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):  July 27, 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):

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

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

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

o            Pre-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 July 27, 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 June 30, 2006, and the availability of the Company’s second 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 July 27, 2006, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Second 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:       July 27, 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 July 27, 2006, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Second 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

NEWS RELEASE

St. Paul Travelers Reports Second Quarter 2006 Net Income of $970 Million, or $1.36 per Diluted Share

SAINT PAUL, Minn. (July 27, 2006) — The St. Paul Travelers Companies, Inc. (“St. Paul Travelers,” NYSE:STA) today reported net income of $970 million, or $1.40 per basic share and $1.36 per diluted share, for the quarter ended June 30, 2006, compared to $1.069 billion, or $1.59 per basic share and $1.52 per diluted share, in the prior year quarter.  Net income in the prior year quarter included a $138 million after-tax gain from discontinued operations, primarily related to the partial disposition of St. Paul Travelers’ equity stake 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 $959 million, or $1.39 per basic share and $1.34 per diluted share, compared to $966 million, or $1.44 per basic share and $1.38 per diluted share, in the prior year quarter.

Net and operating income in the current quarter included an after-tax benefit of $68 million ($101 million pre-tax) for net favorable prior year reserve development, partially offset by an after-tax charge of $44 million ($67 million pre-tax) for catastrophe losses.  Net and operating income in the current quarter also included a pre- and after-tax charge of $42 million for an additional legal provision related to investigations of various business practices by certain governmental agencies. In the prior year quarter, net and operating income included an after-tax benefit of $50 million ($75 million pre-tax) for net favorable prior year reserve development, partially offset by an after-tax charge of $8 million ($11 million pre-tax) for catastrophe losses.

Current Quarter Highlights

·Return on equity of 17.0 percent and operating return on equity of 16.6 percent.

·Strong GAAP combined ratios in the Commercial, Specialty and Personal segments of 90.4, 88.6 and 90.1 percent, respectively.

·Record net investment income of $673 million after-tax, a 13 percent increase from the prior year quarter.

·Record net written premiums of $5.655 billion, an 8 percent increase from the prior year quarter.

·Book value per share (excluding FAS 115) of $33.83, a 7 percent increase from year end 2005.

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·Repurchased 5.6 million common shares for a total cost of $250 million under the $2 billion share repurchase program.

Jay Fishman, Chairman and Chief Executive Officer, said, “The $959 million of operating income this quarter and the 16.6 percent operating return on equity we generated is the result of solid performance in all three of our segments as well as record net investment income.

“We are very pleased with our top-line result of 8 percent net written premium growth, with each of our segments contributing to the higher premium volume.  Retention rates remain strong, and margins continue to be attractive.  Renewal price increases for Southeastern U.S. coastal property exposures are significant while the pricing environment elsewhere remains fairly stable.  We still see attractive new business opportunities, although with retentions high on an industry-wide basis, the flow in the marketplace is somewhat limited.

“Our company is in an excellent financial position.  We have produced record results through the first half of the year, and we are very well positioned in the current marketplace,” concluded Mr. Fishman.

Consolidated Second Quarter Highlights

($ in millions, except for per share amounts, and after-tax	Three Months Ended June 30,								Six Months Ended June 30,
except for premiums)	2006			2005			Change		2006			2005			Change
Gross written premiums	$	6,197		$	5,909		5	%	$	12,007		$	11,829		2	%
excluding Commercial Other	6,176			5,868			5		11,984			11,711			2
Net written premiums	5,655			5,216			8		10,429			9,996			4
excluding Commercial Other	5,637			5,194			9		10,406			9,934			5
Net earned premiums	5,181			5,109			1		10,172			10,228			(1	)
Underwriting gain	311			383			(19	)	648			674			(4	)
Net investment income	673			598			13		1,343			1,181			14
Operating income	959			966			(1	)	1,970			1,825			8
per diluted share	$	1.34		$	1.38		(3	)	$	2.75		$	2.60		6
Income from continuing operations	970			931			4		1,976			1,808			9
per diluted share	$	1.36		$	1.33		2		$	2.76		$	2.58		7
Net income	970			1,069			(9	)	1,976			1,281			54
per diluted share	$	1.36		$	1.52		(11	)	$	2.76		$	1.84		50
Book value per share	$	33.14		$	32.90		1		$	33.14		$	32.90		1
Adjusted book value per share	$	33.83		$	31.48		7		$	33.83		$	31.48		7
GAAP combined ratio	89.8		%	87.6		%	2.2	pts	89.4		%	89.1		%	0.3	pts
Operating return on equity	16.6		%	18.6		%	(2.0	)pts	17.4		%	17.7		%	(0.3	)pts
Continuing operations return on equity	17.0		%	17.4		%	(0.4	)pts	17.5		%	17.0		%	0.5	pts
Return on equity	17.0		%	20.0		%	(3.0	)pts	17.5		%	12.1		%	5.4	pts

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

Net written premiums, excluding Commercial Other, the Company’s runoff operations, increased 9 percent from the prior year quarter, with each segment contributing to the growth.  This result was primarily driven by strong retention rates; renewal price increases, predominantly for Southeastern U.S. catastrophe-prone exposures; higher new business volume, particularly in personal auto and homeowners; and lower ceded premiums in the Commercial and Specialty segments.

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Net investment income in the current quarter was $673 million after-tax ($874 million pre-tax), a 13 percent increase from the prior year quarter.  The increase was driven by strong operating cash flows and higher fixed income rates.

The GAAP combined ratio in the current quarter was 89.8 percent, a 2.2 point increase from the 87.6 percent reported in the prior year quarter.  The increase was primarily due to higher catastrophe losses and the legal provision, partially offset by greater net favorable prior year reserve development and the continuation of favorable loss experience.  The current quarter GAAP combined ratio benefited by 2.0 points for net favorable prior year reserve development, compared to a benefit of 1.5 points in the prior year quarter.  Catastrophe losses negatively impacted the current quarter GAAP combined ratio by 1.3 points, compared to 0.2 points in the prior year quarter.

During the second quarter of 2006, the Company repurchased 5.6 million common shares for a total cost of $250 million under its $2 billion share repurchase program.

Year-to-Date 2006 Consolidated Results

For the six-month period ended June 30, 2006, St. Paul Travelers reported record net income, income from continuing operations and operating income.  Net income in the current year period was $1.976 billion, or $2.85 per basic share and $2.76 per diluted share, compared to $1.281 billion, or $1.91 per basic share and $1.84 per diluted share, in the prior year period.  Net income in the prior year period was negatively impacted by a $527 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.  The Company successfully divested its ownership stake in Nuveen during the second and third quarters of 2005.

Income from continuing operations in the first six months of 2006 was $1.976 billion, or $2.85 per basic share and $2.76 per diluted share, compared to $1.808 billion, or $2.70 per basic share and $2.58 per diluted share, in the prior year period.  Operating income in the current year period was $1.970 billion, or $2.84 per basic share and $2.75 per diluted share, compared to $1.825 billion, or $2.72 per basic share and $2.60 per diluted share, in the prior year period.

Net and operating income for the first six months of 2006 included an after-tax benefit of $100 million ($150 million pre-tax) for net favorable prior year reserve development, partially offset by an after-tax charge of $44 million ($67 million pre-tax) for catastrophe losses.  In the prior year period, net and operating income included an after-tax benefit of $86 million ($130 million pre-tax) for net favorable prior year reserve development, partially offset by an after-tax charge of $28 million ($42 million pre-tax) for catastrophe losses.

The GAAP combined ratio in the current year period was 89.4 percent, a 0.3 point increase from the 89.1 percent reported in the prior year period.  The current year period GAAP combined ratio benefited by 1.5 points for net favorable prior year reserve development, partially offset by a negative impact of 0.7 points for catastrophe losses.  The prior year period GAAP combined ratio benefited by 1.2 points for net favorable prior year reserve development, partially offset by a negative impact of 0.4 points for catastrophe losses.

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Net investment income in the current year was a record $1.343 billion after-tax ($1.749 billion pre-tax), a 14 percent increase from the prior year period.  The increase was driven by strong operating cash flows and the investment of approximately $2.4 billion of proceeds received from the sale of Nuveen as well as higher fixed income rates and non-fixed income returns.

For the first six months of 2006, operating return on equity was 17.4 percent, compared to 17.7 percent in the prior year period.

Commercial Segment Financial Results

For the second quarter 2006, the Commercial segment reported operating income of $517 million, compared to $530 million in the prior year quarter.  The decline was primarily due to the legal provision and lower net favorable prior year reserve development.  Operating income in the current quarter included an after-tax benefit of $1 million ($4 million pre-tax) for net favorable prior year reserve development, which consisted of favorable development primarily in the auto, property and general liability lines of business, largely offset by unfavorable development in assumed reinsurance.  The prior year quarter included an after-tax benefit of $8 million ($10 million pre-tax) for net favorable prior year reserve development.  There were no catastrophe losses reported in the current or prior year quarter.

The GAAP combined ratio was 90.4 percent in the current quarter, a 0.9 point increase from the 89.5 percent reported in the prior year quarter.  The increase was primarily due to the legal provision, partially offset by the continuation of favorable loss experience.  Net favorable prior year reserve development benefited the current quarter GAAP combined ratio by 0.2 points, compared to 0.5 points in the prior year quarter.

Net written premiums, excluding Commercial Other, increased 9 percent from the prior year quarter.  This result was primarily due to significant renewal price increases on Southeastern U.S. catastrophe-prone exposures, strong retention rates for all other property and casualty exposures and changes in reinsurance programs for National Accounts’ Discover Re business.

