6		%	-9.5		%	-7.8		%	-5.4		%	-5.5		%	-5.3		%	-6.8		%	-6.0		%

(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		4Q		4Q		4Q
	2004		2004		2004		2004		2005		2005		2005		2005		2004		2005
Billing and policy fees	$	21	$	22	$	23	$	22	$	23	$	23	$	23	$	23	$	88	$	92

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)

	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			YTD 4Q			YTD 4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Statutory underwriting
Gross written premiums	$	1,399		$	1,600		$	1,635		$	1,477		$	1,478		$	1,670		$	1,732		$	1,594		$	6,111		$	6,474
Net written premiums	$	1,366		$	1,559		$	1,572		$	1,432		$	1,434		$	1,624		$	1,627		$	1,543		$	5,929		$	6,228
Net earned premiums	$	1,297		$	1,368		$	1,439		$	1,476		$	1,459		$	1,496		$	1,511		$	1,562		$	5,580		$	6,028
Losses and loss adjustment expenses	779			829			1,003			644			765			829			1,275			882			3,255			3,751
Underwriting expenses	346			397			405			396			402			443			452			455			1,544			1,752
Statutory underwriting gain (loss)	$	172		$	142		$	31		$	436		$	292		$	224		$	(216	)	$	225		$	781		$	525
Other statistics
Effective tax rate on net investment income	29.6		%	24.2		%	22.6		%	23.7		%	24.2		%	24.0		%	22.9		%	22.8		%	25.6		%	23.5		%
Net investment income (after-tax)	$	102		$	70		$	72		$	85		$	83		$	88		$	86		$	92		$	329		$	349
Catastrophes, net of reinsurance:
Pre-tax	$	20		$	24		$	142		$	3		$	12		$	11		$	488		$	82		$	189		$	593
After-tax	$	13		$	16		$	92		$	2		$	7		$	8		$	317		$	53		$	123		$	385
Policies in force (in thousands)
Automobile	2,157			2,234			2,260			2,264			2,270			2,281			2,307			2,347			2,264			2,347
Homeowners and other	3,617			3,776			3,916			4,011			4,038			4,090			4,150			4,219			4,011			4,219

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)

	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			YTD 4Q			YTD 4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Statutory underwriting
Gross written premiums	$	854		$	900		$	897		$	819		$	870		$	888		$	910		$	858		$	3,470		$	3,526
Net written premiums	$	847		$	893		$	884		$	809		$	854		$	878		$	897		$	848		$	3,433		$	3,477
Net earned premiums	$	782		$	825		$	851		$	862		$	840		$	851		$	864		$	873		$	3,320		$	3,428
Losses and loss adjustment expenses	577			596			617			468			505			542			525			564			2,258			2,136
Underwriting expenses	199			205			207			206			213			222			224			217			817			876
Statutory underwriting gain (loss)	$	6		$	24		$	27		$	188		$	122		$	87		$	115		$	92		$	245		$	416
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	73.7		%	72.7		%	72.1		%	54.3		%	60.1		%	63.6		%	60.9		%	64.5		%	68.0		%	62.3		%
Underwriting expense ratio	22.7		%	22.4		%	22.3		%	24.0		%	23.5		%	24.0		%	23.9		%	24.0		%	22.8		%	23.8		%
Combined ratio	96.4		%	95.1		%	94.4		%	78.3		%	83.6		%	87.6		%	84.8		%	88.5		%	90.8		%	86.1		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	0.6		%	0.3		%	0.0		%	0.0		%	1.2		%	0.9		%	0.2		%	0.5		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	—		$	5		$	3		$	—		$	—		$	11		$	7		$	8		$	18
After-tax	$	—		$	—		$	3		$	2		$	—		$	—		$	7		$	5		$	5		$	12
Policies in force (in thousands)	2,157			2,234			2,260			2,264			2,270			2,281			2,307			2,347
Change from prior year quarter	8.1		%	10.8		%	10.5		%	9.4		%	5.2		%	2.1		%	2.1		%	3.7		%
Change from prior quarter	4.3		%	3.6		%	1.2		%	0.2		%	0.3		%	0.5		%	1.1		%	1.7		%

