8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  October 26, 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.

On October 26, 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 September 30, 2006, and the availability of the Company’s third quarter financial supplement on the Company’s web site.  The press release and the financial supplement are furnished as Exhibits 99.1 and 99.2 to this Report and are hereby incorporated by reference in this Item 2.02.

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

Item 9.01. Financial Statements and Exhibits.

(d)      Exhibits.

Exhibit No.	Description
99.1	Press Release, dated October 26, 2006, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third 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:       October 26, 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 October 26, 2006, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third Quarter 2006 Financial Supplement of The St. Paul Travelers Companies, Inc. (This exhibit is furnished and not filed.)

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EX-99.1

Exhibit 99.1

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

NEWS RELEASE

St. Paul Travelers Reports Third Quarter 2006 Net Income of $1.043 Billion, or $1.47 per Diluted Share

Announces Completion of Annual Asbestos Review

SAINT PAUL, Minn. (October 26, 2006) – The St. Paul Travelers Companies, Inc. (“St. Paul Travelers,” NYSE:STA) today reported net income of $1.043 billion, or $1.52 per basic share and $1.47 per diluted share, for the quarter ended September 30, 2006, compared to $162 million, or $0.24 per basic share and $0.23 per diluted share, for the quarter ended September 30, 2005.  Net income in the prior year quarter included an $87 million after-tax gain from discontinued operations, primarily related to the disposition of St. Paul Travelers’ equity stake in Nuveen Investments, Inc. (“Nuveen“). Operating income in the current quarter was $1.037 billion, or $1.51 per basic share and $1.46 per diluted share, compared to $50 million, or $0.07 per basic and diluted share, in the prior year quarter.

Net and operating income in the current quarter included an after-tax benefit of $55 million ($87 million pre-tax) for net favorable prior year reserve development.  This amount included after-tax charges of $102 million ($155 million pre-tax) and $79 million ($120 million pre-tax) for asbestos and environmental reserve development, respectively, which were more than offset by an after-tax benefit of $236 million ($362 million pre-tax) for other net favorable prior year reserve development, including $66 million after-tax ($113 million pre-tax) due to an approximately 5 percent reduction in reported pre-tax catastrophe losses, net of reinsurance, related to Hurricanes Katrina, Rita and Wilma.  Net and operating income in the current quarter also included an after-tax benefit of $43 million ($67 million pre-tax) due to the re-estimation of the current year loss ratios for the first two quarters of 2006.  In the prior year quarter, net and operating income included after-tax benefits of $70 million ($102 million pre-tax) for net favorable prior year reserve development and $45 million ($70 million pre-tax) due to the re-estimation of the current year loss ratios for the first two quarters of 2005.

Catastrophe losses in the current quarter of $10 million after-tax ($15 million pre-tax) were significantly lower than the prior year quarter due to a very benign wind season.  The prior year quarter included catastrophe losses of $1.009 billion after-tax ($1.524 billion pre-tax), net of reinsurance and including reinstatement premiums, related to Hurricanes Katrina and Rita.

Current Quarter Highlights

·Return on equity of 17.6 percent and operating return on equity of 17.4 percent.

·Net written premiums of $5.284 billion, a 4 percent increase from the prior year quarter. Excluding the Company’s runoff operations and adjusting for the estimated impact of transitioning to six-month policies for personal automobile new business, net written premiums increased approximately 6 percent.

·Net investment income of $668 million after-tax, a 7 percent increase from the prior year quarter.

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·Strong GAAP combined ratios in all segments, with Business Insurance at 92.0 percent; Financial, Professional & International Insurance at 89.0 percent; and Personal Insurance at 78.4 percent.

·Net favorable prior year reserve development of $55 million after-tax, including after-tax charges of $102 million and $79 million for asbestos and environmental reserve development, respectively.

·Book value per share (excluding FAS 115) of $35.10, a 12 percent increase from year-end 2005.

·Repurchased 2.7 million common shares for a total cost of $121 million under the authorized $2 billion share repurchase program.

Jay Fishman, Chairman and Chief Executive Officer, remarked, “Our company had another very strong quarter, with $1.037 billion of operating income and an operating return on equity of 17.4 percent.  All of our business segments produced solid performances, aided by the lack of any major catastrophes and the continuation of favorable reserve development.

“Our top line continued to grow in each of our segments, with net written premiums increasing 4 percent.  Retentions were once again at historically high levels, and margins remain attractive.  Renewal pricing continues to increase for catastrophe-prone exposures, particularly in the Southeastern U.S.  Elsewhere, renewal pricing is generally flat.  Since retentions are high across the industry, new business flow for our commercial businesses is somewhat limited and pricing remains more competitive than renewal business.  Nevertheless, we are pleased with the growth that we are experiencing.  In the Personal Insurance segment, we are generating above average industry growth, which has been driven by the continued success of the Quantum AutoSM product and our leadership position in homeowners.

“The initiatives that we have embarked upon over the last few years are enhancing the value of our franchise.  The fundamentals of our business are strong and reflect the impressive earnings power of our company,” concluded Mr. Fishman.

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Consolidated Third Quarter Highlights

($ in millions, except for per share amounts, and	Three Months Ended September 30,								Nine Months Ended September 30,
after-tax except for premiums)	2006			2005			Change		2006			2005			Change
Gross written premiums	$	6,100		$	6,030		1	%	$	18,107		$	17,859		1	%
excluding Business Insurance Other	6,100			5,936			3		18,084			17,536			3
Net written premiums	5,284			5,096			4		15,713			15,092			4
excluding Business Insurance Other	5,274			5,016			5		15,684			14,900			5
Net earned premiums	5,260			4,977			6		15,432			15,205			1
Underwriting gain (loss)	407			(555		)	NMF		1,055			119			787
Net investment income	668			625			7		2,011			1,806			11
Operating income	1,037			50			NMF		3,007			1,875			60
per diluted share	$	1.46		$	0.07		NMF		$	4.22		$	2.68		57
Income from continuing operations	1,043			75			NMF		3,019			1,883			60
per diluted share	$	1.47		$	0.11		NMF		$	4.23		$	2.69		57
Net income	1,043			162			544		3,019			1,443			109
per diluted share	$	1.47		$	0.23		539		$	4.23		$	2.07		104
Book value per share	$	35.69		$	32.14		11		$	35.69		$	32.14		11
Adjusted book value per share	$	35.10		$	31.46		12		$	35.10		$	31.46		12
GAAP combined ratio	87.2		%	116.2		%	(29.0	)pts	88.6		%	97.9		%	(9.3	)pts
Operating return on equity	17.4		%	0.9		%	16.5	pts	17.4		%	11.9		%	5.5	pts
Continuing operations return on equity	17.6		%	1.3		%	16.3	pts	17.5		%	11.6		%	5.9	pts
Return on equity	17.6		%	2.9		%	14.7	pts	17.5		%	8.9		%	8.6	pts

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

Net written premiums increased 4 percent from the prior year quarter, with all three segments contributing to the growth.  This result was primarily driven by strong retention rates, especially for non-catastrophe exposures, and renewal price increases on Southeastern U.S. catastrophe-prone exposures.  For comparison of period over period growth, the impact of the increase in property catastrophe reinsurance costs reflected in the current quarter was approximately offset by the impact of reinstatement premiums associated with Hurricanes Katrina and Rita in the prior year quarter.

Net investment income in the current quarter was $668 million after-tax ($858 million pre-tax), a 7 percent increase from the prior year quarter.  The increase was primarily driven by higher fixed income rates and strong operating cash flows.

The GAAP combined ratio in the current quarter was 87.2 percent, a 29.0 point improvement from the 116.2 percent reported in the prior year quarter, primarily due to significantly lower catastrophe losses.  The current quarter GAAP combined ratio benefited by 1.7 points due to net favorable prior year reserve development and by 1.3 points due to the re-estimation of current year loss ratios for the first two quarters of 2006, partially offset by 0.3 points for catastrophe losses.  The prior year quarter GAAP combined ratio included 30.3 points for catastrophe losses related to Hurricanes Katrina and Rita, partially offset by the benefits of 2.0 points due to net favorable prior year reserve development and 1.4 points due to the re-estimation of the current year loss ratios for the first two quarters of 2005.

During the third quarter of 2006, the Company repurchased 2.7 million common shares for a total cost of $121 million under its $2 billion share repurchase program authorized in the second quarter of 2006.  The Company has repurchased an aggregate of 8.4 million shares for a total cost of $371 million under the program, including the repurchases during the third quarter of 2006.  Given year-to-date results, the Company intends to accelerate the pace of its share repurchases in the fourth quarter of 2006.

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Asbestos Reserve Development

The Company increased asbestos reserves by $155 million in the current quarter in connection with the completion of its annual asbestos review, resulting in a $102 million after-tax charge.  There were no asbestos reserve adjustments in the prior year quarter.  The previous annual asbestos review was completed in the fourth quarter of 2005.  The Company completed this year’s review in the third quarter earlier than in previous years due to a number of factors, including:

·the emergence of more stable payment trends for a greater proportion of policyholders,

·a decrease in the number of new claims received,

·a decrease in the number of large asbestos exposures reflecting additional settlement activity,

·a decrease in the number and volatility of asbestos-related bankruptcies, and

·the absence of new theories of liability or new classes of defendants.

As in prior years, the review considered active policyholders and litigation cases for potential product and “non-product” liability, including the on-going litigation related to ACandS.  Developing payment trends among policyholders in the Home Office and Field Office as well as Assumed and International categories were also analyzed.  The Home Office and Field Office categories, which account for the vast majority of the number of policyholders, have experienced an overall reduction in new claim filings as well as in indemnity and defense payments over prior years.  While indemnity payments declined in line with previous expectations, defense costs, although decreasing, were in excess of previous expectations.

Approximately half of the $155 million pre-tax reserve adjustment was due to an increase in projected defense costs for ten policyholders.  Additionally, $15 million of the pre-tax reserve increase was attributable to a delay in the approval and expected payment of the previously announced PPG settlement. The remainder of the reserve increase was primarily due to continued litigation activity against smaller, peripheral defendants.

Environmental Reserve Development

The Company increased environmental reserves by $120 million, resulting in a $79 million after-tax charge.  There were no environmental reserve adjustments in the prior year quarter.  While the number of new policyholders submitting claims continues to decline, the increase to the reserve was primarily due to higher than expected defense and settlement costs driven in part by adverse judicial developments in certain states regarding the availability of coverage.

Year-to-Date 2006 Consolidated Results

For the nine-month period ended September 30, 2006, St. Paul Travelers reported net income of $3.019 billion, or $4.37 per basic share and $4.23 per diluted share, compared to $1.443 billion, or $2.14 per basic share and $2.07 per diluted share, for the nine-month period ended September 30, 2005.  Net income in the prior year period was negatively impacted by a $440 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.