Within Select Accounts, retention rates were strong, consistent with previous quarters, renewal price changes were level with recent quarters and new business volume increased from the prior year quarter.  Within Commercial Accounts, retention rates were also strong, even more so for non-catastrophe exposures, renewal price changes increased from recent quarters and new business volume decreased slightly from the prior year quarter.

Specialty Segment Financial Results

For the second quarter 2006, the Specialty segment reported operating income of $287 million, compared to $221 million in the prior year quarter.  The increase was primarily driven by higher net investment income and net favorable prior year reserve development, partially offset by higher acquisition costs and the legal provision.  Operating income in the current quarter included an after-tax benefit of $29 million ($39 million pre-tax) for net favorable prior year reserve development, primarily related to International operations.  Operating income in the prior year quarter included an after-tax charge of $11 million ($16 million pre-tax) for net unfavorable prior year reserve development.  There were no catastrophe losses reported in the current or prior year quarter.

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The GAAP combined ratio was 88.6 percent in the current quarter, a 2.3 point decline from the 90.9 percent reported in the prior year quarter.  The improvement was primarily due to net favorable prior year reserve development, partially offset by higher acquisition costs and the legal provision.  The current quarter GAAP combined ratio benefited by 2.7 points for net favorable prior year reserve development, compared to a negative impact of 1.1 points for net unfavorable prior year reserve development in the prior year quarter.

Net written premiums increased 8 percent from the prior year quarter, excluding the Personal Catastrophe Risk operation, which was sold in the fourth quarter of 2005.  The growth in net written premiums was primarily attributable to Bond, the Company’s Lloyd’s operations, the Canadian operations, Oil & Gas and Financial & Professional Services.  Bond benefited from both increased volumes and a reduction in ceded premium due to favorable loss experience.  The Lloyd’s operations experienced significant renewal price increases on Southeastern U.S. catastrophe-prone exposures.

Within Domestic Specialty, retention rates were strong, consistent with previous quarters, and renewal price changes increased from recent quarters.  New business volume, excluding the Personal Catastrophe Risk operation, was down slightly from the prior year quarter.  Within International Specialty, excluding the Company’s Lloyd’s operations, retention rates were also strong, albeit decreasing modestly from previous quarters, renewal price changes rose from recent quarters and new business volume increased from the prior year quarter.

Personal Segment Financial Results

For the second quarter 2006, the Personal segment reported operating income of $203 million, compared to $266 million in the prior year quarter.  The decline was primarily driven by higher catastrophe losses, lower net favorable prior year reserve development, the legal provision and expenses related to strategic initiatives to support business growth and product development, partially offset by higher net investment income and strong earned premium growth.  Operating income in the current quarter included an after-tax charge of $44 million ($67 million pre-tax) for catastrophe losses, partially offset by an after-tax benefit of $38 million ($58 million pre-tax) for net favorable prior year reserve development, primarily due to better than expected auto bodily injury loss experience.  Operating income in the prior year quarter included an after-tax benefit of $53 million ($81 million pre-tax) for net favorable prior year reserve development, partially offset by an after-tax charge of $8 million ($11 million pre-tax) for catastrophe losses.

The GAAP combined ratio was 90.1 percent in the current quarter, an 8.5 point increase from the 81.6 percent reported in the prior year quarter.  The increase was primarily due to higher catastrophe losses, lower net favorable prior year reserve development, the legal provision and expenses related to strategic initiatives.  Catastrophe losses negatively impacted the current quarter GAAP combined ratio by 4.1 points, compared to 0.7 points in the prior year quarter.  The current quarter GAAP combined ratio benefited by 3.6 points for net favorable prior year reserve development, compared to 5.4 points in the prior year quarter.

Net written premiums increased 10 percent from the prior year quarter.  This result was attributable to continued strong retention rates, renewal price increases and growth in new business.

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Automobile net written premiums increased 8 percent, and policies in force increased 10 percent from the prior year quarter.  Retention rates were strong, consistent with previous quarters, and renewal price changes were level with recent quarters.  New business volume increased significantly from the prior year quarter due mainly to the continued roll-out of Quantum AutoSM, the Company’s multivariate pricing product, which was being offered in 33 states and the District of Columbia by the end of quarter.

Homeowners and Other net written premiums increased 11 percent, and policies in force increased 8 percent from the prior year quarter.  Retention rates were strong, consistent with previous quarters, and renewal price changes were generally consistent with recent quarters.  New business volume increased from the prior year quarter due to strategic product initiatives and cross-selling efforts with Quantum AutoSM.

2006 Annual Guidance

St. Paul Travelers is increasing its 2006 annual earnings per diluted share guidance range to $4.90 to $5.10, compared to the previously announced range of $4.70 to $5.00.  This guidance is based on a number of assumptions, including catastrophe losses of $250 million after-tax ($385 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 the impact of any share repurchase activity in the third and fourth quarters.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with a financial supplement that is available on our Web site at www.stpaultravelers.com.  The management of St. Paul Travelers will discuss the contents of this release via Webcast at 9:00 a.m. Eastern (8:00 a.m. Central) on Thursday, July 27, 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; we may incur loss and loss adjustment expenses as a result of disclosures by, and investigations of, companies for which we have written directors’ and officers’ insurance relating to possible accounting irregularities, corporate governance issues and stock option “backdating,” “spring loading” and other stock option grant practices; the insurance industry, including us, is the subject of a number of investigations by state and

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federal authorities in the United States, and we cannot predict the outcome of these investigations or their impact on our 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 June 30,						Six months ended June 30,
($ in millions, except per share amounts, and after-tax)	2006			2005			2006			2005
Operating income	$	959		$	966		$	1,970		$	1,825
Net realized investment gains (losses)	11			(35		)	6			(17		)
Income from continuing operations	970			931			1,976			1,808
Discontinued operations	—			138			—			(527		)
Net income	$	970		$	1,069		$	1,976		$	1,281
Basic earnings per share
Operating income	$	1.39		$	1.44		$	2.84		$	2.72
Net realized investment gains (losses)	0.01			(0.05		)	0.01			(0.02		)
Income from continuing operations	1.40			1.39			2.85			2.70
Discontinued operations	—			0.20			—			(0.79		)
Net income	$	1.40		$	1.59		$	2.85		$	1.91
Diluted earnings per share
Operating income	$	1.34		$	1.38		$	2.75		$	2.60
Net realized investment gains (losses)	0.02			(0.05		)	0.01			(0.02		)
Income from continuing operations	1.36			1.33			2.76			2.58
Discontinued operations	—			0.19			—			(0.74		)
Net income	$	1.36		$	1.52		$	2.76		$	1.84
Weighted average number of common shares outstanding (basic)	691.8			669.5			692.0			668.8
Weighted average number of common shares outstanding and common stock equivalents (diluted)	720.4			710.3			720.6			709.7
Common shares outstanding at period end	691.4			674.6			691.4			674.6
Common stock dividends declared	$	180.1		$	155.1		$	340.2		$	303.3
Operating income (loss) by segment
Commercial	$	517		$	530		$	1,052		$	978
Specialty	287			221			544			394
Personal	203			266			443			551
Interest Expense and Other	(48		)	(51		)	(69		)	(98		)
	$	959		$	966		$	1,970		$	1,825
Operating return on equity	16.6		%	18.6		%	17.4		%	17.7		%
Continuing operations return on equity	17.0		%	17.4		%	17.5		%	17.0		%
Return on equity	17.0		%	20.0		%	17.5		%	12.1		%

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

10

	Three months ended June 30,						Six months ended June 30,
($ in millions, pre-tax)	2006			2005			2006			2005
Revenues
Premiums	$	5,181		$	5,109		$	10,172		$	10,228
Net investment income	874			775			1,749			1,540
Fee income	153			165			303			336
Net realized investment gains (losses)	10			(55		)	4			(55		)
Other revenues	37			43			77			93
	$	6,255		$	6,037		$	12,305		$	12,142
Revenues by segment excluding net realized investment gains (losses)
Commercial	$	2,757		$	2,831		$	5,449		$	5,693
Specialty	1,702			1,639			3,342			3,285
Personal	1,786			1,635			3,504			3,227
Interest Expense and Other	—			(13		)	6			(8		)
	6,245			6,092			12,301			12,197
Net realized investment gains (losses)	10			(55		)	4			(55		)
	$	6,255		$	6,037		$	12,305		$	12,142
Gross written premiums
Commercial Core	$	2,552		$	2,440		$	5,069		$	5,114
Commercial Other	21			41			23			118
Total Commercial	2,573			2,481			5,092			5,232
Specialty(1)	1,784			1,758			3,454			3,449
Personal	1,840			1,670			3,461			3,148
	$	6,197		$	5,909		$	12,007		$	11,829
Net written premiums
Commercial Core	$	2,199		$	2,025		$	4,279		$	4,177
Commercial Other	18			22			23			62
Total Commercial	2,217			2,047			4,302			4,239
Specialty(1)	1,657			1,545			2,774			2,699
Personal	1,781			1,624			3,353			3,058
	$	5,655		$	5,216		$	10,429		$	9,996
GAAP combined ratios:(2)
Commercial(3)
Loss and loss adjustment expense ratio	60.0		%	61.7		%	60.1		%	63.5		%
Underwriting expense ratio	30.4			27.8			30.0			28.5
Combined ratio	90.4		%	89.5		%	90.1		%	92.0		%
Specialty(3)
Loss and loss adjustment expense ratio	55.5		%	59.9		%	56.6		%	62.1		%
Underwriting expense ratio	33.1			31.0			33.0			31.5
Combined ratio	88.6		%	90.9		%	89.6		%	93.6		%
Personal
Loss and loss adjustment expense ratio	62.2		%	55.4		%	60.5		%	53.9		%
Underwriting expense ratio	27.9			26.2			27.8			26.3
Combined ratio	90.1		%	81.6		%	88.3		%	80.2		%
Total Company(3)
Loss and loss adjustment expense ratio	59.5		%	59.4		%	59.2		%	60.4		%
Underwriting expense ratio	30.3			28.2			30.2			28.7
Combined ratio	89.8		%	87.6		%	89.4		%	89.1		%

(1)For the quarter ending June 30, 2005, Specialty gross and net written premiums included $64 and $15 million, respectively, and for the six-month period ending June 30, 2005, Specialty gross and net written premiums included $111 and $51 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.

