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):  September 22, 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 incorporation)	(Commission File Number)	(IRS Employer Identification Number)
385 Washington Street Saint Paul, Minnesota		55102
(Address of principal executive offices)		(Zip Code)

(651) 310-7911

(Registrant’s telephone number, including area code)

Not Applicable

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

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

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.

The St. Paul Travelers Companies, Inc. (the “Company”) previously furnished its final financial supplement for the second quarter of 2006 on a Form 8-K filed on August 4, 2006.  On August 25, 2006, the Company announced a realignment of its business segments. The former Commercial and Specialty segments were realigned into two new segments: the Business Insurance segment and the Financial, Professional & International Insurance segment. The Personal segment was renamed Personal Insurance. The changes were designed to reflect the manner in which the Company’s businesses are managed, and represent an aggregation of products and services based on type of customer, how the business is marketed, and the manner in which the business is underwritten.  A revised final financial supplement for the second quarter of 2006 reflecting the realigned segment reporting structure is furnished as Exhibit 99.1 to this Report and is hereby incorporated by reference in this Item 2.02.

As provided in General Instruction B.2 of Form 8-K, the information and exhibit 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	Second Quarter 2006 Financial Supplement of The St. Paul Travelers Companies, Inc. (revised to reflect realigned segment reporting structure) (This exhibit is furnished and not filed).

2

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:       September 22, 2006	THE ST. PAUL TRAVELERS COMPANIES, INC.
	By:	/s/ Bruce A. Backberg
		Name:  Bruce A. Backberg Title:   Senior Vice President

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	Second Quarter 2006 Financial Supplement of The St. Paul Travelers Companies, Inc. (revised to reflect realigned segment reporting structure) (This exhibit is furnished and not filed).

4

EX-99.1

Exhibit 99.1

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

	Page Number
Business Realignment
Business Insurance	i
Financial, Professional & International Insurance	ii
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
Business Insurance
Operating Income	8
Operating Income by Major Component and Combined Ratio	9
Selected Statistics	10
Net Written Premiums	11
Financial, Professional & International Insurance
Operating Income	12
Operating Income by Major Component and Combined Ratio	13
Selected Statistics	14
Net Written Premiums	15
Personal Insurance
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 Supplement - Second Quarter 2006

Business Realignment

In August 2006, the Company announced a realignment of two of its three business segments. The former Commercial and Specialty segments were realigned into two new segments: the Business Insurance segment and the Financial, Professional & International Insurance segment. The Personal segment was renamed Personal Insurance. The changes were designed to reflect the manner in which the Company’s businesses are currently managed, and represent an aggregation of products and services based on type of customer, how the business is marketed, and the manner in which the business is underwritten.  The following discussion  relates to the two realigned segments. Financial data for all periods presented was reclassified to be consistent with the new segment structure.

Business Insurance

The Business Insurance segment offers a broad array of property and casualty insurance and insurance-related services to its clients primarily in the United States. Business Insurance is organized into the following groups, which collectively comprise Business Insurance’s core operations:

·      Select Accounts serves small businesses and offers commercial multi-peril, property, general liability, commercial auto and workers’ compensation insurance.

·      Commercial Accounts serves primarily mid-sized businesses for property and casualty products, including property, general liability, commercial multi-peril, commercial auto and workers’ compensation insurance.  Certain units included in Commercial Accounts prior to the realignment are now included in the Industry - Focused Underwriting, Target Risk Underwriting or Specialized Distribution groups.

·      National Accounts comprises three business units.  The largest provides casualty products and services to large companies, with particular emphasis on workers’ compensation, general liability and automobile liability.  National Accounts also includes Discover Re, which provides unbundled property and casualty insurance products to insureds who utilize programs such as self-insurance, collateralized deductibles and captive reinsurers.  In addition, National Accounts includes the commercial residual market business, which primarily offers workers’ compensation products and services to the involuntary market.

·      Industry-Focused Underwriting. The following units serve targeted industries with unique combinations of insurance coverage, risk management, claims handling and other services:

·      Construction serves a broad range of construction businesses, offering guaranteed cost products for small to mid-sized policyholders and loss sensitive programs for larger accounts. For the larger accounts the customer and the Company work together in actively managing and controlling exposure and claims and they share risk through policy features such as deductibles or retrospective rating. Products offered include workers’ compensation, general liability and commercial auto coverages, and other risk management solutions.

·      Technology serves small to mid-sized companies involved in telecommunications, information technology, medical technology and electronics manufacturing, offering a well-balanced comprehensive portfolio of products and services.  These products include property, commercial auto, general liability, workers’ compensation, umbrella, internet liability, technology errors and omissions coverages and global companion products.

·      Public Sector Services markets insurance products and services to public entities including municipalities, counties, Indian Nation gaming and selected special government districts such as water and sewer utilities. The policies written by this unit typically cover property, commercial auto, general liability and errors and omissions exposures.

·      Oil & Gas provides specialized property and liability products and services for customers involved in the exploration and production of oil and natural gas, including operators and drilling contractors, as well as various service and supply companies and manufacturers that support upstream operations. The policies written by this business group insure drilling rigs, natural gas facilities, and production and gathering platforms, and cover risks including physical damage, liability and business interruption.

·      Agribusiness serves small to medium-sized agricultural businesses, including farms, ranches, wineries and related operations, offering property and liability coverages other than workers’ compensation.

·      Target Risk Underwriting. The following units serve commercial businesses requiring specialized product underwriting, claims handling and risk management services:

·      National Property serves large and mid-sized customers, including retailers, hospitals, colleges and universities, and owners of industrial parks, office buildings, apartments and amusement parks, covering losses on buildings, business assets and business interruption exposures.

·      Inland Marine provides insurance for goods in transit and movable objects for customers such as jewelers, museums, contractors and the transportation industry.  Builders’ Risk insurance is also offered to customers during the construction, renovation or repair of buildings and other structures.

·      Ocean Marine serves the marine transportation industry and related services, as well as other businesses involved in international trade. The Company’s product offerings fall under six main coverage categories: marine liability, cargo, hull and machinery, protection and indemnity, pleasure craft, and marine property and liability.

·      Excess Casualty serves small to mid-sized commercial businesses, offering mono-line umbrella and excess coverage where the Company does not write the primary casualty coverage, or where other business units within the Company prefer to outsource the underwriting of umbrella and excess business based on the expertise and/or limit capacity of Excess Casualty. 

·      Boiler & Machinery serves customers ranging from small commercial firms to Fortune 100 companies, offering comprehensive breakdown coverages for equipment, including property and business interruption coverages.   Through the BoilerRe unit, Boiler and Machinery also serves other property casualty carriers that do not have in-house expertise with reinsurance, underwriting, engineering, claim handling and risk management services for this type of coverage.

·      Global Accounts provides insurance to U.S. companies with foreign property and liability exposures (“home-foreign”), and foreign organizations with property and liability exposures located in the United States (“reverse-flow”), as part of a global program.

i

The St. Paul Travelers Companies, Inc.

Financial Supplement - Second Quarter 2006

Business Realignment (Continued)

·      Specialized Distribution. The following units market and underwrite their products to customers predominantly through licensed wholesale, general and program agents that manage customers’ unique insurance requirements.

·      Northland provides insurance coverage for the commercial transportation industry, and commercial liability and package policies for small, difficult to place specialty classes of commercial business on an admitted or excess and surplus lines basis.

·      National Programs offers tailored property and casualty programs on an admitted basis for customers with common risk characteristics or coverage requirements.  Programs available include those for entertainment, architects and engineers, equipment rental, and golf services.

·      Underwriting Facilities serves small commercial businesses, offering general liability, property and commercial auto physical damage coverages on an admitted or excess and surplus lines basis.