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Income from continuing operations in the first nine months of 2006 was $3.019 billion, or $4.37 per basic share and $4.23 per diluted share, compared to $1.883 billion, or $2.79 per basic share and $2.69 per diluted share, in the prior year period.  Operating income in the current year period was $3.007 billion, or $4.35 per basic share and $4.22 per diluted share, compared to $1.875 billion, or $2.78 per basic share and $2.68 per diluted share, in the prior year period.

Net and operating income for the first nine months of 2006 included an after-tax benefit of $155 million ($237 million pre-tax) for net favorable prior year reserve development and an after-tax charge of $54 million ($82 million pre-tax) for catastrophe losses.  In the prior year period, net and operating income included an after-tax benefit of $156 million ($232 million pre-tax) for net favorable prior year reserve development and an after-tax charge of $1.037 billion ($1.566 billion pre-tax) for catastrophe losses.

The GAAP combined ratio in the current year period was 88.6 percent, a 9.3 point improvement from the 97.9 percent reported in the prior year period, primarily due to a much lower level of catastrophe losses.  The current year period GAAP combined ratio benefited by 1.5 points for net favorable prior year reserve development, partially offset by 0.5 points for catastrophe losses.  The prior year period GAAP combined ratio included 10.2 points for catastrophe losses, partially offset by a benefit of 1.6 points for net favorable prior year reserve development.

Net investment income in the current year period was a record $2.011 billion after-tax ($2.607 billion pre-tax), an 11 percent increase from the prior year period.  The increase was driven by higher fixed income rates, strong operating cash flows and the investment of approximately $2.4 billion of proceeds received from the sale of Nuveen in 2005.

For the first nine months of 2006, operating return on equity was 17.4 percent, compared to 11.9 percent in the prior year period.

Segment Realignment

In August 2006, the Company announced a realignment of two of its three 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 risks are underwritten.  Financial data for all periods presented has been reclassified to be consistent with the new segment structure.

Business Insurance Segment Financial Results

Business Insurance is organized into the following groups: Select Accounts, Commercial Accounts, National Accounts, Industry-Focused Underwriting, Target Risk Underwriting, and Specialized Distribution, which collectively comprise Business Insurance Core operations.  Business Insurance also includes the Special Liability Group as well as policies written by Gulf, the Personal Catastrophe Risk operation and other runoff operations, which collectively are referred to as Business Insurance Other.

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For the third quarter 2006, the Business Insurance segment reported operating income of $613 million, compared to $30 million in the prior year quarter.  The improvement was primarily due to the absence of catastrophe losses, the continuation of favorable loss trends and higher net investment income.

There were no catastrophe losses reported in the current quarter, compared to an after-tax charge of $621 million ($956 million pre-tax) for catastrophe losses in the prior year quarter.  Loss experience in the current accident year has trended better than originally estimated due to favorable claim activity, resulting in an after-tax benefit of $26 million ($40 million pre-tax) from the re-estimation of the current year loss ratios for the first two quarters of 2006.  The prior year quarter included an after-tax benefit of $33 million ($51 million pre-tax) due to the re-estimation of the current year loss ratios for the first two quarters of 2005.

Operating income in the current quarter included an after-tax charge of $35 million ($46 million pre-tax) for net unfavorable prior year reserve development.  The prior year reserve development was comprised of after-tax charges for asbestos and environmental reserve development of $102 million ($155 million pre-tax) and $79 million ($120 million pre-tax), respectively, partially offset by $146 million ($229 million pre-tax) for other net favorable prior year development, primarily due to better than expected frequency and severity loss trends in the general liability and property lines of business.  The prior year quarter included an after-tax charge of $12 million ($18 million pre-tax) for net unfavorable prior year reserve development.

The GAAP combined ratio was 92.0 percent in the current quarter, a 33.0 point improvement from the 125.0 percent reported in the prior year quarter.  The improvement was primarily due to the absence of catastrophe losses in the current quarter, compared to 35.0 points for catastrophe losses in the prior year quarter.  Net unfavorable prior year reserve development added 1.7 points to the current quarter GAAP combined ratio, compared to adding 0.7 points in the prior year quarter.  The current quarter GAAP combined ratio benefited by 1.5 points due to the re-estimation of the current year loss ratios for the first two quarters of 2006, compared to a similar benefit of 1.9 points related to the first two quarters of 2005.

Net written premiums, excluding Business Insurance Other, increased 4 percent from the prior year quarter, primarily due to growth in Industry-Focused Underwriting, Commercial Accounts and Target Risk Underwriting, partially offset by a decline in National Accounts.

Within Commercial Accounts, retention rates were very strong, consistent with previous quarters, while new business volume decreased from the prior year quarter.  Renewal price changes increased in both Commercial Accounts and Target Risk Underwriting, largely related to Southeastern U.S. catastrophe-prone exposures.  Industry-Focused Underwriting benefited from strong business volumes in the Construction and Oil & Gas business units, driven by favorable economic conditions in these industry sectors.  Within Select Accounts, excluding the impact of the transfer of certain small business insurance programs to Specialized Distribution, net written premiums were approximately level with the prior year quarter.   Retention rates for Select Accounts were strong, consistent with previous quarters; renewal price changes increased from recent quarters and new business volume rose from the prior year quarter.  National Accounts net written premiums declined as a result of a reduction in premiums related to favorable loss experience on retrospectively rated policies and lower new business volume.

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Financial, Professional & International Insurance Segment Financial Results

The Financial, Professional & International Insurance segment (“FP&II”) includes the following businesses: Bond, Financial & Professional Services, and International and Lloyd’s.

For the third quarter 2006, FP&II reported operating income of $144 million, compared to $86 million in the prior year quarter.  The increase was primarily driven by the absence of catastrophe losses and higher net investment income, partially offset by lower net favorable prior year reserve development.

There were no catastrophe losses reported in the current quarter, compared to an after-tax charge of $71 million ($80 million pre-tax) for catastrophe losses in the prior year quarter.  Operating income in the current quarter included a minimal benefit for net favorable prior year reserve development, compared to an after-tax benefit of $28 million ($37 million pre-tax) in the prior year quarter.

The GAAP combined ratio was 89.0 percent in the current quarter, a 5.8 point improvement from the 94.8 percent reported in the prior year quarter.  The improvement was primarily due to the absence of catastrophe losses, partially offset by lower net favorable prior year reserve development.  Catastrophe losses added 10.1 points to the prior year quarter GAAP combined ratio.  The current quarter GAAP combined ratio benefited by 0.2 points for net favorable prior year reserve development, compared to 4.8 points in the prior year quarter.

Net written premiums increased 8 percent from the prior year quarter, primarily due to strong business volumes in Bond and the U.K. operations, as well as the absence of catastrophe-related reinstatement premiums in the Company’s Lloyd’s operations.

For Financial & Professional Services and Bond, excluding the surety line of business, retention rates were strong, increasing from previous quarters; renewal price changes continue to be positive and new business volume decreased from the prior year quarter. For International, including the Company’s operations in the U.K., Ireland and Canada, retention rates were very strong, renewal price changes were consistent with recent quarters and new business volume increased from the prior year quarter.

Personal Insurance Segment Financial Results

For the third quarter 2006, the Personal Insurance segment reported operating income of $341 million, compared to an operating loss of $25 million in the prior year quarter.  The improvement was primarily driven by significantly lower catastrophe losses, greater net favorable prior year reserve development, increased earned premium volume and higher net investment income.

The current quarter included an after-tax charge of $10 million ($15 million pre-tax) for catastrophe losses, compared to $317 million ($488 million pre-tax) in the prior year quarter.  Operating income in the current quarter included an after-tax benefit of $85 million ($132 million pre-tax) for net favorable prior year reserve development, primarily due to a reduction in 2005 catastrophe loss estimates.  The prior year quarter included $54 million ($83 million pre-tax) for net favorable prior year reserve development.  In addition, loss experience in the current accident year has trended better than originally expected due to favorable automobile claim activity, resulting in an after-tax benefit of $17 million ($27 million pre-tax) from the re-estimation of the current year loss ratios for the first two quarters of 2006.  The prior year quarter included an after-tax benefit of $12 million ($19 million pre-tax) due to the re-estimation of the current year loss ratios for the first two quarters of 2005.

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The GAAP combined ratio was 78.4 percent in the current quarter, a 32.9 point improvement from the 111.3 percent reported in the prior year quarter, primarily due to lower catastrophe losses.  The current quarter GAAP combined ratio included 0.9 points for catastrophe losses, compared to 32.1 points in the prior year quarter.  Net favorable prior year reserve development benefited the current quarter GAAP combined ratio by 7.9 points, compared to a benefit of 5.5 points in the prior year quarter.  The current quarter GAAP combined ratio benefited by 1.6 points due to the re-estimation of the current year loss ratios for the first two quarters of 2006, compared to a similar benefit of 1.3 points related to the first two quarters of 2005.

Net written premiums increased 6 percent from the prior year quarter.  This result was attributable to continued strong retention rates, renewal price increases and growth in new business.  Net written premium growth in the current quarter was lower than in recent quarters as a result of higher catastrophe reinsurance costs for homeowners and the estimated impact of transitioning to six-month policies for new automobile business.

Automobile net written premiums increased 4 percent, and policies in force increased 11 percent from the prior year quarter.  Excluding the estimated impact of transitioning to six-month policies for new business, net written premiums would have increased approximately 9 percent. Retention rates were strong, consistent with previous quarters, and renewal price changes were level with recent quarters.  New business volume increased 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 37 states and the District of Columbia at the end of the quarter.

Homeowners and Other net written premiums increased 9 percent, and policies in force increased 9 percent from the prior year quarter.  Retention rates were strong, consistent with previous quarters, and renewal price changes increased slightly from 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 to a range of $5.50 to $5.65, compared to the previously announced range of $4.90 to $5.10.  This guidance is based on a number of assumptions, including catastrophe losses of $35 million after-tax ($55 million pre-tax) for the remainder of 2006 and no additional prior year reserve development, favorable or unfavorable.  Weighted average outstanding diluted shares are assumed to be 717 million for the full year, before the impact of any share repurchase activity in the fourth quarter.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with a financial supplement that is available on our Web site at www.stpaultravelers.com.  The management of St. Paul Travelers will discuss the contents of this release via Webcast at 9 a.m. Eastern (8 a.m. Central) on Thursday, October 26, 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.

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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.

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.

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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.  Business Insurance is organized into the following groups, which collectively comprise Business Insurance Core operations: 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 the Special Liability Group and policies written by Gulf (primarily management and professional liability coverages), the Personal Catastrophe Risk operation, and other runoff operations, which collectively are referred to as Business Insurance Other.

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 businesses in Financial, Professional & International Insurance are Bond, Financial & Professional Services, and International and Lloyd’s.

Personal Insurance: The Personal Insurance segment 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 reclassified 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.

* * * * *

10

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 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.

