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):  May 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 May 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 March 31, 2006, and the availability of the Company’s first 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.

(d)Exhibits.

Exhibit No.	Description
99.1	Press Release, dated May 2, 2006, reporting results of operations (This exhibit is furnished and not filed.)
99.2	First Quarter 2006 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:       May 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 May 2, 2006, reporting results of operations (This exhibit is furnished and not filed.)
99.2	First Quarter 2006 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 First Quarter 2006 Net Income of $1.006 Billion, or $1.41 per Diluted Share

Announces $2 Billion Share Repurchase Program and Quarterly Dividend Increase of 13% to $0.26 per Share

Operating Income Increased 18% from Prior Year Quarter to a Record $1.011 Billion

SAINT PAUL, Minn. (May 2, 2006) – The St. Paul Travelers Companies, Inc. (“St. Paul Travelers,” NYSE:STA) today reported net income of $1.006 billion, or $1.45 per basic share and $1.41 per diluted share, for the quarter ended March 31, 2006, compared to $212 million, or $0.31 per basic and diluted share, in the prior year quarter. Net income in the prior year quarter included a $665 million after-tax loss from discontinued operations, primarily due to a tax charge related to the Company’s decision to divest its 78 percent equity interest in Nuveen Investments, Inc. (“Nuveen”). The Company successfully divested its ownership stake in Nuveen during the second and third quarters of 2005.

Operating income in the current quarter was $1.011 billion, or $1.46 per basic share and $1.41 per diluted share, an 18 percent increase from the $859 million, or $1.28 per basic share and $1.23 per diluted share, reported in the prior year quarter.

Net andoperating income in the current quarter included an after-tax benefit of $32 million ($49 million pre-tax) for net favorable prior year reserve development, compared to an after-tax benefit of $36 million ($55 million pre-tax) in the prior year quarter. There were no catastrophe losses reported in the current quarter, compared to an after-tax charge of $20 million ($31 million pre-tax) in the prior year quarter. Net and operating income in the current quarter also included an after-tax benefit of $49 million due to favorable resolution of various prior year federal and state tax matters.

The improvement in net and operating income from the prior year quarter was also a result of higher net investment income, lower non-catastrophe weather-related losses and strong operating performance in all segments.

Current Quarter Highlights

•Return on equity of 17.9 percent and operating return on equity of 18.1 percent.

•Consolidated GAAP combined ratio of 88.9 percent, a 1.6 point improvement from the prior year quarter.

•Strong GAAP combined ratios in the Commercial, Specialty and Personal segments of 89.7, 90.7 and 86.4 percent, respectively.

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•Net investment income of $670 million after-tax ($875 million pre-tax), a 15 percent increase from the prior year quarter.

•Net written premiums of $4.769 billion, a 1 percent increase from the prior year quarter, excluding Commercial Other, the Company’s runoff operations.

•Book value per share (excluding FAS 115) of $32.68, a 9 percent increase from the prior year quarter.

Jay Fishman, Chairman and Chief Executive Officer, said, “The first quarter’s record operating income of $1 billion generated an 18.1 percent operating return on equity. This result is a reflection of strong operational execution in all three of our segments as well as solid net investment income. Retention rates remain very strong, and we continue to write quality new business.

“We are pleased we have achieved a level of financial strength and earnings capacity such that we can begin to return excess capital to shareholders while still seeking growth opportunities. As a result, today we are announcing that our Board has approved a 13 percent increase in our quarterly dividend to $0.26 per share and authorized a $2.0 billion share repurchase program, which represents approximately 7 percent of our outstanding shares based on yesterday’s closing price.

 “We begin 2006 in a position of strength. We offer our distributors and insureds tremendous product breadth, extensive underwriting expertise and superior service. We are pleased with the quality of our business and are well-positioned to grow profitably,” concluded Mr. Fishman.

Consolidated First Quarter Highlights

($ in millions, except for per share amounts, and	Three Months Ended March 31,
after-tax except for premiums)	2006			2005			Change
Gross written premiums	$	5,810		$	5,920		(2	)%
excluding Commercial Other	5,808			5,843			(1	)%
Net written premiums	4,774			4,780			—	%
excluding Commercial Other	4,769			4,740			1	%
Net earned premiums	4,991			5,119			(3	)%
Underwriting gain	337			291			16	%
Net investment income	670			583			15	%
Operating income	1,011			859			18	%
per diluted share	$	1.41		$	1.23		15	%
Income from continuing operations	1,006			877			15	%
per diluted share	$	1.41		$	1.25		13	%
Net income	1,006			212			375	%
per diluted share	$	1.41		$	0.31		355	%
Book value per share	$	32.59		$	30.51		7	%
Adjusted book value per share	$	32.68		$	30.10		9	%
GAAP combined ratio	88.9		%	90.5		%	(1.6	)pts
Operating return on equity	18.1		%	16.7		%	1.4	pts
Continuing operations return on equity	17.9		%	16.6		%	1.3	pts
Return on equity	17.9		%	4.0		%	13.9	pts

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

Net written premiums, excluding Commercial Other, increased 1 percent from the prior year quarter. Strong premium growth in the Personal segment was largely offset by lower premiums in Commercial’s National Accounts business and the absence of premiums from Specialty’s Personal Catastrophe Risk operation, which was sold in the fourth quarter of

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2005. Retention rates remained strong and new business volume increased from the prior year quarter.

Net investment income in the current quarter was $670 million after-tax ($875 million pre-tax), a 15 percent increase from the prior year quarter. The increase was driven by strong operating cash flows, the investment of approximately $2.4 billion of proceeds received from the sale of Nuveen, higher fixed income rates and favorable non-fixed income investments performance.

The GAAP combined ratio in the current quarter was 88.9 percent, a 1.6 point improvement from the 90.5 percent reported in the prior year quarter. The improvement was primarily due to lower non-catastrophe weather-related losses, the absence of catastrophe losses and the continuation of favorable loss trends in recent quarters. The current quarter GAAP combined ratio benefited by 1.0 point for net favorable prior year reserve development, compared to a benefit of 1.1 points in the prior year quarter. The prior year quarter was negatively impacted by 0.6 points for catastrophe losses.

Commercial Segment Financial Results

For the first quarter 2006, the Commercial segment reported operating income of $535 million, compared to $448 million in the prior year quarter. The 19 percent increase was primarily driven by higher net investment income and lower non-catastrophe weather-related losses. Operating income in the current quarter included an after-tax benefit of $6 million ($10 million pre-tax) for net favorable prior year reserve development, compared to an after-tax charge of $4 million ($6 million pre-tax) for net unfavorable prior year reserve development in the prior year quarter. There were no catastrophe losses reported in the current or prior year quarter.

The GAAP combined ratio was 89.7 percent in the current quarter, a 4.7 point decline from the 94.4 percent reported in the prior year quarter. The improvement was primarily due to lower non-catastrophe weather-related losses and continuation of favorable loss trends in recent quarters. The current quarter GAAP combined ratio also benefited by 0.5 points for net favorable prior year reserve development, compared to a negative impact of 0.3 points for net unfavorable prior year reserve development in the prior year quarter.

Net written premiums, excluding Commercial Other, decreased 3 percent from the prior year quarter. The decline in net written premiums was attributable to National Accounts, a large portion of which was loss sensitive and residual markets business for which margins are less than those of guaranteed-cost business.

Net written premiums in Select Accounts and Commercial Accounts were consistent with the prior year quarter. Within Select Accounts, retention rates were strong, increasing from previous quarters, renewal price changes were at similar levels as recent quarters and new business volume increased slightly from the prior year quarter. Within Commercial Accounts, retention rates were also strong, increasing from previous quarters, renewal price changes increased from recent quarters and new business volume decreased slightly from the prior year quarter.

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Specialty Segment Financial Results

For the first quarter 2006, the Specialty segment reported operating income of $257 million, compared to $173 million in the prior year quarter. The 49 percent increase was primarily driven by higher net investment income, net favorable prior year reserve development and the absence of catastrophe losses in the current quarter. Operating income in the current quarter included an after-tax benefit of $6 million ($9 million pre-tax) for net favorable prior year reserve development, compared to an after-tax charge of $34 million ($53 million pre-tax) in the prior year quarter for unfavorable development related to the 2004 hurricanes. There were no catastrophe losses reported in the current quarter, compared to an after-tax charge of $13 million ($19 million pre-tax) in the prior year quarter.