Business Insurance also includes the Special Liability Group, (which manages the Company’s asbestos and environmental liabilities); the assumed reinsurance, health care, and certain international and other runoff operations; policies written by the Company’s Gulf operation (Gulf), which was placed into runoff during the second quarter of 2004, and the Company’s Personal Catastrophe Risk business, which was sold in November 2005. The Company’s Personal Catastrophe Risk business had been included in the Specialty segment prior to the August 2006 segment realignment.  In accordance with the terms of the sale agreement, the Company retained responsibility for the pre-sale claims and claim adjustment expense reserves related to the Personal Catastrophe Risk business and remains responsible for any changes in estimates in those reserves through a quota-share reinsurance agreement.  All of these operations are collectively referred to as Business Insurance Other.

Financial, Professional & International Insurance

The Financial, Professional & International Insurance segment includes surety and financial liability coverages, which require a primarily credit-based underwriting process, as well as property and casualty products that are primarily marketed on an international basis.  The segment includes the following businesses:

·      Bond provides a wide range of customers with specialty products built around the Company’s market leading surety bond business along with an expanding executive liability practice for middle and small market private companies and not-for-profit organizations. Bond’s range of products includes surety and fidelity bonds, directors’ and officers’ liability insurance, errors and omissions insurance, professional liability insurance, employment practices liability insurance, fiduciary liability insurance, and other related coverages.

·      Financial & Professional Services primarily provides professional liability and management liability coverages for public corporations against losses caused by the negligence or misconduct of named directors and officers, professional liability coverages for a variety of professionals, such as lawyers, design professionals and real estate agents for liability from errors and omissions committed in the course of professional conduct or practice, and a full range of insurance coverages including property, auto, liability, fidelity and professional liability coverages for financial institutions.

·      International & Lloyd’s includes coverages marketed and underwritten to several customer groups within the United Kingdom, Canada and the Republic of Ireland and the Company’s participation in Lloyd’s.  The International operations offer specialized insurance and risk management services to several customer groups, including those in the technology, public services, and financial and professional services industry sectors. The Company’s International operations primarily underwrite employers’ liability (similar to workers’ compensation coverage in the United States), public and product liability (the equivalent of general liability), professional indemnity (similar to professional liability coverage), motor (similar to automobile coverage in the United States) and property.  At Lloyd’s, the Company underwrites four principal lines of business—aviation, marine, global property, and accident and special risks—through Syndicate 5000, for which the Company provides 100% of the capital. During the second half of 2004, the Company made a decision to exit certain portions of the Lloyd’s personal lines business. In early 2005, the Company sold the right to renew this business as well as the operating companies that supported it.

ii

The St. Paul Travelers Companies, Inc.

Financial Highlights

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

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Income from continuing operations	$	877		$	931		$	75		$	178		$	1,006		$	970		$	1,808		$	1,976		$	2,061
Income from continuing operations per share:
Basic	$	1.31		$	1.39		$	0.11		$	0.26		$	1.45		$	1.40		$	2.70		$	2.85		$	3.04
Diluted	$	1.25		$	1.33		$	0.11		$	0.26		$	1.41		$	1.36		$	2.58		$	2.76		$	2.95
Net income	$	212		$	1,069		$	162		$	179		$	1,006		$	970		$	1,281		$	1,976		$	1,622
Net income per share:
Basic	$	0.31		$	1.59		$	0.24		$	0.26		$	1.45		$	1.40		$	1.91		$	2.85		$	2.39
Diluted	$	0.31		$	1.52		$	0.23		$	0.26		$	1.41		$	1.36		$	1.84		$	2.76		$	2.33
Operating income	$	859		$	966		$	50		$	151		$	1,011		$	959		$	1,825		$	1,970		$	2,026
Operating income per share:
Basic	$	1.28		$	1.44		$	0.07		$	0.22		$	1.46		$	1.39		$	2.72		$	2.84		$	2.99
Diluted	$	1.23		$	1.38		$	0.07		$	0.22		$	1.41		$	1.34		$	2.60		$	2.75		$	2.90
Continuing operations return on equity	16.6		%	17.4		%	1.3		%	3.2		%	17.9		%	17.0		%	17.0		%	17.5		%	9.5		%
Return on equity	4.0		%	20.0		%	2.9		%	3.2		%	17.9		%	17.0		%	12.1		%	17.5		%	7.5		%
Operating return on equity	16.7		%	18.6		%	0.9		%	2.8		%	18.1		%	16.6		%	17.7		%	17.4		%	9.6		%
Total assets, at period end	$	110,750		$	111,804		$	113,442		$	113,187		$	113,376		$	113,886		$	111,804		$	113,886		$	113,187
Total equity, at period end	$	20,732		$	22,369		$	22,408		$	22,303		$	22,837		$	23,052		$	22,369		$	23,052		$	22,303
Book value per share, at period end	$	30.51		$	32.90		$	32.14		$	31.94		$	32.59		$	33.14		$	32.90		$	33.14		$	31.94
Adjusted book value per share, at period end	$	30.10		$	31.48		$	31.46		$	31.47		$	32.68		$	33.83		$	31.48		$	33.83		$	31.47
Weighted average number of common shares outstanding (basic)	668.1			669.5			679.2			688.3			692.2			691.8			668.8			692.0			676.3
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			712.8
Common shares outstanding at period end	673.6			674.6			692.2			693.4			696.2			691.4			674.6			691.4			693.4
Common stock dividends declared	$	148.2		$	155.1		$	159.1		$	159.4		$	160.1		$	180.1		$	303.3		$	340.2		$	621.8
Common stock repurchased: (1)
Shares	0.2			0.1			0.4			0.1			0.5			5.7			0.3			6.2			0.8
Cost	$	8		$	6		$	13		$	6		$	22		$	253		$	14		$	275		$	33

(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		Full
	1Q			2Q			3Q		4Q		1Q			2Q		2Q			2Q		Year
	2005			2005			2005		2005		2006			2006		2005			2006		2005
Net income
Operating income	$	859		$	966		$	50	$	151	$	1,011		$	959	$	1,825		$	1,970	$	2,026
Net realized investment gains (losses)	18			(35		)	25		27		(5		)	11		(17		)	6		35
Income from continuing operations	877			931			75		178		1,006			970		1,808			1,976		2,061
Discontinued operations	(665		)	138			87		1		—			—		(527		)	—		(439		)
Net income	$	212		$	1,069		$	162	$	179	$	1,006		$	970	$	1,281		$	1,976	$	1,622
Basic earnings per share
Operating income	$	1.28		$	1.44		$	0.07	$	0.22	$	1.46		$	1.39	$	2.72		$	2.84	$	2.99
Net realized investment gains (losses)	0.03			(0.05		)	0.04		0.04		(0.01		)	0.01		(0.02		)	0.01		0.05
Income from continuing operations	1.31			1.39			0.11		0.26		1.45			1.40		2.70			2.85		3.04
Discontinued operations	(1.00		)	0.20			0.13		—		—			—		(0.79		)	—		(0.65		)
Net income	$	0.31		$	1.59		$	0.24	$	0.26	$	1.45		$	1.40	$	1.91		$	2.85	$	2.39
Diluted earnings per share
Operating income	$	1.23		$	1.38		$	0.07	$	0.22	$	1.41		$	1.34	$	2.60		$	2.75	$	2.90
Net realized investment gains (losses)	0.02			(0.05		)	0.04		0.04		—			0.02		(0.02		)	0.01		0.05
Income from continuing operations	1.25			1.33			0.11		0.26		1.41			1.36		2.58			2.76		2.95
Discontinued operations	(0.94		)	0.19			0.12		—		—			—		(0.74		)	—		(0.62		)
Net income	$	0.31		$	1.52		$	0.23	$	0.26	$	1.41		$	1.36	$	1.84		$	2.76	$	2.33

