AM Best has downgraded the financial strength rating of Traverlers Property Casualty Pool from A++ (superior) to A+ (superior). The rating has been removed from under review and assigned a stable outlook.
At the same time, it has affirmed the financial strength rating of The St. Paul Companies as A (excellent), with the rating removed from under review and assigned a positive outlook.
It has also downgraded the debt ratings to “a” from “aa-“ on senior and to “a-“ from “a+” for the subordinated notes issued by Travelers Property Casualty Corp and Travelers Insurance Group Holdings. These ratings have been removed from under review and assigned stable outlooks.
The ratings agency has also upgraded the debt ratings to “a” from “bbb+” on senior, to “a-” from “bbb” on subordinated, to “bbb+” from “bbb-”on trust preferred securities, to “bbb+” from “bbb-”on preferred stock and to AMB-1 from AMB-2 on the commercial paper program of the former The St. Paul Companies, now known as The St. Paul Travelers Companies.
These ratings have also been removed from under review and assigned stable outlooks.
It said the ratings actions follow the close of the merger between Travelers and The St. Paul, and AM Best’s review of the operating and financial impacts this merger will have on the Travelers PC Pool, St. Paul Companies and the combined holding companies.
