A.M. Best Affirms Rating of Travelers PC Pool and Debt Ratings of St. Paul Travelers; Removes Ratings From Under Review.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) of Travelers Property Casualty Pool (Travelers PC Pool) (Hartford, CT). Concurrently, A.M. Best has affirmed the debt ratings of "a-" on senior debt, "bbb+" on subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". , "bbb" on trust preferred securities, "bbb" on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and AMB-1 on commercial paper of The St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery Travelers Companies The Travelers Companies (NYSE: TRV) is the second largest underwriter of commercial property casualty and personal insurance in the United States. The company is headquartered in St. Paul, Minnesota and has major operations in Hartford, Connecticut. , Inc. (St. Paul Travelers) (NYSE NYSE See: New York Stock Exchange : STA) (St. Paul, MN) and its subsidiaries. A.M. Best has removed these ratings from under review and assigned them a stable outlook. The ratings had been placed under review with negative implications pending St. Paul Travelers' planned divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of its 78% equity ownership of Nuveen Investments Nuveen Investments is a public company in the asset management industry. References http://www.nuveen.com Nuveen's Corporate Website , Inc. (Nuveen). A.M. Best also has affirmed the financial strength rating of A (Excellent) of the St. Paul Companies (St. Paul, MN). The outlook for this rating is stable. Additionally, A.M. Best has assigned issuer credit ratings of "aa-" to Travelers PC Pool and its rating unit members and "a" to St. Paul Companies and its rating unit members. These ratings also have been assigned a stable outlook. These rating actions follow St. Paul Travelers receiving net cash proceeds of approximately $1.9 billion from a secondary stock offering and related stock sales as part of its divestiture of Nuveen. Approximately $400 million of these proceeds were received by St. Paul Fire & Marine related to its ownership in Nuveen, with the holding company having received the balance of $1.5 billion. Additional net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $500 million are expected to be received by the holding company from the divesture of remaining shares and other forward stock sales related to the Nuveen divestiture over the next several months, but by December 23, 2005, at the latest. The rating actions recognize approximately $1.7 billion of the holding company's proceeds from the Nuveen divestiture will be contributed to St. Paul Travelers' insurance subsidiaries--primarily the St. Paul Companies--following the conclusion of St. Paul Travelers' exploration and analysis of strategic alternatives for combining its major insurance pools. This study is expected to be completed within the next several months. St. Paul Travelers' divestiture of Nuveen has already resulted in a substantial improvement in holding company liquidity and tangible net worth Tangible Net Worth Total assets less intangible assets and total liabilities. Notes: In terms of a consumer, tangible net worth is the sum of all your tangible assets (cash, home, cars, etc). through a significant reduction in goodwill and increase in cash. The transaction and subsequent contributions from the holding company are expected to provide St. Paul Companies with a sizable capital cushion in the event of further adverse loss reserve development, reduce the potential need for further capital support from Travelers PC Pool and enable dividends from the Travelers PC Pool to build holding company liquidity. For a complete list of The St. Paul Travelers Companies, Inc.'s financial strength and debt ratings, please visit http://www.ambest.com/press/041802stpaultravelers.pdf. For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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