St. Paul Hikes Reserves; Is It Enough?
The St. Paul Companies is taking a $228 million after-tax charge for its 2003 fourth quarter to strengthen reserves on rising medical malpractice claims in its runoff health care business, although one rating agency is questioning whether the addition will be sufficient.
In related news, St. Pauls proposed merger partnerTravelers Property Casualty Corp.might soon take another asbestos charge in the $1 billion range, one investment banking firm speculated. Both carriers are eager to settle any lingering reserve issues before they enter into their planned merger, analysts contend.
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