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

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Basic
Income from continuing operations, as reported	$	877		$	931		$	75		$	178		$	1,006		$	970		$	1,808		$	1,976		$	2,061
Preferred stock dividends, net of taxes	(2		)	(2		)	(1		)	(1		)	(1		)	(1		)	(3		)	(2		)	(6		)
Income from continuing operations available to common shareholders - basic	$	875		$	929		$	74		$	177		$	1,005		$	969		$	1,805		$	1,974		$	2,055
Diluted
Income from continuing operations available to common shareholders - basic	$	875		$	929		$	74		$	177		$	1,005		$	969		$	1,805		$	1,974		$	2,055
Effect of dilutive securities:
Convertible preferred stock	2			2			—			—			1			1			3			2			6
Zero coupon convertible notes	1			1			—			—			1			1			2			2			4
Convertible junior subordinated notes	7			7			—			—			7			7			13			13			26
Equity unit stock purchase contracts	3			3			—			—			—			—			7			—			9
Income from continuing operations available to common shareholders - diluted	$	888		$	942		$	74		$	177		$	1,014		$	978		$	1,830		$	1,991		$	2,100
Common Shares
Basic
Weighted average shares outstanding	668			669			679			688			692			692			669			692			676
Diluted
Weighted average shares outstanding	668			669			679			688			692			692			669			692			676
Weighted average effects of dilutive securities:
Stock options and other incentive plans	2			2			5			6			6			6			2			6			4
Convertible preferred stock	5			4			—			—			4			3			4			4			4
Zero coupon convertible notes	2			3			—			—			2			2			3			2			2
Convertible junior subordinated notes	17			17			—			—			17			17			17			17			17
Equity unit stock purchase contracts	15			15			—			—			—			—			15			—			10
Diluted weighted average shares outstanding	709			710			684			694			721			720			710			721			713

(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			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Revenues
Premiums	$	5,119		$	5,109		$	4,977		$	5,136		$	4,991		$	5,181		$	10,228		$	10,172		$	20,341
Net investment income	765			775			812			813			875			874			1,540			1,749			3,165
Fee income	171			165			169			159			150			153			336			303			664
Net realized investment gains (losses)	—			(55		)	39			33			(6		)	10			(55		)	4			17
Other revenues	50			43			45			40			40			37			93			77			178
Total revenues	6,105			6,037			6,042			6,181			6,050			6,255			12,142			12,305			24,365
Claims and expenses
Claims and claim adjustment expenses	3,223			3,101			4,361			4,242			3,042			3,153			6,324			6,195			14,927
Amortization of deferred acquisition costs	810			783			830			829			800			814			1,593			1,614			3,252
General and administrative expenses	813			789			789			838			794			866			1,602			1,660			3,229
Interest expense	71			70			70			75			76			78			141			154			286
Total claims and expenses	4,917			4,743			6,050			5,984			4,712			4,911			9,660			9,623			21,694
Income (loss) from continuing operations before income taxes	1,188			1,294			(8		)	197			1,338			1,344			2,482			2,682			2,671
Income tax expense (benefit)	311			363			(83		)	19			332			374			674			706			610
Income from continuing operations	877			931			75			178			1,006			970			1,808			1,976			2,061
Discontinued operations
Operating income (loss), net of taxes	(665		)	—			2			—			—			—			(665		)	—			(663		)
Gain on disposal, net of taxes	—			138			85			1			—			—			138			—			224
Income (loss) from discontinued operations, net of taxes (1)	(665		)	138			87			1			—			—			(527		)	—			(439		)
Net income	$	212		$	1,069		$	162		$	179		$	1,006		$	970		$	1,281		$	1,976		$	1,622
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		%	23.0		%
Net investment income (after-tax)	$	583		$	598		$	625		$	632		$	670		$	673		$	1,181		$	1,343		$	2,438
Catastrophes, net of reinsurance:
Pre-tax	$	31		$	11		$	1,524		$	623		$	—		$	67		$	42		$	67		$	2,189
After-tax	$	20		$	8		$	1,009		$	435		$	—		$	44		$	28		$	44		$	1,472

(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)

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Underwriting gain (loss)	$	291		$	383		$	(555	)	$	(463	)	$	337		$	311		$	674		$	648		$	(344	)
Net investment income	583			598			625			632			670			673			1,181			1,343			2,438
Other, including interest expense	(15		)	(15		)	(20		)	(18		)	4			(25		)	(30		)	(21		)	(68		)
Operating income	859			966			50			151			1,011			959			1,825			1,970			2,026
Net realized investment gains (losses)	18			(35		)	25			27			(5		)	11			(17		)	6			35
Discontinued operations	(665		)	138			87			1			—			—			(527		)	—			(439		)
Net income	$	212		$	1,069		$	162		$	179		$	1,006		$	970		$	1,281		$	1,976		$	1,622
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		%	71.9		%
Underwriting expense ratio	29.2		%	28.2		%	29.9		%	30.1		%	30.0		%	30.3		%	28.7		%	30.2		%	29.4		%
Combined ratio	90.5		%	87.6		%	116.2		%	111.1		%	88.9		%	89.8		%	89.1		%	89.4		%	101.3		%
Impact of catastrophes on combined ratio	0.6		%	0.2		%	30.3		%	12.1		%	0.0		%	1.3		%	0.4		%	0.7		%	10.7		%
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		%	1.6		%

(1)Before policyholder dividends.

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

													YTD		YTD		Full
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q		Year
	2005		2005		2005		2005		2006		2006		2005		2006		2005
Billing and policy fees	$	29	$	26	$	26	$	25	$	28	$	26	$	55	$	54	$	106
Fee income:
Loss and loss adjustment expenses	$	76	$	63	$	72	$	66	$	92	$	66	$	139	$	158	$	277
Other underwriting expenses	95		102		97		93		58		87		197		145		387
Total fee income	$	171	$	165	$	169	$	159	$	150	$	153	$	336	$	303	$	664

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)

														YTD		YTD		Full
	1Q		2Q		3Q			4Q		1Q		2Q		2Q		2Q		Year
	2005		2005		2005			2005		2006		2006		2005		2006		2005
Revenues
Premiums	$	5,119	$	5,109	$	4,977		$	5,136	$	4,991	$	5,181	$	10,228	$	10,172	$	20,341
Net investment income	765		775		812			813		875		874		1,540		1,749		3,165
Fee income	171		165		169			159		150		153		336		303		664
Other revenues	50		43		45			40		40		37		93		77		178
Total revenues	6,105		6,092		6,003			6,148		6,056		6,245		12,197		12,301		24,348
Claims and expenses
Claims and claim adjustment expenses	3,223		3,101		4,361			4,242		3,042		3,153		6,324		6,195		14,927
Amortization of deferred acquisition costs	810		783		830			829		800		814		1,593		1,614		3,252
General and administrative expenses	813		789		789			838		794		866		1,602		1,660		3,229
Interest expense	71		70		70			75		76		78		141		154		286
Total claims and expenses	4,917		4,743		6,050			5,984		4,712		4,911		9,660		9,623		21,694
Operating income (loss) before income taxes	1,188		1,349		(47		)	164		1,344		1,334		2,537		2,678		2,654
Income tax expense (benefit)	329		383		(97		)	13		333		375		712		708		628
Operating income	$	859	$	966	$	50		$	151	$	1,011	$	959	$	1,825	$	1,970	$	2,026

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)

																		YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q		2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006		2006			2005			2006			2005
Statutory underwriting
Gross written premiums	$	5,920		$	5,909		$	6,030		$	5,877		$	5,810	$	6,197		$	11,829		$	12,007		$	23,736
Net written premiums	$	4,780		$	5,216		$	5,096		$	5,294		$	4,774	$	5,655		$	9,996		$	10,429		$	20,386
Net earned premiums	$	5,119		$	5,109		$	4,977		$	5,136		$	4,991	$	5,181		$	10,228		$	10,172		$	20,341
Losses and loss adjustment expenses	3,127			3,033			4,334			4,288			2,951		3,095			6,160			6,046			14,782
Underwriting expenses	1,435			1,461			1,437			1,507			1,493		1,609			2,896			3,102			5,840
Statutory underwriting gain (loss)	557			615			(794		)	(659		)	547		477			1,172			1,024			(281		)
Policyholder dividends	7			6			(5		)	14			9		6			13			15			22
Statutory underwriting gain (loss) after policyholder dividends	$	550		$	609		$	(789	)	$	(673	)	$	538	$	471		$	1,159		$	1,009		$	(303	)
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		$	43,191
Increase (decrease) in reserves (1)	$	(91	)	$	(280	)	$	1,376		$	458		$	65	$	(140	)	$	(371	)	$	(75	)	$	1,463
Statutory surplus	$	15,441		$	16,137		$	17,738		$	17,812		$	18,522	$	19,037		$	16,137		$	19,037		$	17,812
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			1.14:1

