A.M. Best Affirms Ratings of St. Paul Travelers Insurance Company Limited (UK).

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating (ICR) of "a+" of St. Paul Travelers Insurance Company Limited (SPTIC) (United Kingdom). The outlook for both ratings remains stable.

The ratings reflect SPTIC's excellent risk-adjusted capitalisation and operating performance as well as its strong UK business profile. The ratings also factor in explicit parental support in the form of a guarantee in respect to all SPTIC's liabilities provided by St. Paul Fire and Marine Insurance Company, a subsidiary of SPTIC's ultimate parent, The Travelers Companies, Inc. (St. Paul, MN) (NYSE: TRV).

SPTIC is likely to maintain excellent risk-adjusted capitalisation in 2007 supported by strong underwriting performance and a good investment return. A.M. Best anticipates a reduction in pre-tax profit in 2007, down from GBP 82 million in 2006. The lower level of profit anticipated in 2007 is due to declining rates, UK flood losses of approximately GBP 15-20 million and a lower reserve release (down from GBP 45 million in 2006).

A.M. Best believes that SPTIC has a strong business profile as a leading underwriter of specialist business in the liability and commercial property markets in the United Kingdom. In 2007, A.M. Best expects a modest decrease in gross premiums written from GBP 295 million in 2006 as a result of continued soft market conditions in all lines of business.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.