The GAAP combined ratio was 90.7 percent in the current quarter, a 5.6 point decline from the 96.3 percent reported in the prior year quarter. The current quarter GAAP combined ratio benefited by 0.6 points for net favorable prior year reserve development, compared to negative impacts of 3.6 points for net unfavorable prior year reserve development and 1.3 points for catastrophe losses in the prior year quarter. In addition, current accident year loss ratios benefited from the continuation of favorable loss trends in recent quarters.

While net written premiums decreased 3 percent from the prior year quarter, excluding the Personal Catastrophe Risk operation, net written premiums were consistent with the prior year quarter. Strong premium growth in Bond and Oil & Gas was offset primarily by a decline in volumes at the Company’s Lloyd’s operations and the impact of changes in reinsurance programs in Financial and Professional Services and Lloyd’s.

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

Personal Segment Financial Results

For the first quarter 2006, the Personal segment reported operating income of $240 million, compared to $285 million in the prior year quarter. The 16 percent decline was driven primarily by lower net favorable prior year reserve development, partially offset by higher net investment income and strong earned premium growth. Operating income in the current quarter included an after-tax benefit of $20 million ($30 million pre-tax) for net favorable prior year reserve development due to better than expected non-catastrophe property and auto bodily injury loss experience. Operating income in the prior year quarter included an after-tax benefit of $74 million ($114 million pre-tax) for net favorable prior year reserve development, partially offset by an after-tax charge of $7 million ($12 million pre-tax) for catastrophe losses.

The GAAP combined ratio was 86.4 percent in the current quarter, a 7.7 point increase from the 78.7 percent reported in the prior year quarter. The increase was primarily due to lower net favorable prior year reserve development and modest loss cost inflation. The current quarter GAAP combined ratio benefited by 1.9 points for net favorable prior year reserve development, compared to 7.8 points in the prior year quarter. The prior year quarter GAAP combined ratio was negatively impacted by 0.8 points for catastrophe losses.

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Net written premiums increased 10 percent from the prior year quarter due to continued strong retention rates and growth in new business.

Automobile net written premiums increased 9 percent and policies in force increased 7 percent from the prior year quarter. Retention rates and renewal price changes were generally consistent with previous quarters, and new business volume increased significantly from the prior year quarter due mainly to the introduction of Quantum Auto^SM, the Company’s multivariate pricing product, which was being offered in 23 states by quarter end.

Homeowners and Other net written premiums increased 10 percent and policies in force increased 6 percent from the prior year quarter. Retention rates and renewal price changes were generally consistent with previous quarters. New business volume increased significantly from the prior year quarter due to strategic product initiatives and cross-selling efforts with Quantum Auto^SM.

Share Repurchase Program and Quarterly Dividend Increase

St. Paul Travelers’ Board of Directors has authorized a $2 billion share repurchase program.  Under this program, repurchases may be made from time to time in the open-market, in private transactions, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 of the Securities Exchange Act of 1934 or otherwise.  This program does not have a stated expiration date.  The timing and actual number of shares to be repurchased will depend on a variety of factors, including corporate and regulatory requirements, price, weather and other market conditions.

In addition, the Board of Directors has approved a $0.03 increase to the Company’s regular quarterly dividend, from $0.23 per common share to $0.26 per common share. This dividend is payable June 30, 2006, to shareholders of record as of the close of business June 9, 2006.

2006 Annual Guidance

St. Paul Travelers is increasing its 2006 annual operating return on equity guidance to a range of 14.5 to 15.5 percent, compared to the previously announced range of 13.5 to 14.5 percent. The revised operating return on equity guidance is equivalent to an annual earnings per diluted share in the range of approximately $4.70 to $5.00, an increase of approximately $0.30 from the previously indicated guidance. This guidance is based on a number of assumptions, including catastrophe losses of $300 million after-tax ($460 million pre-tax) for the remainder of 2006 and no additional prior year reserve development, favorable or unfavorable. Average outstanding diluted shares are assumed to be 723 million for the full year, before any share repurchase activity.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with a financial supplement that is available on our Web site at www.stpaultravelers.com. The management of St. Paul Travelers will discuss the contents of this release via Webcast at 9:00 a.m. Eastern (8:00 a.m. Central) on Tuesday, May 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 the 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 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 reinsured losses under 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.

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

Adjusted book value per share represents assets less liabilities and preferred 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:

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, 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) 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 divestiture of its ownership interest of Nuveen Investments.

* * * * *

Forward-Looking Statement

This press release contains, 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, earnings guidance and statements about our share repurchase plans are forward looking, and we may make forward-looking statements about our 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 our asbestos and other reserves (including, among others, asbestos claim payment patterns); post-merger expense savings; the cost and 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 our 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: catastrophe losses could materially reduce our profitability and adversely impact our ratings, our ability to raise capital and the availability and cost of reinsurance; our business could be harmed because of our potential exposure to asbestos and environmental claims and related litigation; reinsurance may not protect us against losses; we are exposed to, and may face adverse developments involving, mass tort claims such as those relating to exposure to potentially harmful products or substances; if actual claims exceed our loss reserves, or if changes in the estimated level of loss reserves are necessary, our financial results could be significantly and adversely affected; the effects of emerging claim and coverage issues on our business are uncertain; the insurance industry is the subject of a number of investigations by state and federal authorities in the United States, and we cannot predict the outcome of these investigations or their impact on our

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business or financial results; our businesses are heavily regulated and changes in regulation may reduce our profitability and limit our growth; assessments and other surcharges for guaranty funds, second-injury funds, catastrophe funds and other mandatory pooling arrangements may reduce our profitability; a downgrade in our claims-paying and financial strength ratings could significantly reduce our business volumes, adversely impact our ability to access the capital markets and increase our borrowing costs; our investment portfolio may suffer reduced returns or losses which could reduce our profitability; the intense competition that we face could harm our ability to maintain or increase our profitability and premium volume; we may not be able to execute announced and future strategic initiatives as planned; the inability of our insurance subsidiaries to pay dividends to us in sufficient amounts would limit our ability to meet our obligations and to pay future dividends; loss or significant restriction of the use of credit scoring or other variables in the pricing and underwriting of personal lines products could reduce our future profitability; disruptions to our relationships with our distributors, independent agents and brokers could adversely affect our future income and profitability; if we experience difficulties with outsourcing relationships, our ability to conduct our business might be negatively impacted; and the effects of corporate bankruptcies on surety bond claims.

Our forward-looking statements speak only as of the date of this press release or as of the date they are made, and we undertake no obligation to update forward-looking statements. For a more detailed discussion of these factors, see the information under the caption “Risk Factors” in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission.

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Summary of Financial Information

	Three months ended
	March 31,
($ in millions, except per share amounts, and after-tax)	2006			2005
Operating income	$	1,011		$	859
Net realized investment gains (losses)	(5		)	18
Income from continuing operations	1,006			877
Discontinued operations	—			(665		)
Net income	$	1,006		$	212
Basic earnings per share
Operating income	$	1.46		$	1.28
Net realized investment gains (losses)	(0.01		)	0.03
Income from continuing operations	1.45			1.31
Discontinued operations	—			(1.00		)
Net income	$	1.45		$	0.31
Diluted earnings per share
Operating income	$	1.41		$	1.23
Net realized investment gains (losses)	—			0.02
Income from continuing operations	1.41			1.25
Discontinued operations	—			(0.94		)
Net income	$	1.41		$	0.31
Weighted average number of common shares outstanding (basic)	692.2			668.1
Weighted average number of common shares outstanding and common stock equivalents (diluted)	720.8			709.1
Common shares outstanding at period end	696.2			673.6
Common stock dividends declared	$	160.1		$	148.2
Operating income (loss) by segment
Commercial	$	535		$	448
Specialty	257			173
Personal	240			285
Interest Expense and Other	(21		)	(47		)
	$	1,011		$	859
Operating return on equity	18.1		%	16.7		%
Continuing operations return on equity	17.9		%	16.6		%
Return on equity	17.9		%	4.0		%