11

	Three months ended June 30,						Six months ended June 30,
($ in millions; after-tax except as noted)	2006			2005			2006			2005
Reconciliation of underwriting gain (loss) to net income
Pre-tax underwriting gain	$	494		$	600		$	1,010		$	1,051
Tax expense on underwriting results	(183		)	(217		)	(362		)	(377		)
Underwriting gain	311			383			648			674
Net investment income	673			598			1,343			1,181
Other, including interest expense and minority interest	(25		)	(15		)	(21		)	(30		)
Consolidated operating income	959			966			1,970			1,825
Net realized investment gains (losses)	11			(35		)	6			(17		)
Income from continuing operations	970			931			1,976			1,808
Discontinued operations	—			138			—			(527		)
Net income	$	970		$	1,069		$	1,976		$	1,281

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

Contacts

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

###

12

EX-99.2

Exhibit 99.2

The St. Paul Travelers Companies, Inc.
Financial Supplement - Second 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
($ and shares in millions, except per share data)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Income from continuing operations	$	877		$	931		$	75		$	178		$	1,006		$	970		$	1,808		$	1,976
Income from continuing operations per share:
Basic	$	1.31		$	1.39		$	0.11		$	0.26		$	1.45		$	1.40		$	2.70		$	2.85
Diluted	$	1.25		$	1.33		$	0.11		$	0.26		$	1.41		$	1.36		$	2.58		$	2.76
Net income	$	212		$	1,069		$	162		$	179		$	1,006		$	970		$	1,281		$	1,976
Net income per share:
Basic	$	0.31		$	1.59		$	0.24		$	0.26		$	1.45		$	1.40		$	1.91		$	2.85
Diluted	$	0.31		$	1.52		$	0.23		$	0.26		$	1.41		$	1.36		$	1.84		$	2.76
Operating income	$	859		$	966		$	50		$	151		$	1,011		$	959		$	1,825		$	1,970
Operating income per share:
Basic	$	1.28		$	1.44		$	0.07		$	0.22		$	1.46		$	1.39		$	2.72		$	2.84
Diluted	$	1.23		$	1.38		$	0.07		$	0.22		$	1.41		$	1.34		$	2.60		$	2.75
Continuing operations return on equity	16.6		%	17.4		%	1.3		%	3.2		%	17.9		%	17.0		%	17.0		%	17.5		%
Return on equity	4.0		%	20.0		%	2.9		%	3.2		%	17.9		%	17.0		%	12.1		%	17.5		%
Operating return on equity	16.7		%	18.6		%	0.9		%	2.8		%	18.1		%	16.6		%	17.7		%	17.4		%
Total assets, at period end	$	110,750		$	111,804		$	113,442		$	113,187		$	113,376		$	113,886		$	111,804		$	113,886
Total equity, at period end	$	20,732		$	22,369		$	22,408		$	22,303		$	22,837		$	23,052		$	22,369		$	23,052
Book value per share, at period end	$	30.51		$	32.90		$	32.14		$	31.94		$	32.59		$	33.14		$	32.90		$	33.14
Adjusted book value per share, at period end	$	30.10		$	31.48		$	31.46		$	31.47		$	32.68		$	33.83		$	31.48		$	33.83
Weighted average number of common shares outstanding (basic)	668.1			669.5			679.2			688.3			692.2			691.8			668.8			692.0
Weighted average number of common shares outstanding and common stock equivalents (diluted)	709.1			710.3			683.8			694.1			720.8			720.4			709.7			720.6
Common shares outstanding at period end	673.6			674.6			692.2			693.4			696.2			691.4			674.6			691.4
Common stock dividends declared	$	148.2		$	155.1		$	159.1		$	159.4		$	160.1		$	180.1		$	303.3		$	340.2
Common stock repurchased: (1)
Shares	0.2			0.1			0.4			0.1			0.5			5.7			0.3			6.2
Cost	$	8		$	6		$	13		$	6		$	22		$	253		$	14		$	275

(1)    Includes 5.6 million common shares repurchased in 2Q 2006, for a total cost of $250 million, under the Board authorized share repurchase program of up to $2 billion.

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
($ and shares in millions, except earnings per share)

																YTD			YTD
	1Q			2Q			3Q		4Q		1Q			2Q		2Q			2Q
	2005			2005			2005		2005		2006			2006		2005			2006
Net income
Operating income	$	859		$	966		$	50	$	151	$	1,011		$	959	$	1,825		$	1,970
Net realized investment gains (losses)	18			(35		)	25		27		(5		)	11		(17		)	6
Income from continuing operations	877			931			75		178		1,006			970		1,808			1,976
Discontinued operations	(665		)	138			87		1		—			—		(527		)	—
Net income	$	212		$	1,069		$	162	$	179	$	1,006		$	970	$	1,281		$	1,976
Basic earnings per share
Operating income	$	1.28		$	1.44		$	0.07	$	0.22	$	1.46		$	1.39	$	2.72		$	2.84
Net realized investment gains (losses)	0.03			(0.05		)	0.04		0.04		(0.01		)	0.01		(0.02		)	0.01
Income from continuing operations	1.31			1.39			0.11		0.26		1.45			1.40		2.70			2.85
Discontinued operations	(1.00		)	0.20			0.13		—		—			—		(0.79		)	—
Net income	$	0.31		$	1.59		$	0.24	$	0.26	$	1.45		$	1.40	$	1.91		$	2.85
Diluted earnings per share
Operating income	$	1.23		$	1.38		$	0.07	$	0.22	$	1.41		$	1.34	$	2.60		$	2.75
Net realized investment gains (losses)	0.02			(0.05		)	0.04		0.04		—			0.02		(0.02		)	0.01
Income from continuing operations	1.25			1.33			0.11		0.26		1.41			1.36		2.58			2.76
Discontinued operations	(0.94		)	0.19			0.12		—		—			—		(0.74		)	—
Net income	$	0.31		$	1.52		$	0.23	$	0.26	$	1.41		$	1.36	$	1.84		$	2.76

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Basic
Income from continuing operations, as reported	$	877		$	931		$	75		$	178		$	1,006		$	970		$	1,808		$	1,976
Preferred stock dividends, net of taxes	(2		)	(2		)	(1		)	(1		)	(1		)	(1		)	(3		)	(2		)
Income from continuing operations available to common shareholders - basic	$	875		$	929		$	74		$	177		$	1,005		$	969		$	1,805		$	1,974
Diluted
Income from continuing operations available to common shareholders - basic	$	875		$	929		$	74		$	177		$	1,005		$	969		$	1,805		$	1,974
Effect of dilutive securities:
Convertible preferred stock	2			2			—			—			1			1			3			2
Zero coupon convertible notes	1			1			—			—			1			1			2			2
Convertible junior subordinated notes	7			7			—			—			7			7			13			13
Equity unit stock purchase contracts	3			3			—			—			—			—			7			—
Income from continuing operations available to common shareholders - diluted	$	888		$	942		$	74		$	177		$	1,014		$	978		$	1,830		$	1,991
Common Shares
Basic
Weighted average shares outstanding	668			669			679			688			692			692			669			692
Diluted
Weighted average shares outstanding	668			669			679			688			692			692			669			692
Weighted average effects of dilutive securities:
Stock options and other incentive plans	2			2			5			6			6			6			2			6
Convertible preferred stock	5			4			—			—			4			3			4			4
Zero coupon convertible notes	2			3			—			—			2			2			3			2
Convertible junior subordinated notes	17			17			—			—			17			17			17			17
Equity unit stock purchase contracts	15			15			—			—			—			—			15			—
Diluted weighted average shares outstanding	709			710			684			694			721			720			710			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)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Revenues
Premiums	$	5,119		$	5,109		$	4,977		$	5,136		$	4,991		$	5,181		$	10,228		$	10,172
Net investment income	765			775			812			813			875			874			1,540			1,749
Fee income	171			165			169			159			150			153			336			303
Net realized investment gains (losses)	—			(55		)	39			33			(6		)	10			(55		)	4
Other revenues	50			43			45			40			40			37			93			77
Total revenues	6,105			6,037			6,042			6,181			6,050			6,255			12,142			12,305
Claims and expenses
Claims and claim adjustment expenses	3,223			3,101			4,361			4,242			3,042			3,153			6,324			6,195
Amortization of deferred acquisition costs	810			783			830			829			800			814			1,593			1,614
General and administrative expenses	813			789			789			838			794			866			1,602			1,660
Interest expense	71			70			70			75			76			78			141			154
Total claims and expenses	4,917			4,743			6,050			5,984			4,712			4,911			9,660			9,623
Income (loss) from continuing operations before income taxes	1,188			1,294			(8		)	197			1,338			1,344			2,482			2,682
Income tax expense (benefit)	311			363			(83		)	19			332			374			674			706
Income from continuing operations	877			931			75			178			1,006			970			1,808			1,976
Discontinued operations
Operating income (loss), net of taxes	(665		)	—			2			—			—			—			(665		)	—
Gain on disposal, net of taxes	—			138			85			1			—			—			138			—
Income (loss) from discontinued operations, net of taxes (1)	(665		)	138			87			1			—			—			(527		)	—
Net income	$	212		$	1,069		$	162		$	179		$	1,006		$	970		$	1,281		$	1,976
Other statistics:
Effective tax rate on net investment income	23.9		%	22.8		%	23.0		%	22.3		%	23.5		%	23.0		%	23.3		%	23.2		%
Net investment income (after-tax)	$	583		$	598		$	625		$	632		$	670		$	673		$	1,181		$	1,343
Catastrophes, net of reinsurance:
Pre-tax	$	31		$	11		$	1,524		$	623		$	—		$	67		$	42		$	67
After-tax	$	20		$	8		$	1,009		$	435		$	—		$	44		$	28		$	44

