Business Editors
HARTFORD, Conn.--(BUSINESS WIRE)--March 22, 2004
Travelers Property Casualty (NYSE: TAP.A and TAP.B) and Equitas Limited (EQU.YY) have reached a comprehensive settlement of policies existing between Travelers and those Underwriters at Lloyd's of London reinsured by Equitas. Under the terms of the agreement, Travelers will receive $245 million, resolving net claim balances of approximately $255 million from Equitas. If Federal asbestos reform legislation is enacted into law by the 108th U.S. Congress, Equitas may elect to recoup approximately $150 million from Travelers and, if Equitas makes that election, the reinsurance agreements for asbestos coverage and certain claim disputes related thereto, will be reinstated. The settlement covers current and future reinsurance claims against certain Lloyd's underwriters arising from policies issued prior to 1993 by Travelers and the former Aetna companies acquired by Travelers in 1996.
"This transaction brings to closure, on fair and equitable terms, the reinsurance agreements between Travelers and the Lloyd's market prior to 1993," said Scott Belden, Managing Director, Risk and Reinsurance.
The settlement also resolves current and future reinsurance claims against Travelers by the Underwriters at Lloyd's of London reinsured by Equitas related to pre-1993 policies. Reinsurance claims by Travelers against other London market reinsurers are not affected by this settlement. The transaction is not expected to impact Travelers earnings.
About Travelers Property Casualty
Travelers Property Casualty Corp. (NYSE: TAP.A and TAP.B) is a leading provider of a wide range of insurance products. Travelers is the third largest commercial lines insurer, providing a broad range of insurance products including workers' compensation, integrated disability, property, liability, specialty lines, surety bonds, inland/ocean marine, and boiler and machinery. The Company is the second largest writer of homeowners and auto insurance through independent agents. On November 17, 2003, Travelers announced an agreement to merge with The St. Paul Companies, Inc. The merger is expected to be completed in the second quarter of 2004. For more information on Travelers, see www.travelers.com.
SUBJECT: TAPA, TAPB, TAP.A, TAP.B, TAPa, TAPb, TAP.a, TAP.b, TAP/A, TAP/B, TAP/a, TAP/b
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts may be forward-looking statements. Many risks and uncertainties may impact the matters addressed in forward-looking statements, and actual results may differ materially from those expressed or implied. For a discussion of the factors that could cause actual results to differ, please see the disclosure under the heading "Forward-Looking Statements" in the Company's most recent annual report on Form 10-K filed with the Securities and Exchange Commission.
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