Consolidated statements of income

Year ended December 31

1998

1997

1996

The St. Paul Companies  (In thousands)

Revenues

Premiums earned

$6,944,575

$7,298,100

$7,178,682

Net investment income

1,584,982

1,577,805

1,512,575

Realized investment gains

201,689

423,048

261,989

Asset management

302,150

261,715

219,922

Other

75,005

62,511

58,369

Total revenues

9,108,401

9,623,179

9,231,537

Expenses

Insurance losses and loss adjustment expenses

5,603,561

5,093,521

5,153,565

Life policy benefits

272,756

276,848

312,737

Policy acquistion expenses

1,653,613

1,709,039

1,682,788

Operating and administrative

Total expenses

9,154,688

8,287,471

8,240,439

Income (loss)  from continuing operations before income taxes

(46,287)

1,335,708

991,098

Income tax expense (benefit)

(135,635)

338,666

150,637

Income from continuing operations

89,348

997,042

840,461

Discontinued operations:

Operating loss, net of taxes

-

-

(19,216)

-

Loss on disposal, net of taxes

(67,750)

(88,543)

Loss from discontinued operations

-

(67,750)

(107,759)

Net Income

$89,348

$929,292

$732,702

Basic Earnings per Common Share

Income from continuing operations

$0.33

$4.27

$3.47

Loss from discontinued operations

(0.30)

(0.46)

-

Net Income

$0.33

$3.97

$3.01

Diluted Earnings per Common Share

Income from continuing operations

$0.32

$3.96

$3.26

Loss from discontinued operations

-

(0.27)

(0.42)

Net Income

$0.32

$3.69

$2.84