(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 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006			2Q 2006			YTD 2Q 2005			YTD 2Q 2006
Underwriting gain (loss)	$	291		$	383		$	(555	)	$	(463	)	$	337		$	311		$	674		$	648
Net investment income	583			598			625			632			670			673			1,181			1,343
Other, including interest expense	(15		)	(15		)	(20		)	(18		)	4			(25		)	(30		)	(21		)
Operating income	859			966			50			151			1,011			959			1,825			1,970
Net realized investment gains (losses)	18			(35		)	25			27			(5		)	11			(17		)	6
Discontinued operations	(665		)	138			87			1			—			—			(527		)	—
Net income	$	212		$	1,069		$	162		$	179		$	1,006		$	970		$	1,281		$	1,976
GAAP Combined ratio (1,2)
Loss and loss adjustment expense ratio	61.3		%	59.4		%	86.3		%	81.0		%	58.9		%	59.5		%	60.4		%	59.2		%
Underwriting expense ratio	29.2		%	28.2		%	29.9		%	30.1		%	30.0		%	30.3		%	28.7		%	30.2		%
Combined ratio	90.5		%	87.6		%	116.2		%	111.1		%	88.9		%	89.8		%	89.1		%	89.4		%
Impact of catastrophes on combined ratio	0.6		%	0.2		%	30.3		%	12.1		%	0.0		%	1.3		%	0.4		%	0.7		%
Impact of prior year reserve development on combined ratio	-1.1		%	-1.5		%	-2.0		%	10.9		%	-1.0		%	-2.0		%	-1.2		%	-1.5		%

(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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2005		2005		2005		2005		2006		2006		2005		2006
Billing and policy fees	$	29	$	26	$	26	$	25	$	28	$	26	$	55	$	54
Fee income:
Loss and loss adjustment expenses	$	76	$	63	$	72	$	66	$	92	$	66	$	139	$	158
Other underwriting expenses	95		102		97		93		58		87		197		145
Total fee income	$	171	$	165	$	169	$	159	$	150	$	153	$	336	$	303

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 2005		2Q 2005		3Q 2005			4Q 2005		1Q 2006		2Q 2006		YTD 2Q 2005		YTD 2Q 2006
Revenues
Premiums	$	5,119	$	5,109	$	4,977		$	5,136	$	4,991	$	5,181	$	10,228	$	10,172
Net investment income	765		775		812			813		875		874		1,540		1,749
Fee income	171		165		169			159		150		153		336		303
Other revenues	50		43		45			40		40		37		93		77
Total revenues	6,105		6,092		6,003			6,148		6,056		6,245		12,197		12,301
Claims and expenses
Claims and claim adjustment expenses	3,223		3,101		4,361			4,242		3,042		3,153		6,324		6,195
Amortization of deferred acquisition costs	810		783		830			829		800		814		1,593		1,614
General and administrative expenses	813		789		789			838		794		866		1,602		1,660
Interest expense	71		70		70			75		76		78		141		154
Total claims and expenses	4,917		4,743		6,050			5,984		4,712		4,911		9,660		9,623
Operating income (loss) before income taxes	1,188		1,349		(47		)	164		1,344		1,334		2,537		2,678
Income taxes expense (benefit)	329		383		(97		)	13		333		375		712		708
Operating income	$	859	$	966	$	50		$	151	$	1,011	$	959	$	1,825	$	1,970

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 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006		2Q 2006			YTD 2Q 2005			YTD 2Q 2006
Statutory underwriting
Gross written premiums	$	5,920		$	5,909		$	6,030		$	5,877		$	5,810	$	6,197		$	11,829		$	12,007
Net written premiums	$	4,780		$	5,216		$	5,096		$	5,294		$	4,774	$	5,655		$	9,996		$	10,429
Net earned premiums	$	5,119		$	5,109		$	4,977		$	5,136		$	4,991	$	5,181		$	10,228		$	10,172
Losses and loss adjustment expenses	3,127			3,033			4,334			4,288			2,951		3,095			6,160			6,046
Underwriting expenses	1,435			1,461			1,437			1,507			1,493		1,609			2,896			3,102
Statutory underwriting gain (loss)	557			615			(794		)	(659		)	547		477			1,172			1,024
Policyholder dividends	7			6			(5		)	14			9		6			13			15
Statutory underwriting gain (loss) after policyholder dividends	$	550		$	609		$	(789	)	$	(673	)	$	538	$	471		$	1,159		$	1,009
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	41,637		$	41,357		$	42,733		$	43,191		$	43,256	$	43,116		$	41,357		$	43,116
Increase (decrease) in reserves (1)	$	(91	)	$	(280	)	$	1,376		$	458		$	65	$	(140	)	$	(371	)	$	(75	)
Statutory surplus	$	15,441		$	16,137		$	17,738		$	17,812		$	18,522	$	19,037		$	16,137		$	19,037
Net written premiums/surplus (2)	1.32:1			1.26:1			1.14:1			1.14:1			1.10:1		1.09:1			1.26:1			1.09:1

(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 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006			2Q 2006			YTD 2Q 2005			YTD 2Q 2006
Written premiums
Gross	$	5,920		$	5,909		$	6,030		$	5,877		$	5,810		$	6,197		$	11,829		$	12,007
Ceded	(1,140		)	(693		)	(934		)	(583		)	(1,036		)	(542		)	(1,833		)	(1,578		)
Net	$	4,780		$	5,216		$	5,096		$	5,294		$	4,774		$	5,655		$	9,996		$	10,429
Earned premiums
Gross	$	6,023		$	5,955		$	5,969		$	5,925		$	5,733		$	5,899		$	11,978		$	11,632
Ceded	(904		)	(846		)	(992		)	(789		)	(742		)	(718		)	(1,750		)	(1,460		)
Net	$	5,119		$	5,109		$	4,977		$	5,136		$	4,991		$	5,181		$	10,228		$	10,172

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)

															YTD		YTD
	1Q		2Q		3Q			4Q			1Q		2Q		2Q		2Q
	2005		2005		2005			2005			2006		2006		2005		2006
Revenues
Premiums	$	2,204	$	2,164	$	2,078		$	2,128		$	2,030	$	2,098	$	4,368	$	4,128
Net investment income	480		498		483			483			517		510		978		1,027
Fee income	163		156		160			150			139		142		319		281
Other revenues	15		13		19			8			6		7		28		13
Total revenues	2,862		2,831		2,740			2,769			2,692		2,757		5,693		5,449
Claims and expenses
Claims and claim adjustment expenses	1,522		1,397		2,112			2,417			1,311		1,323		2,919		2,634
Amortization of deferred acquisition costs	317		306		320			309			295		295		623		590
General and administrative expenses	419		397		419			419			362		425		816		787
Interest expense	—		1		—			1			1		2		1		3
Total claims and expenses	2,258		2,101		2,851			3,146			1,969		2,045		4,359		4,014
Operating income (loss) before federal income taxes	604		730		(111		)	(377		)	723		712		1,334		1,435
Income taxes	156		200		(97		)	(169		)	188		195		356		383
Operating income (loss)	$	448	$	530	$	(14	)	$	(208	)	$	535	$	517	$	978	$	1,052

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)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Underwriting gain (loss)	$	71		$	137		$	(401	)	$	(592	)	$	132		$	118		$	208		$	250
Net investment income	367			385			375			378			400			395			752			795
Other	10			8			12			6			3			4			18			7
Operating income (loss)	$	448		$	530		$	(14	)	$	(208	)	$	535		$	517		$	978		$	1,052
GAAP Combined ratio (1,2)
Loss and loss adjustment expense ratio	65.3		%	61.7		%	98.7		%	110.2		%	60.0		%	60.0		%	63.5		%	60.1		%
Underwriting expense ratio	29.1		%	27.8		%	31.0		%	30.0		%	29.7		%	30.4		%	28.5		%	30.0		%
Combined ratio	94.4		%	89.5		%	129.7		%	140.2		%	89.7		%	90.4		%	92.0		%	90.1		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	41.4		%	17.5		%	0.0		%	0.0		%	0.0		%	0.0		%
Impact of prior year reserve development on combined ratio	0.3		%	-0.5		%	-0.3		%	33.1		%	-0.5		%	-0.2		%	-0.1		%	-0.3		%

(1)Before policyholder dividends.