###

11

Summary of Financial Information

	Three months ended						Nine months ended
	September 30,						September 30,
($ in millions, except per share amounts, and after-tax)	2006			2005			2006			2005
Operating income	$	1,037		$	50		$	3,007		$	1,875
Net realized investment gains	6			25			12			8
Income from continuing operations	1,043			75			3,019			1,883
Discontinued operations	—			87			—			(440		)
Net income	$	1,043		$	162		$	3,019		$	1,443
Basic earnings per share
Operating income	$	1.51		$	0.07		$	4.35		$	2.78
Net realized investment gains	0.01			0.04			0.02			0.01
Income from continuing operations	1.52			0.11			4.37			2.79
Discontinued operations	—			0.13			—			(0.65		)
Net income	$	1.52		$	0.24		$	4.37		$	2.14
Diluted earnings per share
Operating income	$	1.46		$	0.07		$	4.22		$	2.68
Net realized investment gains	0.01			0.04			0.01			0.01
Income from continuing operations	1.47			0.11			4.23			2.69
Discontinued operations	—			0.12			—			(0.62		)
Net income	$	1.47		$	0.23		$	4.23		$	2.07
Weighted average number of common shares outstanding (basic)	685.3			679.2			689.7			672.3
Weighted average number of common shares outstanding and common stock equivalents (diluted)	714.6			683.8		(1)	718.6			711.3
Common shares outstanding at period end	689.5			692.2			689.5			692.2
Common stock dividends declared	$	180.0		$	159.0		$	520.0		$	462.0
Operating income (loss) by segment
Business Insurance	$	613		$	30		$	1,919		$	1,154
Financial, Professional & International Insurance	144			86			434			334
Personal Insurance	341			(25		)	784			526
	1,098			91			3,137			2,014
Interest Expense and Other	(61		)	(41		)	(130		)	(139		)
	$	1,037		$	50		$	3,007		$	1,875
Operating return on equity	17.4		%	0.9		%	17.4		%	11.9		%
Continuing operations return on equity	17.6		%	1.3		%	17.5		%	11.6		%
Return on equity	17.6		%	2.9		%	17.5		%	8.9		%

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

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

12

	Three months ended						Nine months ended
	September 30,						September 30,
($ in millions, pre-tax)	2006			2005			2006			2005
Revenues
Premiums	$	5,260		$	4,977		$	15,432		$	15,205
Net investment income	858			812			2,607			2,352
Fee income	150			169			453			505
Net realized investment gains (losses)	12			39			16			(16		)
Other revenues	36			45			113			138
	$	6,316		$	6,042		$	18,621		$	18,184
Revenues by segment excluding net realized investment gains (losses)
Business Insurance	$	3,505		$	3,485		$	10,453		$	10,677
Financial, Professional & International Insurance	963			858			2,806			2,644
Personal Insurance	1,836			1,647			5,340			4,874
	6,304			5,990			18,599			18,195
Interest Expense and Other	—			13			6			5
	6,304			6,003			18,605			18,200
Net realized investment gains (losses)	12			39			16			(16		)
	$	6,316		$	6,042		$	18,621		$	18,184
Gross written premiums
Business Insurance Core	$	3,257		$	3,278		$	9,802		$	9,859
Business Insurance Other	—			94			23			323
Total Business Insurance	3,257			3,372			9,825			10,182
Financial, Professional & International Insurance	974			926			2,952			2,797
Personal Insurance	1,869			1,732			5,330			4,880
	$	6,100		$	6,030		$	18,107		$	17,859
Net written premiums
Business Insurance Core	$	2,634		$	2,542		$	8,174		$	7,949
Business Insurance Other	10			80			29			192
Total Business Insurance	2,644			2,622			8,203			8,141
Financial, Professional & International Insurance	912			847			2,429			2,266
Personal Insurance	1,728			1,627			5,081			4,685
	$	5,284		$	5,096		$	15,713		$	15,092
GAAP combined ratios: (1)
Business Insurance (2)
Loss and loss adjustment expense ratio	61.5		%	95.4		%	60.8		%	75.3		%
Underwriting expense ratio	30.5			29.6			30.1			28.5
Combined ratio	92.0		%	125.0		%	90.9		%	103.8		%
Financial, Professional & International Insurance (2)
Loss and loss adjustment expense ratio	54.1		%	57.4		%	53.2		%	54.7		%
Underwriting expense ratio	34.9			37.4			35.3			36.0
Combined ratio	89.0		%	94.8		%	88.5		%	90.7		%
Personal Insurance
Loss and loss adjustment expense ratio	50.2		%	84.5		%	56.9		%	64.2		%
Underwriting expense ratio	28.2			26.8			28.0			26.5
Combined ratio	78.4		%	111.3		%	84.9		%	90.7		%
Total Company (2)
Loss and loss adjustment expense ratio	56.7		%	86.3		%	58.3		%	68.8		%
Underwriting expense ratio	30.5			29.9			30.3			29.1
Combined ratio	87.2		%	116.2		%	88.6		%	97.9		%

(1)For purposes of computing GAAP ratios, billing and policy fees (which are a component of other revenues) are allocated as a reduction of other underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expense and other underwriting expenses.

(2)Before policyholder dividends.

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

13

	Three months ended						Nine months ended
	September 30,						September 30,
($ in millions; after-tax except as noted)	2006			2005			2006			2005
Reconciliation of underwriting gain (loss) to net income
Pre-tax underwriting gain (loss)	$	642		$	(828	)	$	1,652		$	224
Tax expense on underwriting results	(235		)	273			(597		)	(105		)
Underwriting gain (loss)	407			(555		)	1,055			119
Net investment income	668			625			2,011			1,806
Other, including interest expense	(38		)	(20		)	(59		)	(50		)
Consolidated operating income	1,037			50			3,007			1,875
Net realized investment gains	6			25			12			8
Income from continuing operations	1,043			75			3,019			1,883
Discontinued operations	—			87			—			(440		)
Net income	$	1,043		$	162		$	3,019		$	1,443

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	917.778.6817

###

14

EX-99.2

Exhibit 99.2

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

Business Realignment

In August 2006, the Company announced a realignment of two of its three reportable 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. These 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 risks are underwritten.  The following discussion relates to the two realigned segments.  Financial data for all periods presented has been 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 comprise Business Insurance’s Core operations collectively:

• 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 differentiated 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 businesses 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 - Third Quarter 2006

Business Realignment (Continued)

Business Insurance (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, as well as 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 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 and 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 and, in early 2005, 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
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Income from continuing operations	$	877		$	931		$	75		$	178		$	1,006		$	970		$	1,043		$	1,883		$	3,019
Income from continuing operations per share:
Basic	$	1.31		$	1.39		$	0.11		$	0.26		$	1.45		$	1.40		$	1.52		$	2.79		$	4.37
Diluted	$	1.25		$	1.33		$	0.11		$	0.26		$	1.41		$	1.36		$	1.47		$	2.69	`	$	4.23
Net income	$	212		$	1,069		$	162		$	179		$	1,006		$	970		$	1,043		$	1,443		$	3,019
Net income per share:
Basic	$	0.31		$	1.59		$	0.24		$	0.26		$	1.45		$	1.40		$	1.52		$	2.14		$	4.37
Diluted	$	0.31		$	1.52		$	0.23		$	0.26		$	1.41		$	1.36		$	1.47		$	2.07		$	4.23
Operating income	$	859		$	966		$	50		$	151		$	1,011		$	959		$	1,037		$	1,875		$	3,007
Operating income per share:
Basic	$	1.28		$	1.44		$	0.07		$	0.22		$	1.46		$	1.39		$	1.51		$	2.78		$	4.35
Diluted	$	1.23		$	1.38		$	0.07		$	0.22		$	1.41		$	1.34		$	1.46		$	2.68		$	4.22
Continuing operations return on equity	16.6		%	17.4		%	1.3		%	3.2		%	17.9		%	17.0		%	17.6		%	11.6		%	17.5		%
Return on equity	4.0		%	20.0		%	2.9		%	3.2		%	17.9		%	17.0		%	17.6		%	8.9		%	17.5		%
Operating return on equity	16.7		%	18.6		%	0.9		%	2.8		%	18.1		%	16.6		%	17.4		%	11.9		%	17.4		%
Total assets, at period end	$	110,750		$	111,804		$	113,442		$	113,187		$	113,376		$	113,886		$	115,498		$	113,442		$	115,498
Total equity, at period end	$	20,732		$	22,369		$	22,408		$	22,303		$	22,837		$	23,052		$	24,747		$	22,408		$	24,747
Book value per share, at period end	$	30.51		$	32.90		$	32.14		$	31.94		$	32.59		$	33.14		$	35.69		$	32.14		$	35.69
Adjusted book value per share, at period end	$	30.10		$	31.48		$	31.46		$	31.47		$	32.68		$	33.83		$	35.10		$	31.46		$	35.10
Weighted average number of common shares outstanding (basic)	668.1			669.5			679.2			688.3			692.2			691.8			685.3			672.3			689.7
Weighted average number of common shares outstanding and common stock equivalents (diluted)	709.1			710.3			683.8			694.1			720.8			720.4			714.6			711.3			718.6
Common shares outstanding at period end	673.6			674.6			692.2			693.4			696.2			691.4			689.5			692.2			689.5
Common stock dividends declared	$	148		$	155		$	159		$	160		$	160		$	180		$	180		$	462		$	520
Common stock repurchased: (1)
Shares	0.2			0.1			0.4			0.1			0.5			5.7			2.8			0.7			9.0
Cost	$	8		$	6		$	13		$	6		$	22		$	253		$	126		$	27		$	401

(1)For the three months and nine months ended September 30, 2006, includes 2.7 million and 8.4 million shares, respectively, for a total cost of $121 million and $371 million, respectively, repurchased under the Board authorized repurchase program of up to $2 billion.