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

	1Q 2004		2Q 2004		3Q 2004		4Q 2004		1Q 2005		2Q 2005		3Q 2005		4Q 2005		YTD 4Q 2004		YTD 4Q 2005
Billing and policy fees	$	14	$	14	$	15	$	14	$	15	$	14	$	15	$	14	$	57	$	58

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)

	1Q 2004			2Q 2004			3Q 2004			4Q 2004			1Q 2005			2Q 2005			3Q 2005			4Q 2005			YTD 4Q 2004			YTD 4Q 2005
Statutory underwriting
Gross written premiums	$	545		$	700		$	738		$	658		$	608		$	782		$	822		$	736		$	2,641		$	2,948
Net written premiums	$	519		$	666		$	688		$	623		$	580		$	746		$	730		$	695		$	2,496		$	2,751
Net earned premiums	$	515		$	543		$	588		$	614		$	619		$	645		$	647		$	689		$	2,260		$	2,600
Losses and loss adjustment expenses	202			233			386			176			260			287			750			318			997			1,615
Underwriting expenses	147			192			198			190			189			221			228			238			727			876
Statutory underwriting gain (loss)	$	166		$	118		$	4		$	248		$	170		$	137		$	(331	)	$	133		$	536		$	109
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	39.2		%	42.9		%	65.7		%	28.6		%	42.0		%	44.5		%	115.8		%	46.2		%	44.1		%	62.1		%
Underwriting expense ratio	26.6		%	28.2		%	27.7		%	29.0		%	30.1		%	29.2		%	30.8		%	33.3		%	27.9		%	30.9		%
Combined ratio	65.8		%	71.1		%	93.4		%	57.6		%	72.1		%	73.7		%	146.6		%	79.5		%	72.0		%	93.0		%
Impact of catastrophes on combined ratio	3.9		%	4.4		%	23.3		%	0.0		%	1.9		%	1.7		%	73.8		%	10.7		%	8.0		%	22.1		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	20		$	24		$	137		$	—		$	12		$	11		$	477		$	75		$	181		$	575
After-tax	$	13		$	16		$	89		$	—		$	7		$	8		$	310		$	48		$	118		$	373
Policies in force (in thousands)	3,617			3,776			3,916			4,011			4,038			4,090			4,150			4,219
Change from prior year quarter	9.4		%	12.3		%	14.2		%	14.9		%	11.6		%	8.3		%	6.0		%	5.2		%
Change from prior quarter	3.6		%	4.4		%	3.7		%	2.4		%	0.7		%	1.3		%	1.5		%	1.7		%

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

	1Q 2004		2Q 2004		3Q 2004		4Q 2004		1Q 2005		2Q 2005		3Q 2005		4Q 2005		YTD 4Q 2004		YTD 4Q 2005
Billing and policy fees	$	7	$	8	$	8	$	8	$	8	$	9	$	8	$	9	$	31	$	34

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)

	1Q 2004			2Q 2004			3Q 2004			4Q 2004			1Q 2005			2Q 2005			3Q 2005			4Q 2005			YTD 4Q 2004			YTD 4Q 2005
Revenues
Net investment income	$	—		$	1		$	2		$	3		$	6		$	(12	)	$	13		$	—		$	6		$	7
Other revenues	—			2			4			2			(1		)	(1		)	—			—			8			(2		)
Total revenues	—			3			6			5			5			(13		)	13			—			14			5
Claims and expenses
Interest expense	35			62			66			70			71			69			70			74			233			284
General and administrative expenses	3			28			11			10			7			—			5			5			52			17
Total claims and expenses	38			90			77			80			78			69			75			79			285			301
Operating loss before federal income tax benefit	(38		)	(87		)	(71		)	(75		)	(73		)	(82		)	(62		)	(79		)	(271		)	(296		)
Income taxes	(13		)	(26		)	(25		)	(24		)	(26		)	(31		)	(21		)	(34		)	(88		)	(112		)
Minority Interest, net of tax	—			(1		)	—			—			—			—			—			—			(1		)	—
Operating loss	$	(25	)	$	(60	)	$	(46	)	$	(51	)	$	(47	)	$	(51	)	$	(41	)	$	(45	)	$	(182	)	$	(184	)

