The St. Paul Companies Announces Major Expansion into Small Business Insurance Marketplace.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 5, 2003

The St. Paul Companies (NYSE:SPC) today unveiled to more than 200 agents and brokers a major new platform aimed at growing the company's business with small commercial enterprises. Features of the new approach include a state-of-the-art underwriting technology, enhanced customer service capabilities, flexible and competitive insurance products, and a dedicated countrywide sales force.

Independent agents from the New York City area heard from St. Paul executives about the small commercial strategy, asked questions and tried out the new technology on one of more than a dozen computer kiosks. New York City is one of the first stops on a multi-city tour to showcase The St. Paul's small commercial insurance platform, including new products and technology for agents and brokers throughout the United States.

"Small businesses are the backbone of the U.S. economy, and they comprise a significant portion of the total domestic property-liability marketplace. There is an enormous opportunity for an insurance carrier who can provide agents with an efficient, competitive and comprehensive product," said Marita Zuraitis, president and CEO of Commercial Lines for The St. Paul. "We believe we have built a solid platform that includes extensive product offerings, state-of-the-art technology and the right people in place to become a top competitor in this marketplace."

Marc Schmittlein, president of Small Commercial, said The St. Paul's small commercial program was designed and built from the ground up with direct input from agents and brokers.

"We learned in our research with agents that they want to work with a carrier that can help their producers and support staff write small commercial business quickly, easily and profitably. Agents and brokers told us they wanted a flexible product that spanned more of the entire small commercial marketplace, technology to quote and process the policies quickly, an online guide that clearly defines the types of businesses the company will insure, local sales and underwriting expertise positioned across the country, and service center capability to help agents and brokers process and maintain their small business accounts" Schmittlein said. "We listened, we developed, we tested and now we have delivered."

The centerpiece of The St. Paul's small commercial initiative is a new technology platform, SPCXpress(SM). This web-based online tool enables contracted agents and brokers to qualify, price, issue and endorse typical small business policies online in much less time than it normally takes to underwrite and process this type of business. In addition, agents and brokers can view customer billing records, claim status and other account information right from their agency desktops.

"SPCXpress(SM) is unique in the marketplace in its ability to not only quote and issue business for the traditional small business client, but also its ability to allow the agent to quote and submit more complex small business accounts without having to re-enter data into the system," Schmittlein said. "This technology saves time, and time is money to agents and brokers."

In addition to technology innovations, The St. Paul has also retooled its small commercial insurance product offerings to include both the typical "Main Street" types of businesses, as well as an "Advantage" product designed specifically for larger and more complex businesses. The product offerings, St. Paul MainStreet(SM) and St. Paul Advantage(SM), are flexible and transcend many other carriers' definitions and criteria for small commercial insurance coverage.

"Together these products address the insurance needs for the majority of small businesses, from the corner florist to the multi-location bakery to the medium size wholesaler," said Schmittlein.

The St. Paul has also invested in a new sales force dedicated to its small commercial business. Regional sales managers and state specific sales executives across the United States are charged with implementing the platform, helping our agents utilize the technology, learn about our products and new appetite, and grow profitable business. The sales managers are aligned with The St. Paul's eight regions of its commercial lines segment in order to drive a unified message on the company's commitment to profitable growth across its entire commercial lines operation.

Finally, The St. Paul took a major step toward meeting its agents' and customers' service needs with the 2002 debut of a Commercial Service Center in Atlanta. This Service Center handles customer requests and policy renewals for small commercial agents, thereby reducing the amount of time agents and brokers spend on small commercial account maintenance and allowing agents to spend more time selling to new clients. Underscoring The St. Paul's continuing investment in the small commercial marketplace, the company plans to open a second service center in the Mountain or Pacific time zone in 2003.

"Our Customer Service Center further eases the burden on our small commercial agents by taking care of the backroom processing, customer requests and renewal of small business policies," Schmittlein said. "The Center is the result of two years of research into what agents want in a service center: 24-hour access, resolution of customer requests within one phone call, and service from licensed insurance professionals."

The St. Paul is also uniquely positioned to serve the small commercial marketplace because of its expertise in other lines of business. Zuraitis said, "Our small commercial product offerings, coupled with our unparalleled expertise serving the specific needs of mid-size and large business customers, allow us to service the full range of commercial clients. With the emergence of The St. Paul's small commercial platform, combined with our middle market and large account platforms, we now have a commercial lines business that can compete with the best in the business."

For more information on Small Commercial at The St. Paul and to view the results of the company's small commercial agent and broker survey, visit http://www.stpaul.com/smallcommercial

The St. Paul Companies is headquartered in Saint Paul, Minn., and provides commercial property-liability insurance and asset management services. The St. Paul reported 2002 revenue from continuing operations of $8.9 billion and total assets of $39.9 billion. It celebrates its 150th anniversary in 2003. For more information about The St. Paul and its products and services, visit the company's Web site, www.stpaul.com.