See Business Realignment on pages i and ii, and 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		3Q		3Q			3Q
	2005			2005			2005		2005		2006			2006		2006		2005			2006
Net income
Operating income	$	859		$	966		$	50	$	151	$	1,011		$	959	$	1,037	$	1,875		$	3,007
Net realized investment gains (losses)	18			(35		)	25		27		(5		)	11		6		8			12
Income from continuing operations	877			931			75		178		1,006			970		1,043		1,883			3,019
Discontinued operations	(665		)	138			87		1		—			—		—		(440		)	—
Net income	$	212		$	1,069		$	162	$	179	$	1,006		$	970	$	1,043	$	1,443		$	3,019
Basic earnings per share
Operating income	$	1.28		$	1.44		$	0.07	$	0.22	$	1.46		$	1.39	$	1.51	$	2.78		$	4.35
Net realized investment gains (losses)	0.03			(0.05		)	0.04		0.04		(0.01		)	0.01		0.01		0.01			0.02
Income from continuing operations	1.31			1.39			0.11		0.26		1.45			1.40		1.52		2.79			4.37
Discontinued operations	(1.00		)	0.20			0.13		—		—			—		—		(0.65		)	—
Net income	$	0.31		$	1.59		$	0.24	$	0.26	$	1.45		$	1.40	$	1.52	$	2.14		$	4.37
Diluted earnings per share
Operating income	$	1.23		$	1.38		$	0.07	$	0.22	$	1.41		$	1.34	$	1.46	$	2.68		$	4.22
Net realized investment gains (losses)	0.02			(0.05		)	0.04		0.04		—			0.02		0.01		0.01			0.01
Income from continuing operations	1.25			1.33			0.11		0.26		1.41			1.36		1.47		2.69			4.23
Discontinued operations	(0.94		)	0.19			0.12		—		—			—		—		(0.62		)	—
Net income	$	0.31		$	1.52		$	0.23	$	0.26	$	1.41		$	1.36	$	1.47	$	2.07		$	4.23

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			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Basic
Income from continuing operations, as reported	$	877		$	931		$	75		$	178		$	1,006		$	970		$	1,043		$	1,883		$	3,019
Preferred stock dividends, net of taxes	(2		)	(2		)	(1		)	(1		)	(1		)	(1		)	(1		)	(5		)	(4		)
Income from continuing operations available to common shareholders - basic	$	875		$	929		$	74		$	177		$	1,005		$	969		$	1,042		$	1,878		$	3,015
Diluted
Income from continuing operations available to common shareholders - basic	$	875		$	929		$	74		$	177		$	1,005		$	969		$	1,042		$	1,878		$	3,015
Effect of dilutive securities:
Convertible preferred stock	2			2			—			—			1			1			1			4			4
Zero coupon convertible notes	1			1			—			—			1			1			1			3			3
Convertible junior subordinated notes	7			7			—			—			7			7			7			20			20
Equity unit stock purchase contracts	3			3			—			—			—			—			—			9			—
Income from continuing operations available to common shareholders - diluted	$	888		$	942		$	74		$	177		$	1,014		$	978		$	1,051		$	1,914		$	3,042
Common Shares
Basic
Weighted average shares outstanding	668			669			679			688			692			692			685			672			690
Diluted
Weighted average shares outstanding	668			669			679			688			692			692			685			672			690
Weighted average effects of dilutive securities:
Stock options and other incentive plans	2			2			5			6			6			6			7			3			6
Convertible preferred stock	5			4			—			—			4			3			4			4			4
Zero coupon convertible notes	2			3			—			—			2			2			2			2			2
Convertible junior subordinated notes	17			17			—			—			17			17			17			17			17
Equity unit stock purchase contracts	15			15			—			—			—			—			—			13			—
Diluted weighted average shares outstanding	709			710			684			694			721			720			715			711			719

(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 Business Realignment on pages i and ii, and 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			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Revenues
Premiums	$	5,119		$	5,109		$	4,977		$	5,136		$	4,991		$	5,181		$	5,260		$	15,205		$	15,432
Net investment income	765			775			812			813			875			874			858			2,352			2,607
Fee income	171			165			169			159			150			153			150			505			453
Net realized investment gains (losses)	—			(55		)	39			33			(6		)	10			12			(16		)	16
Other revenues	50			43			45			40			40			37			36			138			113
Total revenues	6,105			6,037			6,042			6,181			6,050			6,255			6,316			18,184			18,621
Claims and expenses
Claims and claim adjustment expenses	3,223			3,101			4,361			4,242			3,042			3,153			3,047			10,685			9,242
Amortization of deferred acquisition costs	810			783			830			829			800			814			858			2,423			2,472
General and administrative expenses	813			789			789			838			794			866			869			2,391			2,529
Interest expense	71			70			70			75			76			78			88			211			242
Total claims and expenses	4,917			4,743			6,050			5,984			4,712			4,911			4,862			15,710			14,485
Income (loss) from continuing operations before income taxes	1,188			1,294			(8		)	197			1,338			1,344			1,454			2,474			4,136
Income tax expense (benefit)	311			363			(83		)	19			332			374			411			591			1,117
Income from continuing operations	877			931			75			178			1,006			970			1,043			1,883			3,019
Discontinued operations
Operating income (loss), net of taxes	(665		)	—			2			—			—			—			—			(663		)	—
Gain on disposal, net of taxes	—			138			85			1			—			—			—			223			—
Income (loss) from discontinued operations, net of taxes (1)	(665		)	138			87			1			—			—			—			(440		)	—
Net income	$	212		$	1,069		$	162		$	179		$	1,006		$	970		$	1,043		$	1,443		$	3,019
Other statistics:
Effective tax rate on net investment income	23.9		%	22.8		%	23.0		%	22.3		%	23.5		%	23.0		%	22.1		%	23.2		%	22.9		%
Net investment income (after-tax)	$	583		$	598		$	625		$	632		$	670		$	673		$	668		$	1,806		$	2,011
Catastrophes, net of reinsurance:
Pre-tax	$	31		$	11		$	1,524		$	623		$	—		$	67		$	15		$	1,566		$	82
After-tax	$	20		$	8		$	1,009		$	435		$	—		$	44		$	10		$	1,037		$	54

(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 Business Realignment on pages i and ii, and 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
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Underwriting gain (loss)	$	291		$	383		$	(555	)	$	(463	)	$	337		$	311		$	407		$	119		$	1,055
Net investment income	583			598			625			632			670			673			668			1,806			2,011
Other, including interest expense	(15		)	(15		)	(20		)	(18		)	4			(25		)	(38		)	(50		)	(59		)
Operating income	859			966			50			151			1,011			959			1,037			1,875			3,007
Net realized investment gains (losses)	18			(35		)	25			27			(5		)	11			6			8			12
Discontinued operations	(665		)	138			87			1			—			—			—			(440		)	—
Net income	$	212		$	1,069		$	162		$	179		$	1,006		$	970		$	1,043		$	1,443		$	3,019
GAAP Combined ratio (1), (2)
Loss and loss adjustment expense ratio	61.3		%	59.4		%	86.3		%	81.0		%	58.9		%	59.5		%	56.7		%	68.8		%	58.3		%
Underwriting expense ratio	29.2		%	28.2		%	29.9		%	30.1		%	30.0		%	30.3		%	30.5		%	29.1		%	30.3		%
Combined ratio	90.5		%	87.6		%	116.2		%	111.1		%	88.9		%	89.8		%	87.2		%	97.9		%	88.6		%
Impact of catastrophes on combined ratio	0.6		%	0.2		%	30.3		%	12.2		%	0.0		%	1.3		%	0.3		%	10.2		%	0.5		%
Impact of prior year reserve development on combined ratio	-1.1		%	-1.5		%	-2.0		%	10.8		%	-1.0		%	-2.0		%	-1.7		%	-1.6		%	-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 underwriting expenses as follows:

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2005		2005		2005		2005		2006		2006		2006		2005		2006
Billing and policy fees	$	29	$	26	$	26	$	25	$	28	$	26	$	28	$	81	$	82
Fee income:
Loss and loss adjustment expenses	$	76	$	63	$	72	$	66	$	92	$	66	$	59	$	211	$	217
Underwriting expenses	95		102		97		93		58		87		91		294		236
Total fee income	$	171	$	165	$	169	$	159	$	150	$	153	$	150	$	505	$	453

See Business Realignment on pages i and ii, and 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
	1Q		2Q		3Q			4Q		1Q		2Q		3Q		3Q		3Q
	2005		2005		2005			2005		2006		2006		2006		2005		2006
Revenues
Premiums	$	5,119	$	5,109	$	4,977		$	5,136	$	4,991	$	5,181	$	5,260	$	15,205	$	15,432
Net investment income	765		775		812			813		875		874		858		2,352		2,607
Fee income	171		165		169			159		150		153		150		505		453
Other revenues	50		43		45			40		40		37		36		138		113
Total revenues	6,105		6,092		6,003			6,148		6,056		6,245		6,304		18,200		18,605
Claims and expenses
Claims and claim adjustment expenses	3,223		3,101		4,361			4,242		3,042		3,153		3,047		10,685		9,242
Amortization of deferred acquisition costs	810		783		830			829		800		814		858		2,423		2,472
General and administrative expenses	813		789		789			838		794		866		869		2,391		2,529
Interest expense	71		70		70			75		76		78		88		211		242
Total claims and expenses	4,917		4,743		6,050			5,984		4,712		4,911		4,862		15,710		14,485
Operating income (loss) before income taxes	1,188		1,349		(47		)	164		1,344		1,334		1,442		2,490		4,120
Income tax expense (benefit)	329		383		(97		)	13		333		375		405		615		1,113
Operating income	$	859	$	966	$	50		$	151	$	1,011	$	959	$	1,037	$	1,875	$	3,007

See Business Realignment on pages i and ii, and 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
	1Q					2Q				3Q				4Q				1Q			2Q				3Q				3Q			3Q
	2005					2005				2005				2005				2006			2006				2006				2005			2006
Statutory underwriting
Gross written premiums	$		5,920			$		5,909		$		6,030		$		5,877		$		5,810	$		6,197		$		6,100		$		17,859	$		18,107
Net written premiums	$			4,780		$		5,216		$		5,096		$		5,294		$		4,774	$		5,655		$		5,284		$		15,092	$		15,713
Net earned premiums	$			5,119		$		5,109		$		4,977		$		5,136		$		4,991	$		5,181		$		5,260		$		15,205	$		15,432
Losses and loss adjustment expenses	3,127					3,033				4,334				4,288				2,951			3,095				2,987				10,494			9,033
Underwriting expenses	1,435					1,461				1,437				1,507				1,493			1,609				1,524				4,333			4,626
Statutory underwriting gain (loss)	557					615				(794			)	(659			)	547			477				749				378			1,773
Policyholder dividends	7					6				(5			)	14				9			6				5				8			20
Statutory underwriting gain (loss) after policyholder dividends	$			550		$		609		$		(789	)	$		(673	)	$		538	$		471		$		744		$		370	$		1,753
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	41,637				$	41,357			$	42,733			$	43,191			$	43,256		$	43,116			$	43,084			$	42,733		$	43,084
Increase (decrease) in reserves (1)	$	(91			)	$	(280		)	$	1,376			$	458			$	65		$	(140		)	$	(32		)	$	1,005		$	(107		)
Statutory surplus	$	15,441				$	16,137			$	17,738			$	17,812			$	18,522		$	19,037			$	19,961			$	17,738		$	19,961
Net written premiums/surplus (2)	1.32:1					1.26:1				1.14:1				1.14:1				1.10:1			1.09:1				1.05:1				1.14:1			1.05:1