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)

	December 31, 2005 (1)		December 31, 2004
Assets
Fixed maturities, available for sale at fair value (including $2,667 and $2,603 subject to securities lending and repurchase agreements) (amortized cost $58,616 and $53,017)	$	58,983	$	54,269
Equity securities, at fair value (cost $538 and $687)	579		759
Real estate	752		773
Mortgage loans	145		191
Short-term securities	4,802		4,944
Other investments	3,026		3,432
Total investments	68,287		64,368
Cash	337		262
Investment income accrued	761		671
Premiums receivable	6,124		6,201
Reinsurance recoverables	19,574		19,054
Ceded unearned premiums	1,322		1,565
Deferred acquisition costs	1,527		1,559
Deferred tax asset	2,062		2,198
Contractholder receivables	5,516		5,629
Goodwill	3,442		3,564
Intangible assets	917		1,062
Net assets of discontinued operations (2)	—		2,041
Other assets	3,318		3,072
Total assets	$	113,187	$	111,246

	December 31, 2005 (1)			December 31, 2004
Liabilities
Claims and claim adjustment expense reserves	$	61,090		$	59,070
Unearned premium reserves	10,927			11,310
Contractholder payables	5,516			5,629
Payables for reinsurance premiums	720			896
Debt	5,850			6,313
Other liabilities	6,781			6,827
Total liabilities	90,884			90,045
Shareholders’ equity
Preferred stock:
Savings Plan - convertible preferred stock (0.5 and 0.6 shares issued and outstanding)	153			193
Guaranteed obligation - Stock Ownership Plan	—			(5		)
Common stock (1,750.0 shares authorized; 694.6 and 670.7 shares issued; 693.4 and 670.3 shares outstanding)	18,179			17,414
Retained earnings	3,750			2,744
Accumulated other changes in equity from nonowner sources	351			952
Treasury stock, at cost (1.2 and 0.4 shares)	(47		)	(14		)
Unearned compensation	(83		)	(83		)
Total shareholders’ equity	22,303			21,201
Total liabilities and shareholders’ equity	$	113,187		$	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)

	December 31, 2005		Pre-tax Book Yield	December 31, 2004		Pre-tax Book Yield
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	27,518	4.84%	$	27,686	4.78%
Tax-exempt fixed maturities	31,465		4.15%	26,583		4.14%
Total fixed maturities	58,983		4.48%	54,269		4.47%
Non-redeemable preferred stocks	422		6.79%	581		6.71%
Common stocks	157		N/A	178		N/A
Total equity securities	579		N/A	759		N/A
Mortgage loans	145		6.03%	191		8.25%
Real estate	752		N/A	773		N/A
Short-term securities	4,802		4.31%	4,944		2.23%
Private equities	1,506		N/A	1,707		N/A
Arbitrage funds	791		N/A	944		N/A
Real estate joint ventures & other	697		N/A	743		N/A
Trading securities	32		N/A	38		N/A
Total other investments	3,026		N/A	3,432		N/A
Total investments	$	68,287	4.48%	$	64,368	4.31%
Net unrealized gain on investment securities, net of tax, included in shareholders’ equity	$	327		$	866

25

The St. Paul Travelers Companies, Inc.

