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THE ST. PAUL COMPANIES WILL REPORT 1992 OPERATING LOSS

 ST. PAUL, Minn., Jan. 19 /PRNewswire/ -- The St. Paul Companies (NYSE: SPC) wrote off $365 million, or $8.62 per share, of goodwill associated with its insurance brokerage operation, the Minet Group, St. Paul Chairman Douglas W. Leatherdale announced today. This 1992 noncash charge has no tax benefit associated with it and represents approximately 75 percent of the goodwill related to Minet. (In November 1992, the company had announced it was reviewing Minet goodwill.)
 Leatherdale also announced that 1992 pretax catastrophe losses totaled $305 million, the worst in the company's history. The St. Paul's 1992 catastrophe losses were more than quadruple its catastrophe losses in 1990 or 1991.
 "We now estimate our losses from Hurricane Andrew to be about $200 million, up from our third-quarter estimate of approximately $155 million," Leatherdale said.
 "And, finally, our previously announced early retirement program, which was completed at year-end, resulted in a pretax charge of $31 million against fourth-quarter earnings."
 Leatherdale said the goodwill write-off, the catastrophe losses and the early retirement program, along with disappointing fourth-quarter results in The St. Paul's reinsurance and international underwriting operations, will result in an after-tax operating loss of about $335 million, or about $8 per share, for the year.
 "Despite our poor performance in 1992, our capital base remains very strong. Barring extraordinary catastrophes, I look forward to a return to more normal levels of profitability in 1993," Leatherdale said.
 The company will release its 1992 detailed earnings report next week.
 -0- 1/19/93
 /CONTACT: Mark Hamel, Barbara Reynolds or Karen Himle, all of The St. Paul Companies, 612-223-3588 or 612-221-7399/
 (SPC)


CO: The St. Paul Companies ST: Minnesota IN: INS SU: ERP

DS -- MN003 -- 6165 01/19/93 09:09 EST
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Publication:PR Newswire
Date:Jan 19, 1993
Words:286
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