Travelers 2005 Annual Report Download - page 37

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•On January 31, 2005, A.M. Best placed the financial strength ratingof “A+” of Travelers Property
Casualty Pool and the debt ratings of “a− ” on senior debt, “bbb+ “on subordinated debt, “bbb” on
trust preferred securities, “bbb” on preferred stock and “AMB-1” on commercial paper of The
St. Paul Travelers Companies, Inc. and its subsidiaries under review with negative implications,
pending the close of a potential divestiture of the Company’s investment in Nuveen Investments.
Concurrently, A.M. Best affirmed the financial strength rating of “A” of The St. Paul Insurance
Group. The rating outlook was stable.
•On January 31, 2005, S&P affirmed it’s “A+” counterparty credit and financial strength ratings on
the members of the St. Paul Insurance Group Pool, the members of the Travelers Intercompany
Pool, Travelers Casualty and Surety Co., of America, and Travelers Casualty and Surety Co. of
Europe Ltd. with a stable outlook. S&P also affirmed its “BBB+/A-2” counterparty credit rating on
The St. Paul Travelers Companies, Inc. with a stable outlook.
•On January 31, 2005, Fitch affirmed the “A− ” long-term issuer and senior debt ratings of The
St. Paul Travelers Companies, Inc., Travelers Property Casualty Corp. and Travelers Insurance
Group Holdings, Inc. The “AA− ” insurer financial strength (IFS) ratings of members of the
Travelers Property Casualty Group and the St. Paul Insurance Group Pool were also affirmed. The
outlook for all ratings was stable.
•On February 1, 2005, Moody’s affirmed the long-term debt ratings (senior unsecured debt at A3) of
The St. Paul Travelers Companies, Inc. and also affirmed the Aa3 insurance financial strength
(IFSR) of the members of the legacy Travelers intercompany pool. The outlook for these ratings
was changed to negative from stable. Moody’s also placed the A1 IFSR of the legacy St. Paul
intercompany pool and the A2 IFSR of United States Fidelity and Guaranty Company on review
for possible upgrade. The outlook on the A2 IFSR of the Gulf intercompany pool subsidiaries was
changed to positive from stable. The outlook of the A1 IFSR of Travelers Casualty and Surety
Company of Europe, Limited was changed to positive from developing.
•On April 18, 2005, A.M. Best affirmed the financial strength rating of “A+” of Travelers Property
Casualty Pool and the debt ratings of “a− ” on senior debt, “bbb+” onsubordinated debt, “bbb” on
trust preferred securities, “bbb” on preferred stock and “AMB-1” on commercial paper of The
St. Paul Travelers Companies, Inc. and subsidiaries. A.M. Best also removed these ratings from
under review and assigned a stable outlook. The ratings had been placed under review pending the
close of a potential divesture of the Company’s investment in Nuveen Investments.
•On July13, 2005, A.M. Best assigned a financial strength rating (FSR) of “A+” and an issuer credit
rating (ICR) of “aa− ” to the members of the newly formed St. Paul Travelers Reinsurance Pool.
This ratings action followed the Company’s announcement that it had combined the St. Paul and
Travelers pools, forming a new pool effective July 1, 2005, retroactive to January 1, 2005 and
merged Gulf Insurance Company, the lead company of the former Gulf Insurance Group, with and
into Travelers Indemnity Company, the lead company of the new pool, effective July 1, 2005. The
28 participants in the new pool, 17 reinsured affiliates and Travelers Casualty and Surety of
America constitute the 46 members of A.M. Best’s new rating unit, St. Paul Travelers Insurance
Companies. As a result of the new pooling arrangement, A.M. Best upgraded the FSRs to “A+”
from “A” and the ICRs to “aa− ” from “a” of the 18 members of the former St. Paul Insurance
Group; affirmed the FSRs of “A+” and ICRs of “aa− ” of the 24 members of the former Travelers
Property Casualty Pool; and upgraded the FSRs to “A+” from “A− ” and ICRs to “aa − ” from “a− ”
of three members of the former Gulf Insurance Group. In addition, A.M. Best affirmed the debt
ratings of “a − ” on senior debt, “bbb+” on subordinated debt, “bbb” on trust preferred securities,
“bbb” on preferred stock and AMB-1 on commercial paper of the Company and its subsidiaries.
The outlook for all ratings was stable.