(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)

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Written premiums
Gross	$	5,920		$	5,909		$	6,030		$	5,877		$	5,810		$	6,197		$	11,829		$	12,007		$	23,736
Ceded	(1,140		)	(693		)	(934		)	(583		)	(1,036		)	(542		)	(1,833		)	(1,578		)	(3,350		)
Net	$	4,780		$	5,216		$	5,096		$	5,294		$	4,774		$	5,655		$	9,996		$	10,429		$	20,386
Earned premiums
Gross	$	6,023		$	5,955		$	5,969		$	5,925		$	5,733		$	5,899		$	11,978		$	11,632		$	23,872
Ceded	(904		)	(846		)	(992		)	(789		)	(742		)	(718		)	(1,750		)	(1,460		)	(3,531		)
Net	$	5,119		$	5,109		$	4,977		$	5,136		$	4,991		$	5,181		$	10,228		$	10,172		$	20,341

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

7

The St. Paul Travelers Companies, Inc.

Operating Income - Business Insurance

($ in millions)

Historical results conform with current business segment definitions.

															YTD		YTD		Full
	1Q		2Q		3Q			4Q			1Q		2Q		2Q		2Q		Year
	2005		2005		2005			2005			2006		2006		2005		2006		2005
Revenues
Premiums	$	2,845	$	2,819	$	2,707		$	2,745		$	2,643	$	2,715	$	5,664	$	5,358	$	11,116
Net investment income	569		590		591			591			636		635		1,159		1,271		2,341
Fee income	171		165		168			159			150		153		336		303		663
Other revenues	16		17		19			12			7		9		33		16		64
Total revenues	3,601		3,591		3,485			3,507			3,436		3,512		7,192		6,948		14,184
Claims and expenses
Claims and claim adjustment expenses	2,009		1,863		2,647			2,839			1,706		1,695		3,872		3,401		9,358
Amortization of deferred acquisition costs	395		381		405			389			376		374		776		750		1,570
General and administrative expenses	520		498		496			524			474		533		1,018		1,007		2,038
Interest expense	—		1		—			1			1		3		1		4		2
Total claims and expenses	2,924		2,743		3,548			3,753			2,557		2,605		5,667		5,162		12,968
Operating income (loss) before federal income taxes	677		848		(63		)	(246		)	879		907		1,525		1,786		1,216
Income taxes	170		231		(93		)	(136		)	228		252		401		480		172
Operating income (loss)	$	507	$	617	$	30		$	(110	)	$	651	$	655	$	1,124	$	1,306	$	1,044

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 - - Business Insurance

($ in millions, net of tax)

Historical results conform with current business segment definitions.

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Underwriting gain (loss)	$	61		$	149		$	(439	)	$	(582	)	$	155		$	159		$	210		$	314		$	(811	)
Net investment income	436			457			458			462			492			491			893			983			1,813
Other	10			11			11			10			4			5			21			9			42
Operating income (loss)	$	507		$	617		$	30		$	(110	)	$	651		$	655		$	1,124		$	1,306		$	1,044
GAAP Combined ratio (1, 2)
Loss and loss adjustment expense ratio	67.6		%	63.7		%	95.4		%	100.5		%	60.9		%	60.0		%	65.6		%	60.4		%	81.5		%
Underwriting expense ratio	28.7		%	27.5		%	29.6		%	29.9		%	29.8		%	30.1		%	28.1		%	30.0		%	28.9		%
Combined ratio	96.3		%	91.2		%	125.0		%	130.4		%	90.7		%	90.1		%	93.7		%	90.4		%	110.4		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	35.1		%	16.4		%	0.0		%	0.0		%	0.0		%	0.0		%	12.6		%
Impact of prior year reserve development on combined ratio	2.1		%	0.7		%	0.7		%	24.0		%	-0.7		%	-1.3		%	1.5		%	-1.0		%	6.8		%

(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 loss and loss adjustment expenses and other underwriting expenses as follows:

													YTD		YTD		Full
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q		Year
	2005		2005		2005		2005		2006		2006		2005		2006		2005
Billing and policy fees	$	4	$	3	$	3	$	2	$	3	$	3	$	7	$	6	$	12
Fee income:
Loss and loss adjustment expenses	$	76	$	63	$	71	$	66	$	92	$	66	$	139	$	158	$	276
Other underwriting expenses	95		102		97		93		58		87		197		145		387
Total fee income	$	171	$	165	$	168	$	159	$	150	$	153	$	336	$	303	$	663

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

9

The St. Paul Travelers Companies, Inc.

Selected Statistics - Business Insurance

($ in millions)

Historical results conform with current business segment definitions.

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Statutory underwriting
Gross written premiums	$	3,532		$	3,278		$	3,372		$	3,271		$	3,254		$	3,314		$	6,810		$	6,568		$	13,453
Net written premiums	$	2,809		$	2,710		$	2,622		$	2,858		$	2,687		$	2,872		$	5,519		$	5,559		$	10,999
Net earned premiums	$	2,845		$	2,819		$	2,707		$	2,745		$	2,643		$	2,715		$	5,664		$	5,358		$	11,116
Losses and loss adjustment expenses	1,909			1,794			2,610			2,846			1,621			1,640			3,703			3,261			9,159
Underwriting expenses	768			729			727			797			756			813			1,497			1,569			3,021
Statutory underwriting gain (loss)	168			296			(630		)	(898		)	266			262			464			528			(1,064		)
Policyholder dividends	11			4			(7		)	12			5			3			15			8			20
Statutory underwriting gain (loss) after policyholder dividends	$	157		$	292		$	(623	)	$	(910	)	$	261		$	259		$	449		$	520		$	(1,084	)
Other statistics
Effective tax rate on net investment income	23.5		%	22.5		%	22.4		%	21.8		%	22.8		%	22.6		%	23.0		%	22.7		%	22.6		%
Net investment income (after-tax)	$	436		$	457		$	458		$	462		$	492		$	491		$	893		$	983		$	1,813
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	956		$	449		$	—		$	—		$	—		$	—		$	1,405
After-tax	$	—		$	—		$	621		$	293		$	—		$	—		$	—		$	—		$	914

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

10

The St. Paul Travelers Companies, Inc.

Net Written Premiums - Business Insurance

($ in millions)

Historical results conform with current business segment definitions.

													YTD		YTD		Full
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q		Year
	2005		2005		2005		2005		2006		2006		2005		2006		2005
Net written premiums by market
Select Accounts	$	684	$	719	$	653	$	666	$	679	$	705	$	1,403	$	1,384	$	2,722
Commercial Accounts	610		503		542		675		575		548		1,113		1,123		2,330
National Accounts	341		238		298		353		268		298		579		566		1,230
Industry-Focused Underwriting	499		553		483		545		521		560		1,052		1,081		2,080
Target Risk Underwriting	376		419		345		342		398		463		795		861		1,482
Specialized Distribution	223		242		221		222		245		280		465		525		908
Total core	2,733		2,674		2,542		2,803		2,686		2,854		5,407		5,540		10,752
Business Insurance other	76		36		80		55		1		18		112		19		247
Total	$	2,809	$	2,710	$	2,622	$	2,858	$	2,687	$	2,872	$	5,519	$	5,559	$	10,999
Net written premiums by product line
Commercial multi-peril	$	770	$	692	$	725	$	813	$	804	$	776	$	1,462	$	1,580	$	3,000
Workers’ compensation	578		486		452		564		540		529		1,064		1,069		2,080
Commercial automobile	508		516		500		500		467		522		1,024		989		2,024
Property	500		484		445		498		467		521		984		988		1,927
General liability	441		520		483		478		407		512		961		919		1,922
Other	12		12		17		5		2		12		24		14		46
Total	$	2,809	$	2,710	$	2,622	$	2,858	$	2,687	$	2,872	$	5,519	$	5,559	$	10,999
National accounts
Additions to claim volume under administration (1)	$	1,042	$	838	$	691	$	683	$	890	$	742	$	1,880	$	1,632	$	3,254
Written fees	$	173	$	148	$	130	$	123	$	144	$	134	$	321	$	278	$	574

(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 - Financial, Professional & International Insurance

($ in millions)

Historical results conform with current business segment definitions.