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

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	Three months ended
	March 31,
($ in millions, pre-tax)	2006			2005
Revenues
Premiums	$	4,991		$	5,119
Net investment income	875			765
Fee income	150			171
Net realized investment gains (losses)	(6		)	—
Other revenues	40			50
	$	6,050		$	6,105
Revenues by segment excluding net realized investment gains (losses)
Commercial	$	2,692		$	2,862
Specialty	1,640			1,646
Personal	1,718			1,592
Interest Expense and Other	6			5
	6,056			6,105
Net realized investment gains (losses)	(6		)	—
	$	6,050		$	6,105
Gross written premiums
Commercial Core	$	2,517		$	2,674
Commercial Other	2			77
Total Commercial	2,519			2,751
Specialty (1)	1,670			1,691
Personal	1,621			1,478
	$	5,810		$	5,920
Net written premiums
Commercial Core	$	2,080		$	2,152
Commercial Other	5			40
Total Commercial	2,085			2,192
Specialty (1)	1,117			1,154
Personal	1,572			1,434
	$	4,774		$	4,780
GAAP combined ratios: (2)
Commercial (3)
Loss and loss adjustment expense ratio	60.0		%	65.3		%
Underwriting expense ratio	29.7			29.1
Combined ratio	89.7		%	94.4		%
Specialty (3)
Loss and loss adjustment expense ratio	57.7		%	64.3		%
Underwriting expense ratio	33.0			32.0
Combined ratio	90.7		%	96.3		%
Personal
Loss and loss adjustment expense ratio	58.7		%	52.4		%
Underwriting expense ratio	27.7			26.3
Combined ratio	86.4		%	78.7		%
Total Company (3)
Loss and loss adjustment expense ratio	58.9		%	61.3		%
Underwriting expense ratio	30.0			29.2
Combined ratio	88.9		%	90.5		%

(1)For the period ending March 31, 2005, Specialty gross and net written premiums included $47 and $36 million, respectively, from its Personal Catastrophe Risk operation, which was sold in the fourth quarter of 2005.

(2)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 expense and other underwriting expenses.

(3)Before policyholder dividends.

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

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	Three months ended
	March 31,
($ in millions; after-tax except as noted)	2006			2005
Reconciliation of underwriting gain (loss) to net income
Pre-tax underwriting gain	$	514		$	451
Tax expense on underwriting results	(177		)	(160		)
Underwriting gain	337			291
Net investment income	670			583
Other, including interest expense and minority interest	4			(15		)
Consolidated operating income	1,011			859
Net realized investment gains (losses)	(5		)	18
Income from continuing operations	1,006			877
Discontinued operations	—			(665		)
Net income	$	1,006		$	212

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

Contacts

Media:

Shane Boyd

651.310.3846, or

Marlene Ibsen

860.277.9039

Institutional Investors:

Michael Connelly

860.277.1507, or

David Schlosberg

212.588.8412

Individual Investors:

Marc Parr

860.277.0779

###

11

EX-99.2

Exhibit 99.2

The St. Paul Travelers Companies, Inc.
Financial Supplement - First Quarter 2006

	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 Premiums	11
Specialty
Operating Income	12
Operating Income by Major Component and Combined Ratio	13
Selected Statistics	14
Net Written Premiums	15
Personal
Operating Income	16
Operating Income by Major Component and Combined Ratio	17
Selected Statistics	18
Selected Statistics - Automobile	19
Selected Statistics - Homeowners and Other	20
Supplemental Detail
Interest Expense and Other	21
Consolidated Balance Sheet	22
Investment Portfolio	23
Investment Portfolio - Fixed Maturities Data	24
Investment Income	25
Net Realized and Unrealized Investment Gains (Losses)	26
Reinsurance Recoverables	27
Net Reserves for Losses and Loss Adjustment Expense	28
Asbestos and Environmental Reserves	29
Capitalization	30
Statutory to GAAP Shareholders' Equity Reconciliation	31
Statement of Cash Flows	32
Statement of Cash Flows (continued)	33
Glossary of Financial Measures and Description of Operating Segments	34

Index

The St. Paul Travelers Companies, Inc.

Financial Highlights

($ in millions, except per share data)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Income from continuing operations	$	877		$	931		$	75		$	178		$	1,006
Income from continuing operations per share:
Basic	$	1.31		$	1.39		$	0.11		$	0.26		$	1.45
Diluted	$	1.25		$	1.33		$	0.11		$	0.26		$	1.41
Net income	$	212		$	1,069		$	162		$	179		$	1,006
Net income per share:
Basic	$	0.31		$	1.59		$	0.24		$	0.26		$	1.45
Diluted	$	0.31		$	1.52		$	0.23		$	0.26		$	1.41
Operating income	$	859		$	966		$	50		$	151		$	1,011
Operating income per share:
Basic	$	1.28		$	1.44		$	0.07		$	0.22		$	1.46
Diluted	$	1.23		$	1.38		$	0.07		$	0.22		$	1.41
Continuing operations return on equity	16.6		%	17.4		%	1.3		%	3.2		%	17.9		%
Return on equity	4.0		%	20.0		%	2.9		%	3.2		%	17.9		%
Operating return on equity	16.7		%	18.6		%	0.9		%	2.8		%	18.1		%
Total assets, at period end	$	110,750		$	111,804		$	113,442		$	113,187		$	113,376
Total equity, at period end	$	20,732		$	22,369		$	22,408		$	22,303		$	22,837
Book value per share, at period end	$	30.51		$	32.90		$	32.14		$	31.94		$	32.59
Adjusted book value per share, at period end	$	30.10		$	31.48		$	31.46		$	31.47		$	32.68
Weighted average number of common shares outstanding (basic)	668.1			669.5			679.2			688.3			692.2
Weighted average number of common shares outstanding and common stock equivalents (diluted)	709.1			710.3			683.8			694.1			720.8
Common shares outstanding at period end	673.6			674.6			692.2			693.4			696.2
Common stock dividends declared	$	148.2		$	155.1		$	159.1		$	159.4		$	160.1

See Glossary of Financial Measures and Description of Operating Segments on page 34.

1

The St. Paul Travelers Companies, Inc.

Reconciliation to Net Income and Earnings Per Share

($ in millions, except earnings per share)

	1Q 2005			2Q 2005			3Q 2005		4Q 2005		1Q 2006
Net income
Operating income	$	859		$	966		$	50	$	151	$	1,011
Net realized investment gains (losses)	18			(35		)	25		27		(5		)
Income from continuing operations	877			931			75		178		1,006
Discontinued operations	(665		)	138			87		1		—
Net income	$	212		$	1,069		$	162	$	179	$	1,006
Basic earnings per share
Operating income	$	1.28		$	1.44		$	0.07	$	0.22	$	1.46
Net realized investment gains (losses)	0.03			(0.05		)	0.04		0.04		(0.01		)
Income from continuing operations	1.31			1.39			0.11		0.26		1.45
Discontinued operations	(1.00		)	0.20			0.13		—		—
Net income	$	0.31		$	1.59		$	0.24	$	0.26	$	1.45
Diluted earnings per share
Operating income	$	1.23		$	1.38		$	0.07	$	0.22	$	1.41
Net realized investment gains (losses)	0.02			(0.05		)	0.04		0.04		—
Income from continuing operations	1.25			1.33			0.11		0.26		1.41
Discontinued operations	(0.94		)	0.19			0.12		—		—
Net income	$	0.31		$	1.52		$	0.23	$	0.26	$	1.41

Adjustments to income from continuing operations and weighted average shares for income from continuing operations EPS calculations: (1)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Basic
Income from continuing operations, as reported	$	877		$	931		$	75		$	178		$	1,006
Preferred stock dividends, net of taxes	(2		)	(2		)	(1		)	(1		)	(1		)
Income from continuing operations available to common shareholders - basic	$	875		$	929		$	74		$	177		$	1,005
Diluted
Income from continuing operations available to common shareholders - basic	$	875		$	929		$	74		$	177		$	1,005
Effect of dilutive securities:
Convertible preferred stock	2			2			—			—			1
Zero coupon convertible notes	1			1			—			—			1
Convertible junior subordinate notes	7			7			—			—			7
Equity unit stock purchase contracts	3			3			—			—			—
Income from continuing operations available to common shareholders - diluted	$	888		$	942		$	74		$	177		$	1,014
Common Shares
Basic
Weighted average shares outstanding	668			669			679			688			692
Diluted
Weighted average shares outstanding	668			669			679			688			692
Weighted average effects of dilutive securities:
Stock options and other incentive plans	2			2			5			6			6
Convertible preferred stock	5			4			—			—			4
Zero coupon convertible notes	2			2			—			—			2
Convertible junior subordinate notes	17			17			—			—			17
Equity unit stock purchase contracts	15			15			—			—			—
Diluted weighted average shares outstanding	709			709			684			694			721

(1)Adjustments to income from continuing operations and weighted average shares for income from continuing operations EPS calculations 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 34.

2

The St. Paul Travelers Companies, Inc.