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2005		2005		2005		2005		2006		2006		2005		2006
Billing and policy fees	$	4	$	2	$	4	$	2	$	3	$	3	$	6	$	6
Fee income:
Loss and loss adjustment expenses	$	72	$	59	$	68	$	62	$	87	$	61	$	131	$	148
Other underwriting expenses	91		97		92		88		52		81		188		133
Total fee income	$	163	$	156	$	160	$	150	$	139	$	142	$	319	$	281

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)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Statutory underwriting
Gross written premiums	$	2,751		$	2,481		$	2,644		$	2,550		$	2,519		$	2,573		$	5,232		$	5,092
Net written premiums	$	2,192		$	2,047		$	1,989		$	2,201		$	2,085		$	2,217		$	4,239		$	4,302
Net earned premiums	$	2,204		$	2,164		$	2,078		$	2,128		$	2,030		$	2,098		$	4,368		$	4,128
Losses and loss adjustment expenses	1,426			1,332			2,065			2,430			1,231			1,269			2,758			2,500
Underwriting expenses	607			565			572			624			580			631			1,172			1,211
Statutory underwriting gain (loss)	171			267			(559		)	(926		)	219			198			438			417
Policyholder dividends	10			4			(7		)	10			5			2			14			7
Statutory underwriting gain (loss) after policyholder dividends	$	161		$	263		$	(552	)	$	(936	)	$	214		$	196		$	424		$	410
Other statistics
Effective tax rate on net investment income	23.6		%	22.7		%	22.3		%	21.8		%	22.6		%	22.5		%	23.1		%	22.6		%
Net investment income (after-tax)	$	367		$	385		$	375		$	378		$	400		$	395		$	752		$	795
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)

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2005		2005		2005		2005		2006		2006		2005		2006
Net written premiums by market
Commercial accounts	$	1,127	$	1,068	$	1,022	$	1,169	$	1,133	$	1,196	$	2,195	$	2,329
Select accounts	684		719		652		667		679		705		1,403		1,384
National accounts	341		238		298		353		268		298		579		566
Total core	2,152		2,025		1,972		2,189		2,080		2,199		4,177		4,279
Commercial other	40		22		17		12		5		18		62		23
Total	$	2,192	$	2,047	$	1,989	$	2,201	$	2,085	$	2,217	$	4,239	$	4,302
Net written premiums by product line
Commercial multi-peril	$	733	$	681	$	681	$	795	$	798	$	771	$	1,414	$	1,569
Workers’ compensation	464		367		378		451		426		420		831		846
Commercial automobile	419		423		408		410		381		431		842		812
Property	379		359		310		351		357		399		738		756
General liability	185		205		195		189		121		184		390		305
Other	12		12		17		5		2		12		24		14
Total	$	2,192	$	2,047	$	1,989	$	2,201	$	2,085	$	2,217	$	4,239	$	4,302
National accounts
Additions to claim volume under administration (1)	$	1,042	$	838	$	691	$	683	$	890	$	742	$	1,880	$	1,632
Written fees	$	173	$	148	$	130	$	123	$	144	$	134	$	321	$	278

(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 2005		2Q 2005		3Q 2005		4Q 2005		1Q 2006		2Q 2006		YTD 2Q 2005		YTD 2Q 2006
Revenues
Premiums	$	1,456	$	1,449	$	1,388	$	1,446	$	1,401	$	1,456	$	2,905	$	2,857
Net investment income	170		173		204		210		222		227		343		449
Fee income	8		9		9		9		11		11		17		22
Other revenues	12		8		2		7		6		8		20		14
Total revenues	1,646		1,639		1,603		1,672		1,640		1,702		3,285		3,342
Claims and expenses
Claims and claim adjustment expenses	936		875		973		944		816		817		1,811		1,633
Amortization of deferred acquisition costs	240		224		243		245		231		238		464		469
General and administrative expenses	233		230		203		227		238		250		463		488
Interest expense	—		—		—		—		—		1		—		1
Total claims and expenses	1,409		1,329		1,419		1,416		1,285		1,306		2,738		2,591
Operating income before federal income taxes	237		310		184		256		355		396		547		751
Income taxes	64		89		54		101		98		109		153		207
Operating income	$	173	$	221	$	130	$	155	$	257	$	287	$	394	$	544

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 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006			2Q 2006			YTD 2Q 2005			YTD 2Q 2006
Underwriting gain (loss)	$	34		$	82		$	(26	)	$	(11	)	$	83		$	109		$	116		$	192
Net investment income	129			133			155			161			169			173			262			342
Other	10			6			1			5			5			5			16			10
Operating income	$	173		$	221		$	130		$	155		$	257		$	287		$	394		$	544
GAAP Combined ratio (1,2)
Loss and loss adjustment expense ratio	64.3		%	59.9		%	69.7		%	64.7		%	57.7		%	55.5		%	62.1		%	56.6		%
Underwriting expense ratio	32.0		%	31.0		%	31.7		%	32.4		%	33.0		%	33.1		%	31.5		%	33.0		%
Combined ratio	96.3		%	90.9		%	101.4		%	97.1		%	90.7		%	88.6		%	93.6		%	89.6		%
Impact of catastrophes on combined ratio	1.3		%	0.0		%	11.9		%	11.6		%	0.0		%	0.0		%	0.6		%	0.0		%
Impact of prior year reserve development on combined ratio	3.6		%	1.1		%	-0.9		%	-4.4		%	-0.6		%	-2.7		%	2.4		%	-1.7		%

(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 2005		2Q 2005		3Q 2005			4Q 2005		1Q 2006		2Q 2006		YTD 2Q 2005		YTD 2Q 2006
Billing and policy fees	$	2	$	1	$	(1	)	$	—	$	—	$	—	$	3	$	—
Fee income:
Loss and loss adjustment expenses	$	4	$	4	$	4		$	4	$	5	$	5	$	8	$	10
Other underwriting expenses	4		5		5			5		6		6		9		12
Total fee income	$	8	$	9	$	9		$	9	$	11	$	11	$	17	$	22

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 2005			2Q 2005			3Q 2005			4Q 2005			1Q 2006			2Q 2006			YTD 2Q 2005			YTD 2Q 2006
Statutory underwriting
Gross written premiums	$	1,691		$	1,758		$	1,654		$	1,733		$	1,670		$	1,784		$	3,449		$	3,454
Net written premiums	$	1,154		$	1,545		$	1,480		$	1,550		$	1,117		$	1,657		$	2,699		$	2,774
Net earned premiums	$	1,456		$	1,449		$	1,388		$	1,446		$	1,401		$	1,456		$	2,905		$	2,857
Losses and loss adjustment expenses	936			872			994			976			805			813			1,808			1,618
Underwriting expenses	426			453			413			428			468			481			879			949
Statutory underwriting gain (loss)	94			124			(19		)	42			128			162			218			290
Policyholder dividends	(3		)	2			2			4			4			4			(1		)	8
Statutory underwriting gain (loss) after policyholder dividends	$	97		$	122		$	(21	)	$	38		$	124		$	158		$	219		$	282
Other statistics
Effective tax rate on net investment income	23.9		%	23.4		%	23.7		%	23.3		%	23.9		%	23.8		%	23.6		%	23.8		%
Net investment income (after-tax)	$	129		$	133		$	155		$	161		$	169		$	173		$	262		$	342
Catastrophes, net of reinsurance:
Pre-tax	$	19		$	—		$	169		$	168		$	—		$	—		$	19		$	—
After-tax	$	13		$	—		$	129		$	139		$	—		$	—		$	13		$	—

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 2005		2Q 2005		3Q 2005		4Q 2005		1Q 2006		2Q 2006		YTD 2Q 2005		YTD 2Q 2006
Net written premiums by market
Construction	$	250	$	261	$	179	$	226	$	252	$	251	$	511	$	503
Bond	163		368		391		345		204		412		531		616
Financial & Professional Services	120		232		247		251		89		248		352		337
Other	357		388		440		420		339		391		745		730
Total Domestic Specialty	890		1,249		1,257		1,242		884		1,302		2,139		2,186
International Specialty	264		296		223		308		233		355		560		588
Total	$	1,154	$	1,545	$	1,480	$	1,550	$	1,117	$	1,657	$	2,699	$	2,774
Net written premiums by product line
Workers’ compensation	$	119	$	124	$	79	$	117	$	119	$	116	$	243	$	235
Commercial automobile	92		95		94		91		89		95		187		184
Property	136		141		142		158		125		137		277		262
General liability	375		579		575		575		389		603		954		992
Fidelity & Surety	130		296		320		280		152		342		426		494
Commercial multi-peril	38		14		47		21		10		9		52		19
International	264		296		223		308		233		355		560		588
Total	$	1,154	$	1,545	$	1,480	$	1,550	$	1,117	$	1,657	$	2,699	$	2,774

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)

														YTD		YTD
	1Q		2Q		3Q			4Q		1Q		2Q		2Q		2Q
	2005		2005		2005			2005		2006		2006		2005		2006
Revenues
Premiums	$	1,459	$	1,496	$	1,511		$	1,562	$	1,560	$	1,627	$	2,955	$	3,187
Net investment income	109		116		112			120		134		137		225		271
Other revenues	24		23		24			25		24		22		47		46
Total revenues	1,592		1,635		1,647			1,707		1,718		1,786		3,227		3,504
Claims and expenses
Claims and claim adjustment expenses	765		829		1,276			881		915		1,013		1,594		1,928
Amortization of deferred acquisition costs	253		253		267			275		274		281		506		555
General and administrative expenses	154		162		162			187		183		197		316		380
Total claims and expenses	1,172		1,244		1,705			1,343		1,372		1,491		2,416		2,863
Operating income (loss) before federal income taxes	420		391		(58		)	364		346		295		811		641
Income taxes	135		125		(33		)	115		106		92		260		198
Operating income (loss)	$	285	$	266	$	(25	)	$	249	$	240	$	203	$	551	$	443