Investment Portfolio — Fixed Maturities Data

(at carrying value, $ in millions)

	December 31,		December 31,
	2005		2004
Fixed maturities
Mortgage-backed securities — principally obligations of U.S. Government agencies	$	7,943	$	8,678
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	3,444		3,033
Corporates (including redeemable preferreds)	14,187		13,856
Obligations of states and political subdivisions	31,823		26,841
Debt securities issued by foreign governments	1,586		1,861
Subtotal — Available-for-sale securities	58,983		54,269
Trading securities	4		15
Total fixed maturities	$	58,987	$	54,284

Fixed Maturities

Quality Characteristics (1)

	December 31, 2005
	Amount		% of Total
Quality Ratings
Aaa	$	38,477	65.2	%
Aa	11,099		18.8
A	4,469		7.6
Baa	3,186		5.4
Total investment grade	57,231		97.0
Ba	785		1.3
B	684		1.2
Caa and lower	283		0.5
Total below investment grade	1,752		3.0
Total fixed maturities, excluding trading securities	$	58,983	100.0	%
Trading securities	$	4
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			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Gross investment income
Fixed maturities	$	412		$	555		$	583		$	579		$	609		$	615		$	636		$	670		$	2,129		$	2,530
Short-term securities	9			12			21			27			30			37			56			59			69			182
Mortgage loans	4			14			4			3			4			4			14			1			25			23
Other (1)	249			67			69			161			139			145			125			94			546			503
	674			648			677			770			782			801			831			824			2,769			3,238
Investment expenses (1)	55			6			10			35			17			26			19			11			106			73
Net investment income, pre-tax	619			642			667			735			765			775			812			813			2,663			3,165
Income taxes	165			152			153			173			182			177			187			181			643			727
Net investment income, after-tax	$	454		$	490		$	514		$	562		$	583		$	598		$	625		$	632		$	2,020		$	2,438
Effective tax rate	26.6		%	23.7		%	23.0		%	23.4		%	23.9		%	22.8		%	23.0		%	22.3		%	24.2		%	23.0		%
Average invested assets (2)	$	37,097		$	59,292		$	61,274		$	62,892		$	64,218		$	65,765		$	67,630		$	69,135		$	55,139		$	66,695
Average yield pre-tax	6.7		%	4.3		%	4.4		%	4.7		%	4.8		%	4.7		%	4.8		%	4.7		%	4.8		%	4.7		%
Average yield after-tax	4.9		%	3.3		%	3.4		%	3.6		%	3.6		%	3.6		%	3.7		%	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, excludes net unrealized investment gains and losses, and is adjusted for receivables related to 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			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Net realized investment gains (losses)
Fixed maturities	$	12		$	38		$	11		$	2		$	14		$	(17	)	$	2		$	1		$	63		$	—
Equity securities	1			1			8			14			4			4			14			12			24			34
Other	(55		)	16			(68		)	(19		)	(18		)	(42		)	23			20			(126		)	(17		)
Realized investment gains (losses) before tax	(42		)	55			(49		)	(3		)	—			(55		)	39			33			(39		)	17
Related taxes	(15		)	20			(17		)	1			(18		)	(20		)	14			6			(11		)	(18		)
Net realized investment gains (losses)	$	(27	)	$	35		$	(32	)	$	(4	)	$	18		$	(35	)	$	25		$	27		$	(28	)	$	35
Gross investment gains (1)	$	135		$	371		$	185		$	326		$	203		$	212		$	196		$	177		$	1,017		$	788
Gross investment losses before impairments (1)	(166		)	(293		)	(206		)	(311		)	(194		)	(225		)	(123		)	(120		)	(976		)	(662		)
Impairments	(11		)	(23		)	(28		)	(18		)	(9		)	(42		)	(34		)	(24		)	(80		)	(109		)
Realized investment gains (losses) before tax	(42		)	55			(49		)	(3		)	—			(55		)	39			33			(39		)	17
Related taxes	(15		)	20			(17		)	1			(18		)	(20		)	14			6			(11		)	(18		)
Net realized investment gains (losses)	$	(27	)	$	35		$	(32	)	$	(4	)	$	18		$	(35	)	$	25		$	27		$	(28	)	$	35