(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 Business Realignment on pages i and ii, and 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
	1Q				2Q				3Q				4Q				1Q				2Q				3Q				3Q				3Q
	2005				2005				2005				2005				2006				2006				2006				2005				2006
Written premiums
Gross	$	5,920			$	5,909			$	6,030			$	5,877			$	5,810			$	6,197			$	6,100			$	17,859			$	18,107
Ceded	(1,140			)	(693			)	(934			)	(583			)	(1,036			)	(542			)	(816			)	(2,767			)	(2,394			)
Net	$		4,780		$		5,216		$		5,096		$		5,294		$		4,774		$		5,655		$		5,284		$		15,092		$		15,713
Earned premiums
Gross	$	6,023			$	5,955			$	5,969			$	5,925			$	5,733			$	5,899			$	6,006			$	17,947			$	17,638
Ceded	(904			)	(846			)	(992			)	(789			)	(742			)	(718			)	(746			)	(2,742			)	(2,206			)
Net	$	5,119			$	5,109			$	4,977			$	5,136			$	4,991			$	5,181			$	5,260			$	15,205			$	15,432

See Business Realignment on pages i and ii, and 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
	1Q		2Q		3Q			4Q			1Q		2Q		3Q		3Q		3Q
	2005		2005		2005			2005			2006		2006		2006		2005		2006
Revenues
Premiums	$	2,845	$	2,819	$	2,707		$	2,745		$	2,643	$	2,715	$	2,737	$	8,371	$	8,095
Net investment income	569		590		591			591			636		635		610		1,750		1,881
Fee income	171		165		168			159			150		153		150		504		453
Other revenues	16		17		19			12			7		9		8		52		24
Total revenues	3,601		3,591		3,485			3,507			3,436		3,512		3,505		10,677		10,453
Claims and expenses
Claims and claim adjustment expenses	2,009		1,863		2,647			2,839			1,706		1,695		1,746		6,519		5,147
Amortization of deferred acquisition costs	395		381		405			389			376		374		397		1,181		1,147
General and administrative expenses	520		498		496			524			474		533		531		1,514		1,538
Interest expense	—		1		—			1			1		3		—		1		4
Total claims and expenses	2,924		2,743		3,548			3,753			2,557		2,605		2,674		9,215		7,836
Operating income (loss) before federal income taxes	677		848		(63		)	(246		)	879		907		831		1,462		2,617
Income taxes	170		231		(93		)	(136		)	228		252		218		308		698
Operating income (loss)	$	507	$	617	$	30		$	(110	)	$	651	$	655	$	613	$	1,154	$	1,919

See Business Realignment on pages i and ii, and 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
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Underwriting gain (loss)	$	61		$	149		$	(439	)	$	(582	)	$	155		$	159		$	131		$	(229	)	$	445
Net investment income	436			457			458			462			492			491			478			1,351			1,461
Other	10			11			11			10			4			5			4			32			13
Operating income (loss)	$	507		$	617		$	30		$	(110	)	$	651		$	655		$	613		$	1,154		$	1,919
GAAP Combined ratio (1), (2)
Loss and loss adjustment expense ratio	67.6		%	63.7		%	95.4		%	100.5		%	60.9		%	60.0		%	61.5		%	75.3		%	60.8		%
Underwriting expense ratio	28.7		%	27.5		%	29.6		%	29.9		%	29.8		%	30.1		%	30.5		%	28.5		%	30.1		%
Combined ratio	96.3		%	91.2		%	125.0		%	130.4		%	90.7		%	90.1		%	92.0		%	103.8		%	90.9		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	35.0		%	16.3		%	0.0		%	0.0		%	0.0		%	11.4		%	0.0		%
Impact of prior year reserve development on combined ratio	2.2		%	0.7		%	0.7		%	24.0		%	-0.7		%	-1.2		%	1.7		%	1.2		%	-0.1		%

(1)Before policyholder dividends.

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2005		2005		2005		2005		2006		2006		2006		2005		2006
Billing and policy fees	$	4	$	3	$	3	$	2	$	3	$	3	$	3	$	10	$	9
Fee income:
Loss and loss adjustment expenses	$	76	$	63	$	71	$	66	$	92	$	66	$	59	$	210	$	217
Underwriting expenses	95		102		97		93		58		87		91		294		236
Total fee income	$	171	$	165	$	168	$	159	$	150	$	153	$	150	$	504	$	453

See Business Realignment on pages i and ii, and 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
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Statutory underwriting
Gross written premiums	$	3,532		$	3,278		$	3,372		$	3,271		$	3,254		$	3,314		$	3,257		$	10,182		$	9,825
Net written premiums	$	2,809		$	2,710		$	2,622		$	2,858		$	2,687		$	2,872		$	2,644		$	8,141		$	8,203
Net earned premiums	$	2,845		$	2,819		$	2,707		$	2,745		$	2,643		$	2,715		$	2,737		$	8,371		$	8,095
Losses and loss adjustment expenses	1,909			1,794			2,610			2,846			1,621			1,640			1,686			6,313			4,947
Underwriting expenses	768			729			727			797			756			813			761			2,224			2,330
Statutory underwriting gain (loss)	168			296			(630		)	(898		)	266			262			290			(166		)	818
Policyholder dividends	11			4			(7		)	12			5			3			2			8			10
Statutory underwriting gain (loss) after policyholder dividends	$	157		$	292		$	(623	)	$	(910	)	$	261		$	259		$	288		$	(174	)	$	808
Other statistics
Effective tax rate on net investment income	23.5		%	22.5		%	22.4		%	21.8		%	22.8		%	22.6		%	21.6		%	22.8		%	22.3		%
Net investment income (after-tax)	$	436		$	457		$	458		$	462		$	492		$	491		$	478		$	1,351		$	1,461
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	956		$	449		$	—		$	—		$	—		$	956		$	—
After-tax	$	—		$	—		$	621		$	293		$	—		$	—		$	—		$	621		$	—

See Business Realignment on pages i and ii, and 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
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2005		2005		2005		2005		2006		2006		2006		2005		2006
Net written premiums by market
Select Accounts	$	684	$	719	$	653	$	666	$	679	$	705	$	625	$	2,056	$	2,009
Commercial Accounts	610		503		542		675		575		548		575		1,655		1,698
National Accounts	341		238		298		353		268		298		254		877		820
Industry-Focused Underwriting	499		553		483		545		521		560		548		1,535		1,629
Target Risk Underwriting	376		419		345		342		398		463		377		1,140		1,238
Specialized Distribution	223		242		221		222		245		280		255		686		780
Total core	2,733		2,674		2,542		2,803		2,686		2,854		2,634		7,949		8,174
Business Insurance other	76		36		80		55		1		18		10		192		29
Total	$	2,809	$	2,710	$	2,622	$	2,858	$	2,687	$	2,872	$	2,644	$	8,141	$	8,203
Net written premiums by product line
Commercial multi-peril	$	770	$	692	$	725	$	813	$	804	$	776	$	708	$	2,187	$	2,288
Workers’ compensation	578		486		452		564		540		529		474		1,516		1,543
Commercial automobile	508		516		500		500		467		522		509		1,524		1,498
Property	500		484		445		498		467		521		469		1,429		1,457
General liability	441		520		483		478		407		512		476		1,444		1,395
Other	12		12		17		5		2		12		8		41		22
Total	$	2,809	$	2,710	$	2,622	$	2,858	$	2,687	$	2,872	$	2,644	$	8,141	$	8,203
National accounts
Additions to claim volume under administration (1)	$	1,042	$	838	$	691	$	683	$	890	$	742	$	650	$	2,571	$	2,282
Written fees	$	173	$	148	$	130	$	123	$	144	$	134	$	121	$	451	$	399

(1)Includes new and renewal business.

See Business Realignment on pages i and ii, and 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
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2005		2005		2005		2005		2006		2006		2006		2005		2006
Revenues
Premiums	$	815	$	794	$	759	$	829	$	788	$	839	$	850	$	2,368	$	2,477
Net investment income	81		81		96		102		103		102		108		258		313
Fee income	—		—		1		—		—		—		—		1		—
Other revenues	11		4		2		3		5		6		5		17		16
Total revenues	907		879		858		934		896		947		963		2,644		2,806
Claims and expenses
Claims and claim adjustment expenses	449		409		438		522		421		445		462		1,296		1,328
Amortization of deferred acquisition costs	162		149		158		165		150		159		164		469		473
General and administrative expenses	132		129		126		122		126		142		134		387		402
Total claims and expenses	743		687		722		809		697		746		760		2,152		2,203
Operating income before federal income taxes	164		192		136		125		199		201		203		492		603
Income taxes	50		58		50		68		58		52		59		158		169
Operating income	$	114	$	134	$	86	$	57	$	141	$	149	$	144	$	334	$	434

See Business Realignment on pages i and ii, and 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
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Underwriting gain (loss)	$	44		$	70		$	12		$	(21	)	$	60		$	68		$	59		$	126		$	187
Net investment income	60			61			72			77			77			77			82			193			236
Other	10			3			2			1			4			4			3			15			11
Operating income	$	114		$	134		$	86		$	57		$	141		$	149		$	144		$	334		$	434
GAAP Combined ratio (1), (2)
Loss and loss adjustment expense ratio	55.5		%	51.3		%	57.4		%	62.7		%	53.0		%	52.6		%	54.1		%	54.7		%	53.2		%
Underwriting expense ratio	35.8		%	35.0		%	37.4		%	34.8		%	35.0		%	35.8		%	34.9		%	36.0		%	35.3		%
Combined ratio	91.3		%	86.3		%	94.8		%	97.5		%	88.0		%	88.4		%	89.0		%	90.7		%	88.5		%
Impact of catastrophes on combined ratio	2.3		%	0.0		%	10.1		%	11.1		%	0.0		%	0.0		%	0.0		%	4.0		%	0.0		%
Impact of prior year reserve development on combined ratio	-0.3		%	-1.9		%	-4.8		%	-2.1		%	0.0		%	-1.1		%	-0.2		%	-2.3		%	-0.4		%

(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 underwriting expenses as follows:

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

See Business Realignment on pages i and ii, and 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
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Statutory underwriting
Gross written premiums	$	910		$	961		$	926		$	1,012		$	935		$	1,043		$	974		$	2,797		$	2,952
Net written premiums	$	537		$	882		$	847		$	893		$	515		$	1,002		$	912		$	2,266		$	2,429
Net earned premiums	$	815		$	794		$	759		$	829		$	788		$	839		$	850		$	2,368		$	2,477
Losses and loss adjustment expenses	453			410			449			560			415			442			461			1,312			1,318
Underwriting expenses	265			289			258			255			292			299			273			812			864
Statutory underwriting gain	97			95			52			14			81			98			116			244			295
Policyholder dividends	(4		)	2			2			2			4			3			3			—			10
Statutory underwriting gain after policyholder dividends	$	101		$	93		$	50		$	12		$	77		$	95		$	113		$	244		$	285
Other statistics
Effective tax rate on net investment income	25.3		%	25.0		%	24.6		%	24.6		%	24.7		%	24.3		%	24.2		%	24.9		%	24.4		%
Net investment income (after-tax)	$	60		$	61		$	72		$	77		$	77		$	77		$	82		$	193		$	236
Catastrophes, net of reinsurance:
Pre-tax	$	19		$	—		$	80		$	92		$	—		$	—		$	—		$	99		$	—
After-tax	$	13		$	—		$	71		$	89		$	—		$	—		$	—		$	84		$	—

