Reserve Charge Sinks St. Paul Profit

St. Paul, Minn.-based insurer The St. Paul Cos. fourth-quarter 2003 net income of $52 million, or 21 cents per share, including a previously announced fourth-quarter after-tax health-care reserve charge of $228 million, or 98 cents per share. Net income for fourth-quarter 2002 was $244 million, or $1.02 per share. Fourth-quarter 2003 operating earnings were $9 million, or 2 cents per share, versus $194 million, or 81 cents per share, for the same 2002 period.

Fourth-quarter 2003 highlights also included:
—A 13 percent increase in total revenues, to $2.32 billion;
—Ongoing segments’ net earned premiums were $1.83 billion, up 22.8 percent, and net written premiums were $1.86 billion, up 24.6 percent;
—Ongoing segments’ statutory combined ratio of 89.5, improved from 100.1;
—An 18.8 percent increase in Nuveen Investments’ contribution to earnings, to $32 million.

The company’s annual net income return on average equity was 11.1 percent, and annual operating earnings return on average adjusted equity was 11.6 percent.