	March 31,			June 30,		September 30,		December 31,		March 31,		June 30,		September 30,		December 31,
	2004			2004		2004		2004		2005		2005		2005		2005
Net unrealized investment gains (losses), by asset type
Fixed maturities	$	1,805		$	154	$	1,268	$	1,252	$	429	$	1,420	$	587	$	367
Equity securities & other	75			71		57		83		21		65		117		118
Unrealized investment gains before tax and minority interest	1,880			225		1,325		1,335		450		1,485		704		485
Related taxes	658			84		466		469		173		523		232		158
Minority interest, net of tax	(1		)	—		—		—		—		—		—		—
Balance, end of period	$	1,223		$	141	$	859	$	866	$	277	$	962	$	472	$	327

(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	$	75
Gross investment Treasury future losses	$	160	$	104	$	124	$	85	$	66	$	123	$	81	$	70

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)

	December 31,			December 31,
	2005			2004
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	14,177		$	13,367
Allowance for uncollectible reinsurance	(804		)	(751		)
Net reinsurance recoverables	13,373			12,616
Mandatory pools and associations	2,211			2,497
Structured settlements	3,990			3,941
Total reinsurance recoverables	$	19,574		$	19,054

The Company’s top five reinsurer groups, including retroactive reinsurance, by reinsurance recoverable at December 31, 2005 is as follows:

	December 31,		December 31,		A.M. Best Rating of Group’s
Reinsurer	2005		2004		Predominant Reinsurer
Munich Re Group	$	1,304	$	1,273	A third highest of 16 ratings
Swiss Re Group	912		774		A+ second highest of 16 ratings
GE Insurance Services Group	778		705		A third highest of 16 ratings
Berkshire Hathaway Group	764		888		A++ highest of 16 ratings
American International Group	754		682		A+ second highest of 16 ratings

The gross reinsurance recoverables 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			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Commercial
Beginning of period	$	18,791		$	18,847		$	27,981		$	28,408		$	29,021		$	28,772		$	28,352		$	28,911		$	18,791		$	29,021
Incurred	1,126			1,735			1,924			2,479			1,426			1,332			2,065			2,430			7,264			7,253
Paid	(1,070		)	(1,430		)	(1,498		)	(1,931		)	(1,705		)	(1,725		)	(1,484		)	(1,964		)	(5,929		)	(6,878		)
Acquired reserves, foreign exchange and other (1)	—			8,829			1			65			30			(27		)	(22		)	10			8,895			(9		)
End of period	$	18,847		$	27,981		$	28,408		$	29,021		$	28,772		$	28,352		$	28,911		$	29,387		$	29,021		$	29,387
Specialty
Beginning of period	$	2,020		$	2,204		$	8,723		$	9,129		$	9,373		$	9,582		$	9,686		$	10,069		$	2,020		$	9,373
Incurred	304			2,254			1,113			1,016			936			872			994			976			4,687			3,778
Paid	(120		)	(564		)	(644		)	(894		)	(694		)	(710		)	(642		)	(777		)	(2,222		)	(2,823		)
Acquired reserves, foreign exchange and other (1)	—			4,829			(63		)	122			(33		)	(58		)	31			(101		)	4,888			(161		)
End of period	$	2,204		$	8,723		$	9,129		$	9,373		$	9,582		$	9,686		$	10,069		$	10,167		$	9,373		$	10,167
Personal
Beginning of period	$	3,218		$	3,233		$	3,335		$	3,553		$	3,334		$	3,283		$	3,319		$	3,753		$	3,218		$	3,334
Incurred	779			829			1,003			644			765			829			1,275			882			3,255			3,751
Paid	(764		)	(752		)	(785		)	(863		)	(816		)	(793		)	(841		)	(998		)	(3,164		)	(3,448		)
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		$	3,637		$	3,334		$	3,637
Total
Beginning of period	$	24,029		$	24,284		$	40,039		$	41,090		$	41,728		$	41,637		$	41,357		$	42,733		$	24,029		$	41,728
Incurred	2,209			4,818			4,040			4,139			3,127			3,033			4,334			4,288			15,206			14,782
Paid	(1,954		)	(2,746		)	(2,927		)	(3,688		)	(3,215		)	(3,228		)	(2,967		)	(3,739		)	(11,315		)	(13,149		)
Acquired reserves, foreign exchange and other (1)	—			13,683			(62		)	187			(3		)	(85		)	9			(91		)	13,808			(170		)
End of period	$	24,284		$	40,039		$	41,090		$	41,728		$	41,637		$	41,357		$	42,733		$	43,191		$	41,728		$	43,191
Prior Year Reserve Development: Unfavorable (Favorable)
Commercial
Asbestos	$	—		$	5		$	—		$	922		$	—		$	—		$	—		$	830		$	927		$	830
Environmental	—			197			5			84			—			—			—			30			286			30
All other	(6		)	11			112			13			6			(10		)	(6		)	(156		)	130			(166		)
Accretion of discount	16			17			15			25			13			14			13			14			73			54
Total Commercial	10			230			132			1,044			19			4			7			718			1,416			748
Specialty
Asbestos	—			—			1			—			—			—			—			—			1			—
Environmental	—			7			(3		)	—			—			—			—			—			4			—
All other	150			1,277			5			(11		)	53			16			(13		)	(65		)	1,421			(9		)
Accretion of discount	—			1			1			—			2			—			1			2			2			5
Total Specialty	150			1,285			4			(11		)	55			16			(12		)	(63		)	1,428			(4		)
Personal	(101		)	(100		)	(37		)	(140		)	(114		)	(81		)	(83		)	(82		)	(378		)	(360		)
Total (2)	$	59		$	1,415		$	99		$	893		$	(40	)	$	(61	)	$	(88	)	$	573		$	2,466		$	384

