UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 9, 2005
The St. Paul Travelers Companies, Inc.
(Exact name of registrant as specified in its charter)
Minnesota 001-10898 41-0518860
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification Number)
385 Washington Street
Saint Paul, Minnesota 55102
(Address of principal executive offices) (Zip Code)
(651) 310-7911
(Registrant's telephone number,
including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (see General Instruction A.2. below):
[_] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure.
Property and Physical Damage Reinsurance
In light of the number of inquiries received following Hurricane Katrina, The
St. Paul Travelers Companies, Inc. (the "Company") is providing the following
additional detail regarding its property and physical damage reinsurance
program.
The Company has property and other physical damage treaties that, subject to
certain limitations and aggregate limits contained in the treaties, limit its
Commercial and Specialty loss exposure to $15 million per individual insured
property. For certain of these risks, the Company also has facultative and
other treaty reinsurance that reduces its loss exposure to less than $15
million per individual insured property.
In addition, the Company has a corporate-wide General Catastrophe Reinsurance
Treaty (the "Treaty") with nonaffiliated reinsurers to mitigate its loss
exposure resulting from a single occurrence. The Treaty covers the Company's
property and other physical damage insurance coverages, including U.S. located
insurance coverages underwritten by the Company's Lloyd's operations. For the
accumulation of such losses arising out of a single occurrence, the Treaty
covers approximately 62% of total losses between $750 million and $1 billion
and approximately 72% of total losses between $1 billion and $2 billion. The
Treaty includes a mandatory reinstatement clause that, to the extent the
Treaty is utilized, provides coverage for one additional occurrence for
further consideration. The Treaty excludes nuclear, chemical and biochemical
losses for domestic terrorism and all terrorism losses as defined by the
Terrorism Risk Insurance Act of 2002. The Treaty also excludes insurance
coverages underwritten in the United Kingdom, Republic of Ireland, and
non-U.S. located coverages underwritten by the Company's Lloyd's operations,
where separate catastrophe coverage is purchased locally and generally results
in significantly lower net loss exposure levels than in the General
Catastrophe agreement.
The Company conducts an ongoing review of its risk and catastrophe coverages
and makes changes it deems appropriate. For additional information concerning
reinsurance, see the section titled "Reinsurance" in the Company's Form 10-K
for the fiscal year ended December 31, 2004.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: September 9, 2005 THE ST. PAUL TRAVELERS COMPANIES, INC.
By: /s/ Bridget M. Healy
-----------------------------------
Name: Bridget M. Healy
Title: Senior Vice President