Jay Fishman, the company's chairman and chief executive officer, during an investor's conference call said the past year was a challenge as the company completed "our strategic repositioning as well as getting a significant asbestos loss behind us."

For the fourth quarter, three months ending Dec. 31, 2002, the company reported net income of $244.2 million compared to a loss of $736 million in 2001. Earnings per share rose to $1.02 for the three months compared to a loss of $3.57 in 2001. This was on revenues of $2 billion compared to $2.4 billion for the three months in 2001.

For the year, St. Paul said net income stood at $217.8 million for 2002 compared to a loss of $1.1 billion in 2001. Earnings per share stood at 92 cents compared to 2001 loss of $5.22 per share. Revenues remained the same at $8.9 billion.

The company said its departure from some businesses, such as reinsurance, and medical malpractice contributed to the improved results. The company also eliminated 1,500 positions and focused on lines it said were more profitable, such as small commercial.

The company currently has $326 million in reserve for asbestos claims, which Mr. Fishman said he felt was a comfortable figure.

Tim Yessman, executive vice president for claims, outlined why the company feels its reserve figure is adequate. He said the company's exposure is only with small regional companies with minimal amount of liability. The company faces few bankruptcy or asbestos coverage litigation, he added.

The company's combined ratio was 101. Pricing increases ran on average at 27 percent for the year and 25 percent for the quarter, Mr. Fishman said.

"We feel very good about where we are and where we are going," Mr. Fishman said.

Details of the fourth-quarter release and the company's analysis of its asbestos position are available at www.stpaul.com.