Statement of Income - Consolidated

($ in millions)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Revenues
Premiums	$	5,119		$	5,109		$	4,977		$	5,136		$	4,991
Net investment income	765			775			812			813			875
Fee income	171			165			169			159			150
Net realized investment gains (losses)	—			(55		)	39			33			(6		)
Other revenues	50			43			45			40			40
Total revenues	6,105			6,037			6,042			6,181			6,050
Claims and expenses
Claims and claim adjustment expenses	3,223			3,101			4,361			4,242			3,042
Amortization of deferred acquisition costs	810			783			830			829			800
General and administrative expenses	813			789			789			838			794
Interest expense	71			70			70			75			76
Total claims and expenses	4,917			4,743			6,050			5,984			4,712
Income (loss) before income taxes	1,188			1,294			(8		)	197			1,338
Income taxes	311			363			(83		)	19			332
Income from continuing operations	877			931			75			178			1,006
Discontinued operations:
Operating income (loss), net of taxes	(665		)	—			2			—			—
Gain on disposal, net of taxes	—			138			85			1			—
Income (loss) from discontinued operations (1)	(665		)	138			87			1			—
Net income	$	212		$	1,069		$	162		$	179		$	1,006
Other statistics:
Effective tax rate on net investment income	23.9		%	22.8		%	23.0		%	22.3		%	23.5		%
Net investment income (after-tax)	$	583		$	598		$	625		$	632		$	670
Catastrophes, net of reinsurance:
Pre-tax	$	31		$	11		$	1,524		$	623		$	—
After-tax	$	20		$	8		$	1,009		$	435		$	—

(1)In accordance with the Company’s plan to divest its equity ownership in Nuveen Investments, the Company classified Nuveen Investments 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 34.

3

The St. Paul Travelers Companies, Inc.

Net Income by Major Component and Combined Ratio - Consolidated

($ in millions, net of tax)

	1Q			2Q			3Q			4Q			1Q
	2005			2005			2005			2005			2006
Underwriting gain (loss)	$	291		$	383		$	(555	)	$	(463	)	$	337
Net investment income	583			598			625			632			670
Other, including interest expense	(15		)	(15		)	(20		)	(18		)	4
Operating income	859			966			50			151			1,011
Net realized investment gains (losses)	18			(35		)	25			27			(5		)
Discontinued operations	(665		)	138			87			1			—
Net income	$	212		$	1,069		$	162		$	179		$	1,006
GAAP Combined ratio (1, 2)
Loss and loss adjustment expense ratio	61.3		%	59.4		%	86.3		%	81.0		%	58.9		%
Underwriting expense ratio	29.2		%	28.2		%	29.9		%	30.1		%	30.0		%
Combined ratio	90.5		%	87.6		%	116.2		%	111.1		%	88.9		%
Impact of catastrophes on combined ratio	0.6		%	0.2		%	30.3		%	12.1		%	0.0		%
Impact of prior year reserve development on combined ratio	-1.1		%	-1.5		%	-2.0		%	10.9		%	-1.0		%

(1)   Before policyholder dividends.

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

	1Q		2Q		3Q		4Q		1Q
	2005		2005		2005		2005		2006
Billing and policy fees	$	29	$	26	$	26	$	25	$	28
Fee income:
Loss and loss adjustment expenses	$	76	$	63	$	72	$	66	$	92
Other underwriting expenses	95		102		97		93		58
Total fee income	$	171	$	165	$	169	$	159	$	150

See Glossary of Financial Measures and Description of Operating Segments on page 34.

4

The St. Paul Travelers Companies, Inc.

Operating Income - Consolidated

($ in millions)

	1Q		2Q		3Q			4Q		1Q
	2005		2005		2005			2005		2006
Revenues
Premiums	$	5,119	$	5,109	$	4,977		$	5,136	$	4,991
Net investment income	765		775		812			813		875
Fee income	171		165		169			159		150
Other revenues	50		43		45			40		40
Total revenues	6,105		6,092		6,003			6,148		6,056
Claims and expenses
Claims and claim adjustment expenses	3,223		3,101		4,361			4,242		3,042
Amortization of deferred acquisition costs	810		783		830			829		800
General and administrative expenses	813		789		789			838		794
Interest expense	71		70		70			75		76
Total claims and expenses	4,917		4,743		6,050			5,984		4,712
Operating income (loss) before income taxes	1,188		1,349		(47		)	164		1,344
Income taxes	329		383		(97		)	13		333
Operating income	$	859	$	966	$	50		$	151	$	1,011

See Glossary of Financial Measures and Description of Operating Segments on page 34.

5

The St. Paul Travelers Companies, Inc.

Selected Statistics - Property and Casualty Operations

($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2005			2005			2005			2005			2006
Statutory underwriting
Gross written premiums	$	5,920		$	5,909		$	6,030		$	5,877		$	5,810
Net written premiums	$	4,780		$	5,216		$	5,096		$	5,294		$	4,774
Net earned premiums	$	5,119		$	5,109		$	4,977		$	5,136		$	4,991
Losses and loss adjustment expenses	3,127			3,033			4,334			4,288			2,951
Underwriting expenses	1,435			1,461			1,437			1,507			1,493
Statutory underwriting gain (loss)	557			615			(794		)	(659		)	547
Policyholder dividends	7			6			(5		)	14			9
Statutory underwriting gain (loss) after policyholder dividends	$	550		$	609		$	(789	)	$	(673	)	$	538
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	41,637		$	41,357		$	42,733		$	43,191		$	43,256
Increase (decrease) in reserves (1)	$	(91	)	$	(280	)	$	1,376		$	458		$	65
Statutory surplus	$	15,441		$	16,137		$	17,738		$	17,812		$	18,522
Net written premiums/surplus (2)	1.32:1			1.26:1			1.14:1			1.14:1			1.10:1

(1)   Includes a reinsurance to close transaction for Lloyd’s in 1Q 2006, increasing reserves by $538 million.

(2)   Based on 12 months of rolling net written premiums.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

6

The St. Paul Travelers Companies, Inc.

Written and Earned Premiums - Property and Casualty Operations

($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2005			2005			2005			2005			2006
Written premiums
Direct	$	5,538		$	5,814		$	5,704		$	5,685		$	5,431
Assumed	382			95			326			192			379
Gross	5,920			5,909			6,030			5,877			5,810
Ceded	(1,140		)	(693		)	(934		)	(583		)	(1,036		)
Net	$	4,780		$	5,216		$	5,096		$	5,294		$	4,774
Earned premiums
Direct	$	5,732		$	5,720		$	5,680		$	5,661		$	5,455
Assumed	291			235			289			264			288
Gross	6,023			5,955			5,969			5,925			5,743
Ceded	(904		)	(846		)	(992		)	(789		)	(752		)
Net	$	5,119		$	5,109		$	4,977		$	5,136		$	4,991

See Glossary of Financial Measures and Description of Operating Segments on page 34.

7

The St. Paul Travelers Companies, Inc.

Operating Income - Commercial

($ in millions)

	1Q		2Q		3Q			4Q			1Q
	2005		2005		2005			2005			2006
Revenues
Premiums	$	2,204	$	2,164	$	2,078		$	2,128		$	2,030
Net investment income	480		498		483			483			517
Fee income	163		156		160			150			139
Other revenues	15		13		19			8			6
Total revenues	2,862		2,831		2,740			2,769			2,692
Claims and expenses
Claims and claim adjustment expenses	1,522		1,397		2,112			2,417			1,311
Amortization of deferred acquisition costs	317		306		320			309			295
General and administrative expenses	419		397		419			419			362
Interest expense	—		1		—			1			1
Total claims and expenses	2,258		2,101		2,851			3,146			1,969
Operating income (loss) before federal income taxes	604		730		(111		)	(377		)	723
Income taxes	156		200		(97		)	(169		)	188
Operating income (loss)	$	448	$	530	$	(14	)	$	(208	)	$	535

See Glossary of Financial Measures and Description of Operating Segments on page 34.

8

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - - Commercial

($ in millions, net of tax)

	1Q			2Q			3Q			4Q			1Q
	2005			2005			2005			2005			2006
Underwriting gain (loss)	$	71		$	137		$	(401	)	$	(592	)	$	132
Net investment income	367			385			375			378			399
Other	10			8			12			6			4
Operating income (loss)	$	448		$	530		$	(14	)	$	(208	)	$	535
GAAP Combined ratio (1,2)
Loss and loss adjustment expense ratio	65.3		%	61.7		%	98.7		%	110.2		%	60.0		%
Underwriting expense ratio	29.1		%	27.8		%	31.0		%	30.0		%	29.7		%
Combined ratio	94.4		%	89.5		%	129.7		%	140.2		%	89.7		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	41.4		%	17.5		%	0.0		%
Impact of prior year reserve development on combined ratio	0.3		%	-0.5		%	-0.3		%	33.1		%	-0.5		%

(1)   Before policyholder dividends.

