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THE ST. PAUL COMPANIES REPORTS FIRST-QUARTER RESULTS

 THE ST. PAUL COMPANIES REPORTS FIRST-QUARTER RESULTS
 ST. PAUL, Minn., April 23 /PRNewswire/ -- The St. Paul Companies


(NYSE: SPK) reported first-quarter operating earnings per share of $2.02, up from first-quarter 1991's per share earnings of $1.97. First- quarter 1992 operating earnings, which exclude realized investment gains, were $92.0 million, up from $88.1 million in the first quarter of 1991.
 During the first quarter, the company adopted two Financial Accounting Standards Board (FASB) statements required to be implemented by U.S. companies by 1993. Both statements had an impact on first- quarter net income. Statement No. 109, which changes income tax accounting, increased net income by $126 million or $2.80 per share. Statement No. 106, which changes accounting for employee post-retirement benefits (primarily health care), decreased net income by $50 million, or $1.10 per share. The net effect of the changes upon net income was an increase of $76 million, or $1.70 per share. The impact of the FASB statements on net income in future quarters is expected to be minimal.
 Net income for first-quarter 1992 also included after-tax realized investment gains of $13.7 million, compared with after-tax realized investment losses of $3.9 million for first-quarter 1991.
 The accounting changes and investment gains contributed to first- quarter 1992 net income of $4.03 per share, up from $1.88 for first- quarter 1991. First-quarter 1992 net income was $182.3 million, compared with $84.2 million for first-quarter 1991.
 "The St. Paul's operations overall produced acceptable levels of profitability in the first quarter," said Douglas W. Leatherdale, chairman and chief executive officer. "While the market remained soft during the first quarter, we were able to contain underwriting losses. However, lower investment yields restricted growth in investment income.
 "During the quarter, we announced an initial public offering of a minority interest in the common stock of The John Nuveen Company. The offering will allow us to realize a portion of the appreciation of our investment in Nuveen, yet maintain a controlling interest," Leatherdale said.
 The St. Paul Companies' revenues for first-quarter 1992 were $1.1 billion compared with $1.0 billion in first-quarter 1991.
 THE ST. PAUL COMPANIES
 FIRST-QUARTER UNDERWRITING OPERATIONS
 HIGHLIGHTS
 Three months ended March 31
 1992 1991
 Written premiums $754,607,000 $748,088,000
 Underwriting loss (41,227,000) (41,150,000)
 Net investment income 159,838,000 160,331,000
 Pretax operating earnings (a) $114,365,000 $112,882,000
 Combined ratio (percent) 105.8 104.6
 (a) excluding realized investment gains/losses
 Insurance Brokerage Operations
 Insurance brokerage operations had a pretax loss of $6.1 million for the first quarter, compared with a pretax loss of $901,000 for first- quarter 1991.
 Investment Banking/Asset Management Operations
 First-quarter 1992 pretax income for The John Nuveen Company was $19.5 million, up from $13.9 million for first-quarter 1991.
 At the end of the first quarter, Nuveen had $23.2 billion in assets under management, up from $15.4 billion one year ago.
 Consolidated Financial Position
 Consolidated assets of The St. Paul Companies as of March 31, 1992, were $13.2 billion, compared with $12.3 billion as of March 31, 1991.
 Book value per common share on March 31 was $63.48, up 16 percent from $54.53 on March 31, 1991.
 Headquartered in St. Paul, Minn., The St. Paul Companies is a worldwide property-casualty insurance organization.
 A registration statement relating to the initial public offering of a minority interest in the common stock of The John Nuveen Company has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 FIRST-QUARTER RESULTS
 1992 1991
 Revenues $1,099,209,000 $1,021,167,000
 Operating Earnings 92,043,000 88,071,000
 Per Common Share (Fully Diluted) 2.02 1.97
 Realized Investment Gains (Losses),
 Net of Taxes 13,745,000 (3,900,000)
 Per Common Share (Fully Diluted) 0.31 (0.09)
 Cumulative Effects of Accounting
 Changes 76,483,000 --
 Per Common Share (Fully Diluted) 1.70 --
 Net Income $182,271,000 $84,171,000
 Per Common Share (Fully Diluted) $4.03 $1.88
 -0- 4/23/92
 /CONTACT: Barbara Reynolds of The St. Paul Companies, 612-221-7399/
 (SPK) CO: The St. Paul Companies ST: Minnesota IN: INS SU: ERN


AL -- MN006 -- 1941 04/23/92 13:26 EDT
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