A.M. Best Assigns Debt Rating to St. Paul Travelers' New Senior Notes.OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "a-" to the forthcoming $400 million senior unsecured notes due 2015 to be issued by 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). St. Paul Travelers intends to use the 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 the issuance to repay a large portion of its current outstanding commercial paper. The senior notes are being issued under a $1.7 billion universal shelf registration filed in January 2003. The existing debt and financial strength ratings of St. Paul Travelers and its subsidiaries are unchanged. All ratings have a stable outlook, with the exception of the ratings for one insurance subsidiary. The rating reflects St. Paul Travelers' solid capitalization, significant earnings power and dominant market profile in commercial, specialty and personal lines. The rating acknowledges the group's strategic focus on profitability, emphasizing both underwriting and financial discipline. The rating also considers the $2.4 billion of proceeds from St. Paul Travelers' 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 Nuveen Investments Nuveen Investments is a public company in the asset management industry. References http://www.nuveen.com Nuveen's Corporate Website , Inc. in 2005, approximately $1.6 billion of which was received by members of St. Paul Travelers Insurance Companies (St. Paul, MN) by virtue of ownership of Nuveen or contributions from St. Paul Travelers. These funds are expected to provide St. Paul Travelers Insurance Companies with a sizable capital cushion in the event of potential further adverse loss reserve development. St. Paul Travelers' debt to total capital at September 30, 2005 was 20.8%, down from 24.5% at year-end 2004 due to debt reduction and solid net income despite significant catastrophe losses resulting from hurricanes Katrina and Rita in the third quarter. Based on a review of St. Paul Travelers' sources and uses of funds and an expectation of continued profitable operating performance, A.M. Best is optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op St. Paul Travelers will be able to maintain stable financial leverage measures at the holding company in 2005 and 2006. In addition, barring substantial catastrophe losses or reserve strengthening, A.M. Best is expecting cash at the holding company to increase from $223 million at year-end 2004 to near $1.4 billion at year-end 2005, and continue to rise in 2006. For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit 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 www.ambest.com. |
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