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

	1Q		2Q		3Q		4Q		1Q
	2005		2005		2005		2005		2006
Billing and policy fees	$	4	$	2	$	4	$	2	$	3
Fee income:
Loss and loss adjustment expenses	$	72	$	59	$	68	$	62	$	87
Other underwriting expenses	91		97		92		88		52
Total fee income	$	163	$	156	$	160	$	150	$	139

See Glossary of Financial Measures and Description of Operating Segments on page 34.

9

The St. Paul Travelers Companies, Inc.

Selected Statistics - Commercial

($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2005			2005			2005			2005			2006
Statutory underwriting
Gross written premiums	$	2,751		$	2,481		$	2,644		$	2,550		$	2,519
Net written premiums	$	2,192		$	2,047		$	1,989		$	2,201		$	2,085
Net earned premiums	$	2,204		$	2,164		$	2,078		$	2,128		$	2,030
Losses and loss adjustment expenses	1,426			1,332			2,065			2,430			1,231
Underwriting expenses	607			565			572			624			580
Statutory underwriting gain (loss)	171			267			(559		)	(926		)	219
Policyholder dividends	10			4			(7		)	10			5
Statutory underwriting gain (loss) after policyholder dividends	$	161		$	263		$	(552	)	$	(936	)	$	214
Other statistics
Effective tax rate on net investment income	23.6		%	22.7		%	22.3		%	21.8		%	22.6		%
Net investment income (after-tax)	$	367		$	385		$	375		$	378		$	399
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	867		$	373		$	—
After-tax	$	—		$	—		$	563		$	243		$	—

See Glossary of Financial Measures and Description of Operating Segments on page 34.

10

The St. Paul Travelers Companies, Inc.

Net Written Premiums - Commercial

($ in millions)

	1Q		2Q		3Q		4Q		1Q
	2005		2005		2005		2005		2006
Net written premiums by market
Commercial accounts	$	1,127	$	1,068	$	1,022	$	1,169	$	1,133
Select accounts	684		719		652		667		679
National accounts	341		238		298		353		268
Total core	2,152		2,025		1,972		2,189		2,080
Commercial other	40		22		17		12		5
Total	$	2,192	$	2,047	$	1,989	$	2,201	$	2,085
Net written premiums by product line
Commercial multi-peril	$	733	$	681	$	681	$	795	$	798
Workers’ compensation	464		367		378		451		426
Commercial automobile	419		423		408		410		381
Property	379		359		310		351		357
General liability	185		205		195		189		121
Other	12		12		17		5		2
Total	$	2,192	$	2,047	$	1,989	$	2,201	$	2,085
National accounts
Additions to claim volume under administration (1)	$	1,042	$	838	$	691	$	683	$	890
Written fees	$	173	$	148	$	130	$	123	$	144

(1) Includes new and renewal business.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

11

The St. Paul Travelers Companies, Inc.

Operating Income - Specialty

($ in millions)

	1Q		2Q		3Q		4Q		1Q
	2005		2005		2005		2005		2006
Revenues
Premiums	$	1,456	$	1,449	$	1,388	$	1,446	$	1,401
Net investment income	170		173		204		210		222
Fee income	8		9		9		9		11
Other revenues	12		8		2		7		6
Total revenues	1,646		1,639		1,603		1,672		1,640
Claims and expenses
Claims and claim adjustment expenses	936		875		973		944		816
Amortization of deferred acquisition costs	240		224		243		245		231
General and administrative expenses	233		230		203		227		238
Total claims and expenses	1,409		1,329		1,419		1,416		1,285
Operating income before federal income taxes	237		310		184		256		355
Income taxes	64		89		54		101		98
Operating income	$	173	$	221	$	130	$	155	$	257

See Glossary of Financial Measures and Description of Operating Segments on page 34.

12

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - - Specialty

($ in millions, net of tax)

	1Q			2Q			3Q			4Q			1Q
	2005			2005			2005			2005			2006
Underwriting gain (loss)	$	34		$	82		$	(26	)	$	(11	)	$	83
Net investment income	129			133			155			161			169
Other	10			6			1			5			5
Operating income	$	173		$	221		$	130		$	155		$	257
GAAP Combined ratio (1, 2)
Loss and loss adjustment expense ratio	64.3		%	59.9		%	69.7		%	64.7		%	57.7		%
Underwriting expense ratio	32.0		%	31.0		%	31.7		%	32.4		%	33.0		%
Combined ratio	96.3		%	90.9		%	101.4		%	97.1		%	90.7		%
Impact of catastrophes on combined ratio	1.3		%	0.0		%	11.9		%	11.6		%	0.0		%
Impact of prior year reserve development on combined ratio	3.6		%	1.1		%	-0.9		%	-4.4		%	-0.6		%

(1)   Before policyholder dividends.

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

	1Q		2Q		3Q			4Q		1Q
	2005		2005		2005			2005		2006
Billing and policy fees	$	2	$	1	$	(1	)	$	—	$	—
Fee income:
Loss and loss adjustment expenses	$	4	$	4	$	4		$	4	$	5
Other underwriting expenses	4		5		5			5		6
Total fee income	$	8	$	9	$	9		$	9	$	11

See Glossary of Financial Measures and Description of Operating Segments on page 34.

13

The St. Paul Travelers Companies, Inc.

Selected Statistics - Specialty

($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2005			2005			2005			2005			2006
Statutory underwriting
Gross written premiums	$	1,691		$	1,758		$	1,654		$	1,733		$	1,670
Net written premiums	$	1,154		$	1,545		$	1,480		$	1,550		$	1,117
Net earned premiums	$	1,456		$	1,449		$	1,388		$	1,446		$	1,401
Losses and loss adjustment expenses	936			872			994			976			805
Underwriting expenses	426			453			413			428			468
Statutory underwriting gain (loss)	94			124			(19		)	42			128
Policyholder dividends	(3		)	2			2			4			4
Statutory underwriting gain (loss) after policyholder dividends	$	97		$	122		$	(21	)	$	38		$	124
Other statistics
Effective tax rate on net investment income	23.9		%	23.4		%	23.7		%	23.3		%	23.9		%
Net investment income (after-tax)	$	129		$	133		$	155		$	161		$	169
Catastrophes, net of reinsurance:
Pre-tax	$	19		$	—		$	169		$	168		$	—
After-tax	$	13		$	—		$	129		$	139		$	—

See Glossary of Financial Measures and Description of Operating Segments on page 34.

14

The St. Paul Travelers Companies, Inc.

Net Written Premiums - Specialty

($ in millions)

	1Q		2Q		3Q		4Q		1Q
	2005		2005		2005		2005		2006
Net written premiums by market
Construction	$	250	$	261	$	179	$	226	$	252
Bond	163		368		391		345		204
Financial & Professional Services	120		232		247		251		89
Other	357		388		440		420		339
Total Domestic Specialty	890		1,249		1,257		1,242		884
International Specialty	264		296		223		308		233
Total	$	1,154	$	1,545	$	1,480	$	1,550	$	1,117
Net written premiums by product line
Workers’ compensation	$	119	$	124	$	79	$	117	$	119
Commercial automobile	92		95		94		91		89
Property	136		141		142		158		125
General liability	375		579		575		575		389
Fidelity & Surety	130		296		320		280		152
Commercial multi-peril	38		14		47		21		10
International	264		296		223		308		233
Total	$	1,154	$	1,545	$	1,480	$	1,550	$	1,117

See Glossary of Financial Measures and Description of Operating Segments on page 34.

15

The St. Paul Travelers Companies, Inc.

Operating Income - Personal

($ in millions)

	1Q		2Q		3Q			4Q		1Q
	2005		2005		2005			2005		2006
Revenues
Premiums	$	1,459	$	1,496	$	1,511		$	1,562	$	1,560
Net investment income	109		116		112			120		134
Other revenues	24		23		24			25		24
Total revenues	1,592		1,635		1,647			1,707		1,718
Claims and expenses
Claims and claim adjustment expenses	765		829		1,276			881		915
Amortization of deferred acquisition costs	253		253		267			275		274
General and administrative expenses	154		162		162			187		183
Total claims and expenses	1,172		1,244		1,705			1,343		1,372
Operating income (loss) before federal income taxes	420		391		(58		)	364		346
Income taxes	135		125		(33		)	115		106
Operating income (loss)	$	285	$	266	$	(25	)	$	249	$	240

See Glossary of Financial Measures and Description of Operating Segments on page 34.

