SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest
event reported): April 29, 2003
THE ST. PAUL COMPANIES, INC.
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(Exact name of Registrant as specified in its charter)
Minnesota 001-10898 41-0518860
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(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification No.)
385 Washington St., St. Paul, MN 55102
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(Address of principal executive offices) (Zip Code)
(651) 310-7911
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(Registrant's telephone number,
including area code)
N/A
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(Former name or former address, if changed since last report)
Item 5. Other Events and Regulation FD Disclosure.
As previously disclosed, our largest individual exposure with regard to
commercial surety bonds issued on behalf of companies in bankruptcy, pretax and
before estimated reinsurance recoveries, approximates $120 million. This
exposure consists of bonds securing certain workers' compensation obligations
with an aggregate face amount of $80 million, and a bond securing certain
retiree health benefit obligations with a face amount of $40 million.
A bankruptcy court has recently approved the sale of substantially all of the
assets of the company in bankruptcy representing this exposure. Under the terms
approved by the court, the buyer will not assume that company's obligations
related to workers' compensation and retiree health benefits.
Beginning on April 25, 2003, we received claim notices relating to a substantial
portion of the bonds securing the workers' compensation obligations. Given these
developments, it is our belief that we will continue to receive claim notices
related to the remaining workers' compensation bonds and, separately, the bond
securing the retiree health benefit obligations.
We are reviewing the claim notices to assess their validity under the provisions
of the relevant surety bonds. We will record loss reserve provisions when
sufficient information is available to fully review the claims and to estimate
our ultimate obligations under the bonds. Until this assessment is made, we are
unable to estimate a reasonable range of loss, but in no event will the loss
amount exceed the face amount of the bonds net of applicable reinsurance and
taxes.
Certain of the foregoing statements, including those relating to claims that
have been or may be made in respect of the surety bonds described above and
amounts that may ultimately be paid by us in respect of such claims, may
constitute forward-looking statements. Actual results may differ materially from
those projected in the
forward-looking statements. These forward-looking statements involve risks and
uncertainties including, but not limited to, the following: the extent to which
claims are received and determined to be valid, the amounts for which claims are
settled, the availability and application of reinsurance in respect of claims,
tax rates, and various other factors. We undertake no obligation to release
publicly the results of any future revisions we may make to forward-looking
statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
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 thereunto duly authorized.
THE ST. PAUL COMPANIES, INC.
By: Bruce A. Backberg
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Bruce A. Backberg
Senior Vice President
Date: April 30, 2003