S&P’s Revises Travelers Outlook

S&P’s affirmed its “A-” counterparty credit and senior debt ratings on Travelers Property Casualty Corp. and its “AA-” counterparty credit and financial strength ratings on members of the Travelers Property Intercompany pool and Travelers Casualty and Surety Co. of America (collectively, Travelers). However, the outlook was revised to negative from stable due to concern over asbestos exposure and its potential effect on Travelers’ prospective capital position.

The company is currently studying the adequacy of its present $950 million in asbestos reserves relative to current and expected market conditions, claims and settlements. This study should be completed by January.

The ratings affirmations reflect the consolidated company’s very strong and competitive market positions in both the commercial and personal lines of the P/C marketplace, consistent underwriting and expense control discipline, and very strong capital strength.

Travelers is expected to see significant increases in premium written in 2002 and 2003, attributable to organic growth as well as rate increases. Operating earnings are expected to remain very strong with the commercial combined ratio expected to remain less than
100 percent, while personal lines combined ratio will be between 98 percent to 102 percent.

Topics Trends