16

The St. Paul Travelers Companies, Inc.

Operating Income by Major Component and Combined Ratio - - Personal

($ in millions, net of tax)

	1Q			2Q			3Q			4Q			1Q
	2005			2005			2005			2005			2006
Underwriting gain (loss)	$	186		$	164		$	(127	)	$	140		$	122
Net investment income	83			88			86			92			102
Other	16			14			16			17			16
Operating income (loss)	$	285		$	266		$	(25	)	$	249		$	240
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	52.4		%	55.4		%	84.5		%	56.4		%	58.7		%
Underwriting expense ratio	26.3		%	26.2		%	26.8		%	28.1		%	27.7		%
Combined ratio	78.7		%	81.6		%	111.3		%	84.5		%	86.4		%
Impact of catastrophes on combined ratio	0.8		%	0.7		%	32.1		%	5.2		%	0.0		%
Impact of prior year reserve development on combined ratio	-7.8		%	-5.4		%	-5.5		%	-5.3		%	-1.9		%

(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		2Q		3Q		4Q		1Q
	2005		2005		2005		2005		2006
Billing and policy fees	$	23	$	23	$	23	$	23	$	25

See Glossary of Financial Measures and Description of Operating Segments on page 34.

17

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal

($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2005			2005			2005			2005			2006
Statutory underwriting
Gross written premiums	$	1,478		$	1,670		$	1,732		$	1,594		$	1,621
Net written premiums	$	1,434		$	1,624		$	1,627		$	1,543		$	1,572
Net earned premiums	$	1,459		$	1,496		$	1,511		$	1,562		$	1,560
Losses and loss adjustment expenses	765			829			1,275			882			915
Underwriting expenses	402			443			452			455			445
Statutory underwriting gain (loss)	$	292		$	224		$	(216	)	$	225		$	200
Other statistics
Effective tax rate on net investment income	24.2		%	24.0		%	22.9		%	22.8		%	23.6		%
Net investment income (after-tax)	$	83		$	88		$	86		$	92		$	102
Catastrophes, net of reinsurance:
Pre-tax	$	12		$	11		$	488		$	82		$	—
After-tax	$	7		$	8		$	317		$	53		$	—
Policies in force (in thousands)
Automobile	2,270			2,281			2,307			2,347			2,429
Homeowners and other	4,038			4,090			4,150			4,219			4,291

See Glossary of Financial Measures and Description of Operating Segments on page 34.

18

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal (Automobile)

($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2005			2005			2005			2005			2006
Statutory underwriting
Gross written premiums	$	870		$	888		$	910		$	858		$	942
Net written premiums	$	854		$	878		$	897		$	848		$	932
Net earned premiums	$	840		$	851		$	864		$	873		$	872
Losses and loss adjustment expenses	505			542			525			564			590
Underwriting expenses	213			222			224			217			239
Statutory underwriting gain	$	122		$	87		$	115		$	92		$	43
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	60.1		%	63.6		%	60.9		%	64.5		%	67.7		%
Underwriting expense ratio	23.5		%	24.0		%	23.9		%	24.0		%	25.3		%
Combined ratio	83.6		%	87.6		%	84.8		%	88.5		%	93.0		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	1.2		%	0.9		%	0.0		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	—		$	11		$	7		$	—
After-tax	$	—		$	—		$	7		$	5		$	—
Policies in force (in thousands)	2,270			2,281			2,307			2,347			2,429
Change from prior year quarter	5.2		%	2.1		%	2.1		%	3.7		%	7.0		%
Change from prior quarter	0.3		%	0.5		%	1.1		%	1.7		%	3.5		%

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

	1Q		2Q		3Q		4Q		1Q
	2005		2005		2005		2005		2006
Billing and policy fees	$	15	$	14	$	15	$	14	$	16

See Glossary of Financial Measures and Description of Operating Segments on page 34.

19

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal (Homeowners and Other)

($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2005			2005			2005			2005			2006
Statutory underwriting
Gross written premiums	$	608		$	782		$	822		$	736		$	679
Net written premiums	$	580		$	746		$	730		$	695		$	640
Net earned premiums	$	619		$	645		$	647		$	689		$	688
Losses and loss adjustment expenses	260			287			750			318			325
Underwriting expenses	189			221			228			238			206
Statutory underwriting gain (loss)	$	170		$	137		$	(331	)	$	133		$	157
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	42.0		%	44.5		%	115.8		%	46.2		%	47.3		%
Underwriting expense ratio	30.1		%	29.2		%	30.8		%	33.3		%	30.8		%
Combined ratio	72.1		%	73.7		%	146.6		%	79.5		%	78.1		%
Impact of catastrophes on combined ratio	1.9		%	1.7		%	73.8		%	10.7		%	0.0		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	12		$	11		$	477		$	75		$	—
After-tax	$	7		$	8		$	310		$	48		$	—
Policies in force (in thousands)	4,038			4,090			4,150			4,219			4,291
Change from prior year quarter	11.6		%	8.3		%	6.0		%	5.2		%	6.3		%
Change from prior quarter	0.7		%	1.3		%	1.5		%	1.7		%	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		2Q		3Q		4Q		1Q
	2005		2005		2005		2005		2006
Billing and policy fees	$	8	$	9	$	8	$	9	$	9

See Glossary of Financial Measures and Description of Operating Segments on page 34.

20

The St. Paul Travelers Companies, Inc.

Interest Expense and Other

($ in millions)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Revenues
Net investment income	$	6		$	(12	)	$	13		$	—		$	2
Other revenues	(1		)	(1		)	—			—			4
Total revenues	5			(13		)	13			—			6
Claims and expenses
Interest expense	71			69			70			74			75
General and administrative expenses	7			—			5			5			11
Total claims and expenses	78			69			75			79			86
Operating loss before federal income tax benefit	(73		)	(82		)	(62		)	(79		)	(80		)
Income taxes	(26		)	(31		)	(21		)	(34		)	(59		)
Operating loss	$	(47	)	$	(51	)	$	(41	)	$	(45	)	$	(21	)

See Glossary of Financial Measures and Description of Operating Segments on page 34.

21

The St. Paul Travelers Companies, Inc.

Consolidated Balance Sheet

(in millions)

	March 31, 2006			December 31, 2005
Assets
Fixed maturities, available for sale at fair value (including $2,332 and $2,667 subject to securities lending and repurchase agreements) (amortized cost $60,053 and $58,616)	$	59,725		$	58,983
Equity securities, at fair value (cost $510 and $538)	550			579
Real estate	751			752
Mortgage loans	135			145
Short-term securities	4,785			4,802
Other investments	3,062			3,026
Total investments	69,008			68,287
Cash	373			337
Investment income accrued	751			761
Premiums receivable	6,014			6,124
Reinsurance recoverables	19,182			19,574
Ceded unearned premiums	1,638			1,322
Deferred acquisition costs	1,563			1,527
Deferred tax asset	2,103			2,062
Contractholder receivables	5,510			5,516
Goodwill	3,453			3,442
Intangible assets	875			917
Other assets	2,906			3,318
Total assets	$	113,376		$	113,187
Liabilities
Claims and claim adjustment expense reserves	$	60,703		$	61,090
Unearned premium reserves	11,031			10,927
Contractholder payables	5,510			5,516
Payables for reinsurance premiums	1,009			720
Debt	5,839			5,850
Other liabilities	6,447			6,781
Total liabilities	90,539			90,884
Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.4 and 0.5 shares issued and outstanding)	146			153
Common stock (1,750.0 shares authorized; 696.2 and 693.4 shares issued and outstanding)	18,192			18,096
Retained earnings	4,594			3,750
Accumulated other changes in equity from nonowner sources	(25		)	351
Treasury stock, at cost (1.6 and 1.2 shares)	(70		)	(47		)
Total shareholders’ equity	22,837			22,303
Total liabilities and shareholders’ equity	$	113,376		$	113,187

22

The St. Paul Travelers Companies, Inc.

