St. Paul Travelers has completed combining its two major insurance pools, the Travelers Property Casualty Pool and select companies of the St. Paul Insurance Group.
The St. Paul, Minn.-based carrier said that the combination has received all regulatory approvals and is effective July 1, retroactive to Jan. 1.
Shane Boyd, a spokesman for the carrier said the carrier decided to join the two pools to increase flexibility in capital.
The company also announced that it has merged Gulf Insurance Company into Travelers Indemnity Company, the lead company of the newly combined pool, also effective July 1.
A.M. Best, the Oldwick, N.J.-based insurance rating firm gave a financial strength rating of "A-plus (Superior)" and an issuer credit rating of "double-a-minus" to the newly formed pool.
Best also affirmed the debt rating of "a-minus" on senior debt; "triple-b-plus" on subordinated debt; "triple-b" on trust preferred securities; "triple-b" on preferred stock and "AMB-1″ on commercial paper of St. Paul Travelers and its subsidiaries.
According to figures from National Underwriter Insurance Data Services, St. Paul Travelers and its affiliates reported net written premiums of more than $19 billion in 2004; total assets of less than $69 billion; and a surplus of more than $14 billion.
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