Travelers 2006 Annual Report Download - page 41

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Insurance Company, The Automobile Insurance Company of Hartford, Connecticut, Travelers
Casualty Insurance Company of America, Farmington Casualty Company, Travelers Commercial
Insurance Company, Travelers Casualty Company of Connecticut, Travelers Property Casualty
Insurance Company, Travelers Personal Security Insurance Company, Travelers Personal Insurance
Company, Travelers Excess and Surplus Lines Company, St. Paul Fire and Marine Insurance
Company, St. Paul Surplus Lines Insurance Company, Athena Assurance Company, St. Paul
Protective Insurance Company, St. Paul Medical Liability InsuranceCompany, Discover Property &
Casualty Insurance Company, Discover Specialty Insurance Company, and United States Fidelity and
Guaranty Company.
(b) The following affiliated companies are100% reinsured by one of the pool participants noted in
(a) above: Atlantic Insurance Company, Fidelity and Guaranty Insurance Company, Fidelity and
Guaranty Insurance Underwriters, Inc., Gulf Underwriters Insurance Company, Seaboard Surety
Company, Select Insurance Company, St. Paul Fire and Casualty Insurance Company, St. Paul
Guardian Insurance Company, St. Paul Mercury Insurance Company, The Travelers Lloyds Insurance
Company and Travelers Lloyds of Texas Insurance Company.
(c) The Northland Pool consists of: Northland Insurance Company, Northfield Insurance Company,
Northland Casualty Company, Mendota Insurance Company, Mendakota Insurance Company,
American Equity Insurance Company and American Equity Specialty Insurance Company. In
January 2007,the Company reached a definitive agreement to sell Mendota Insurance Company and
its wholly-owned subsidiary, Mendakota Insurance Company.
(d) In December 2006, the Company reached a definitive agreement to sell its Mexican subsidiary,
Afianzadora Insurgentes,S.A. de C.V.
Debt Ratings
The following table summarizes the current debt, preferred stock and commercial paper ratings of the
Company and its subsidiaries by A.M. Best, Moody’s, S&P and Fitch as of February 23, 2007. The table
also presents the position of each rating in the applicable agency’s rating scale.
A.M. Best Moody’s S&P Fitch
Senior debt............. a- (7th of 22) A3 (7th of21) A- (7th of22) A- (7th of 22)
Subordinated debt ....... bbb+ (8th of 22) Baa (8th of 21) BBB (9th of 22) A- (7th of 22)
Junior subordinated debt .bbb+ (8th of 22) Baa (8th of 21) BBB- (10th of 22) BBB+ (8th of 22)
Trust preferred securities .bbb (9th of 22) Baa (8th of 21) BBB- (10th of 22) BBB+ (8th of 22)
Preferred stock .......... bbb (9th of 22) Baa2 (9th of 21) BBB- (10th of 22) BBB+ (8th of 22)
Commercial paper........ AMB-1 (2nd of 6) Prime-2 (2nd of 4) A-2 (3rd of 8) F-2 (3rd of 8)
Rating Agency Actions
The following rating agency actions were taken with respect to the Company in 2006 and through
February 23, 2007:
•On February 2, 2006, Fitch affirmed all ratings of the Company, including the “A-” long-term issuer
rating, “A-” ratings on the Company’s senior unsecured notes, and “BBB+” ratings on the
Company’s subordinated notes in capital securities. Additionally, Fitch affirmed the “AA-” insurer
financial strength (IFS) ratings on members of the Travelers Reinsurance Pool. The rating outlooks
are stable.