													YTD		YTD		Full
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q		Year
	2005		2005		2005		2005		2006		2006		2005		2006		2005
Revenues
Premiums	$	815	$	794	$	759	$	829	$	788	$	839	$	1,609	$	1,627	$	3,197
Net investment income	81		81		96		102		103		102		162		205		360
Fee income	—		—		1		—		—		—		—		—		1
Other revenues	11		4		2		3		5		6		15		11		20
Total revenues	907		879		858		934		896		947		1,786		1,843		3,578
Claims and expenses
Claims and claim adjustment expenses	449		409		438		522		421		445		858		866		1,818
Amortization of deferred acquisition costs	162		149		158		165		150		159		311		309		634
General and administrative expenses	132		129		126		122		126		142		261		268		509
Interest expense	—		—		—		—		—		—		—		—		—
Total claims and expenses	743		687		722		809		697		746		1,430		1,443		2,961
Operating income before federal income taxes	164		192		136		125		199		201		356		400		617
Income taxes	50		58		50		68		58		52		108		110		226
Operating income	$	114	$	134	$	86	$	57	$	141	$	149	$	248	$	290	$	391

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 - Financial, Professional & International Insurance

($ in millions, net of tax)

Historical results conform with current business segment definitions.

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Underwriting gain (loss)	$	44		$	70		$	12		$	(21	)	$	60		$	68		$	114		$	128		$	105
Net investment income	60			61			72			77			77			77			121			154			270
Other	10			3			2			1			4			4			13			8			16
Operating income	$	114		$	134		$	86		$	57		$	141		$	149		$	248		$	290		$	391
GAAP Combined ratio (1, 2)
Loss and loss adjustment expense ratio	55.5		%	51.3		%	57.4		%	62.7		%	53.0		%	52.6		%	53.4		%	52.8		%	56.8		%
Underwriting expense ratio	35.8		%	35.0		%	37.4		%	34.8		%	35.0		%	35.8		%	35.4		%	35.4		%	35.7		%
Combined ratio	91.3		%	86.3		%	94.8		%	97.5		%	88.0		%	88.4		%	88.8		%	88.2		%	92.5		%
Impact of catastrophes on combined ratio	2.3		%	0.0		%	10.1		%	11.1		%	0.0		%	0.0		%	1.2		%	0.0		%	5.9		%
Impact of prior year reserve development on combined ratio	-0.3		%	-1.9		%	-4.8		%	-2.1		%	0.0		%	-1.0		%	-1.1		%	-0.6		%	-2.3		%

(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 loss and loss adjustment expenses and other underwriting expenses as follows:

													YTD		YTD		Full
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q		Year
	2005		2005		2005		2005		2006		2006		2005		2006		2005
Billing and policy fees	$	2	$	—	$	—	$	—	$	—	$	—	$	2	$	—	$	2
Fee income:
Loss and loss adjustment expenses	$	—	$	—	$	1	$	—	$	—	$	—	$	—	$	—	$	1
Other underwriting expenses	—		—		—		—		—		—		—		—		—
Total fee income	$	—	$	—	$	1	$	—	$	—	$	—	$	—	$	—	$	1

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

13

The St. Paul Travelers Companies, Inc.

Selected Statistics - Financial, Professional & International Insurance

($ in millions)

Historical results conform with current business segment definitions.

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Statutory underwriting
Gross written premiums	$	910		$	961		$	926		$	1,012		$	935		$	1,043		$	1,871		$	1,978		$	3,809
Net written premiums	$	537		$	882		$	847		$	893		$	515		$	1,002		$	1,419		$	1,517		$	3,159
Net earned premiums	$	815		$	794		$	759		$	829		$	788		$	839		$	1,609		$	1,627		$	3,197
Losses and loss adjustment expenses	453			410			449			560			415			442			863			857			1,872
Underwriting expenses	265			289			258			255			292			299			554			591			1,067
Statutory underwriting gain	97			95			52			14			81			98			192			179			258
Policyholder dividends	(4		)	2			2			2			4			3			(2		)	7			2
Statutory underwriting gain after policyholder dividends	$	101		$	93		$	50		$	12		$	77		$	95		$	194		$	172		$	256
Other statistics
Effective tax rate on net investment income	25.3		%	25.0		%	24.6		%	24.6		%	24.7		%	24.3		%	25.1		%	24.5		%	24.8		%
Net investment income (after-tax)	$	60		$	61		$	72		$	77		$	77		$	77		$	121		$	154		$	270
Catastrophes, net of reinsurance:
Pre-tax	$	19		$	—		$	80		$	92		$	—		$	—		$	19		$	—		$	191
After-tax	$	13		$	—		$	71		$	89		$	—		$	—		$	13		$	—		$	173

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

14

The St. Paul Travelers Companies, Inc.

Net Written Premiums - Financial, Professional & International Insurance

($ in millions)

Historical results conform with current business segment definitions.

													YTD		YTD		Full
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q		Year
	2005		2005		2005		2005		2006		2006		2005		2006		2005
Net written premiums by market
Bond	$	163	$	368	$	391	$	345	$	204	$	412	$	531	$	616	$	1,267
Financial & Professional Services	120		232		247		251		89		248		352		337		850
International and Lloyd’s	254		282		209		297		222		342		536		564		1,042
Total	$	537	$	882	$	847	$	893	$	515	$	1,002	$	1,419	$	1,517	$	3,159
Net written premiums by product line
General liability	$	125	$	272	$	292	$	292	$	110	$	282	$	397	$	392	$	981
Fidelity & surety	130		296		320		280		152		342		426		494		1,026
International	254		282		209		297		222		342		536		564		1,042
Other	28		32		26		24		31		36		60		67		110
Total	$	537	$	882	$	847	$	893	$	515	$	1,002	$	1,419	$	1,517	$	3,159

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

15

The St. Paul Travelers Companies, Inc.

Operating Income - Personal Insurance

($ in millions)

														YTD		YTD		Full
	1Q		2Q		3Q			4Q		1Q		2Q		2Q		2Q		Year
	2005		2005		2005			2005		2006		2006		2005		2006		2005
Revenues
Premiums	$	1,459	$	1,496	$	1,511		$	1,562	$	1,560	$	1,627	$	2,955	$	3,187	$	6,028
Net investment income	109		116		112			120		134		137		225		271		457
Other revenues	24		23		24			25		24		22		47		46		96
Total revenues	1,592		1,635		1,647			1,707		1,718		1,786		3,227		3,504		6,581
Claims and expenses
Claims and claim adjustment expenses	765		829		1,276			881		915		1,013		1,594		1,928		3,751
Amortization of deferred acquisition costs	253		253		267			275		274		281		506		555		1,048
General and administrative expenses	154		162		162			187		183		197		316		380		665
Total claims and expenses	1,172		1,244		1,705			1,343		1,372		1,491		2,416		2,863		5,464
Operating income (loss) before federal income taxes	420		391		(58		)	364		346		295		811		641		1,117
Income taxes	135		125		(33		)	115		106		92		260		198		342
Operating income (loss)	$	285	$	266	$	(25	)	$	249	$	240	$	203	$	551	$	443	$	775

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 Insurance

($ in millions, net of tax)

