Travelers 2008 Annual Report Download - page 41

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Guaranty Insurance Underwriters, Inc., Discover Property & Casualty Insurance Company, Discover Specialty
Insurance Company and United States Fidelity and Guaranty Company.
(b) The following affiliated companies are 100% reinsured by one of the pool participants noted in (a) above:
Fidelity and Guaranty Insurance Company, Gulf Underwriters Insurance Company, American Equity
Insurance Company, Select Insurance Company, St. Paul Fire and Casualty Insurance Company, The
Travelers Lloyds Insurance Company and Travelers Lloyds of Texas Insurance Company. In addition, at
December 31, 2008, Seaboard Surety Company, an affiliated company, was 90% reinsured by The Travelers
Indemnity Company, one of the pool participants noted in (a) above. Effective January 1, 2009, Seaboard
Surety Company was merged into Travelers C&S Co. of America.
Debt Ratings
The following table summarizes the current debt, preferred stock and commercial paper ratings of
the Company and its subsidiaries as of February 19, 2009. 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) A2 (6th of 21) A(7th of 22) A (6th of 24)
Subordinated debt ....... bbb+ (8th of 22) A3 (7th of 21) BBB+ (8th of 22) A(7th of 24)
Junior subordinated debt . . bbb (9th of 22) A3 (7th of 21) BBB (9th of 22) A(7th of 24)
Trust preferred securities . . bbb (9th of 22) A3 (7th of 21) BBB (9th of 22) A(7th of 24)
Preferred stock ......... bbb (9th of 22) Baa1 (8th of 21) BBB (9th of 22) —
Commercial paper ....... AMB-1 (2nd of 6) P-1 (1st of 3) A-2 (3rd of 10) F-1 (2nd of 7)
Rating Agency Actions
The following rating agency actions were taken with respect to the Company in 2008 and through
February 19, 2009:
• On March 17, 2008, Fitch affirmed all ratings for the Company. The outlook remained stable.
• On May 7, 2008, A.M. Best affirmed the financial strength rating of ‘‘A’’ for Travelers Guarantee
Company of Canada. The outlook is stable.
• On June 3, 2008, A.M. Best affirmed all of its ratings for the Company’s debt, preferred stock
and commercial paper listed in the foregoing table. Concurrently, A.M. Best affirmed the
financial strength ratings of the Travelers Reinsurance Pool, Travelers C&S Company of
America, First Floridian Auto and Home Insurance Company, First Trenton Indemnity
Company, The Premier Insurance Company of Massachusetts and Travelers C&S Company of
Europe, Ltd. listed in the foregoing table. The outlook is stable.
• On June 6, 2008, Moody’s upgraded the ratings of the Company (senior unsecured debt to ‘‘A2’’
from ‘‘A3,’’ commercial paper to ‘‘P-1’’ from ‘‘P-2’’) and its subsidiaries (including Travelers
Indemnity Company and its pooled or otherwise supported affiliates—insurance financial
strength to ‘‘Aa2’’ from ‘‘Aa3’’). The outlook is stable.
• On August 14, 2008, Standard & Poor’s affirmed the financial strength rating of ‘‘3’’ for
Travelers Syndicate Management Limited—Syndicate 5000. The outlook is stable.
• On November 17, 2008, A.M. Best affirmed the financial strength rating of ‘‘A’’ for Travelers
Insurance Company Limited. The outlook remains stable.
• On February 13, 2009, Fitch affirmed all ratings for the Company. The outlook remained stable.
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