See Business Realignment on pages i and ii, and 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
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2005		2005		2005		2005		2006		2006		2006		2005		2006
Net written premiums by market
Bond	$	163	$	368	$	391	$	345	$	204	$	412	$	418	$	922	$	1,034
Financial & Professional Services	120		232		247		251		89		248		246		599		583
International and Lloyd’s	254		282		209		297		222		342		248		745		812
Total	$	537	$	882	$	847	$	893	$	515	$	1,002	$	912	$	2,266	$	2,429
Net written premiums by product line
General liability	$	125	$	272	$	292	$	292	$	110	$	282	$	297	$	689	$	689
Fidelity & Surety	130		296		320		280		152		342		338		746		832
International	254		282		209		297		222		342		248		745		812
Other	28		32		26		24		31		36		29		86		96
Total	$	537	$	882	$	847	$	893	$	515	$	1,002	$	912	$	2,266	$	2,429

See Business Realignment on pages i and ii, and 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
	1Q		2Q		3Q			4Q		1Q		2Q		3Q		3Q		3Q
	2005		2005		2005			2005		2006		2006		2006		2005		2006
Revenues
Premiums	$	1,459	$	1,496	$	1,511		$	1,562	$	1,560	$	1,627	$	1,673	$	4,466	$	4,860
Net investment income	109		116		112			120		134		137		140		337		411
Other revenues	24		23		24			25		24		22		23		71		69
Total revenues	1,592		1,635		1,647			1,707		1,718		1,786		1,836		4,874		5,340
Claims and expenses
Claims and claim adjustment expenses	765		829		1,276			881		915		1,013		839		2,870		2,767
Amortization of deferred acquisition costs	253		253		267			275		274		281		297		773		852
General and administrative expenses	154		162		162			187		183		197		200		478		580
Total claims and expenses	1,172		1,244		1,705			1,343		1,372		1,491		1,336		4,121		4,199
Operating income (loss) before federal income taxes	420		391		(58		)	364		346		295		500		753		1,141
Income taxes	135		125		(33		)	115		106		92		159		227		357
Operating income (loss)	$	285	$	266	$	(25	)	$	249	$	240	$	203	$	341	$	526	$	784

See Business Realignment on pages i and ii, and 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
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Underwriting gain (loss)	$	186		$	164		$	(127	)	$	140		$	122		$	84		$	217		$	223		$	423
Net investment income	83			88			86			92			102			105			108			257			315
Other	16			14			16			17			16			14			16			46			46
Operating income (loss)	$	285		$	266		$	(25	)	$	249		$	240		$	203		$	341		$	526		$	784
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	52.4		%	55.4		%	84.5		%	56.4		%	58.7		%	62.2		%	50.2		%	64.2		%	56.9		%
Underwriting expense ratio	26.3		%	26.2		%	26.8		%	28.1		%	27.7		%	27.9		%	28.2		%	26.5		%	28.0		%
Combined ratio	78.7		%	81.6		%	111.3		%	84.5		%	86.4		%	90.1		%	78.4		%	90.7		%	84.9		%
Impact of catastrophes on combined ratio	0.8		%	0.7		%	32.1		%	5.2		%	0.0		%	4.1		%	0.9		%	11.4		%	1.7		%
Impact of prior year reserve development on combined ratio	-7.8		%	-5.4		%	-5.5		%	-5.3		%	-1.9		%	-3.6		%	-7.9		%	-6.3		%	-4.5		%

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2005		2005		2005		2005		2006		2006		2006		2005		2006
Billing and policy fees	$	23	$	23	$	23	$	23	$	25	$	23	$	25	$	69	$	73

See Business Realignment on pages i and ii, and 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
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Statutory underwriting
Gross written premiums	$	1,478		$	1,670		$	1,732		$	1,594		$	1,621		$	1,840		$	1,869		$	4,880		$	5,330
Net written premiums	$	1,434		$	1,624		$	1,627		$	1,543		$	1,572		$	1,781		$	1,728		$	4,685		$	5,081
Net earned premiums	$	1,459		$	1,496		$	1,511		$	1,562		$	1,560		$	1,627		$	1,673		$	4,466		$	4,860
Losses and loss adjustment expenses	765			829			1,275			882			915			1,013			840			2,869			2,768
Underwriting expenses	402			443			452			455			445			497			490			1,297			1,432
Statutory underwriting gain (loss)	$	292		$	224		$	(216	)	$	225		$	200		$	117		$	343		$	300		$	660
Other statistics
Effective tax rate on net investment income	24.2		%	24.0		%	22.9		%	22.8		%	23.6		%	23.5		%	23.0		%	23.7		%	23.4		%
Net investment income (after-tax)	$	83		$	88		$	86		$	92		$	102		$	105		$	108		$	257		$	315
Catastrophes, net of reinsurance:
Pre-tax	$	12		$	11		$	488		$	82		$	—		$	67		$	15		$	511		$	82
After-tax	$	7		$	8		$	317		$	53		$	—		$	44		$	10		$	332		$	54
Policies in force (in thousands)
Automobile	2,270			2,281			2,307			2,347			2,429			2,510			2,567			2,307			2,567
Homeowners and other	4,038			4,090			4,150			4,219			4,291			4,407			4,512			4,150			4,512

See Business Realignment on pages i and ii, and 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
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Statutory underwriting
Gross written premiums	$	870		$	888		$	910		$	858		$	942		$	960		$	943		$	2,668		$	2,845
Net written premiums	$	854		$	878		$	897		$	848		$	932		$	951		$	934		$	2,629		$	2,817
Net earned premiums	$	840		$	851		$	864		$	873		$	872		$	910		$	939		$	2,555		$	2,721
Losses and loss adjustment expenses	505			542			525			564			590			626			598			1,572			1,814
Underwriting expenses	213			222			224			217			239			259			240			659			738
Statutory underwriting gain	$	122		$	87		$	115		$	92		$	43		$	25		$	101		$	324		$	169
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	60.1		%	63.6		%	60.9		%	64.5		%	67.7		%	68.7		%	63.7		%	61.6		%	66.7		%
Underwriting expense ratio	23.5		%	24.0		%	23.9		%	24.0		%	25.3		%	26.8		%	26.0		%	23.8		%	26.0		%
Combined ratio	83.6		%	87.6		%	84.8		%	88.5		%	93.0		%	95.5		%	89.7		%	85.4		%	92.7		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	1.2		%	0.9		%	0.0		%	0.4		%	0.0		%	0.4		%	0.1		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	—		$	11		$	7		$	—		$	3		$	—		$	11		$	3
After-tax	$	—		$	—		$	7		$	5		$	—		$	2		$	—		$	7		$	2
Policies in force (in thousands)	2,270			2,281			2,307			2,347			2,429			2,510			2,567
Change from prior year quarter	5.2		%	2.1		%	2.1		%	3.7		%	7.0		%	10.0		%	11.3		%
Change from prior quarter	0.3		%	0.5		%	1.1		%	1.7		%	3.5		%	3.3		%	2.3		%

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2005		2005		2005		2005		2006		2006		2006		2005		2006
Billing and policy fees	$	15	$	14	$	15	$	14	$	16	$	15	$	16	$	44	$	47

See Business Realignment on pages i and ii, and 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
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Statutory underwriting
Gross written premiums	$	608		$	782		$	822		$	736		$	679		$	880		$	926		$	2,212		$	2,485
Net written premiums	$	580		$	746		$	730		$	695		$	640		$	830		$	794		$	2,056		$	2,264
Net earned premiums	$	619		$	645		$	647		$	689		$	688		$	717		$	734		$	1,911		$	2,139
Losses and loss adjustment expenses	260			287			750			318			325			387			242			1,297			954
Underwriting expenses	189			221			228			238			206			238			250			638			694
Statutory underwriting gain (loss)	$	170		$	137		$	(331	)	$	133		$	157		$	92		$	242		$	(24	)	$	491
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	42.0		%	44.5		%	115.8		%	46.2		%	47.3		%	54.0		%	33.0		%	67.9		%	44.6		%
Underwriting expense ratio	30.1		%	29.2		%	30.8		%	33.3		%	30.8		%	29.3		%	31.1		%	30.0		%	30.4		%
Combined ratio	72.1		%	73.7		%	146.6		%	79.5		%	78.1		%	83.3		%	64.1		%	97.9		%	75.0		%
Impact of catastrophes on combined ratio	1.9		%	1.7		%	73.8		%	10.7		%	0.0		%	8.9		%	2.1		%	26.2		%	3.7		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	12		$	11		$	477		$	75		$	—		$	64		$	15		$	500		$	79
After-tax	$	7		$	8		$	310		$	48		$	—		$	42		$	10		$	325		$	52
Policies in force (in thousands)	4,038			4,090			4,150			4,219			4,291			4,407			4,512
Change from prior year quarter	11.6		%	8.3		%	6.0		%	5.2		%	6.3		%	7.8		%	8.7		%
Change from prior quarter	0.7		%	1.3		%	1.5		%	1.7		%	1.7		%	2.7		%	2.4		%

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2005		2005		2005		2005		2006		2006		2006		2005		2006
Billing and policy fees	$	8	$	9	$	8	$	9	$	9	$	9	$	9	$	25	$	27

See Business Realignment on pages i and ii, and 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			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Revenues
Net investment income	$	6		$	(12	)	$	13		$	—		$	2		$	—		$	—		$	7		$	2
Other revenues	(1		)	(1		)	—			—			4			—			—			(2		)	4
Total revenues	5			(13		)	13			—			6			—			—			5			6
Claims and expenses
Interest expense	71			69			70			74			75			75			88			210			238
General and administrative expenses	7			—			5			5			11			(6		)	4			12			9
Total claims and expenses	78			69			75			79			86			69			92			222			247
Operating loss before federal income tax benefit	(73		)	(82		)	(62		)	(79		)	(80		)	(69		)	(92		)	(217		)	(241		)
Income taxes	(26		)	(31		)	(21		)	(34		)	(59		)	(21		)	(31		)	(78		)	(111		)
Operating loss	$	(47	)	$	(51	)	$	(41	)	$	(45	)	$	(21	)	$	(48	)	$	(61	)	$	(139	)	$	(130	)

See Business Realignment on pages i and ii, and 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)