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Underwriting gain (loss)	$	186		$	164		$	(127	)	$	140		$	122		$	84		$	350		$	206		$	363
Net investment income	83			88			86			92			102			105			171			207			349
Other	16			14			16			17			16			14			30			30			63
Operating income (loss)	$	285		$	266		$	(25	)	$	249		$	240		$	203		$	551		$	443		$	775
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		%	62.2		%
Underwriting expense ratio	26.3		%	26.2		%	26.8		%	28.1		%	27.7		%	27.9		%	26.3		%	27.8		%	26.9		%
Combined ratio	78.7		%	81.6		%	111.3		%	84.5		%	86.4		%	90.1		%	80.2		%	88.3		%	89.1		%
Impact of catastrophes on combined ratio	0.8		%	0.7		%	32.1		%	5.2		%	0.0		%	4.1		%	0.8		%	2.1		%	9.8		%
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		%	-6.0		%

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

													YTD		YTD		Full
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q		Year
	2005		2005		2005		2005		2006		2006		2005		2006		2005
Billing and policy fees	$	23	$	23	$	23	$	23	$	25	$	23	$	46	$	48	$	92

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

17

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal Insurance

($ in millions)

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Statutory underwriting
Gross written premiums	$	1,478		$	1,670		$	1,732		$	1,594		$	1,621		$	1,840		$	3,148		$	3,461		$	6,474
Net written premiums	$	1,434		$	1,624		$	1,627		$	1,543		$	1,572		$	1,781		$	3,058		$	3,353		$	6,228
Net earned premiums	$	1,459		$	1,496		$	1,511		$	1,562		$	1,560		$	1,627		$	2,955		$	3,187		$	6,028
Losses and loss adjustment expenses	765			829			1,275			882			915			1,013			1,594			1,928			3,751
Underwriting expenses	402			443			452			455			445			497			845			942			1,752
Statutory underwriting gain (loss)	$	292		$	224		$	(216	)	$	225		$	200		$	117		$	516		$	317		$	525
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		%	23.5		%
Net investment income (after-tax)	$	83		$	88		$	86		$	92		$	102		$	105		$	171		$	207		$	349
Catastrophes, net of reinsurance:
Pre-tax	$	12		$	11		$	488		$	82		$	—		$	67		$	23		$	67		$	593
After-tax	$	7		$	8		$	317		$	53		$	—		$	44		$	15		$	44		$	385
Policies in force (in thousands)
Automobile	2,270			2,281			2,307			2,347			2,429			2,510			2,281			2,510			2,347
Homeowners and other	4,038			4,090			4,150			4,219			4,291			4,407			4,090			4,407			4,219

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

18

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal Insurance (Automobile)

($ in millions)

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Statutory underwriting
Gross written premiums	$	870		$	888		$	910		$	858		$	942		$	960		$	1,758		$	1,902		$	3,526
Net written premiums	$	854		$	878		$	897		$	848		$	932		$	951		$	1,732		$	1,883		$	3,477
Net earned premiums	$	840		$	851		$	864		$	873		$	872		$	910		$	1,691		$	1,782		$	3,428
Losses and loss adjustment expenses	505			542			525			564			590			626			1,047			1,216			2,136
Underwriting expenses	213			222			224			217			239			259			435			498			876
Statutory underwriting gain	$	122		$	87		$	115		$	92		$	43		$	25		$	209		$	68		$	416
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		%	62.3		%
Underwriting expense ratio	23.5		%	24.0		%	23.9		%	24.0		%	25.3		%	26.8		%	23.8		%	26.1		%	23.8		%
Combined ratio	83.6		%	87.6		%	84.8		%	88.5		%	93.0		%	95.5		%	85.7		%	94.3		%	86.1		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	1.2		%	0.9		%	0.0		%	0.4		%	0.0		%	0.2		%	0.5		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	—		$	11		$	7		$	—		$	3		$	—		$	3		$	18
After-tax	$	—		$	—		$	7		$	5		$	—		$	2		$	—		$	2		$	12
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		Full
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q		Year
	2005		2005		2005		2005		2006		2006		2005		2006		2005
Billing and policy fees	$	15	$	14	$	15	$	14	$	16	$	15	$	29	$	31	$	58

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

19

The St. Paul Travelers Companies, Inc.

Selected Statistics - Personal Insurance (Homeowners and Other)

($ in millions)

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Statutory underwriting
Gross written premiums	$	608		$	782		$	822		$	736		$	679		$	880		$	1,390		$	1,559		$	2,948
Net written premiums	$	580		$	746		$	730		$	695		$	640		$	830		$	1,326		$	1,470		$	2,751
Net earned premiums	$	619		$	645		$	647		$	689		$	688		$	717		$	1,264		$	1,405		$	2,600
Losses and loss adjustment expenses	260			287			750			318			325			387			547			712			1,615
Underwriting expenses	189			221			228			238			206			238			410			444			876
Statutory underwriting gain (loss)	$	170		$	137		$	(331	)	$	133		$	157		$	92		$	307		$	249		$	109
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		%	62.1		%
Underwriting expense ratio	30.1		%	29.2		%	30.8		%	33.3		%	30.8		%	29.3		%	29.6		%	30.0		%	30.9		%
Combined ratio	72.1		%	73.7		%	146.6		%	79.5		%	78.1		%	83.3		%	72.9		%	80.7		%	93.0		%
Impact of catastrophes on combined ratio	1.9		%	1.7		%	73.8		%	10.7		%	0.0		%	8.9		%	1.8		%	4.5		%	22.1		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	12		$	11		$	477		$	75		$	—		$	64		$	23		$	64		$	575
After-tax	$	7		$	8		$	310		$	48		$	—		$	42		$	15		$	42		$	373
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		Full
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q		Year
	2005		2005		2005		2005		2006		2006		2005		2006		2005
Billing and policy fees	$	8	$	9	$	8	$	9	$	9	$	9	$	17	$	18	$	34

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			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Revenues
Net investment income	$	6		$	(12	)	$	13		$	—		$	2		$	—		$	(6	)	$	2		$	7
Other revenues	(1		)	(1		)	—			—			4			—			(2		)	4			(2		)
Total revenues	5			(13		)	13			—			6			—			(8		)	6			5
Claims and expenses
Interest expense	71			69			70			74			75			75			140			150			284
General and administrative expenses	7			—			5			5			11			(6		)	7			5			17
Total claims and expenses	78			69			75			79			86			69			147			155			301
Operating loss before federal income tax benefit	(73		)	(82		)	(62		)	(79		)	(80		)	(69		)	(155		)	(149		)	(296		)
Income taxes	(26		)	(31		)	(21		)	(34		)	(59		)	(21		)	(57		)	(80		)	(112		)
Operating loss	$	(47	)	$	(51	)	$	(41	)	$	(45	)	$	(21	)	$	(48	)	$	(98	)	$	(69	)	$	(184	)

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

21

The St. Paul Travelers Companies, Inc.

Consolidated Balance Sheet

(in millions)

	June 30,		December 31,
	2006		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,			December 31,
	2006			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

22

The St. Paul Travelers Companies, Inc.

