St. Paul Surety Claims Brings Earnings Down by $120M

The St. Paul Cos. advised that the second-quarter 2003 earnings impact related to a surety exposure, with a total aggregate face amount of $120 million as previously described in a Report on Form 8-K filed on April 30, 2003, will be $86 million pretax and $56 million after tax, at a 35 percent tax rate, or 23 cents per fully diluted share.

“Our business remains solidly on track, and we have not changed our profitability objective for 2003,” said Jay Fishman, chairman and chief executive officer.