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News Analysis - Made in heaven?
(From Reinsurance)
By Adrian Leonard.
Surprise greeted the 17 November merger announcement which outlined the creation of The St Paul Travelers Companies. No-one loudly predicted the marriage of the eponymous US insurers, but one key hint led to gossip: late in 2001 St Paul hired Jay Fishman as chief executive, taking him away from his post of chairman and chief executive of Travelers. The appointment was made about two months before Travelers' owner Citigroup announced it was to spin-off the insurer, and put veteran chief executive Bob Lipp back into the chair in Mr Fishman's absence - although Mr Fishman has declared emphatically that neither de-merger nor combination were suggested until June 2003.
Most analysts' commentary about the new company (which sadly will not drop The St Paul's redundant article) agrees that the merger should be smooth and positive, given the mergers and acquisitions (M&A) experience of both companies individuals and their companies. Clients should not be disadvantaged, since the business of the pair appears genuinely complementary.
It may take some time to see how much baggage each partner has brought to the party, but Mr Lipp has insisted that actuarial diligence was thorough.
Reinsurance savings
However, reinsurers may feel an impact. In announcing the merger, Mr Fishman revealed details of the transaction, including a forecast for decreased reinsurance spending. Unfortunately the total forecast decrease in outwards premium was included in an enhanced revenue projection, leaving little room to speculate how great the decline could be. He said reinsurance savings "will accrue to the transaction because of the way our mix falls together".
- St. Paul Travelers Cos. Ratings Affirmed; Outlook Stable.
- Press release article from: Business Wire July 23, 2004 700+ words
...and senior debt ratings on St. Paul Travelers Cos. (See ratings list...following today's announcement by St Paul Travelers that it strengthened its net...2004, which was before the St. Paul/Travelers merger on April 1, 2004...
- St. Paul Travelers settles bid-rigging charges; $77 million payout to end 3...
- Magazine article from: Business Insurance August 7, 2006 700+ words
...PAREKH ST. PAUL, Minn.-St. Paul Travelers Cos. Inc. last week became...affect its bottom line. The St. Paul Travelers' agreement ends investigations...St. Paul, Minn.-based St. Paul Travelers improperly used finite reinsurance...
- St. Paul Travelers insurance to cut 3,000 jobs nationally after merger.
- Newspaper article from: Knight Ridder/Tribune Business News July 24, 2004 700+ words
...Business News Jul. 24--The St. Paul Travelers Cos. said Friday it will cut...first disclosure of numbers. St. Paul Travelers stands by its previous statement...298 people here. Meanwhile, St. Paul Travelers' dramatic reserve strengthening...
- St. Paul Cos., Travelers Property Complete Merger.
- Newspaper article from: Saint Paul Pioneer Press (St. Paul, Minnesota) (via Knight-Ridder/Tribune Business News) April 2, 2004 700+ words
...available for interviews Thursday. The new St. Paul Travelers enters a two-year transition period...said Joan Palm, a spokeswoman for The St. Paul Travelers. Analysts say The St. Paul Travelers must focus on integrating duplicate departments...
- St. Paul-Travelers marriage seen as exception, not trend.(Top Stories Of The...
- Magazine article from: National Underwriter Property & Casualty-Risk & Benefits Management Ha, Michael November 24, 2003 700+ words
...Corp. to merge and create The St. Paul Travelers Companies is receiving a mostly...Mr. Fishman will become The St. Paul Travelers' chief executive, while Robert...glimpse of what's to come: The St. Paul Travelers Companies will be the second...
- Travelers eliminates St. Paul from its nameplate: But insurer says it has no...
- Newspaper article from: Saint Paul Pioneer Press (St. Paul, MN) February 14, 2007 700+ words
...s what executives at the St. Paul Travelers Cos. have decided anyway...under one name -- either The St. Paul or Travelers -- instead of two. Research...consumers were more familiar with Travelers. "The St. Paul hasn't been in the consumer...
- St. Paul Travelers to Join EPA's Climate Leaders Program.
- Press release article from: Business Wire October 6, 2006 700+ words
...Buildings SAINT PAUL, Minn. -- The St. Paul Travelers Companies, Inc. ("St. Paul Travelers," NYSE:STA) announced today its...communities in which it does business. St. Paul Travelers is one of the first insurance companies...
- Travelers ads drop 'St. Paul': Two brands are too much to market, insurer says.
- Newspaper article from: Saint Paul Pioneer Press (St. Paul, MN) June 8, 2006 700+ words
...Sheryl Jean Jun. 8--At St. Paul Travelers Cos., the "St. Paul...corporate name, its logo and the "St. Paul Travelers" sign atop its downtown St...chief administrative officer at St. Paul Travelers, reassured St. Paul Mayor...