The Travelers said it does not want financial help from the Treasury Department under the federal bailout program.
In a statement today, the St. Paul, Minn.-based insurer said it has sent a letter to Treasury Secretary Henry Paulson saying it does not require or intend to request any financial assistance from the Treasury.
The letter, from the company's Chairman and Chief Executive Officer Jay Fishman to Mr. Paulson, stated that while noting the financial turmoil and its toll on insurers, the company does not need to participate in any financial rescue program and has no intention of requesting any assistance.
In a letter the company made public, Mr. Fishman said Travelers has grown its book value 3.5 percent over the past 12 months, after returning close to $4 billion to shareholders through stock repurchases and dividends. Additionally, the company said its financial strength indicators "are at or better than target levels, including holding company liquidity of $2.1 billion."
"Travelers is a strong, resilient and well-capitalized property-casualty insurance company which has been thoughtfully managed," he wrote Mr. Paulson.
He noted that members of the American Insurance Association said yesterday that they do not feel they need to participate in the program.
A few life companies, he said, have found themselves in different circumstances and have expressed interest in participating in the program.
"We would encourage a thorough exploration of private market solutions in these circumstances, preserving federal financial assistance for more acute problems," he wrote, adding that Travelers "would be pleased to offer any technical assistance that might be helpful to you or your team."
Yesterday, the AIA issued a statement from its chairman, Evan Greenberg, also chairman and CEO of ACE Group, stating the majority of its members do not need to deal with the program that would purchase troubled assets.
A statement issued recently by Frank Keating, president of the American Council of Life Insurers, said he welcomed the news that Treasury officials were thinking about including insurers in the capital purchase program. The association said that the support of insurers would be critical for the stability of the financial system.
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