(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			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Asbestos reserves
Beginning reserves:
Direct	$	3,782		$	3,688		$	4,052		$	3,976		$	4,775		$	4,675		$	4,527		$	4,412		$	3,782		$	4,775
Ceded	(805		)	(799		)	(999		)	(868		)	(843		)	(818		)	(785		)	(743		)	(805		)	(843		)
Net	2,977			2,889			3,053			3,108			3,932			3,857			3,742			3,669			2,977			3,932
Acquired reserves:
Direct	—			502			—			—			—			—			—			—			502			—
Ceded	—			(191		)	—			—			—			—			—			—			(191		)	—
Incurred losses and loss expenses:
Direct	—			7			2			932			—			—			—			833			941			833
Ceded	—			(2		)	(1		)	(10		)	—			—			—			(3		)	(13		)	(3		)
Accretion of discount:
Direct	5			5			3			4			—			1			—			—			17			1
Ceded	—			—			—			—			—			—			—			—			—			—
Losses paid:
Direct	99			150			81			137			100			149			115			142			467			506
Ceded	(6		)	7			(132		)	(35		)	(25		)	(33		)	(42		)	(7		)	(166		)	(107		)
Ending reserves:
Direct	3,688			4,052			3,976			4,775			4,675			4,527			4,412			5,103			4,775			5,103
Ceded	(799		)	(999		)	(868		)	(843		)	(818		)	(785		)	(743		)	(739		)	(843		)	(739		)
Net	$	2,889		$	3,053		$	3,108		$	3,932		$	3,857		$	3,742		$	3,669		$	4,364		$	3,932		$	4,364
Environmental reserves
Beginning reserves:
Direct	$	331		$	287		$	764		$	701		$	725		$	624		$	547		$	517		$	331		$	725
Ceded	(41		)	(39		)	(108		)	(98		)	(84		)	(85		)	(79		)	(80		)	(41		)	(84		)
Net	290			248			656			603			641			539			468			437			290			641
Acquired reserves:
Direct	—			271			—			—			—			—			—			—			271			—
Ceded	—			(58		)	—			—			—			—			—			—			(58		)	—
Incurred losses and loss expenses:
Direct	—			242			1			80			—			—			—			17			323			17
Ceded	—			(38		)	1			4			—			—			—			13			(33		)	13
Losses paid:
Direct	44			36			64			56			101			77			30			40			200			248
Ceded	(2		)	(27		)	(9		)	(10		)	1			(6		)	1			2			(48		)	(2		)
Ending reserves:
Direct	287			764			701			725			624			547			517			494			725			494
Ceded	(39		)	(108		)	(98		)	(84		)	(85		)	(79		)	(80		)	(69		)	(84		)	(69		)
Net	$	248		$	656		$	603		$	641		$	539		$	468		$	437		$	425		$	641		$	425

