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PROPERTY AND CASUALTY COMPANIES—ASSOCIATION EDITIONCOMBINED ANNUAL STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2004OF THE CONDITION AND AFFAIRS OF THETHE ST. PAUL TRAVELERS COMPANIES, INC.and its affiliated property and casualty insurersNAIC Group Code3548Mail AddressNAIC Combined Company Code385 Washington Street,(Street and Number or P.O. Box)Combined Statement Contact00070St. Paul, MN 55102(City or Town, State and Zip Code)Larry J. Mills651-340-8644(Name)(Area Code) (Telephone Number) (Extension)NAME OF COMPANIES INCLUDED IN THIS STATEMENTName of CompanyUSF&G Specialty Insurance CompanyDiscover Specialty Insurance CompanyUSF&G Insurance Company of MississippiFirst Floridian Auto and Home Insurance CompanyRed Oak Insurance CompanyGeoVera Insurance CompanyAmerican Equity Specialty Insurance CompanyPacific Select Property Insurance CompanyThe Premier Insurance Company of MassachusettsTravelers Casualty and Surety CompanyTravelers Casualty Insurance Company of AmericaThe Automobile Insurance Company of Hartford, CTThe Standard Fire Insurance CompanySt. Paul Protective Insurance CompanyCommercial Guaranty Casualty Insurance CompanyAtlantic Insurance CompanyGulf Insurance CompanySelect Insurance CompanyMendakota Insurance CompanySeaboard Surety CompanyNorthland Insurance CompanyNorthland Casualty CompanySt. Paul Fire and Marine Insurance CompanySt. Paul Guardian Insurance CompanySt. Paul Mercury Insurance CompanyThe Charter Oak Fire Insurance CompanyThe Phoenix Insurance CompanyThe Travelers Indemnity CompanyThe Travelers Indemnity Company of AmericaTravelers Property Casualty Company of AmericaThe Travelers Indemnity Company of ConnecticutFidelity and Guaranty Insurance Underwriters, Inc.United States Fidelity and Guaranty CompanyNorthfield Insurance CompanyThe Travelers Home and Marine Insurance CompanyTravCo Insurance CompanyTravelers Excess and Surplus Lines CompanyFirst Trenton Indemnity CompanySt. Paul Surplus Lines Insurance CompanyTravelers Casualty and Surety Company of AmericaMendota Insurance CompanyFidelity and Guaranty Insurance CompanyTravelers Commercial Insurance CompanyTravelers Personal Security Insurance CompanyTravelers Property Casualty Insurance CompanyTravelers Casualty Company of ConnecticutDiscover Property & Casualty Insurance CompanyCommercial Guaranty Lloyds Insurance CompanyGulf Group LloydsTravelers Personal Insurance CompanyCommercial Guaranty Insurance CompanyTravelers Commercial Casualty CompanySt. Paul Fire and Casualty Insurance CompanyThe Travelers Lloyds Insurance CompanyFarmington Casualty CompanyTravelers Lloyds of Texas Insurance CompanySt. Paul Medical Liability Insurance CompanyAthena Assurance CompanyGulf Underwriters Insurance CompanyNAIC Company tate of DomicileMarylandIllinoisMississippiFloridaNew ndianaTexasConnecticutTexasMinnesotaNew necticutConnecticutNew ticutTexasMinnesotaMinnesotaConnecticut

PROPERTY AND CASUALTY COMPANIES—ASSOCIATION EDITIONCOMBINED ANNUAL STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2004OF THE CONDITION AND AFFAIRS OF THETHE ST. PAUL TRAVELERS COMPANIES, INC.NAME OF COMPANIES INCLUDED IN THIS STATEMENTName of CompanyAmerican Equity Insurance CompanyDiscover Reinsurance CompanyNAIC Company Code4311744440State of DomicileArizonaIndianaNote: This annual statement contains combined data for the property and casualty insurance companies listed above, compiled in accordance with theNAIC instructions for the completion of annual statements.a. Is this an original filing?b. If no,1. State the amendment number2. Date filed3. Number of pages attached