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)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Underwriting gain (loss)	$	186		$	164		$	(127	)	$	140		$	122		$	84		$	350		$	206
Net investment income	83			88			86			92			102			105			171			207
Other	16			14			16			17			16			14			30			30
Operating income (loss)	$	285		$	266		$	(25	)	$	249		$	240		$	203		$	551		$	443
GAAP Combined ratio(1)
Loss and loss adjustment expense ratio	52.4		%	55.4		%	84.5		%	56.4		%	58.7		%	62.2		%	53.9		%	60.5		%
Underwriting expense ratio	26.3		%	26.2		%	26.8		%	28.1		%	27.7		%	27.9		%	26.3		%	27.8		%
Combined ratio	78.7		%	81.6		%	111.3		%	84.5		%	86.4		%	90.1		%	80.2		%	88.3		%
Impact of catastrophes on combined ratio	0.8		%	0.7		%	32.1		%	5.2		%	0.0		%	4.1		%	0.8		%	2.1		%
Impact of prior year reserve development on combined ratio	-7.8		%	-5.4		%	-5.5		%	-5.3		%	-1.9		%	-3.6		%	-6.6		%	-2.8		%

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2005		2005		2005		2005		2006		2006		2005		2006
Billing and policy fees	$	23	$	23	$	23	$	23	$	25	$	23	$	46	$	48

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)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Statutory underwriting
Gross written premiums	$	1,478		$	1,670		$	1,732		$	1,594		$	1,621		$	1,840		$	3,148		$	3,461
Net written premiums	$	1,434		$	1,624		$	1,627		$	1,543		$	1,572		$	1,781		$	3,058		$	3,353
Net earned premiums	$	1,459		$	1,496		$	1,511		$	1,562		$	1,560		$	1,627		$	2,955		$	3,187
Losses and loss adjustment expenses	765			829			1,275			882			915			1,013			1,594			1,928
Underwriting expenses	402			443			452			455			445			497			845			942
Statutory underwriting gain (loss)	$	292		$	224		$	(216	)	$	225		$	200		$	117		$	516		$	317
Other statistics
Effective tax rate on net investment income	24.2		%	24.0		%	22.9		%	22.8		%	23.6		%	23.5		%	24.1		%	23.5		%
Net investment income (after-tax)	$	83		$	88		$	86		$	92		$	102		$	105		$	171		$	207
Catastrophes, net of reinsurance:
Pre-tax	$	12		$	11		$	488		$	82		$	—		$	67		$	23		$	67
After-tax	$	7		$	8		$	317		$	53		$	—		$	44		$	15		$	44
Policies in force (in thousands)
Automobile	2,270			2,281			2,307			2,347			2,429			2,510			2,281			2,510
Homeowners and other	4,038			4,090			4,150			4,219			4,291			4,407			4,090			4,407

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)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Statutory underwriting
Gross written premiums	$	870		$	888		$	910		$	858		$	942		$	960		$	1,758		$	1,902
Net written premiums	$	854		$	878		$	897		$	848		$	932		$	951		$	1,732		$	1,883
Net earned premiums	$	840		$	851		$	864		$	873		$	872		$	910		$	1,691		$	1,782
Losses and loss adjustment expenses	505			542			525			564			590			626			1,047			1,216
Underwriting expenses	213			222			224			217			239			259			435			498
Statutory underwriting gain	$	122		$	87		$	115		$	92		$	43		$	25		$	209		$	68
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	60.1		%	63.6		%	60.9		%	64.5		%	67.7		%	68.7		%	61.9		%	68.2		%
Underwriting expense ratio	23.5		%	24.0		%	23.9		%	24.0		%	25.3		%	26.8		%	23.8		%	26.1		%
Combined ratio	83.6		%	87.6		%	84.8		%	88.5		%	93.0		%	95.5		%	85.7		%	94.3		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	1.2		%	0.9		%	0.0		%	0.4		%	0.0		%	0.2		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	—		$	11		$	7		$	—		$	3		$	—		$	3
After-tax	$	—		$	—		$	7		$	5		$	—		$	2		$	—		$	2
Policies in force (in thousands)	2,270			2,281			2,307			2,347			2,429			2,510
Change from prior year quarter	5.2		%	2.1		%	2.1		%	3.7		%	7.0		%	10.0		%
Change from prior quarter	0.3		%	0.5		%	1.1		%	1.7		%	3.5		%	3.3		%

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

Billing and policy fees are as follows:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2005		2005		2005		2005		2006		2006		2005		2006
Billing and policy fees	$	15	$	14	$	15	$	14	$	16	$	15	$	29	$	31

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)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Statutory underwriting
Gross written premiums	$	608		$	782		$	822		$	736		$	679		$	880		$	1,390		$	1,559
Net written premiums	$	580		$	746		$	730		$	695		$	640		$	830		$	1,326		$	1,470
Net earned premiums	$	619		$	645		$	647		$	689		$	688		$	717		$	1,264		$	1,405
Losses and loss adjustment expenses	260			287			750			318			325			387			547			712
Underwriting expenses	189			221			228			238			206			238			410			444
Statutory underwriting gain (loss)	$	170		$	137		$	(331	)	$	133		$	157		$	92		$	307		$	249
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	42.0		%	44.5		%	115.8		%	46.2		%	47.3		%	54.0		%	43.3		%	50.7		%
Underwriting expense ratio	30.1		%	29.2		%	30.8		%	33.3		%	30.8		%	29.3		%	29.6		%	30.0		%
Combined ratio	72.1		%	73.7		%	146.6		%	79.5		%	78.1		%	83.3		%	72.9		%	80.7		%
Impact of catastrophes on combined ratio	1.9		%	1.7		%	73.8		%	10.7		%	0.0		%	8.9		%	1.8		%	4.5		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	12		$	11		$	477		$	75		$	—		$	64		$	23		$	64
After-tax	$	7		$	8		$	310		$	48		$	—		$	42		$	15		$	42
Policies in force (in thousands)	4,038			4,090			4,150			4,219			4,291			4,407
Change from prior year quarter	11.6		%	8.3		%	6.0		%	5.2		%	6.3		%	7.8		%
Change from prior quarter	0.7		%	1.3		%	1.5		%	1.7		%	1.7		%	2.7		%

(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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2005		2005		2005		2005		2006		2006		2005		2006
Billing and policy fees	$	8	$	9	$	8	$	9	$	9	$	9	$	17	$	18

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)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Revenues
Net investment income	$	6		$	(12	)	$	13		$	—		$	2		$	—		$	(6	)	$	2
Other revenues	(1		)	(1		)	—			—			4			—			(2		)	4
Total revenues	5			(13		)	13			—			6			—			(8		)	6
Claims and expenses
Interest expense	71			69			70			74			75			75			140			150
General and administrative expenses	7			—			5			5			11			(6		)	7			5
Total claims and expenses	78			69			75			79			86			69			147			155
Operating loss before federal income tax benefit	(73		)	(82		)	(62		)	(79		)	(80		)	(69		)	(155		)	(149		)
Income taxes	(26		)	(31		)	(21		)	(34		)	(59		)	(21		)	(57		)	(80		)
Operating loss	$	(47	)	$	(51	)	$	(41	)	$	(45	)	$	(21	)	$	(48	)	$	(98	)	$	(69	)

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

21

The St. Paul Travelers Companies, Inc.
Consolidated Balance Sheet (1)
(in millions)

	June 30, 2006 (1)		December 31, 2005
Assets
Fixed maturities, available for sale at fair value (including $2,055 and $2,667 subject to securities lending and repurchase agreements) (amortized cost $61,091 and $58,616)	$	60,174	$	58,983
Equity securities, at fair value (cost $510 and $538)	537		579
Real estate	750		752
Mortgage loans	112		145
Short-term securities	4,947		4,802
Other investments	3,250		3,026
Total investments	69,770		68,287
Cash	274		337
Investment income accrued	781		761
Premiums receivable	6,372		6,124
Reinsurance recoverables	18,812		19,574
Ceded unearned premiums	1,424		1,322
Deferred acquisition costs	1,623		1,527
Deferred tax asset	2,282		2,062
Contractholder receivables	5,470		5,516
Goodwill	3,441		3,442
Intangible assets	839		917
Other assets	2,798		3,318
Total assets	$	113,886	$	113,187

	June 30, 2006 (1)			December 31, 2005
Liabilities
Claims and claim adjustment expense reserves	$	60,196		$	61,090
Unearned premium reserves	11,303			10,927
Contractholder payables	5,470			5,516
Payables for reinsurance premiums	791			720
Debt	6,618			5,850
Other liabilities	6,456			6,781
Total liabilities	90,834			90,884
Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.4 and 0.5 shares issued and outstanding)	140			153
Common stock (1,750.0 shares authorized; 691.4 and 693.4 shares issued and outstanding)	18,259			18,096
Retained earnings	5,382			3,750
Accumulated other changes in equity from nonowner sources	(406		)	351
Treasury stock, at cost (7.4 and 1.2 shares)	(323		)	(47		)
Total shareholders’ equity	23,052			22,303
Total liabilities and shareholders’ equity	$	113,886		$	113,187

(1)Preliminary.