Investment Portfolio

(at carrying value, $ in millions)

	March 31, 2006			Pre-tax Book Yield (1)		December 31, 2005		Pre-tax Book Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	27,520		4.90	%	$	27,518	4.84	%
Tax-exempt fixed maturities	32,205			4.15	%	31,465		4.15	%
Total fixed maturities	59,725			4.50	%	58,983		4.48	%
Non-redeemable preferred stocks	389			6.81	%	422		6.79	%
Common stocks	161					157
Total equity securities	550					579
Real estate	751					752
Mortgage loans	135			6.05	%	145		6.03	%
Short-term securities	4,785			4.72	%	4,802		4.31	%
Private equities	1,549					1,506
Arbitrage funds	790					791
Real estate joint ventures & other	695					697
Trading securities	28					32
Total other investments	3,062					3,026
Total investments	$	69,008				$	68,287
Net unrealized gain (loss) on investment securities, net of tax, included in shareholders’ equity	$	(61	)			$	327

(1)  Yields are provided for those investments with an embedded book yield.

23

The St. Paul Travelers Companies, Inc.

Investment Portfolio - Fixed Maturities Data

(at carrying value, $ in millions)

	March 31, 2006		December 31, 2005
Fixed maturities
Mortgage-backed securities - principally obligations of U.S. Government agencies	$	7,870	$	7,943
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	3,394		3,444
Corporates (including redeemable preferreds)	14,399		14,187
Obligations of states and political subdivisions	32,466		31,823
Debt securities issued by foreign governments	1,596		1,586
Subtotal - Available-for-sale securities	59,725		58,983
Trading securities	3		4
Total fixed maturities	$	59,728	$	58,987

Fixed Maturities

Quality Characteristics (1)

	March 31, 2006
	Amount		% of Total
Quality Ratings
Aaa	$	39,352	66.0	%
Aa	10,949		18.3
A	4,566		7.6
Baa	3,119		5.2
Total investment grade	57,986		97.1
Ba	791		1.3
B	661		1.1
Caa and lower	287		0.5
Total below investment grade	1,739		2.9
Total fixed maturities, excluding trading securities	$	59,725	100.0	%
Trading securities	$	3
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	4.0

(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.

24

The St. Paul Travelers Companies, Inc.

Investment Income

($ in millions)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Gross investment income
Fixed maturities	$	609		$	615		$	636		$	670		$	667
Short-term securities	30			37			56			59			60
Mortgage loans	4			4			14			1			2
Other	139			145			125			94			161
	782			801			831			824			890
Investment expenses	17			26			19			11			15
Net investment income, pre-tax	765			775			812			813			875
Income taxes	182			177			187			181			205
Net investment income, after-tax	$	583		$	598		$	625		$	632		$	670
Effective tax rate	23.9		%	22.8		%	23.0		%	22.3		%	23.5		%
Average invested assets (1)	$	64,218		$	65,765		$	67,630		$	69,135		$	69,701
Average yield pre-tax	4.8		%	4.7		%	4.8		%	4.7		%	5.0		%
Average yield after-tax	3.6		%	3.6		%	3.7		%	3.7		%	3.8		%

(1)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.

25

The St. Paul Travelers Companies, Inc.

Net Realized and Unrealized Investment Gains (Losses)

($ in millions)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Net realized investment gains (losses)
Fixed maturities	$	14		$	(17	)	$	2		$	1		$	—
Equity securities	4			4			14			12			14
Other	(18		)	(42		)	23			20			(20		)
Realized investment gains (losses) before tax	—			(55		)	39			33			(6		)
Related taxes	(18		)	(20		)	14			6			(1		)
Net realized investment gains (losses)	$	18		$	(35	)	$	25		$	27		$	(5	)
Gross investment gains (1)	$	203		$	212		$	196		$	177		$	125
Gross investment losses before impairments (1)	(194		)	(225		)	(123		)	(120		)	(121		)
Impairments	(9		)	(42		)	(34		)	(24		)	(10		)
Realized investment gains (losses) before tax	—			(55		)	39			33			(6		)
Related taxes	(18		)	(20		)	14			6			(1		)
Net realized investment gains (losses)	$	18		$	(35	)	$	25		$	27		$	(5	)

	March 31, 2005		June 30, 2005		September 30, 2005		December 31, 2005		March 31, 2006
Net unrealized investment gains (losses), by asset type
Fixed maturities	$	429	$	1,420	$	587	$	367	$	(328	)
Equity securities & other	21		65		117		118		217
Unrealized investment gains (losses) before tax	450		1,485		704		485		(111		)
Related taxes	173		523		232		158		(50		)
Balance, end of period	$	277	$	962	$	472	$	327	$	(61	)

(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	$	85	$	78	$	114	$	75	$	71
Gross investment Treasury future losses	$	66	$	123	$	81	$	70	$	43

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.

26

The St. Paul Travelers Companies, Inc.

Reinsurance Recoverables

($ in millions)

	March 31, 2006			December 31, 2005
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	14,188		$	14,177
Allowance for uncollectible reinsurance	(803		)	(804		)
Net reinsurance recoverables	13,385			13,373
Mandatory pools and associations	1,991			2,211
Structured settlements	3,806			3,990
Total reinsurance recoverables	$	19,182		$	19,574

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

Reinsurer	December 31, 2005		December 31, 2004		A.M. Best Rating of Group’s 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 net reinsurance recoverables reflect an allowance for uncollectible reinsurance that is recorded on the basis of periodic evaluations of balances due, reinsurer solvency, the Company’s experience and current economic conditions. Of the total net recoverables due from reinsurers at December 31, 2005, after deducting mandatory pool and structured settlement balances, $10.4 billion, or 78%, were rated by A.M. Best Company. Of the total rated by A.M. Best Company, 95% were rated A- or better. The remaining 22% net recoverables from reinsurers was comprised of the following:  5% related to the Company’s participation in voluntary pools, 7% related to recoverables from captive insurance companies and 10% were balances from other companies not rated by A.M. Best Company. In addition, $2.4 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at December 31, 2005.

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.

In November 2005, the Swiss Re Group announced that it had agreed to acquire GE Insurance Solutions, the fifth largest reinsurer worldwide, from General Electric Company. Upon expected consummation of this transaction in mid-2006, the Swiss Re Group would become the Company’s largest reinsurer group with recoverables of $1.69 billion as of December 31, 2005. Consequently, the XL Capital Group is expected to become the Company’s fifth largest reinsurer group with recoverables of $651 million as of December 31, 2005. XL Capital Group’s predominant reinsurer has been rated A+ (second highest of 16 ratings) by A. M. Best.

27

The St. Paul Travelers Companies, Inc.

Net Reserves for Losses and Loss Adjustment Expense

($ in millions)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Commercial
Beginning of period	$	29,021		$	28,772		$	28,352		$	28,911		$	29,387
Incurred	1,426			1,332			2,065			2,430			1,231
Paid	(1,705		)	(1,725		)	(1,484		)	(1,964		)	(1,777		)
Acquired reserves, foreign exchange and other (1)	30			(27		)	(22		)	10			372
End of period	$	28,772		$	28,352		$	28,911		$	29,387		$	29,213
Specialty
Beginning of period	$	9,373		$	9,582		$	9,686		$	10,069		$	10,167
Incurred	936			872			994			976			805
Paid	(694		)	(710		)	(642		)	(777		)	(619		)
Acquired reserves, foreign exchange and other (1)	(33		)	(58		)	31			(101		)	105
End of period	$	9,582		$	9,686		$	10,069		$	10,167		$	10,458
Personal
Beginning of period	$	3,334		$	3,283		$	3,319		$	3,753		$	3,637
Incurred	765			829			1,275			882			915
Paid	(816		)	(793		)	(841		)	(998		)	(967		)
End of period	$	3,283		$	3,319		$	3,753		$	3,637		$	3,585
Total
Beginning of period	$	41,728		$	41,637		$	41,357		$	42,733		$	43,191
Incurred	3,127			3,033			4,334			4,288			2,951
Paid	(3,215		)	(3,228		)	(2,967		)	(3,739		)	(3,363		)
Acquired reserves, foreign exchange and other (1)	(3		)	(85		)	9			(91		)	477
End of period	$	41,637		$	41,357		$	42,733		$	43,191		$	43,256
Prior Year Reserve Development: Unfavorable (Favorable)
Commercial
Asbestos	$	—		$	—		$	—		$	830		$	—
Environmental	—			—			—			30			—
All other	6			(10		)	(6		)	(156		)	(10		)
Accretion of discount	13			14			13			14			14
Total Commercial	19			4			7			718			4
Specialty
Prior year development excluding accretion	53			16			(13		)	(65		)	(9		)
Accretion of discount	2			—			1			2			2
Total Specialty	55			16			(12		)	(63		)	(7		)
Personal	(114		)	(81		)	(83		)	(82		)	(30		)
Total	$	(40	)	$	(61	)	$	(88	)	$	573		$	(33	)

(1)Acquired reserves include a reinsurance to close transaction for Lloyd’s in 1Q 2006, increasing reserves by $358 million and $180 million in Commercial and Specialty, respectively.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

28

The St. Paul Travelers Companies, Inc.