COMBINED STATEMENT FOR THE YEAR 2004 OF THETHE ST. PAUL TRAVELERS COMPANIES, INC.ASSETS1. Bonds (Schedule D)2. Stocks (Schedule D):2.1 Preferred stocks2.2 Common stocks3. Mortgage loans on real estate (Schedule B):3.1 First liens3.2 Other than first liens4. Real estate (Schedule A):4.1 Properties occupied by the company (less encumbrances)4.2 Properties held for the production of income(less encumbrances)4.3 Properties held for sale (less encumbrances)5. Cash ( , Schedule E, Part 1), cash equivalents( , Schedule E, Part 2) and short-terminvestments ( , Schedule DA)6. Contract loans, (including premium notes)7. Other invested assets (Schedule BA)8. Receivable for securities9. Aggregate write-ins for invested assets10. Subtotals, cash and invested assets (Lines 1 to 9)11. Investment income due and accrued12. Premiums and considerations:12.1 Uncollected premiums and agents’ balances in the course ofcollection12.2 Deferred premiums, agents’ balances and installments booked butdeferred and not yet due (including earnedbut unbilled premium)12.3 Accrued retrospective premium13. Reinsurance:13.1 Amounts recoverable from reinsurers13.2 Funds held by or deposited with reinsured companies13.3 Other amounts receivable under reinsurance contracts14. Amounts receivable relating to uninsured plans15.1 Current federal and foreign income tax recoverable and interest thereon15.2 Net deferred tax asset16. Guaranty funds receivable or on deposit17. Electronic data processing equipment and software18. Furniture and equipment, including health care delivery assets( )19. Net adjustment in assets and liabilities due to foreign exchange rates20. Receivables from parent, subsidiaries and affiliates21. Health care ( ) and other amounts receivable22. Other assets nonadmitted23. Aggregate write-ins for other than invested assets24. Total assets excluding Separate Accounts, Segregated Accounts andProtected Cell Accounts (Lines 10 to 23)25. From Separate Accounts, Segregated Accounts and ProtectedCell Accounts26. Total (Lines 24 and 25)DETAILS OF WRITE-INS0998. Summary of remaining write-ins for Line 9 from overflow page0999. Totals (Lines 0901 thru 0903 plus 0998)(Line 9 above)2398. Summary of remaining write-ins for Line 23 from overflow page2399. Totals (Lines 2301 thru 2303 plus 2398)(Line 23 above)21Current Year23Prior Year4AssetsNonadmitted AssetsNet Admitted Assets(Cols. 1 - 2)Net AdmittedAssets

COMBINED STATEMENT FOR THE YEAR 2004 OF THETHE ST. PAUL TRAVELERS COMPANIES, INC.LIABILITIES, SURPLUS AND OTHER FUNDS1Current Year1. Losses (Part 2A, Line 34, Column 8)2. Reinsurance payable on paid loss and loss adjustment expenses (Schedule F, Part 1, Column 6)3. Loss adjustment expenses (Part 2A, Line 34, Column 9)4. Commissions payable, contingent commissions and other similar charges5. Other expenses (excluding taxes, licenses and fees)6. Taxes, licenses and fees (excluding federal and foreign income taxes)7.1Current federal and foreign income taxes (including on realized capital gains (losses))7.2 Net deferred tax liability8. Borrowed money and interest thereon 9. Unearned premiums (Part 1A, Line 37, Column 5)(after deducting unearned premiums for ceded reinsurance of reserves of )and including warranty10. Advance premiums11. Dividends declared and unpaid:11.1 Stockholders11.2 Policyholders12. Ceded reinsurance premiums payable (net of ceding commissions)13. Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 19)14. Amounts withheld or retained by company for account of others15. Remittances and items not allocated16. Provision for reinsurance (Schedule F, Part 7)17. Net adjustments in assets and liabilities due to foreign exchange rates18. Drafts outstanding19. Payable to parent, subsidiaries and affiliates20. Payable for securities21. Liability for amounts held under uninsured accident and health plans22. Capital Notes and interest thereon 23. Aggregate write-ins for liabilities24. Total liabilities excluding protected cell liabilities (Lines 1 through 23)25. Protected cell liabilities26. Total liabilities (Lines 24 and 25)27. Aggregate write-ins for special surplus funds28. Common