22

The St. Paul Travelers Companies, Inc.
Investment Portfolio
(at carrying value, $ in millions)

	June 30, 2006			Pre-tax Book Yield (1)		December 31, 2005		Pre-tax Book Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	26,685		5.00	%	$	27,518	4.84	%
Tax-exempt fixed maturities	33,489			4.17	%	31,465		4.15	%
Total fixed maturities	60,174			4.54	%	58,983		4.48	%
Non-redeemable preferred stocks	379			6.82	%	422		6.79	%
Common stocks	158					157
Total equity securities	537					579
Real estate	750					752
Mortgage loans	112			5.82	%	145		6.03	%
Short-term securities	4,947			5.19	%	4,802		4.31	%
Private equities	1,554					1,506
Arbitrage funds	957					791
Real estate joint ventures & other	713					697
Trading securities	26					32
Total other investments	3,250					3,026
Total investments	$	69,770				$	68,287
Net unrealized gain (loss) on investment securities, net of tax, included in shareholders’ equity	$	(476	)			$	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)

	June 30, 2006		December 31, 2005
Fixed maturities
Mortgage-backed securities - principally obligations of U.S. Government agencies	$	7,662	$	7,943
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	2,930		3,444
Corporates (including redeemable preferreds)	14,204		14,187
Obligations of states and political subdivisions	33,748		31,823
Debt securities issued by foreign governments	1,630		1,586
Subtotal - Available-for-sale securities	60,174		58,983
Trading securities	3		4
Total fixed maturities	$	60,177	$	58,987

Fixed Maturities
Quality Characteristics (1)

	June 30, 2006
	Amount		% of Total
Quality Ratings
Aaa	$	39,891	66.3	%
Aa	11,105		18.5
A	4,432		7.4
Baa	3,032		5.0
Total investment grade	58,460		97.2
Ba	791		1.3
B	659		1.1
Caa and lower	264		0.4
Total below investment grade	1,714		2.8
Total fixed maturities, excluding trading securities	$	60,174	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	4.2

(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			2Q 2006			YTD 2Q 2005			YTD 2Q 2006
Gross investment income
Fixed maturities	$	609		$	615		$	636		$	670		$	667		$	677		$	1,224		$	1,344
Short-term securities	30			37			56			59			60			60			67			120
Mortgage loans	4			4			14			1			2			2			8			4
Other	139			145			125			94			161			157			284			318
	782			801			831			824			890			896			1,583			1,786
Investment expenses	17			26			19			11			15			22			43			37
Net investment income, pre-tax	765			775			812			813			875			874			1,540			1,749
Income taxes	182			177			187			181			205			201			359			406
Net investment income, after-tax	$	583		$	598		$	625		$	632		$	670		$	673		$	1,181		$	1,343
Effective tax rate	23.9		%	22.8		%	23.0		%	22.3		%	23.5		%	23.0		%	23.3		%	23.2		%
Average invested assets (1)	$	64,218		$	65,765		$	67,630		$	69,135		$	69,701		$	70,491		$	65,002		$	70,108
Average yield pre-tax	4.8		%	4.7		%	4.8		%	4.7		%	5.0		%	5.0		%	4.7		%	5.0		%
Average yield after-tax	3.6		%	3.6		%	3.7		%	3.7		%	3.8		%	3.8		%	3.6		%	3.8		%

(1)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			2Q 2006			YTD 2Q 2005			YTD 2Q 2006
Net realized investment gains (losses)
Fixed maturities	$	14		$	(17	)	$	2		$	1		$	—		$	(29	)	$	(3	)	$	(29	)
Equity securities	4			4			14			12			14			2			8			16
Other	(18		)	(42		)	23			20			(20		)	37			(60		)	17
Realized investment gains (losses) before tax	—			(55		)	39			33			(6		)	10			(55		)	4
Related taxes	(18		)	(20		)	14			6			(1		)	(1		)	(38		)	(2		)
Net realized investment gains (losses)	$	18		$	(35	)	$	25		$	27		$	(5	)	$	11		$	(17	)	$	6
Gross investment gains (1)	$	203		$	212		$	196		$	177		$	125		$	101		$	415		$	226
Gross investment losses before impairments (1)	(194		)	(225		)	(123		)	(120		)	(121		)	(88		)	(419		)	(209		)
Impairments	(9		)	(42		)	(34		)	(24		)	(10		)	(3		)	(51		)	(13		)
Realized investment gains (losses) before tax	—			(55		)	39			33			(6		)	10			(55		)	4
Related taxes	(18		)	(20		)	14			6			(1		)	(1		)	(38		)	(2		)
Net realized investment gains (losses)	$	18		$	(35	)	$	25		$	27		$	(5	)	$	11		$	(17	)	$	6

	March 31, 2005		June 30, 2005		September 30, 2005		December 31, 2005		March 31, 2006			June 30, 2006
Net unrealized investment gains (losses), by asset type
Fixed maturities	$	429	$	1,420	$	587	$	367	$	(328	)	$	(917	)
Equity securities & other	21		65		117		118		217			174
Unrealized investment gains (losses) before tax	450		1,485		704		485		(111		)	(743		)
Related taxes	173		523		232		158		(50		)	(267		)
Balance, end of period	$	277	$	962	$	472	$	327	$	(61	)	$	(476	)

(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	$	34	$	163	$	105
Gross investment Treasury future losses	$	66	$	123	$	81	$	70	$	43	$	25	$	189	$	68

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)

	June 30, 2006			December 31, 2005
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	13,863		$	14,177
Allowance for uncollectible reinsurance	(799		)	(804		)
Net reinsurance recoverables	13,064			13,373
Mandatory pools and associations	1,986			2,211
Structured settlements	3,762			3,990
Total reinsurance recoverables	$	18,812		$	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
Swiss Re Group	$	1,690	$	1,479	A+ second highest of 16 ratings
Munich Re Group	1,304		1,273		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
XL Capital Group	651		636		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.

27

The St. Paul Travelers Companies, Inc.

Net Reserves for Losses and Loss Adjustment Expense

($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Commercial
Beginning of period	$	29,021		$	28,772		$	28,352		$	28,911		$	29,387		$	29,213		$	29,021		$	29,387
Incurred	1,426			1,332			2,065			2,430			1,231			1,269			2,758			2,500
Paid	(1,705		)	(1,725		)	(1,484		)	(1,964		)	(1,777		)	(1,716		)	(3,430		)	(3,493		)
Acquired reserves, foreign exchange and other (1)	30			(27		)	(22		)	10			372			48			3			420
End of period	$	28,772		$	28,352		$	28,911		$	29,387		$	29,213		$	28,814		$	28,352		$	28,814
Specialty
Beginning of period	$	9,373		$	9,582		$	9,686		$	10,069		$	10,167		$	10,458		$	9,373		$	10,167
Incurred	936			872			994			976			805			813			1,808			1,618
Paid	(694		)	(710		)	(642		)	(777		)	(619		)	(720		)	(1,404		)	(1,339		)
Acquired reserves, foreign exchange and other (1)	(33		)	(58		)	31			(101		)	105			57			(91		)	162
End of period	$	9,582		$	9,686		$	10,069		$	10,167		$	10,458		$	10,608		$	9,686		$	10,608
Personal
Beginning of period	$	3,334		$	3,283		$	3,319		$	3,753		$	3,637		$	3,585		$	3,334		$	3,637
Incurred	765			829			1,275			882			915			1,013			1,594			1,928
Paid	(816		)	(793		)	(841		)	(998		)	(967		)	(904		)	(1,609		)	(1,871		)
End of period	$	3,283		$	3,319		$	3,753		$	3,637		$	3,585		$	3,694		$	3,319		$	3,694
Total
Beginning of period	$	41,728		$	41,637		$	41,357		$	42,733		$	43,191		$	43,256		$	41,728		$	43,191
Incurred	3,127			3,033			4,334			4,288			2,951			3,095			6,160			6,046
Paid	(3,215		)	(3,228		)	(2,967		)	(3,739		)	(3,363		)	(3,340		)	(6,443		)	(6,703		)
Acquired reserves, foreign exchange and other (1)	(3		)	(85		)	9			(91		)	477			105			(88		)	582
End of period	$	41,637		$	41,357		$	42,733		$	43,191		$	43,256		$	43,116		$	41,357		$	43,116
Prior Year Reserve Development: Unfavorable (Favorable)
Commercial
Asbestos	$	—		$	—		$	—		$	830		$	—		$	—		$	—		$	—
Environmental	—			—			—			30			—			—			—			—
All other	6			(10		)	(6		)	(156		)	(10		)	(4		)	(4		)	(14		)
Prior year development excluding accretion	6			(10		)	(6		)	704			(10		)	(4		)	(4		)	(14		)
Accretion of discount	13			14			13			14			14			13			27			27
Total Commercial	19			4			7			718			4			9			23			13
Specialty
Prior year development excluding accretion	53			16			(13		)	(65		)	(9		)	(39		)	69			(48		)
Accretion of discount	2			—			1			2			2			2			2			4
Total Specialty	55			16			(12		)	(63		)	(7		)	(37		)	71			(44		)
Personal	(114		)	(81		)	(83		)	(82		)	(30		)	(58		)	(195		)	(88		)
Total	$	(40	)	$	(61	)	$	(88	)	$	573		$	(33	)	$	(86	)	$	(101	)	$	(119	)