	September 30,		December 31,
	2006 (1)		2005
Assets
Fixed maturities, available for sale at fair value (including $1,699 and $2,667 subject to securities lending and repurchase agreements) (amortized cost $60,914 and $58,616)	$	61,354	$	58,983
Equity securities, at fair value (cost $479 and $538)	510		579
Real estate	750		752
Mortgage loans	54		145
Short-term securities	6,221		4,802
Other investments	3,263		3,026
Total investments	72,152		68,287
Cash	357		337
Investment income accrued	791		761
Premiums receivable	6,218		6,124
Reinsurance recoverables	18,378		19,574
Ceded unearned premiums	1,514		1,322
Deferred acquisition costs	1,645		1,527
Deferred tax asset	1,669		2,062
Contractholder receivables	5,642		5,516
Goodwill	3,441		3,442
Intangible assets	802		917
Other assets	2,889		3,318
Total assets	$	115,498	$	113,187

	September 30,			December 31,
	2006 (1)			2005
Liabilities
Claims and claim adjustment expense reserves	$	59,850		$	61,090
Unearned premium reserves	11,390			10,927
Contractholder payables	5,642			5,516
Payables for reinsurance premiums	908			720
Debt	6,569			5,850
Other liabilities	6,392			6,781
Total liabilities	90,751			90,884
Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.4 and 0.5 shares issued and outstanding)	136			153
Common stock (1,750.0 shares authorized; 689.5 and 693.4 shares issued and outstanding)	18,328			18,096
Retained earnings	6,245			3,750
Accumulated other changes in equity from nonowner sources	486			351
Treasury stock, at cost (10.2 and 1.2 shares)	(448		)	(47		)
Total shareholders’ equity	24,747			22,303
Total liabilities and shareholders’ equity	$	115,498		$	113,187

(1) Preliminary

22

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

	September 30,		Pre-tax Book		December 31,		Pre-tax Book
	2006		Yield (1)		2005		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	26,734	5.07	%	$	27,518	4.84	%
Tax-exempt fixed maturities	34,620		4.18	%	31,465		4.15	%
Total fixed maturities	61,354		4.57	%	58,983		4.48	%
Non-redeemable preferred stocks	390		6.60	%	422		6.79	%
Common stocks	120				157
Total equity securities	510				579
Real estate	750				752
Mortgage loans	54		7.26	%	145		6.03	%
Short-term securities	6,221		5.42	%	4,802		4.31	%
Private equities	1,578				1,506
Arbitrage funds	980				791
Real estate joint ventures & other	679				697
Trading securities	26				32
Total other investments	3,263				3,026
Total investments	$	72,152			$	68,287
Net unrealized gain (loss) on investment securities, net of tax, included in shareholders’ equity	$	411			$	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)

	September 30,		December 31,
	2006		2005
Fixed maturities
Mortgage-backed securities - principally obligations of U.S. Government agencies	$	7,597	$	7,943
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	2,587		3,444
Corporates (including redeemable preferreds)	14,664		14,187
Obligations of states and political subdivisions	34,883		31,823
Debt securities issued by foreign governments	1,623		1,586
Subtotal - Available-for-sale securities	61,354		58,983
Trading securities	1		4
Total fixed maturities	$	61,355	$	58,987

Fixed Maturities

Quality Characteristics (1)

	September 30, 2006
	Amount		% of Total
Quality Ratings
Aaa	$	40,582	66.2	%
Aa	11,496		18.7
A	4,439		7.2
Baa	3,182		5.2
Total investment grade	59,699		97.3
Ba	755		1.2
B	726		1.2
Caa and lower	174		0.3
Total below investment grade	1,655		2.7
Total fixed maturities, excluding trading securities	$	61,354	100.0	%
Trading securities	$	1
Average weighted quality	AA1, AA+
Average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases	4.0

(1)  Rated using external rating agencies or by St. Paul Travelers when a public rating does not exist. Below investment grade assets refer to securities rated “Ba” or below.

24

The St. Paul Travelers Companies, Inc.
Investment Income
($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Gross investment income
Fixed maturities	$	609		$	615		$	636		$	670		$	667		$	677		$	691		$	1,860		$	2,035
Short-term securities	30			37			56			59			60			60			81			123			201
Mortgage loans	4			4			14			1			2			2			2			22			6
Other	139			145			125			94			161			157			98			409			416
	782			801			831			824			890			896			872			2,414			2,658
Investment expenses	17			26			19			11			15			22			14			62			51
Net investment income, pre-tax	765			775			812			813			875			874			858			2,352			2,607
Income taxes	182			177			187			181			205			201			190			546			596
Net investment income, after-tax	$	583		$	598		$	625		$	632		$	670		$	673		$	668		$	1,806		$	2,011
Effective tax rate	23.9		%	22.8		%	23.0		%	22.3		%	23.5		%	23.0		%	22.1		%	23.2		%	22.9		%
Average invested assets (1)	$	64,218		$	65,765		$	67,630		$	69,135		$	69,701		$	70,491		$	72,050		$	65,926		$	70,764
Average yield pre-tax	4.8		%	4.7		%	4.8		%	4.7		%	5.0		%	5.0		%	4.8		%	4.8		%	4.9		%
Average yield after-tax	3.6		%	3.6		%	3.7		%	3.7		%	3.8		%	3.8		%	3.7		%	3.7		%	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)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Net realized investment gains (losses)
Fixed maturities	$	14		$	(17	)	$	2		$	1		$	—		$	(29	)	$	(6	)	$	(1	)	$	(35	)
Equity securities	4			4			14			12			14			2			7			22			23
Other	(18		)	(42		)	23			20			(20		)	37			11			(37		)	28
Realized investment gains (losses) before tax	—			(55		)	39			33			(6		)	10			12			(16		)	16
Related taxes	(18		)	(20		)	14			6			(1		)	(1		)	6			(24		)	4
Net realized investment gains (losses)	$	18		$	(35	)	$	25		$	27		$	(5	)	$	11		$	6		$	8		$	12
Gross investment gains (1)	$	203		$	212		$	196		$	177		$	125		$	101		$	86		$	611		$	312
Gross investment losses before impairments (1)	(194		)	(225		)	(123		)	(120		)	(121		)	(88		)	(61		)	(542		)	(270		)
Impairments	(9		)	(42		)	(34		)	(24		)	(10		)	(3		)	(13		)	(85		)	(26		)
Realized investment gains (losses) before tax	—			(55		)	39			33			(6		)	10			12			(16		)	16
Related taxes	(18		)	(20		)	14			6			(1		)	(1		)	6			(24		)	4
Net realized investment gains (losses)	$	18		$	(35	)	$	25		$	27		$	(5	)	$	11		$	6		$	8		$	12

	March 31,	June 30,	September 30,	December 31,	March 31,		June 30,		September 30,
	2005	2005	2005	2005	2006		2006		2006
Net unrealized investment gains (losses), by asset type
Fixed maturities	$429	$1,420	$587	$367	$(328	)	$(917	)	$440
Equity securities & other	21	65	117	118	217		174		173
Unrealized investment gains (losses) before tax	450	1,485	704	485	(111	)	(743	)	613
Related taxes	173	523	232	158	(50	)	(267	)	202
Balance, end of period	$277	$962	$472	$327	$(61	)	$(476	)	$411

(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	$	14	$	277	$	119
Gross investment Treasury future losses	$	66	$	123	$	81	$	70	$	43	$	25	$	24	$	270	$	92

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)

	September 30,			December 31,
	2006			2005
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	13,419		$	14,177
Allowance for uncollectible reinsurance	(801		)	(804		)
Net reinsurance recoverables	12,618			13,373
Mandatory pools and associations	1,991			2,211
Structured settlements	3,769			3,990
Total reinsurance recoverables	$	18,378		$	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
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Business Insurance
Beginning of period	$	34,542		$	34,389		$	34,054		$	34,821		$	35,312		$	35,158		$	34,776		$	34,542		$	35,312
Incurred	1,909			1,794			2,610			2,846			1,621			1,640			1,686			6,313			4,947
Paid	(2,092		)	(2,101		)	(1,822		)	(2,367		)	(2,147		)	(2,070		)	(1,815		)	(6,015		)	(6,032		)
Acquired reserves, foreign exchange and other (1)	30			(28		)	(21		)	12			372			48			3			(19		)	423
End of period	$	34,389		$	34,054		$	34,821		$	35,312		$	35,158		$	34,776		$	34,650		$	34,821		$	34,650
Financial, Professional & International Insurance
Beginning of period	$	3,852		$	3,965		$	3,984		$	4,159		$	4,242		$	4,513		$	4,646		$	3,852		$	4,242
Incurred	453			410			449			560			415			442			461			1,312			1,318
Paid	(307		)	(334		)	(304		)	(374		)	(249		)	(366		)	(293		)	(945		)	(908		)
Acquired reserves, foreign exchange and other (1)	(33		)	(57		)	30			(103		)	105			57			8			(60		)	170
End of period	$	3,965		$	3,984		$	4,159		$	4,242		$	4,513		$	4,646		$	4,822		$	4,159		$	4,822
Personal Insurance
Beginning of period	$	3,334		$	3,283		$	3,319		$	3,753		$	3,637		$	3,585		$	3,694		$	3,334		$	3,637
Incurred	765			829			1,275			882			915			1,013			840			2,869			2,768
Paid	(816		)	(793		)	(841		)	(998		)	(967		)	(904		)	(922		)	(2,450		)	(2,793		)
End of period	$	3,283		$	3,319		$	3,753		$	3,637		$	3,585		$	3,694		$	3,612		$	3,753		$	3,612
Total
Beginning of period	$	41,728		$	41,637		$	41,357		$	42,733		$	43,191		$	43,256		$	43,116		$	41,728		$	43,191
Incurred	3,127			3,033			4,334			4,288			2,951			3,095			2,987			10,494			9,033
Paid	(3,215		)	(3,228		)	(2,967		)	(3,739		)	(3,363		)	(3,340		)	(3,030		)	(9,410		)	(9,733		)
Acquired reserves, foreign exchange and other (1)	(3		)	(85		)	9			(91		)	477			105			11			(79		)	593
End of period	$	41,637		$	41,357		$	42,733		$	43,191		$	43,256		$	43,116		$	43,084		$	42,733		$	43,084
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	—		$	830		$	—		$	—		$	155		$	—		$	155
Environmental	—			—			—			30			—			—			120			—			120
All other	61			21			18			(203		)	(19		)	(34		)	(229		)	100			(282		)
Prior year development excluding accretion	61			21			18			657			(19		)	(34		)	46			100			(7		)
Accretion of discount	15			14			14			16			16			15			16			43			47
Total Business Insurance	76			35			32			673			(3		)	(19		)	62			143			40
Financial, Professional & International Insurance	(2		)	(15		)	(37		)	(18		)	—			(9		)	(1		)	(54		)	(10		)
Personal Insurance	(114		)	(81		)	(83		)	(82		)	(30		)	(58		)	(132		)	(278		)	(220		)
Total	$	(40	)	$	(61	)	$	(88	)	$	573		$	(33	)	$	(86	)	$	(71	)	$	(189	)	$	(190	)