Investment Portfolio

(at carrying value, $ in millions)

	June 30,			Pre-tax Book		December 31,		Pre-tax Book
	2006			Yield (1)		2005		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,		December 31,
	2006		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)

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Gross investment income
Fixed maturities	$	609		$	615		$	636		$	670		$	667		$	677		$	1,224		$	1,344		$	2,530
Short-term securities	30			37			56			59			60			60			67			120			182
Mortgage loans	4			4			14			1			2			2			8			4			23
Other	139			145			125			94			161			157			284			318			503
	782			801			831			824			890			896			1,583			1,786			3,238
Investment expenses	17			26			19			11			15			22			43			37			73
Net investment income, pre-tax	765			775			812			813			875			874			1,540			1,749			3,165
Income taxes	182			177			187			181			205			201			359			406			727
Net investment income, after-tax	$	583		$	598		$	625		$	632		$	670		$	673		$	1,181		$	1,343		$	2,438
Effective tax rate	23.9		%	22.8		%	23.0		%	22.3		%	23.5		%	23.0		%	23.3		%	23.2		%	23.0		%
Average invested assets (1)	$	64,218		$	65,765		$	67,630		$	69,135		$	69,701		$	70,491		$	65,002		$	70,108		$	66,695
Average yield pre-tax	4.8		%	4.7		%	4.8		%	4.7		%	5.0		%	5.0		%	4.7		%	5.0		%	4.7		%
Average yield after-tax	3.6		%	3.6		%	3.7		%	3.7		%	3.8		%	3.8		%	3.6		%	3.8		%	3.7		%

(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)

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Net realized investment gains (losses)
Fixed maturities	$	14		$	(17	)	$	2		$	1		$	—		$	(29	)	$	(3	)	$	(29	)	$	—
Equity securities	4			4			14			12			14			2			8			16			34
Other	(18		)	(42		)	23			20			(20		)	37			(60		)	17			(17		)
Realized investment gains (losses) before tax	—			(55		)	39			33			(6		)	10			(55		)	4			17
Related taxes	(18		)	(20		)	14			6			(1		)	(1		)	(38		)	(2		)	(18		)
Net realized investment gains (losses)	$	18		$	(35	)	$	25		$	27		$	(5	)	$	11		$	(17	)	$	6		$	35
Gross investment gains (1)	$	203		$	212		$	196		$	177		$	125		$	101		$	415		$	226		$	788
Gross investment losses before impairments (1)	(194		)	(225		)	(123		)	(120		)	(121		)	(88		)	(419		)	(209		)	(662		)
Impairments	(9		)	(42		)	(34		)	(24		)	(10		)	(3		)	(51		)	(13		)	(109		)
Realized investment gains (losses) before tax	—			(55		)	39			33			(6		)	10			(55		)	4			17
Related taxes	(18		)	(20		)	14			6			(1		)	(1		)	(38		)	(2		)	(18		)
Net realized investment gains (losses)	$	18		$	(35	)	$	25		$	27		$	(5	)	$	11		$	(17	)	$	6		$	35

	March 31,		June 30,		September 30,		December 31,		March 31,			June 30,
	2005		2005		2005		2005		2006			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	$	352
Gross investment Treasury future losses	$	66	$	123	$	81	$	70	$	43	$	25	$	189	$	68	$	340

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,			December 31,
	2006			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:

	December 31,		December 31,		A.M. Best Rating of Group’s
Reinsurer	2005		2004		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			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Business Insurance
Beginning of period	$	34,542		$	34,389		$	34,054		$	34,821		$	35,312		$	35,158		$	34,542		$	35,312		$	34,542
Incurred	1,909			1,794			2,610			2,846			1,621			1,640			3,703			3,261			9,159
Paid	(2,092		)	(2,101		)	(1,822		)	(2,367		)	(2,147		)	(2,070		)	(4,193		)	(4,217		)	(8,382		)
Acquired reserves, foreign exchange and other (1)	30			(28		)	(21		)	12			372			48			2			420			(7		)
End of period	$	34,389		$	34,054		$	34,821		$	35,312		$	35,158		$	34,776		$	34,054		$	34,776		$	35,312
Financial, Professional & International Insurance
Beginning of period	$	3,852		$	3,965		$	3,984		$	4,159		$	4,242		$	4,513		$	3,852		$	4,242		$	3,852
Incurred	453			410			449			560			415			442			863			857			1,872
Paid	(307		)	(334		)	(304		)	(374		)	(249		)	(366		)	(641		)	(615		)	(1,319		)
Acquired reserves, foreign exchange and other (1)	(33		)	(57		)	30			(103		)	105			57			(90		)	162			(163		)
End of period	$	3,965		$	3,984		$	4,159		$	4,242		$	4,513		$	4,646		$	3,984		$	4,646		$	4,242
Personal Insurance
Beginning of period	$	3,334		$	3,283		$	3,319		$	3,753		$	3,637		$	3,585		$	3,334		$	3,637		$	3,334
Incurred	765			829			1,275			882			915			1,013			1,594			1,928			3,751
Paid	(816		)	(793		)	(841		)	(998		)	(967		)	(904		)	(1,609		)	(1,871		)	(3,448		)
End of period	$	3,283		$	3,319		$	3,753		$	3,637		$	3,585		$	3,694		$	3,319		$	3,694		$	3,637
Total
Beginning of period	$	41,728		$	41,637		$	41,357		$	42,733		$	43,191		$	43,256		$	41,728		$	43,191		$	41,728
Incurred	3,127			3,033			4,334			4,288			2,951			3,095			6,160			6,046			14,782
Paid	(3,215		)	(3,228		)	(2,967		)	(3,739		)	(3,363		)	(3,340		)	(6,443		)	(6,703		)	(13,149		)
Acquired reserves, foreign exchange and other (1)	(3		)	(85		)	9			(91		)	477			105			(88		)	582			(170		)
End of period	$	41,637		$	41,357		$	42,733		$	43,191		$	43,256		$	43,116		$	41,357		$	43,116		$	43,191
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	—		$	830		$	—		$	—		$	—		$	—		$	830
Environmental	—			—			—			30			—			—			—			—			30
All other	61			21			18			(203		)	(19		)	(34		)	82			(53		)	(103		)
Prior year development excluding accretion	61			21			18			657			(19		)	(34		)	82			(53		)	757
Accretion of discount	15			14			14			16			16			15			29			31			59
Total Business Insurance	76			35			32			673			(3		)	(19		)	111			(22		)	816
Financial, Professional & International Insurance	(2		)	(15		)	(37		)	(18		)	—			(9		)	(17		)	(9		)	(72		)
Personal Insurance	(114		)	(81		)	(83		)	(82		)	(30		)	(58		)	(195		)	(88		)	(360		)
Total	$	(40	)	$	(61	)	$	(88	)	$	573		$	(33	)	$	(86	)	$	(101	)	$	(119	)	$	384

(1) Acquired reserves include a reinsurance to close transaction for Lloyd’s in 1Q 2006, increasing reserves by $358 million and $180 million in Business Insurance and Financial, Professional & International Insurance, 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			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Asbestos reserves
Beginning reserves:
Direct	$	4,775		$	4,675		$	4,527		$	4,412		$	5,103		$	5,000		$	4,775		$	5,103		$	4,775
Ceded	(843		)	(818		)	(785		)	(743		)	(739		)	(720		)	(843		)	(739		)	(843		)
Net	3,932			3,857			3,742			3,669			4,364			4,280			3,932			4,364			3,932
Incurred losses and loss expenses:
Direct	—			—			—			833			—			—			—			—			833
Ceded	—			—			—			(3		)	—			—			—			—			(3		)
Accretion of discount:
Direct	—			1			—			—			—			—			1			—			1
Ceded	—			—			—			—			—			—			—			—			—
Losses paid:																									—
Direct	100			149			115			142			103			162			249			265			506
Ceded	(25		)	(33		)	(42		)	(7		)	(19		)	(4		)	(58		)	(23		)	(107		)
Ending reserves:
Direct	4,675			4,527			4,412			5,103			5,000			4,838			4,527			4,838			5,103
Ceded	(818		)	(785		)	(743		)	(739		)	(720		)	(716		)	(785		)	(716		)	(739		)
Net	$	3,857		$	3,742		$	3,669		$	4,364		$	4,280		$	4,122		$	3,742		$	4,122		$	4,364
Environmental reserves
Beginning reserves:
Direct	$	725		$	624		$	547		$	517		$	494		$	406		$	725		$	494		$	725
Ceded	(84		)	(85		)	(79		)	(80		)	(69		)	(19		)	(84		)	(69		)	$	(84	)
Net	641			539			468			437			425			387			641			425			641
Incurred losses and loss expenses:
Direct	—			—			—			17			—			—			—			—			17
Ceded	—			—			—			13			—			—			—			—			13
Losses paid:
Direct	101			77			30			40			88			27			178			115			248
Ceded	1			(6		)	1			2			(50		)	(12		)	(5		)	(62		)	(2		)
Ending reserves:
Direct	624			547			517			494			406			379			547			379			494
Ceded	(85		)	(79		)	(80		)	(69		)	(19		)	(7		)	(79		)	(7		)	(69		)
Net	$	539		$	468		$	437		$	425		$	387		$	372		$	468		$	372		$	425

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

($ 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

31

The St. Paul Travelers Companies, Inc.