(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)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Asbestos reserves
Beginning reserves:
Direct	$	4,775		$	4,675		$	4,527		$	4,412		$	5,103		$	5,000		$	4,775		$	5,103
Ceded	(843		)	(818		)	(785		)	(743		)	(739		)	(720		)	(843		)	(739		)
Net	3,932			3,857			3,742			3,669			4,364			4,280			3,932			4,364
Incurred losses and loss expenses:
Direct	—			—			—			833			—			—			—			—
Ceded	—			—			—			(3		)	—			—			—			—
Accretion of discount:
Direct	—			1			—			—			—			—			1			—
Ceded	—			—			—			—			—			—			—			—
Losses paid:
Direct	100			149			115			142			103			162			249			265
Ceded	(25		)	(33		)	(42		)	(7		)	(19		)	(4		)	(58		)	(23		)
Ending reserves:
Direct	4,675			4,527			4,412			5,103			5,000			4,838			4,527			4,838
Ceded	(818		)	(785		)	(743		)	(739		)	(720		)	(716		)	(785		)	(716		)
Net	$	3,857		$	3,742		$	3,669		$	4,364		$	4,280		$	4,122		$	3,742		$	4,122
Environmental reserves
Beginning reserves:
Direct	$	725		$	624		$	547		$	517		$	494		$	406		$	725		$	494
Ceded	(84		)	(85		)	(79		)	(80		)	(69		)	(19		)	(84		)	(69		)
Net	641			539			468			437			425			387			641			425
Incurred losses and loss expenses:
Direct	—			—			—			17			—			—			—			—
Ceded	—			—			—			13			—			—			—			—
Losses paid:
Direct	101			77			30			40			88			27			178			115
Ceded	1			(6		)	1			2			(50		)	(12		)	(5		)	(62		)
Ending reserves:
Direct	624			547			517			494			406			379			547			379
Ceded	(85		)	(79		)	(80		)	(69		)	(19		)	(7		)	(79		)	(7		)
Net	$	539		$	468		$	437		$	425		$	387		$	372		$	468		$	372

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

29

The St. Paul Travelers Companies, Inc.

Capitalization

($ in millions)

	June 30,			December 31,
	2006			2005
Debt
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 the following 12 months	86			56
Total short-term debt	836			310
Long-term debt
Medium-term notes with various maturities through 2010	212			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	125			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
6.25% Senior notes due June 20, 2016	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
6.75% Senior notes due June 20, 2036	400			—
8.50% Subordinated debentures due December 15, 2045	56			56
8.312% Subordinated debentures due July 1, 2046	73			73
7.60% Subordinated debentures due October 15, 2050	593			593
Total long-term debt	5,666			5,393
Unamortized fair value adjustment	168			185
Unamortized debt issuance costs	(52		)	(38		)
	5,782			5,540
Total debt	6,618			5,850
Minority interest	14			14
Preferred equity	140			153
Common equity (excluding SFAS 115)	23,389			21,823
Total capital	$	30,161		$	27,840
Total debt to capital	21.9		%	21.0		%

30

The St. Paul Travelers Companies, Inc.

Statutory to GAAP Shareholders’ Equity Reconciliation (1)

($ in millions)

	June 30,			December 31,
	2006			2005
Statutory capital and surplus	$	19,037		$	17,812
GAAP adjustments
Goodwill and intangible assets	4,055			4,122
Investments	(248		)	1,065
Noninsurance companies	(3,455		)	(3,815		)
Deferred acquisition costs	1,623			1,527
Deferred federal income tax	914			533
Reinsurance recoverables	604			602
Furniture, equipment & software	282			206
Employee benefits	131			105
Agents balances	90			166
Other	19			(20		)
Total GAAP adjustments	4,015			4,491
GAAP shareholders’ equity	$	23,052		$	22,303

(1) Preliminary

31

The St. Paul Travelers Companies, Inc.

Statement of Cash Flows - Preliminary

($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Cash flows from operating activities
Net income	$	212		$	1,069		$	162		$	179		$	1,006		$	970		$	1,281		$	1,976
Adjustments to reconcile net income to net cash provided by operating activities:
(Income) loss from discontinued operations, net of tax	665			(138		)	(87		)	(1		)	—			—			527			—
Net realized investment (gains) losses	—			55			(39		)	(33		)	6			(10		)	55			(4		)
Depreciation and amortization	150			236			113			192			197			178			386			375
Deferred federal income taxes (benefit)	110			625			(218		)	(17		)	159			44			735			203
Amortization of deferred policy acquisition costs	810			783			830			829			800			814			1,593			1,614
Premium balances receivable	92			(187		)	147			25			110			(358		)	(95		)	(248		)
Reinsurance recoverables	228			433			(1,059		)	(122		)	636			370			661			1,006
Deferred acquisition costs	(808		)	(793		)	(821		)	(798		)	(836		)	(874		)	(1,601		)	(1,710		)
Claim and claim adjustment expense reserves	(433		)	(523		)	2,484			504			(1,137		)	(509		)	(956		)	(1,646		)
Unearned premium reserves	(148		)	(41		)	43			(237		)	103			272			(189		)	375
Trading account activities	—			6			—			—			4			2			6			6
Excess tax benefits from share-based payment arrangements	—			—			—			—			(5		)	(1		)	—			(6		)
Other	150			(822		)	(174		)	(44		)	(481		)	(7		)	(672		)	(488		)
Net cash provided by operating activities of continuing operations	1,028			703			1,381			477			562			891			1,731			1,453
Net cash provided by operating activities of discontinued operations	24			—			—			—			—			—			24			—
Net cash provided by operating activities	1,052			703			1,381			477			562			891			1,755			1,453
Cash flows from investing activities
Proceeds from maturities of investments
Fixed maturities	1,073			1,348			1,393			1,138			1,571			1,176			2,421			2,747
Mortgage loans	5			1			43			2			6			23			6			29
Proceeds from sales of investments
Fixed maturities	1,052			1,659			722			1,759			1,320			963			2,711			2,283
Equity securities	39			73			169			122			94			32			112			126
Real estate	—			—			39			(2		)	—			—			—			—
Purchase of investments
Fixed maturities	(4,175		)	(4,391		)	(3,597		)	(3,883		)	(3,983		)	(3,314		)	(8,566		)	(7,297		)
Equity securities	(21		)	(1		)	(15		)	(26		)	(47		)	(17		)	(22		)	(64		)
Mortgage loans	—			(9		)	9			—			—			—			(9		)	—
Real estate	(8		)	(14		)	(7		)	(20		)	(8		)	(6		)	(22		)	(14		)
Short-term securities, (purchases) sales, net	980			(855		)	(1,155		)	1,172			67			(160		)	125			(93		)
Other investments, net	228			224			178			43			148			(28		)	452			120
Securities transactions in course of settlement	195			268			(260		)	(798		)	490			19			463			509
Other	—			(48		)	(25		)	(59		)	(38		)	(84		)	(48		)	(122		)
Net cash provided (used) by investing activities of continuing operations	(632		)	(1,745		)	(2,506		)	(552		)	(380		)	(1,396		)	(2,377		)	(1,776		)
Net cash used by investing activities of discontinued operations	(20		)	—			—			—			—			—			(20		)	—
Net cash provided (used) by investing activities	(652		)	(1,745		)	(2,506		)	(552		)	(380		)	(1,396		)	(2,397		)	(1,776		)

32

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2005			2005			2005			2005			2006			2006			2005			2006
Cash flows from financing activities
Issuance of debt	—			—			—			400			—			786			—			786
Payment of debt	(2		)	(479		)	(41		)	(293		)	(4		)	—			(481		)	(4		)
Treasury stock acquired - net employee share-based compensation	(8		)	(6		)	(13		)	(6		)	(16		)	(1		)	(14		)	(17		)
Treasury stock acquired - share repurchase program	—			—			—			—			—			(230		)	—			(230		)
Issuance of common stock - employee stock options	32			29			68			35			32			26			61			58
Issuance of common stock - maturity of equity unit forward contracts	—			—			442			—			—			—			—			—
Excess tax benefits from share-based payment arrangements	—			—			—			—			5			1			—			6
Dividends to shareholders	(150		)	(157		)	(160		)	(161		)	(161		)	(182		)	(307		)	(343		)
Other	13			(13		)	—			(3		)	(2		)	3			—			1
Net cash provided (used) by financing activities of continuing operations	(115		)	(626		)	296			(28		)	(146		)	403			(741		)	257
Net cash provided by financing activities of discontinued operations	4			—			—			—			—			—			4			—
Net cash provided (used) by financing activities	(111		)	(626		)	296			(28		)	(146		)	403			(737		)	257
Effect of exchange rate changes on cash	(2		)	(2		)	1			(2		)	—			3			(4		)	3
Elimination of cash provided by discontinued operations	(8		)	—			—			—			—			—			(8		)	—
Net proceeds from the sale of discontinued operations	—			1,867			532			—			—			—			1,867			—
Net increase (decrease) in cash	279			197			(296		)	(105		)	36			(99		)	476			(63		)
Cash at beginning of period	262			541			738			442			337			373			262			337
Cash at end of period	$	541		$	738		$	442		$	337		$	373		$	274		$	738		$	274
Income taxes paid (received)	$	14		$	357		$	151		$	304		$	(5	)	$	258		$	371		$	253
Interest paid	$	93		$	86		$	88		$	70		$	85		$	79		$	179		$	164

33

The St. Paul Travelers Companies, Inc.

Financial Supplement - Second Quarter 2006

Glossary of Financial Measures and Description of Operating Segments

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) 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.

34