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

31

The St. Paul Travelers Companies, Inc.

Capitalization

($ in millions)

	December 31,			December 31,
Debt	2005			2004
Short-term debt
Commercial paper	$	104		$	499
6.75% Senior notes due November 15, 2006	150			—
7.875% Senior notes due April 15, 2005	—			238
7.125% Senior notes due June 1, 2005	—			79
Medium-term notes maturing in succeeding year	56			99
Total short-term debt	310			915
Long-term debt
Medium-term notes with various maturities from 2006 to 2010	242			298
6.75% Senior notes due November 15, 2006	—			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	122			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
5.50% Senior notes due December 1, 2015	400			—
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	5,393			5,198
Unamortized fair value adjustment	185			239
Unamortized debt issuance costs	(38		)	(39		)
	5,540			5,398
Total debt	5,850			6,313
Minority interest	14			20
Preferred equity	153			188
Common equity (excluding SFAS 115)	21,823			20,145
Total capital	$	27,840		$	26,666
Total debt to capital	21.0		%	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)

	December 31,			December 31,
	2005			2004
Statutory capital and surplus	$	18,002		$	15,112
GAAP adjustments
Goodwill and intangible assets	4,122			4,373
Investments	875			2,129
Noninsurance companies	(3,815		)	(3,238		)
Deferred acquisition costs	1,527			1,557
Deferred federal income tax	533			338
Reinsurance recoverables	602			461
Furniture, equipment & software	206			200
Employee benefits	105			83
Agents balances	166			139
Other	(20		)	47
Total GAAP adjustments	4,301			6,089
GAAP shareholders’ equity	$	22,303		$	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			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Cash flows from operating activities
Net income (loss)	$	587		$	(275	)	$	340		$	303		$	212		$	1,069		$	162		$	179		$	955		$	1,622
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		)	(1		)	(88		)	439
Net realized investment (gains) losses	42			(55		)	49			3			—			55			(39		)	(33		)	39			(17		)
Depreciation and amortization	25			71			252			174			150			259			117			165			522			691
Deferred federal income taxes (benefit)	(17		)	(98		)	(63		)	(102		)	110			625			(218		)	(17		)	(280		)	500
Amortization of deferred policy acquisition costs	526			805			820			828			810			783			830			829			2,979			3,252
Premium balances receivable	(12		)	(90		)	320			102			92			(187		)	147			25			320			77
Reinsurance recoverables	239			(24		)	(126		)	495			228			433			(1,059		)	(122		)	584			(520		)
Deferred acquisition costs	(549		)	(819		)	(810		)	(770		)	(808		)	(793		)	(821		)	(798		)	(2,948		)	(3,220		)
Claim and claim adjustment expense reserves	96			2,140			1,081			156			(433		)	(523		)	2,484			504			3,473			2,032
Unearned premium reserves	151			(4		)	(84		)	(105		)	(148		)	(41		)	43			(237		)	(42		)	(383		)
Trading account activities	2			13			4			1			—			6			—			—			20			6
Other	(309		)	(218		)	99			(40		)	150			(845		)	(178		)	(17		)	(468		)	(890		)
Net cash provided by operating activities	781			1,419			1,853			1,013			1,028			703			1,381			477			5,066			3,589
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			1,138			5,621			4,952
Mortgage loans	4			46			18			8			5			1			43			2			76			51
Proceeds from sales of investments
Fixed maturities	2,158			1,855			950			2,982			1,052			1,659			722			1,759			7,945			5,192
Equity securities	68			39			46			112			39			73			169			122			265			403
Mortgage loans	29			12			20			—			—			—			—			—			61			—
Real estate	—			21			8			(29		)	—			—			39			(2		)	—			37
Purchase of investments
Fixed maturities	(3,676		)	(2,980		)	(4,890		)	(4,976		)	(4,175		)	(4,391		)	(3,597		)	(3,883		)	(16,522		)	(16,046		)
Equity securities	(28		)	(20		)	(11		)	(35		)	(21		)	(1		)	(15		)	(26		)	(94		)	(63		)
Mortgage loans	(2		)	(53		)	—			—			—			(9		)	9			—			(55		)	—
Real estate	—			(10		)	(22		)	10			(8		)	(14		)	(7		)	(20		)	(22		)	(49		)
Short-term securities, (purchases) sales, net	224			(1,476		)	(159		)	(502		)	980			(855		)	(1,155		)	1,172			(1,913		)	142
Other investments, net	107			302			172			301			228			224			178			43			882			673
Securities transactions in course of settlement	(681		)	(563		)	712			(576		)	195			268			(260		)	(798		)	(1,108		)	(595		)
Net cash acquired in merger	—			151			—			(3		)	—			—			—			—			148			—
Other	—			11			40			18			—			(48		)	(25		)	(59		)	69			(132		)
Net cash used by investing activities	(932		)	(843		)	(1,784		)	(1,088		)	(632		)	(1,745		)	(2,506		)	(552		)	(4,647		)	(5,435		)

