Very strong competitive position as one of the largest writers of commercial and personal property/casualty (P/C) insurance in the U.S. Strong operating performance. Very strong operating company capitalization. Conservative financial leverage and strong coverage ratios. Substantial exposure to asbestos claims. Potential for further adverse development of claims reserves for companies formerly a part of the St. Paul Fire&Marine Insurance Group. The counterparty credit rating on The St. Paul Travelers Cos. (St. Paul Travelers) is based on the group's very strong market position, strong operating performance, very strong operating company capitalization, and conservative financial leverage and coverage ratios. The ratings also reflect our view that the reserving and integration issues arising from the merger of St. Paul Cos. Inc.
