Very strong competitive position. Strong operating performance. Very strong investment portfolio. Continued reserve strengthening. Below-average capital strength at operating companies. Goodwill and net intangibles are somewhat high. The issuer credit rating on the St. Paul Travelers Cos. Inc. (St. Paul Travelers) reflects its satisfactory financial leverage and strong earnings profile which provides for satisfactory coverage of fixed obligations. Full-year 2004 consolidated adjusted financial leverage of 29% and fixed-charge coverage of about 8x is expected. The insurer's 2004 operating earnings profile looks strong due to the much-improved price environment of recent years and good business retention. Partially offsetting these strengths is some continued uncertainty with regards to adverse reserve development, somewhat below-average statutory capital strength at the insurance operating subsidiaries for
