Travelers 2003 Annual Report Download - page 23

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21
Note 8 — Transactions Between SPC and TPC
The preliminary unaudited pro forma condensed combined financial statements have not been adjusted for the impact
of transactions between SPC and TPC. Based on current analysis, such transactions are not expected to have a
significant impact on the preliminary unaudited pro forma condensed combined financial statements.
FORWARD-LOOKING STATEMENTS
This Annual Report to Shareholders may contain certain “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be
forward-looking statements. Specifically, St. Paul Travelers may have forward-looking statements about St. Paul
Travelers results of operations, financial condition and liquidity, the sufficiency of St. Paul Travelers asbestos reserves
and the integration following the merger. Such statements are subject to certain risks and uncertainties, many of which
are difficult to predict and generally beyond St. Paul Travelers control, that could cause actual results to differ
materially from those expressed in, or implied or projected by, the forward-looking information and statements.
In particular, the sufficiency of St. Paul Travelers asbestos reserves, as well as St. Paul Travelers results of operations,
financial condition and liquidity, to the extent impacted by the sufficiency of St. Paul Travelers asbestos reserves, is
subject to a number of potential adverse developments including, among others, adverse developments involving
asbestos claims and related litigation, the willingness of parties, including St. Paul Travelers, to settle disputes, the
impact of aggregate policy coverage limits and the impact of bankruptcies of various asbestos producers and related
businesses.
Some of the other factors that could cause actual results to differ include, but are not limited to, the following: St. Paul
Travelers ability to fully integrate the former SPC and Travelers businesses in the manner or in the timeframe currently
anticipated; St. Paul Travelers inability to obtain price increases due to competition or otherwise; the performance of
St. Paul Travelers investment portfolios, which could be adversely impacted by adverse developments in U.S. and
global financial markets, interest rates and rates of inflation; weakening U.S. and global economic conditions;
insufficiency of, or changes in, loss reserves; the occurrence of catastrophic events, both natural and man-made,
including terrorist acts, with a severity or frequency exceeding St. Paul Travelers expectations; exposure to, and
adverse developments involving, environmental claims and related litigation; the impact of claims related to exposure
to potentially harmful products or substances, including, but not limited to, lead paint, silica and other potentially
harmful substances; adverse changes in loss cost trends, including inflationary pressures in medical costs and auto and
home repair costs; developments relating to coverage and liability for mold claims; the effects of corporate
bankruptcies on surety bond claims; adverse developments in the cost, availability and/or ability to collect reinsurance;
the ability of St. Paul Travelers subsidiaries to pay dividends to St. Paul Travelers; adverse outcomes in legal
proceedings; judicial expansion of policy coverage and the impact of new theories of liability; the impact of legislative
actions, including federal and state legislation related to asbestos liability reform; larger than expected assessments for
guaranty funds and mandatory pooling arrangements; a downgrade in St. Paul Travelers claims-paying and financial
strength ratings; the loss or significant restriction on St. Paul Travelers ability to use credit scoring in the pricing and
underwriting of Personal Lines policies; and amendments and changes to the risk-based capital requirements.
St. Paul Travelers forward-looking statements speak only as of the date of this Annual Report to Shareholders or as of
the date they are made, and St. Paul Travelers undertakes no obligation to update these forward-looking statements.