(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 Business Realignment on pages i and ii, and 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			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Asbestos reserves
Beginning reserves:
Direct	$	4,775		$	4,675		$	4,527		$	4,412		$	5,103		$	5,000		$	4,838		$	4,775		$	5,103
Ceded	(843		)	(818		)	(785		)	(743		)	(739		)	(720		)	(716		)	(843		)	(739		)
Net	3,932			3,857			3,742			3,669			4,364			4,280			4,122			3,932			4,364
Incurred losses and loss expenses:
Direct	—			—			—			833			—			—			196			—			196
Ceded	—			—			—			(3		)	—			—			(41		)	—			(41		)
Accretion of discount:
Direct	—			1			—			—			—			—			1			1			1
Ceded	—			—			—			—			—			—			—			—			—
Losses paid:
Direct	100			149			115			142			103			162			110			364			375
Ceded	(25		)	(33		)	(42		)	(7		)	(19		)	(4		)	(11		)	(100		)	(34		)
Ending reserves:
Direct	4,675			4,527			4,412			5,103			5,000			4,838			4,925			4,412			4,925
Ceded	(818		)	(785		)	(743		)	(739		)	(720		)	(716		)	(746		)	(743		)	(746		)
Net	$	3,857		$	3,742		$	3,669		$	4,364		$	4,280		$	4,122		$	4,179		$	3,669		$	4,179
Environmental reserves
Beginning reserves:
Direct	$	725		$	624		$	547		$	517		$	494		$	406		$	379		$	725		$	494
Ceded	(84		)	(85		)	(79		)	(80		)	(69		)	(19		)	(7		)	$	(84	)	$	(69	)
Net	641			539			468			437			425			387			372			641			425
Incurred losses and loss expenses:
Direct	—			—			—			17			—			—			108			—			108
Ceded	—			—			—			13			—			—			12			—			12
Losses paid:
Direct	101			77			30			40			88			27			27			208			142
Ceded	1			(6		)	1			2			(50		)	(12		)	(1		)	(4		)	(63		)
Ending reserves:
Direct	624			547			517			494			406			379			460			517			460
Ceded	(85		)	(79		)	(80		)	(69		)	(19		)	(7		)	6			(80		)	6
Net	$	539		$	468		$	437		$	425		$	387		$	372		$	466		$	437		$	466

See Business Realignment on pages i and ii, and Glossary of Financial Measures and Description of Operating Segments on page 34.

29

The St. Paul Travelers Companies, Inc.

Capitalization

($ in millions)

	September 30,			December 31,
Debt	2006			2005
Short-term debt
Commercial paper	$	100		$	104
6.75% Senior notes due November 15, 2006	150			150
5.75% Senior notes due March 15, 2007	500			—
5.01% Senior notes due August 16, 2007	442			—
Medium-term notes maturing in the following 12 months	90			56
Total short-term debt	1,282			310
Long-term debt
Medium-term notes with various maturities through 2010	170			242
5.75% Senior notes due March 15, 2007	—			500
5.01% Senior notes due August 16, 2007	—			442
3.75% Senior notes due March 15, 2008	400			400
Zero coupon convertible notes due 2009	127			122
8.125% Senior notes due April 15, 2010	250			250
7.81% Private placement notes due on various dates through 2011	12			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	5,180			5,393
Unamortized fair value adjustment	159			185
Unamortized debt issuance costs	(52		)	(38		)
	5,287			5,540
Total debt	6,569			5,850
Minority interest	14			14
Preferred equity	136			153
Common equity (excluding SFAS 115)	24,200			21,823
Total capital	$	30,919		$	27,840
Total debt to capital	21.2		%	21.0		%

30

The St. Paul Travelers Companies, Inc.

Statutory to GAAP Shareholders’ Equity Reconciliation (1)

($ in millions)

	September 30,			December 31,
	2006 (1)			2005
Statutory capital and surplus	$	19,961		$	17,812
GAAP adjustments
Goodwill and intangible assets	4,022			4,122
Investments	1,037			1,065
Noninsurance companies	(3,523		)	(3,815		)
Deferred acquisition costs	1,645			1,527
Deferred federal income tax	444			533
Reinsurance recoverables	604			602
Furniture, equipment & software	314			206
Employee benefits	117			105
Agents balances	103			166
Other	23			(20		)
Total GAAP adjustments	4,786			4,491
GAAP shareholders’ equity	$	24,747		$	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			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Cash flows from operating activities
Net income	$	212		$	1,069		$	162		$	179		$	1,006		$	970		$	1,043		$	1,443		$	3,019
Adjustments to reconcile net income to net cash provided by operating activities:
(Income) loss from discontinued operations, net of tax	665			(138		)	(87		)	(1		)	—			—			—			440			—
Net realized investment (gains) losses	—			55			(39		)	(33		)	6			(10		)	(12		)	16			(16		)
Depreciation and amortization	150			236			113			192			197			197			213			499			607
Deferred federal income taxes (benefit)	110			625			(218		)	(17		)	159			44			150			517			353
Amortization of deferred policy acquisition costs	810			783			830			829			800			814			858			2,423			2,472
Premium balances receivable	92			(187		)	147			25			110			(358		)	154			52			(94		)
Reinsurance recoverables	228			433			(1,059		)	(122		)	636			370			434			(398		)	1,440
Deferred acquisition costs	(808		)	(793		)	(821		)	(798		)	(836		)	(874		)	(880		)	(2,422		)	(2,590		)
Claim and claim adjustment expense reserves	(433		)	(523		)	2,484			504			(1,137		)	(509		)	(351		)	1,528			(1,997		)
Unearned premium reserves	(148		)	(41		)	43			(237		)	103			272			87			(146		)	462
Trading account activities	—			6			—			—			4			2			—			6			6
Excess tax benefits from share-based payment arrangements	—			—			—			—			(5		)	(1		)	(2		)	—			(8		)
Other	150			(822		)	(174		)	(44		)	(481		)	(68		)	13			(846		)	(536		)
Net cash provided by operating activities of continuing operations	1,028			703			1,381			477			562			849			1,707			3,112			3,118
Net cash provided by operating activities of discontinued operations	24			—			—			—			—			—			—			24			—
Net cash provided by operating activities	1,052			703			1,381			477			562			849			1,707			3,136			3,118
Cash flows from investing activities
Proceeds from maturities of investments
Fixed maturities	1,073			1,348			1,393			1,138			1,571			1,079			1,758			3,814			4,408
Mortgage loans	5			1			43			2			6			23			58			49			87
Proceeds from sales of investments
Fixed maturities	1,052			1,659			722			1,759			1,320			1,854			452			3,433			3,626
Equity securities	39			73			169			122			94			32			98			281			224
Real estate	—			—			39			(2		)	—			—			—			39			—
Purchase of investments
Fixed maturities	(4,175		)	(4,391		)	(3,597		)	(3,883		)	(3,983		)	(4,066		)	(2,191		)	(12,163		)	(10,240		)
Equity securities	(21		)	(1		)	(15		)	(26		)	(47		)	(17		)	(27		)	(37		)	(91		)
Mortgage loans	—			(9		)	9			—			—			—			—			—			—
Real estate	(8		)	(14		)	(7		)	(20		)	(8		)	(6		)	(9		)	(29		)	(23		)
Short-term securities, (purchases) sales, net	980			(855		)	(1,155		)	1,172			67			(160		)	(1,275		)	(1,030		)	(1,368		)
Other investments, net	228			224			178			43			148			(28		)	91			630			211
Securities transactions in course of settlement	195			268			(260		)	(798		)	490			19			(159		)	203			350
Other	—			(48		)	(25		)	(59		)	(38		)	(84		)	(93		)	(73		)	(215		)
Net cash provided (used) by investing activities of continuing operations	(632		)	(1,745		)	(2,506		)	(552		)	(380		)	(1,354		)	(1,297		)	(4,883		)	(3,031		)
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		)	(1,354		)	(1,297		)	(4,903		)	(3,031		)

32

The St. Paul Travelers Companies, Inc.

Statement of Cash Flows - Preliminary (Continued)

($ in millions)

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2005			2005			2005			2005			2006			2006			2006			2005			2006
Cash flows from financing activities
Issuance of debt	—			—			—			400			—			786			—			—			786
Payment of debt	(2		)	(479		)	(41		)	(293		)	(4		)	—			(42		)	(522		)	(46		)
Treasury stock acquired - net employee share-based compensation	(8		)	(6		)	(13		)	(6		)	(16		)	(1		)	—			(27		)	(17		)
Treasury stock acquired - share repurchase program	—			—			—			—			—			(230		)	(137		)	—			(367		)
Issuance of common stock - employee stock options	32			29			68			35			32			26			31			129			89
Issuance of common stock - maturity of equity unit forward contracts	—			—			442			—			—			—			—			442			—
Excess tax benefits from share-based payment arrangements	—			—			—			—			5			1			2			—			8
Dividends to shareholders	(150		)	(157		)	(160		)	(161		)	(161		)	(182		)	(181		)	(467		)	(524		)
Other	13			(13		)	—			(3		)	(2		)	3			(1		)	—			—
Net cash provided (used) by financing activities of continuing operations	(115		)	(626		)	296			(28		)	(146		)	403			(328		)	(445		)	(71		)
Net cash provided by financing activities of discontinued operations	4			—			—			—			—			—			—			4			—
Net cash provided (used) by financing activities	(111		)	(626		)	296			(28		)	(146		)	403			(328		)	(441		)	(71		)
Effect of exchange rate changes on cash	(2		)	(2		)	1			(2		)	—			3			1			(3		)	4
Elimination of cash provided by discontinued operations	(8		)	—			—			—			—			—			—			(8		)	—
Net proceeds from the sale of discontinued operations	—			1,867			532			—			—			—			—			2,399			—
Net increase (decrease) in cash	279			197			(296		)	(105		)	36			(99		)	83			180			20
Cash at beginning of period	262			541			738			442			337			373			274			262			337
Cash at end of period	$	541		$	738		$	442		$	337		$	373		$	274		$	357		$	442		$	357
Income taxes paid (received)	$	14		$	357		$	151		$	304		$	(5	)	$	258		$	338		$	522		$	591
Interest paid	$	93		$	86		$	88		$	70		$	85		$	79		$	86		$	267		$	250

33

The St. Paul Travelers Companies, Inc.

Financial Supplement - Third 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 also result in the payment of reinstatement premiums and assessments from various pools. In the opinion of the Company’s management, a discussion of the impact of catastrophes is meaningful for investors to understand the variability in periodic earnings.

Reinstatement premiums represent additional premiums payable to reinsurers to restore coverage limits that have been exhausted as a result of 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, and 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. Business Insurance is organized into the following groups, which collectively comprise Business Insurance Core operations: 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 the Special Liability Group and policies written by Gulf (primarily management and professional liability coverages), the Personal Catastrophe Risk operation and other runoff operations, which collectively are referred to as Business Insurance Other.

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 businesses in Financial, Professional & International Insurance are Bond, Financial & Professional Services, and 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 reclassified 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