Asbestos and Environmental Reserves

($ in millions)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Asbestos reserves
Beginning reserves:
Direct	$	4,775		$	4,675		$	4,527		$	4,412		$	5,103
Ceded	(843		)	(818		)	(785		)	(743		)	(739		)
Net	3,932			3,857			3,742			3,669			4,364
Incurred losses and loss expenses:
Direct	—			—			—			833			—
Ceded	—			—			—			(3		)	—
Accretion of discount:
Direct	—			1			—			—			—
Ceded	—			—			—			—			—
Losses paid:
Direct	100			149			115			142			103
Ceded	(25		)	(33		)	(42		)	(7		)	(19		)
Ending reserves:
Direct	4,675			4,527			4,412			5,103			5,000
Ceded	(818		)	(785		)	(743		)	(739		)	(720		)
Net	$	3,857		$	3,742		$	3,669		$	4,364		$	4,280
Environmental reserves
Beginning reserves:
Direct	$	725		$	624		$	547		$	517		$	494
Ceded	(84		)	(85		)	(79		)	(80		)	(69		)
Net	641			539			468			437			425
Incurred losses and loss expenses:
Direct	—			—			—			17			—
Ceded	—			—			—			13			—
Losses paid:
Direct	101			77			30			40			88
Ceded	1			(6		)	1			2			(50		)
Ending reserves:
Direct	624			547			517			494			406
Ceded	(85		)	(79		)	(80		)	(69		)	(19		)
Net	$	539		$	468		$	437		$	425		$	387

See Glossary of Financial Measures and Description of Operating Segments on page 34.

29

The St. Paul Travelers Companies, Inc.

Capitalization

($ in millions)

Debt	March 31, 2006			December 31, 2005
Short-term debt
Commercial paper	$	100		$	104
6.75% Senior notes due November 15, 2006	150			150
5.75% Senior notes due March 15, 2007	500			—
Medium-term notes maturing in 2006	56			56
Total short-term debt	806			310
Long-term debt
Medium-term notes with various maturities from 2007 to 2010	242			242
5.75% Senior notes due March 15, 2007	—			500
5.01% Senior notes due August 16, 2007	442			442
3.75% Senior notes due March 15, 2008	400			400
Zero coupon convertible notes due 2009	124			122
8.125% Senior notes due April 15, 2010	250			250
7.81% Private placement notes due on various dates through 2011	16			16
5.00% Senior notes due March 15, 2013	500			500
5.50% Senior notes due December 1, 2015	400			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	4,895			5,393
Unamortized fair value adjustment	177			185
Unamortized debt issuance costs	(39		)	(38		)
	5,033			5,540
Total debt	5,839			5,850
Minority interest	14			14
Preferred equity	146			153
Common equity (excluding SFAS 115)	22,751			21,823
Total capital	$	28,750		$	27,840
Total debt to capital	20.3		%	21.0		%

30

The St. Paul Travelers Companies, Inc.

Statutory to GAAP Shareholders’ Equity Reconciliation (1)

($ in millions)

	March 31, 2006			December 31, 2005
Statutory capital and surplus	$	18,522		$	17,812
GAAP adjustments
Goodwill and intangible assets	4,096			4,122
Investments	349			1,065
Noninsurance companies	(3,493		)	(3,815		)
Deferred acquisition costs	1,563			1,527
Deferred federal income tax	711			533
Reinsurance recoverables	604			602
Furniture, equipment & software	217			206
Employee benefits	180			105
Agents balances	151			166
Other	(63		)	(20		)
Total GAAP adjustments	4,315			4,491
GAAP shareholders’ equity	$	22,837		$	22,303

(1) Preliminary

31

The St. Paul Travelers Companies, Inc.

Statement of Cash Flows

($ in millions)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Cash flows from operating activities
Net income	$	212		$	1,069		$	162		$	179		$	1,006
Adjustments to reconcile net income to net cash provided by operating activities:
(Income) loss from discontinued operations, net of tax	665			(138		)	(87		)	(1		)	—
Net realized investment (gains) losses	—			55			(39		)	(33		)	6
Depreciation and amortization	150			259			117			165			197
Deferred federal income taxes (benefit)	110			625			(218		)	(17		)	159
Amortization of deferred policy acquisition costs	810			783			830			829			800
Premium balances receivable	92			(187		)	147			25			110
Reinsurance recoverables	228			433			(1,059		)	(122		)	636
Deferred acquisition costs	(808		)	(793		)	(821		)	(798		)	(836		)
Claim and claim adjustment expense reserves	(433		)	(523		)	2,484			504			(1,137		)
Unearned premium reserves	(148		)	(41		)	43			(237		)	103
Trading account activities	—			6			—			—			4
Excess tax benefits from share-based payment arrangements	—			—			—			—			(5)
Other	150			(845		)	(178		)	(17		)	(481		)
Net cash provided by operating activities of continuing operations	1,028			703			1,381			477			562
Net cash provided by operating activities of discontinued operations	24			—			—			—			—
Net cash provided by operating activities	1,052			703			1,381			477			562
Cash flows from investing activities
Proceeds from maturities of investments
Fixed maturities	1,073			1,348			1,393			1,138			1,571
Mortgage loans	5			1			43			2			6
Proceeds from sales of investments
Fixed maturities	1,052			1,659			722			1,759			1,320
Equity securities	39			73			169			122			94
Real estate	—			—			39			(2		)	—
Purchase of investments
Fixed maturities	(4,175		)	(4,391		)	(3,597		)	(3,883		)	(3,983		)
Equity securities	(21		)	(1		)	(15		)	(26		)	(47		)
Mortgage loans	—			(9		)	9			—			—
Real estate	(8		)	(14		)	(7		)	(20		)	(8		)
Short-term securities, (purchases) sales, net	980			(855		)	(1,155		)	1,172			67
Other investments, net	228			224			178			43			148
Securities transactions in course of settlement	195			268			(260		)	(798		)	490
Net proceeds from the sale of discontinued operations	—			1,867			532			—			—
Other	—			(48		)	(25		)	(59		)	(38		)
Net cash provided (used) by investing activities of continuing operations	(632		)	122			(1,974		)	(552		)	(380		)
Net cash used by investing activities of discontinued operations	(20		)	—			—			—			—
Net cash provided (used) by investing activities	(652		)	122			(1,974		)	(552		)	(380		)

32

The St. Paul Travelers Companies, Inc.

Statement of Cash Flows - (Continued)

($ in millions)

	1Q 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006
Cash flows from financing activities
Issuance of debt	—			—			—			400			—
Payment of debt	(2		)	(479		)	(41		)	(293		)	(4		)
Treasury stock acquired - net employee share-based compensation	(8		)	(6		)	(13		)	(6		)	(16		)
Issuance of common stock - employee stock options	32			29			68			35			32
Issuance of common stock - maturity of equity unit forward contracts	—			—			442			—			—
Excess tax benefits from share-based payment arrangements	—			—			—			—			5
Dividends to shareholders	(150		)	(157		)	(160		)	(161		)	(161		)
Other	13			(13		)	—			(3		)	(2		)
Net cash provided (used) by financing activities of continuing operations	(115		)	(626		)	296			(28		)	(146		)
Net cash provided by financing activities of discontinued operations	4			—			—			—			—
Net cash provided (used) by financing activities	(111		)	(626		)	296			(28		)	(146		)
Effect of exchange rate changes on cash	(2		)	(2		)	1			(2		)	—
Elimination of cash provided by discontinued operations	(8		)	—			—			—			—
Net increase (decrease) in cash	279			197			(296		)	(105		)	36
Cash at beginning of period	262			541			738			442			337
Cash at end of period	$	541		$	738		$	442		$	337		$	373
Income taxes paid (received)	$	14		$	357		$	151		$	304		$	(5	)
Interest paid	$	93		$	86		$	88		$	70		$	85

33

The St. Paul Travelers Companies, Inc.

Financial Supplement - First Quarter 2006

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 reinsured losses under 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.

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:

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, 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.

34