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The St. Paul Travelers Companies, Inc.

Statement of Cash Flows — Preliminary (Continued)

($ in millions)

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2004			2004			2004			2004			2005			2005			2005			2005			2004			2005
Cash flows from financing activities
Issuance of debt	—			—			128			174			—			—			—			400			302			400
Payment of debt	—			(224		)	(3		)	—			(2		)	(479		)	(41		)	(293		)	(227		)	(815		)
Treasury stock acquired — net employee stock-based compensation	(9		)	(11		)	—			(3		)	(8		)	(6		)	(13		)	(6		)	(23		)	(33		)
Issuance of common stock — employee stock options	29			39			12			31			32			29			68			35			111			164
Issuance of common stock — maturity of equity unit forward contracts	—			—			—			—			—			—			442			—			—			442
Dividends to shareholders	(81		)	(263		)	(149		)	(149		)	(150		)	(157		)	(160		)	(161		)	(642		)	(628		)
Repurchase of minority interest	—			(76		)	—			—			—			—			—			—			(76		)	—
Other	—			11			11			17			13			(13		)	—			(3		)	39			(3		)
Net cash provided (used) by financing activities	(61		)	(524		)	(1		)	70			(115		)	(626		)	296			(28)			(516		)	(473		)
Effect of exchange rate changes on cash	—			—			(2		)	9			(2		)	(2		)	1			(2		)	7			(5		)
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		)	(105		)	(90		)	75
Cash at beginning of period	352			140			192			258			262			541			738			442			352			262
Cash at end of period	$	140		$	192		$	258		$	262		$	541		$	738		$	442		$	337		$	262		$	337
Income taxes (received) paid	$	108		$	438		$	—		$	(18	)	$	13		$	357		$	151		$	304		$	528		$	825
Interest paid	$	47		$	72		$	83		$	79		$	87		$	86		$	88		$	70		$	281		$	331

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The St. Paul Travelers Companies, Inc.

Financial Supplement — Fourth 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 investment gains and losses 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 (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 and assessments from various pools. 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 that have been exhausted as a result of losses 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 premiums. 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. During the third quarter of 2005 the Company completed the divestiture of its 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.

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