Statement of Cash Flows

($ in millions)

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Cash flows from operating activities
Net income	$	212		$	1,069		$	162		$	179		$	1,006		$	970		$	1,281		$	1,976		$	1,622
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			—			439
Net realized investment (gains) losses	—			55			(39		)	(33		)	6			(10		)	55			(4		)	(17		)
Depreciation and amortization	150			236			113			192			197			197			386			394			691
Deferred federal income taxes (benefit)	110			625			(218		)	(17		)	159			44			735			203			500
Amortization of deferred policy acquisition costs	810			783			830			829			800			814			1,593			1,614			3,252
Premium balances receivable	92			(187		)	147			25			110			(358		)	(95		)	(248		)	77
Reinsurance recoverables	228			433			(1,059		)	(122		)	636			370			661			1,006			(520		)
Deferred acquisition costs	(808		)	(793		)	(821		)	(798		)	(836		)	(874		)	(1,601		)	(1,710		)	(3,220		)
Claim and claim adjustment expense reserves	(433		)	(523		)	2,484			504			(1,137		)	(509		)	(956		)	(1,646		)	2,032
Unearned premium reserves	(148		)	(41		)	43			(237		)	103			272			(189		)	375			(383		)
Trading account activities	—			6			—			—			4			2			6			6			6
Excess tax benefits from share-based payment arrangements	—			—			—			—			(5		)	(1		)	—			(6		)	—
Other	150			(822		)	(174		)	(44		)	(481		)	(68		)	(672		)	(549		)	(890		)
Net cash provided by operating activities of continuing operations	1,028			703			1,381			477			562			849			1,731			1,411			3,589
Net cash provided by operating activities of discontinued operations	24			—			—			—			—			—			24			—			24
Net cash provided by operating activities	1,052			703			1,381			477			562			849			1,755			1,411			3,613
Cash flows from investing activities
Proceeds from maturities of investments
Fixed maturities	1,073			1,348			1,393			1,138			1,571			1,079			2,421			2,650			4,952
Mortgage loans	5			1			43			2			6			23			6			29			51
Proceeds from sales of investments
Fixed maturities	1,052			1,659			722			1,759			1,320			1,854			2,711			3,174			5,192
Equity securities	39			73			169			122			94			32			112			126			403
Real estate	—			—			39			(2		)	—			—			—			—			37
Purchase of investments
Fixed maturities	(4,175		)	(4,391		)	(3,597		)	(3,883		)	(3,983		)	(4,066		)	(8,566		)	(8,049		)	(16,046		)
Equity securities	(21		)	(1		)	(15		)	(26		)	(47		)	(17		)	(22		)	(64		)	(63		)
Mortgage loans	—			(9		)	9			—			—			—			(9		)	—			—
Real estate	(8		)	(14		)	(7		)	(20		)	(8		)	(6		)	(22		)	(14		)	(49		)
Short-term securities, (purchases) sales, net	980			(855		)	(1,155		)	1,172			67			(160		)	125			(93		)	142
Other investments, net	228			224			178			43			148			(28		)	452			120			673
Securities transactions in course of settlement	195			268			(260		)	(798		)	490			19			463			509			(595		)
Other	—			(48		)	(25		)	(59		)	(38		)	(84		)	(48		)	(122		)	(132		)
Net cash provided (used) by investing activities of continuing operations	(632		)	(1,745		)	(2,506		)	(552		)	(380		)	(1,354		)	(2,377		)	(1,734		)	(5,435		)
Net cash used by investing activities of discontinued operations	(20		)	—			—			—			—			—			(20		)	—			(20		)
Net cash provided (used) by investing activities	(652		)	(1,745		)	(2,506		)	(552		)	(380		)	(1,354		)	(2,397		)	(1,734		)	(5,455		)

32

The St. Paul Travelers Companies, Inc.

Statement of Cash Flows (Continued)

($ in millions)

																			YTD			YTD			Full
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q			Year
	2005			2005			2005			2005			2006			2006			2005			2006			2005
Cash flows from financing activities
Issuance of debt	—			—			—			400			—			786			—			786			400
Payment of debt	(2		)	(479		)	(41		)	(293		)	(4		)	—			(481		)	(4		)	(815		)
Treasury stock acquired - net employee share-based compensation	(8		)	(6		)	(13		)	(6		)	(16		)	(1		)	(14		)	(17		)	(33		)
Treasury stock acquired - share repurchase program	—			—			—			—			—			(230		)	—			(230		)	—
Issuance of common stock - employee stock options	32			29			68			35			32			26			61			58			164
Issuance of common stock - maturity of equity unit forward contracts	—			—			442			—			—			—			—			—			442
Excess tax benefits from share-based payment arrangements	—			—			—			—			5			1			—			6			—
Dividends to shareholders	(150		)	(157		)	(160		)	(161		)	(161		)	(182		)	(307		)	(343		)	(628		)
Other	13			(13		)	—			(3		)	(2		)	3			—			1			(3		)
Net cash provided (used) by financing activities of continuing operations	(115		)	(626		)	296			(28		)	(146		)	403			(741		)	257			(473		)
Net cash provided by financing activities of discontinued operations	4			—			—			—			—			—			4			—			4
Net cash provided (used) by financing activities	(111		)	(626		)	296			(28		)	(146		)	403			(737		)	257			(469		)
Effect of exchange rate changes on cash	(2		)	(2		)	1			(2		)	—			3			(4		)	3			(5		)
Elimination of cash provided by discontinued operations	(8		)	—			—			—			—			—			(8		)	—			(8		)
Net proceeds from the sale of discontinued operations	—			1,867			532			—			—			—			1,867			—			2,399
Net increase (decrease) in cash	279			197			(296		)	(105		)	36			(99		)	476			(63		)	75
Cash at beginning of period	262			541			738			442			337			373			262			337			262
Cash at end of period	$	541		$	738		$	442		$	337		$	373		$	274		$	738		$	274		$	337
Income taxes paid (received)	$	14		$	357		$	151		$	304		$	(5	)	$	258		$	371		$	253		$	826
Interest paid	$	93		$	86		$	88		$	70		$	85		$	79		$	179		$	164		$	337

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, beginning with the third quarter 2006:

Business Insurance - The Business Insurance segment, offers a broad array of property and casualty insurance and insurance-related services in the United States, and includes: Select Accounts; Commercial Accounts; National Accounts; Industry-Focused Underwriting including Construction, Technology, Public Sector Services, Oil & Gas, and Agribusiness; Target Risk Underwriting including National Property, Inland Marine, Ocean Marine, Excess Casualty, Boiler & Machinery and Global Accounts; and Specialized Distribution including Northland, National Programs and Underwriting Facilities.  Business Insurance also includes policies written by Gulf (primarily management and professional liability coverages), Personal Catastrophe Risk business, and other runoff operations, as well as the Special Liability Group.

Financial, Professional & International Insurance - The Financial, Professional & International Insurance segment includes surety, crime, and financial liability businesses which primarily use credit-based underwriting processes, as well as property and casualty products that are predominantly marketed on an international basis.  The business units in Financial, Professional & International Insurance are Bond, Financial & Professional Services, International and Lloyd’s.

Personal Insurance 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.

Prior quarter segment results have been restated from the historical presentation to conform with current business segment definitions where applicable.  The Company’s historical Commercial and Specialty segments have been realigned into two new segments:  the Business Insurance segment and the Financial, Professional & International Insurance segment.  As a result, prior quarter results of certain businesses have been disaggregated from the historical Specialty segment and are now reported in the Business Insurance segment.  In addition, the Personal segment has been renamed Personal Insurance.

34