capital stock29. Preferred capital stock30. Aggregate write-ins for other than special surplus funds31. Surplus notes32. Gross paid in and contributed surplus33. Unassigned funds (surplus)34. Less treasury stock, at cost:34.1shares common (value included in Line 28 )34.2shares preferred (value included in Line 29 )35. Surplus as regards policyholders (Lines 27 to 33, less 34) (Page 4, Line 38)36. TOTALS (Page 2, Line 26, Col. 3)DETAILS OF WRITE-INS2398. Summary of remaining write-ins for Line 23 from overflow page2399. Totals (Lines 2301 thru 2303 plus 2398) (Line 23 above)2798. Summary of remaining write-ins for Line 27 from overflow page2799. Totals (Lines 2701 thru 2703 plus 2798) (Line 27 above)3098. Summary of remaining write-ins for Line 30 from overflow page3099. Totals (Lines 3001 thru 3003 plus 3098) (Line 30 above)32Prior Year

COMBINED STATEMENT FOR THE YEAR 2004 OF THETHE ST. PAUL TRAVELERS COMPANIES, INC.UNDERWRITING AND INVESTMENT EXHIBIT STATEMENT OF INCOME1Current YearUNDERWRITING INCOME1. Premiums earned (Part 1, Line 34, Column 4)DEDUCTIONS2.3.4.5.6.Losses incurred (Part 2, Line 34, Column 7)Loss expenses incurred (Part 3, Line 25, Column 1)Other underwriting expenses incurred (Part 3, Line 25, Column 2)Aggregate write-ins for underwriting deductionsTotal underwriting deductions (Lines 2 through 5)7. Net income of protected cells8. Net underwriting gain or (loss) (Line 1 minus Line 6 plus Line 7)INVESTMENT INCOME9. Net investment income earned (Exhibit of Net Investment Income, Line 17)10. Net realized capital gains (losses) (Exhibit of Capital Gains (Losses))11. Net investment gain or (loss) (Lines 9 10)OTHER INCOME12. Net gain or (loss) from agents'or premium balances charged off (amount recovered charged off )13. Finance and service charges not included in premiums14. Aggregate write-ins for miscellaneous income15.Total other income (Lines 12 through 14)16.17.18.19.20.Net income before dividends to policyholders and before federal and foreign income taxes (Lines 8 11 15)Dividends to policyholdersNet income, after dividends to policyholders but before federal and foreign income taxes (Line 16 minus Line 17)Federal and foreign income taxes incurredNet income (Line 18 minus Line 19) (to Line 22)CAPITAL AND SURPLUS ACCOUNT21. Surplus as regards policyholders, December 31 prior year (Page 4, Line 38, Column 2)GAINS AND (LOSSES) IN SURPLUS22.23.24.25.26.27.28.29.30.31.32.Net income (from Line 20)Change in net unrealized capital gains or (losses)Change in net unrealized foreign exchange capital gain (loss)Change in net deferred income taxChange in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 26, Col. 3)Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1)Change in surplus notesSurplus (contributed to) withdrawn from protected cellsCumulative effect of changes in accounting principlesCapital changes:31.1. Paid in31.2. Transferred from surplus (Stock Dividend)31.3. Transferred to surplusSurplus adjustments:32.1. Paid in32.2. Transferred to capital (Stock Dividend)32.3. Transferred from capitalNet remittances from or (to) Home OfficeDividends to stockholdersChange in treasury stock (Page 3, Lines 34.1 and 34.2, Column 2 minus Column 1)Aggregate write-ins for gains and losses in surplus33.34.35.36.37. Change in surplus as regards policyholders for the year (Lines 22 through 36)38. Surplus as regards policyholders, December 31 current year (Line 21 plus Line 37) (Page 3, Line 35)DETAILS OF WRITE-INS0598. Summary of remaining write-ins for Line 5 from overflow page0599. Totals (Lines 0501 thru 0503 plus 0598) (Line 5 above)1498. Summary of remaining write-ins for Line 14 from overflow page1499. Totals (Lines 1401 thru 1403 plus 1498) (Line 14 above)3698. Summary of remaining write-ins for Line 36 from overflow page3699. Totals (Lines 3601 thru 3603 plus 3698) (Line 36 above)4amount2Prior Year